Decks cleared for GCMMF chief’s ouster

Gujarat High Court today allowed implementation of the no-confidence motion passed by majority members of Gujarat Cooperative Milk Marketing Federation (GCMMF) against incumbent chairman Vipul Chaudhary. With this nod from the High Court Chaudhary could be on his way out. However, he has options to appeal before a division bench and the Supreme Court.

As many as 13 out of 16 voting members voted in favour of the no-confidence motion against Chaudhary on December 5, 2013, during board meeting of GCMMF. The members have alleged that the no-trust motion was brought because they were suspicious of Chaudhary's functioning and suspected that his way of administration was not in interest of the federation. They further held that motion was need to safeguard the interest of three million milk producers of Gujarat.

After the no confidence motion was passed the GCMMF had approached the High Court in accordance with directions of the Supreme court issued in December last year while hearing the plea of Chaudhary challenging the no-confidence motion.

During arguments GCMMF had argued that majority of members had supported the no-confidence motion against Chaudhary and hence it should be implemented. While Chaudhary's lawyers argued that there was no provision of passing a no-confidence motion against the chairman in the bye-laws of GCMMF, nor was there any in the Gujarat Cooperatives Society Act.

Today, Justice Paresh Upadhyay hearing the case held that GCMMF could put into effect the no confidence motion against Chaudhary. However, Justice Upadhyay stayed implementation of the no confidence motion till January 11 on request of Chaudhary's lawyers seeking time to approach higher court.

"The applicant Gujarat Cooperative Milk Marketing Federation Limited (GCMMF) is at liberty to implement the Resolution dated December 5, 2013 expressing no confidence in Vipul Chaudhary, as the Chairperson of the Federation," the court ordered.

The court also referred the petition of Chaudhary, challenging the October 25, 2013, meeting to discuss the no confidence motion against him, to the division bench on various law points. The matter will now be assigned to the concerned division bench by the Chief Justice of Gujarat High Court.

"On the principal contention of the petitioner (Chaudhary), that in absence of any provision in the Gujarat Co-operative societies Act, 1961, no confidence motion could not have been considered and passed against him, the matter is referred to the Division Bench," the order further stated. The division bench will consider if the three judgements of the Gujarat High Court, that had held that "even in absence of any specific provision in the principal statue, no confidence motion can be brought and considered to remove any elected office bearer," was overrulled by the Supreme Court.

Commenting of Chaudhary's opposition to meeting to discuss no confidence motion against him, court said, "On going through the documents on record, this Court finds that this contention (of Chaudhary), though not unknown to law, is more out of frustration."

Chaudhary is facing the heat by a majority of board members over mismanagement in Mehsana District Cooperative Milk Producers' Union, which is also headed by him, as well as for meeting Congress vice-chairman Rahul Gandhi with an eye on National Dairy Development Board (NDDB) top job. The Mehsana Union also came under GCMMF's attack for constant decline in milk procurement, setting up 9 lakh liters per day milk processing plant and establishment of 30 lakh liters per day of milk packaging plant at Daruheda (Haryana) plant with an investment of Rs. 300 crore.

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Decks cleared for GCMMF chief's ouster