Dealing a blow to the Rawats in Kendriya Bhandar case, the Sole Arbitrator has set aside their elections and observed that the Board of Directors failed to conduct elections in accordance with the bye-laws and MSCS Act.
The Arbitrator notes “The election of Delegates, Directors and Chairperson in Kendriya Bhandar held between 23.08.2017 to 23.10.2017 is null and void and the same is hereby set aside.”
The respondents are none other than the Chairman, Vice-Chairman and the Board members namely Poonam Rawat, Rakesh Rawat , Baldev Singh, Smt. Anita Negi, Manwar Singh Rawat, Prem Singh and . H.C.S. Rawat.
The Award says the Directors of the Board of Kendriya Bhandar became ineligible for continuation or further election as delegate or member of the Board for a period of 5 years under the provisions contained in Section 43 (2)(a) of MSCS Act read with Bye-Law no.23(ii).
Deepa Sharma, the Sole Arbitrator said the Board of Directors failed to meet 120 days in advance before the expiry of its term and failed to pass resolution to appoint a RO and decide the time, date and place for conducting the election of delegates.
The Board of Directors failed to comply with bye-law in matter of grouping despite repeated objections by the Govt Directors (nominees) as well as specific directions of the Govt. The Board of Directors, however, later admitted the mistake of carrying out grouping in a manner which violated the mandatory provisions of Bye-law.
It has also been admitted that due to such wrongful grouping, the election process was delayed.
It also concluded that the members admitted from 25.03.2017 to 31.03.2017 were wrongfully admitted by Chairperson, who had no powers to do so. The names of the members admitted from 22.5.2017 to 31.5.2017 have therefore been wrongly included in the final voters list.
There has been a violation as the newly admitted members were allowed to participate in election of the members of the Board.