Ziley Singh: Arzmand Ali: Shivanandan Sharma vs Registrar, Cane Co-operative Societies: Sarsawa Sahakari Ganna Samiti LTD. : Registrar, Cane Co-operative Societies

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

1972 Supreme(SC) 41

SUPREME COURT OF INDIA
K.S. HEGDE, A.N. GROVER AND A.N. RAY, JJ.
Ziley Singh and others, Appellants
Versus
The Registrar, Cane Co-operative Societies (Cane Commissioner), Lucknow, and others, Respondents.
Civil Appeals Nos. 1533, 1797 and 1798 of 1971 and Spl. Leave Petns. (Civil) Nos. 3254 and 3268 of 1971, D/- 20-1-1971.
Civil Appeal No. 1533 of 1971.
Civil Appeals Nos. 1797 and 1798 of 1971.
Advocates appeared
1. Ram Singh and others (In C. A. No. 1797/1971; 2. Sukhbir Singh (In C. A. No. 1798/1971), Appellants v. Registrar, Cane Co-operative Societies (Cane Commissioner) U. P., Lucknow and others etc. Respondents.
Ilam Chand (In C. A. No. 1798/1971), Intervener; Special Leave Petition (Civil) No. 3254 of 1971.
Arzmand Ali, Petitioner v. Sarsawa Sahakari Ganna Samiti Ltd. and others, Respondents. 759
Special Leave Petition (Civil) No. 3268 of 1971.
Shivanandan Sharma and others, Petitioners v. Registrar, Cane Co-operative Societies (Cane Commissioner), Lucknow and others, Respondents.
M/s. J. P. Goyal and V. C. Parashar, Advocates, for Appellants (In C. As. Nos. 1533 and 1797 of 1971) and Petitioners (In S. L. P. No. 3268 of 1971); M/s. R. K. Garg and S. C. Agrawal, Advocates of M/s. Ramamurthi and Co., and Mr. R. K. Jain Advocate, for Appellants (In C. A. No. 1798 of 1971) and for Petitioners (In S. L. P. No. 3254 of 1971); Mr. C. B. Agarwal, Senior, Advocate (Mr. P. P. Juneja, Advocate, with him), for Respondents Nos. 7, 8 and 11 to 13 (In C. A. No. 1533 of 1971); Mr. O. P. Rana, Advocate, for Respondents Nos. 7 and 12 (In C. A. No. 1797 of 1971) and for Respondent No. 7 (In C. A. No. 1798 of 1971); Mr. M. C. Setalvad, Sanior, Advocate, (M/s. R. K. Garg and S. C. Agarwal, Advocates of M/s. Ramamurthi and Co. and R. K. Jain Advocates, with him), for Interverner.

Advocates:
C.B.AGARWAL, J.P.GOYAL, M.C.SETALVAD, O.P.RANA, P.P.JUNEJA, R.K.GARG, R.K.JAIN, RAMAMURTHI, S.C.AGRAWAL, V.C.PRASHAR

Headnote:
U. P. Co-operative Societies Act, 1965 - Sections 20,29,32,70,71,98(1)(h) - U. P. Co-operative Societies Rule, 1968 - Rule 409 - Exercise their right of vote in filling all seats of elected Directors - Annual general meetings under provisions of Section 32 of Uttar Pradesh Co-operative Societies Act, 1965 - At general meetings members of Committee of Management of Society were elected by members of Society - Registrar of U. P. Co-operative Societies issued a circular November interpreting Rule 409 of U. P. Co-operative Societies Rule and laid down principle that all members of general body of Co-operative Society would exercise their right of vote in filling all seats of elected Directors - Question in present appeals is whether Registrar had power to issue circular interpreting Rule 409 and secondly whether that interpretation is correct in terms of Act and Rules - Whether Registrar had power to issue circular interpreting Rule 409 whether that interpretation is correct in terms of Act and Rules - Whether right of vote for election of a member of committee of management is confined to delegates of members of that particular constituency whether a delegate would have right to vote for all constituencies constituting committee of management - Held, Rule also empowers society to apportion membership of committee of management amongst different groups into which membership is divided - Number or proportion of members of committee of management will have to be apportioned in such a manner that different areas or interests into which membership of society are divided may obtain suitable representation on committee of management - Entire purpose of division of membership into different groups and specifying suitable representation of such group on committee of management is to emphasise right of particular group to send its representative to committee - To illustrate if a society is divided into separate groups on a territorial basis and one member of committee of management is allotted to each group and if delegates of one group have right to case votes two consequences will follow - First right of choosing a representative of constituency will not be confined to that constituency but will be enlarged to outsiders in other constituencies - Secondly a member of committee from one constituency may be elected by a majority of votes from delegates of other constituencies - If delegates residing outside a territorial constituency take part at election for member of a committee from territorial constituency within which he is not a resident it will not only amount to enlarging right of representation beyond one s territorial basis but also deny delegates within constituency right of electing their own representative - Constitution of committee of management is indisputably one of affairs society If each member exercises franchise with respect to representation from his constituency he is not in any manner prevented from having a right to partake in affairs of society through a member elected from constituency - Appeals dismissed

Judgment

RAY, J. :- These three appeals are by special leave Civil Appeal No. 1533 (N) of 1971 is by special leave against the judgment dated 18 September, 1971 of the Arbitrator setting aside the election of the Management Committee of the Co-operative Cane Development Union, Shamli in an election petition filed under R. 229 (2) of the Co-operative Societies Rules, 1967 framed under the Uttar Pradesh Co-operative Societies Act, 1965. Civil Appeal No. 1797 of 1971 is by special leave against the order of the District Magistrate and Registrar, Co-operative Societies Sharanpur dismissing an appeal filed under Section 98 (i) (h) of the U. P. Co-operative Societies Act, 1965 against an order of the Arbitrator under Sections 70 and 71 of the U. P. Co-operative Societies Act, 1965 setting aside the election of the Sahkari Ganna Vikas Samiti Ltd., Iqbalpur, District, Saharanpur, Civil Appeal No. 1798 of 1971 is against the order and judgment dated 16 September, 1971 of the District Magistrate, Saharanpur dismissing an appeal under Section 98 (I) (h) of the U. P. Co-operative Societies Act, 1965 against the order of the Arbitrator under Sections 70 and 71 of the U. P. Co-operative Societies Act, 1965 setting aside the election of the Shakari Ganna Vikas Samiti Ltd., Lhaksar, District Saharanpur, Special Leave Petition (Civil) No,. 3254 of 1971 is for leave to appeal against the order of the Registrar, Co-operative Societies in appeal under Section 98 (I) (h) against the order of the Arbitrator under Sections 70 and 71 of the U. P. Co-operative Societies Act, 1965 setting aside the election of Sahkari Ganna Vikas Samiti, Sarsawa, Special Leave Petition (Civil) No. 3268 of 1971 is for leave to appeal against the order of the District Authority, Bulandshahr setting aside the election of the Committee of Management of the Co-operative Cane Development Union Ltd. on an application under Rule 229 of the U. P. Co-operative Societies Rules, 1968.

2. These matters raise a common question. These Co-operative Societies held their annual general meetings under the provisions of Section 32 of the Uttar Pradesh Co-operative Societies Act, 1965 (hereinafter called the Act). At the general meetings the members of the Committee of Management of the Society were elected by members of the Society. The Registrar of the U. P. Co-operative Societies issued a circular dated 5 November, 1969 interpreting Rule 409 of the U. P. Co-operative Societies Rule, 1968 (hereinafter called the Rules) and laid down the principle that "all the members of the general body" of the Co-operative Society would "exercise their right of vote in filling all the seats of elected Directors." The question in the present appeals is whether the Registrar had power to issue the circular interpreting Rule 409 and secondly whether that interpretation is correct in terms of the Act and the Rules.

3. The Act deals with Co-operative Societies and inter alia their members and their Committee of Management. The Committee of Management. The relevant sections for the purpose of the present appeals and special leave petitions are Sections 20, 20 and 32 of the Act. Section 20 of the Act speaks of vote of members. Under the sections, a member of Co-operative Society shall notwithstanding the quantum of his interest in the capital of the Society have one vote in the affairs of the Society. There are four provisos to Section 20. Proviso (a) deals with nominal or associate member who have no right of vote. Proviso (b) deals with a co-operative society, the State Warehousing Corporation or a body corporate being a member of such society in which case each delegate of such Co-operative society, State Warehousing Corporation or body corporate shall have one vote. Proviso (c) deals with the State Government or the Central Government being a member of such society in which case a nominee of the State Government or the Central Government shall have one vote. Proviso (d) deals with a group of members or any c

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