New Delhi/Ahmedabad

The Supreme Court has today pronounced judgement in Vipul Chaudhary vs GCMMF case.

Vipul Chaudhary’s appeals against his removal as Chairman of GCMMF by no-confidence motion have been dismissed and the Gujarat High Court judgement in favour of GCMMF has been upheld.

The court had held that democratic principles have to be read into the Statute pertaining to Co-op societies and hence there is a power of the Board of Directors to pass a “no confidence” motion.

LIST OF EVENTS:

1. 14 Directors of the Board submitted a requisition letter dated 23/24-10-2013 to MD, GCMMF for arranging the GCMMF Board meeting to discuss “No confidence motion” against Sh. Vipul Chaudhary, Chairman, GCMMF.

2. Accordingly, as per provisions of the bye-law No.26.2.16, a Board meeting notice dated 23-10-2013 was issued by MD to the GCMMF Board of Directors for the meeting to be held on 26-10-2013.

3. The said notice was challenged by Shri Vipul Chaudhary in the Gujarat High Court where in stay granted on Board meeting to be convened on 26-10-13 for no confidence motion.

4. The above stay order challenged in Division Bench and vide order dated 4-12-13, Division Bench modified the order of the Single Judge and granted permission to convene the Board Meeting to discuss No Confidence Motion.

5. In the meeting dated 5-12-2013, 14 out of 16 Directors, unanimously passed the Resolution of No confidence motion against Chairman, GCMMF.

6. Shri Vipul Chaudhary challenged the order of Division Bench before the Hon’ble Supreme Court. However no relief was granted and as per direction of Supreme court, new Chairman of GCMMF was elected on 1-8-2014.

7. After arguments of both the side, Supreme Court finally, passed order dated 19-3-2015 and dismissed appeal filed by Sh. Vipul Chaudhary and hold that democratic principles have to be read into the statute pertaining to Co-op Societies and hence there is a power to pass “no confidence” motion.

8. It may be noted that Gujarat Government has issued an order on 12-3-2015 under Section 76/B of Gujarat Cooperative Societies Act removing Sh Vipul Chaudhary as Chairman of Mehsana District Cooperative Milk Producers Union Ltd. Mehsana also in view of the corruption and financial irregularities amounting to Rs 1200 crores.

© Copyright DeshGujarat. All rights reserved. Republication or redistribution of any DeshGujarat content, including by framing or similar means, is expressly prohibited without their prior written consent.