The Rajasthan High Court has set aside an order appointing former Chief Justice of India Justice Sanjiv Khanna as a one-man commission to adjudicate the claims and counterclaims of parties in disputes concerning properties attached in connection with the Adarsh Credit Co-operative Society.

A Division Bench of Justice Munnuri Laxman and Justice Sangeeta Sharma observed that the Multi-State Co-operative Societies Act, 2002 provides its own statutory mechanism for the realisation of assets of a defunct society and related matters.

For context, the Court was hearing a bunch of special appeals against interim orders passed at various stages in the petitions, wherein directions were given to maintain status quo in relation to the properties under attachment. Subsequently, a special committee was constituted headed by the former CJI.

Apart from other grounds of challenge, the appellants argued that appointment of retired Justice Sanjiv Khanna violated the statutory scheme existing under the Act. There were various forums to adjudicate the issue, and such power could not be conferred upon the former CJI.

On the contrary, it was argued by the State that the order of such appointment was a consensus order, which was opposed by the counsel for the appellants who argued that it was not a consensus order, but a discretion exercised by the single judge.

After hearing the contentions, the Court agreed with the argument of the appellants and further highlighted that the concerned order of appointment did not specify any agreement between the parties for such appointment to adjudicate the dispute.

In this light, the Court set aside the order that appointed retired Justice Sanjiv Khanna to adjudicate the claims and counter-claims of parties.

"We are of the view that until the adjudication is done in order to safeguard the properties in question, we are not inclined to interfere in the order of attachment or the order granting status quo by the learned Single Judge. However, we are inclined to set aside the order of appointing the retired Hon'ble Chief Justice of India as a one man commission to adjudicate the claims and counter claims of the parties to the writ petitions," it said.

Title: Smt. Megha Tak v State of Rajasthan & Ors, and other connected petitions

Citation: 2026 LiveLaw (Raj) 346

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