THE PROVINCE OF PUNJAB THROUGH CHIEF SECRETARY, GOVERNMENT OF THE PUNJAB, LAHORE vs T&T EMPLOYEES IDEAL COOPER

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THE PROVINCE OF PUNJAB THROUGH CHIEF SECRETARY, GOVERNMENT OF THE PUNJAB, LAHORE VS T&T EMPLOYEES IDEAL COOPERATIVE HOUSING SOCIETY LIMITED. Cl. 5---Co-operative Societies Act (VII of 1925), S. 43---Constitution of Pakistan, Arts.129 & 139(3)---Complaints of financial mismanagement and administrative irregularities against a cooperative housing society---Power of Chief Minister to order initiation of inquiry---Scope---High Court accepting society's plea that only Registrar of Cooperative Societies could hold inquiry against the society---Legality---Acting upon the complaint received against working of a cooperative housing society, the Chief Minister directed his inspection team to conduct an inquiry---The society challenged this inquiry before the High Court under Article 199 of the Constitution, contending that the Chief Minister had no authority to order such inquiry since the Cooperative Societies Act, 1925 provided its own mechanism for supervision and inquiry---The High Court accepted the society's plea and set aside the inquiry proceedings---Against High Court's decision, the Government of Punjab filed the present petition before the Supreme Court---Pivotal question requiring determination before the Supreme Court was as to "Whether the Chief Minister, under Clause 5(2) of the Punjab Government Rules of Business, 2011, possessed the legal authority to initiate or order an inquiry into the affairs of a cooperative society registered under the Cooperative Societies Act, 1925, notwithstanding the specialized supervisory mechanism prescribed under the said Act"?---Held: It was clear from Clause 5 sub-clause (2) that the Chief Minister could call for any case or information from any department, attached department or regional office---In this regard, complaint made to the Chief Minister's inspection team or the Chief Minister for probing into the affairs of the society, fell within the sphere of Cooperative Laws, wherein the Secretary Cooperative Societies was the overall in-charge---Clause 5 permitted the Chief Minister to call for record and issue directions to government departments---This function was administrative in nature and did not amount to statutory intervention---However, the inquiry could not usurp the functions of the Registrar or the authorities empowered under the Act---While the High Court correctly identified the supremacy of the Act in terms of substantive regulation, it erred in concluding that the Chief Minister had absolutely no authority to order or initiate an inquiry or call for information even through the competent department---The Constitutional and administrative role of the Chief Minister had to be given its due effect---Judgment of the High Court was not sustainable as it construed Clause 5 in a restricted manner and had made the referred power of the Chief Minister dormant wherever there was a statutory regulatory scheme in force---The Chief Minister was not excluded from calling information or record pertaining to cooperative societies or any provincial department or attached department under Clause 5 of the Rules---Leave to appeal was granted and the petition was converted into an appeal, which was accordingly allowed.

THE PROVINCE OF PUNJAB THROUGH CHIEF SECRETARY, GOVERNMENT OF THE PUNJAB, LAHORE vs T&T EMPLOYEES IDEAL COOPERATIVE HOUSING SOCIETY LIMITED — 2026 PLD 69 SUPREME-COURT

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