IMPORTANT POINT
Administrator or a Committee appointed u/s 32 of the Kerala Co-operative Societies Act in supersession of Committee of Management has no power to enrol new members.

Headnote:Kerala Co-operative Societies Act, 1969-Section 32(4)-Supersession of Committee of Management and appointment of Administrator/Committee-Power of Administrator/Committee-Administrator appointed during supersession of a Committee of Management of Co-operative Society has no power to enrol new members.
It is clear from Section 32(4) that the administrator or a Committee appointed while the Committee of Management of the Society is under supersession cannot have the power to enrol new members and such a question ought not to be decided merely by indulging in an exercise on semantics in ascertaining the meaning of the expression have "power to exercise all or any of the function...". Whether an authority is discharging a function or exercising a power will have to be ascertained with reference to the nature of the function or the power discharged or exercised in the background of the enactment. Often we do express that functions are discharged or powers exercised or vice versa depending upon the context of the duty or power enjoined under the law if the two expressions are inter-changeable. What is necessary to bear in mind is that nature of function or power exercised and not the manner in which it is done. A Cooperative Society is expected to function in a democratic manner through an elected Committee of Management and that Committee of Management is empowered to enrol new members. Enrolment of new members would involve alteration of the composition of the society itself and such a power should be exercised by an elected Committee rather than by an administrator or a Committee appointed by the Registrar while the Committee of Management is under supersession. What is of significance is that when the Committee of Management of the Cooperative Society commits any default or is negligent in the performance of the duties imposed under the Acts, rules and the bye-laws, which is prejudicial to the interest of the society, the same is superseded and an administrator or a Committee is imposed thereon. The duty of such a Committee or an administrator is to set right the default, if any ,and to enable the society to carry on its functions as enjoined by law. Thus, the role of an administrator or a Committee appointed by the Registrar while the Committee of Management is under supersession, is, as pointed out by this Court, only to bring on an even keel a ship which was in doldrums. If that is the objective and is borne in mind, the interpretation of these provisions will not be difficult. (Para 6)

JUDGMENT

Rajendra Babu, J.-These appeals by special leave are against a common order made in O.P. Nos. 12184, 14840, 14686, 15700, 17258, 18398 and 20913/97. Section 32 of the Kerala Co-operative Societies Act, 1969 [hereinafter referred to as the Act ] enables the Registrar of Co-operative Societies to supersede the Committee of Management under the circumstances set forth in sub-section (1) thereto. After supersession of the Committee of Management, the Registrar can appoint an administrator or administrators or a Committee as provided in Section 32(1)(a) and (b) of the Act. Such Committee or administrator or administrators so appointed shall, subject to the control of the Registrar and to such instructions as he may from time to time give, have power to exercise all or any of the functions of the Committee or of any officer of the society and take all such action as may be required in the interests of the society. When the administrator appointed on supersession of the Committee of Management of certain Cooperative Societies wanted to enrol new members to the society the same was objected to and the original petitions under Article 226 of the Constitution were filed before the High Court on the ground that the Registrar is only expected to carry on day-to-day functions of the society and see that election is conducted and a new Committee in accordance with the Act, Rules and bye-laws of the society is constituted. It was contended before the court that the earlier decision in George v. Joint Registrar1, is no longer good law in the light of the decision of this Court in K. Shantharaj & Anr. v. M.L. Nagaraj & Ors.2. The Full Bench of the High Court, after referring to the earlier decision of the High Court and the decision of this Court in K. Shantharaj s case (supra) held that the admission of a member is not mere function of the Committee, but is a power of the Committee to admit members or not as provided in Bye Laws of the Society. The Committee can exercise only certain functions and not any powers and, therefore, the administrator or a Committee appointed as aforesaid has no power to enrol new members. This order is in challenge in these appeals.

2. It is now brought to our notice that subsequent to the decision of the High Court, the provisions of Section 32 have been amended so that the administrator or the Committee will have power to exercise all or any of the powers and functions of the Committee. It is further brought to our notice that in Cherthala Agricultural Rural Development Bank & Ors. v. Joint Registrar & Ors.3, it has been held that the decision in the Cherthala Agricultural Rural Development Bank & Ors. v. Joint Registrar & Ors. (supra) is required to be considered by us in these proceedings.

3. The question whether an administrator appointed during supersession of a Committee of Management of a Cooperative Society can enrol new members is no longer res integra. When an identical question came up before this Court for consideration in K. Shantharaj s case [supra], this Court held that from the language of Sections 30 (which is similar to Section 32(4) of the Act) and 30A of the Karnataka Cooperative Societies Act, 1959, it would be clear that the administrator, subject to control of Registrar exercise all or any of the functions of the society, and the Special Officer subject to control of the State Government and the Registrar exercise and perform all the powers and functions of the committee of the society and in the interest of the society can take such action as is necessary for proper functioning of the society as per law. He should conduct elections as is enjoined thereunder, that is, he is to conduct election with the members as on the rolls and by necessary implication, he is not vested with power to enrol new members of the society. In the light of this clear enunciation of law the view taken by the High Court appears to be correct.

4. However, the learned Addl. Solicitor General appearing for

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2000 Supreme(SC) 1012

IMPORTANT POINTAdministrator or a Committee appointed u/s 32 of the Kerala Co-operative Societies Act in supersession of Committee of Management has no power to enrol new members.

Cases Referred (3)

IMPORTANT POINT
Administrator or a Committee appointed u/s 32 of the Kerala Co-operative Societies Act in supersession of Committee of Management has no power to enrol new members.