Ms. JAHANARA vs PUNJAB COOPERATIVE BOARD FOR LIQUIDATION Ss — 2025 CLC 1307 LAHORE-HIGH-COURT-LAHORE

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Ms. JAHANARA VS PUNJAB COOPERATIVE BOARD FOR LIQUIDATION Ss.5 & 7---Cooperative Boards (PCBL)---Powers and objectives---Property of the Cooperative Board (PCBL) alienated by its Chairman through a private transaction---Powers of the Chairman of Cooperative Board discussed---Mere depositing of amount under an unauthorized/unlawful transaction does not confer any vested legal right---In the present Constitutional petitions, the petitioners challenged an order by the Cooperative Judge dismissing their petitions seeking transfer of shops, based on a private deal with Chairman PCBL, instead of participating in the auction proceedings---High Court considered as to whether the Chairman, PCBL had any jurisdiction to unilaterally alienate the property of PCBL through any private treaty/ negotiation---Held: Perusal of the Punjab Undesirable Cooperative Societies (Dissolution) Act, 1993 showed that no such provision was available in the said enactment whereby Chairman, PCBL was shown competent to pass order for selling the property of the PCBL through any private negotiation / treaty---Moreover, section 5 of the Act ibid empowered the government to constitute a Cooperative Board which shall consist of a Chairman and at least two members---The said Board is bestowed with the jurisdiction under Section 7 of the Act ibid to exercise power as a liquidator under the Cooperative Societies Act, 1925 along with ancillary administrative powers as well---The Chairman, PCBL was not vested with any exclusive power to alienate the properties, assets of the Board through any private treaty or understanding---Even otherwise, no bidder participated in the auction---Attempt of selling through auction remained unsuccessful and present petitioners had not participated in auction process rather they chose a novel avenue to acquire the shops through under the table settlement which always remains vulnerable to collusivety, nepotism, favourtism and corrupt practices and such practice dwindled the legality and veracity of said mode of transactions and thus any arbitrary alienation of public assets at a miserably throw away price remained always open for interference by the competent fora---Further, making of unwarranted deposit of some small amount did not create any right to bound down the owner Board to acknowledge the private treaty and even no document was placed on the record to show that the Chairman was authorized by the Board through any resolution/ consensus of the Board to alienate the shops in question in favour of the petitioners---Petitioners having dragged a state institution in futile and frivolous litigation since the year 2002 without having any sort of valid right were burdened with special cost of Rs.10,00,000/---Petitions were dismissed, in circumstances.

Ms. JAHANARA vs PUNJAB COOPERATIVE BOARD FOR LIQUIDATION Ss — 2025 CLC 1307 LAHORE-HIGH-COURT-LAHORE

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