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1983 Supreme(SC) 359

SUPREME COURT OF INDIA
D.A. DESAI. O. CHINNAPPA REDDY AND A. VARADARAJAN, JJ.
(1) Babaji Kondaji Garad and others, Petitioners
Versus
Nasik Merchants Co-operative Bank Ltd., Nasik and others, Respondents.
Special Leave Petn. (Civil) No, 7732 of 1983
Decided on 31-10-1983.
AND
(2) Babashaheb Rajaramiji Dampurikar and another, petitioners
Versus
Collector of Parbhani District and others, Respondents.

Headnote:

Maharashtra Co-operative Societies Act, 1960 - Section 73-B, 73-G (1) (vii), 144-C, 144-T and 73-B - F Co-operative Societies - Election - First respondent is a co-operative Bank deemed to be registered under Act and is governed by Act - It was registered - It is a specified society within meaning of expression in Section. 73-G (1) (vii) of Act - Accordingly election of members of Committee and election of office-bearers by Committee of first respondent would be subject to provisions of Chapter XI-A and has to be conducted in manner prescribed in chapter - Committee in which management of first respondent vests, is designated as Board of Directors - Term of members of Board of Directors is five years - Election to Board of Directors for period became due - It is not disputed but in fact conceded that election programme notified by Collector did not specify that two seats on Board of Directors of first respondent would be reserved seats - One for members belonging to Scheduled Castes or Scheduled Tribes and one for weaker section of the members who have been granted loans from society of an amount not exceeding during year immediately preceding as required by Sec. 73-B of Act - Poll was held and counting of votes took place and result was declared - Respondents 3 to 16 were declared elected - Additional Commissioner as per his judgment and order dated – Held, programme therefore, must in order to comply with legal formality show whether any of seats to be filled in are reserved and specify class in whose favour reservation has been made, so as to give notice to persons eligible for contesting election to reserved seats - This becomes manifestly clear from form prescribed for filling in nomination paper being Form No. 2 appended to rules - In case of reserved seats a further declaration has to be made in nomination form that candidate belongs to Scheduled Castes or Scheduled Tribes or Vimukta Jati or weaker section candidate - And this declaration has to be signed by candidate himself - There is not even a whisper in election programme whether any of seats were reserved - Oimission is glaring and fatal - As pointed out earlier, election has to be held to form committee - Section 73 requires Collector to hold election in accordance with Act including Section 73-B - Failure to hold election in accordance with Act including Section 73-B would vitiate whole election programme from commencement till end - It would all more be so because failure to hold election according to provisions of Act which denies an opportunity to persons who are eligible to get elected to reserved seats would certainly vitiate whole election programme - One can safely conclude that election is held in violation of Section 73-B - Therefore, in our opinion, High Court was in error in upholding election, which is ex facie illegal, invalid and contrary to law - Appeals allowed.

JUDGMENT

D. A. DESAI, J. :—Construction of Section 73-B of the Maharashtra Co-operative Societies Act, 1960 (Act for short) figures in these two appeals arising from the two decisions rendered by the Bombay High Court, covering the same point and reaching the same conclusion, but the latter one does not take note of the earlier decision.

Re : S. L. P. (Civil) No. 7732/83 :

The Nasik Merchants Co-operative Bank Ltd., the first respondent, is a co-operative Bank deemed to be registered under the Act and is governed by the Act. It was registered on June 11, 1959. It is a specified society within the meaning of the expression in Section. 73-G (1) (vii) of the Act. Accordingly the election of the members of the Committee and the election of the office-bearers by the Committee of the first respondent would be subject to the provisions of Chapter XI-A and has to be conducted in the manner prescribed in the chapter. The Committee in which management of the first respondent vests, is designated as Board of Directors. The term of the members of the Board of Directors is five years. The election to the Board of Directors for the period 1981-82 to 1985-86 became due. As required by S. 144-C, the Collector having jurisdiction in the matter notified the programme of election on October 29, 1981. At the relevant time, the strength of the Board of Directors was 15 in number. 14 Directors were to be elected by members and one was to be nominated by the Central Co-operative Bank. It is not disputed but in fact conceded that the election programme notified by the Collector did not specify that the two seats on the Board of Directors of the first respondent would be reserved seats; one for the members belonging to the Scheduled Castes or Scheduled Tribes and one for the weaker section of the members who have been granted loans from the society of an amount not exceeding Rs. 200/- during the year immediately preceding as required by Sec. 73-B of the Act. Poll was held on December 12, 1981 and the counting of votes took place on Dec. 14, 1981 and the result was declared on Dec. 17, 1981. Respondents 3 to 16 were declared elected. Thereupon the present petitioner, a member of the first respondent-Bank and belonging to the Joshi community which is recognised as a Scheduled Tribe moved an election petition under S. 144-T before the Additional Commissioner, Nasik, calling in question the election of respondents 3 to 16 to the Board of Directors of the first respondent-Bank inter alia on the ground that the whole of the election programme is vitiated on account of its non-compliance with the mandatory statutory provision enacted in S. 73-B which prescribes reservation of seats; one in favour of Scheduled Castes or Scheduled Tribes and another in favour of weaker section from the members who had borrowed loans not exceeding Rs. 200/- in the year preceding the year of election (reservation for weaker section for short). There were other grounds on which the election of respondents 3 to 16 was called in question but they are no more relevant and need not clutter the record here. The Additional Commissioner as per his judgment and order dated February 8, 1982 held that despite the failure of the first respondent-Bank to amend bye law 41 (correct bye-law appears to be 40) even after repeated reminders by the District Deputy Registrar, the mandate of S. 73-B will have precedence over the unamended bye-law 40 and as the election process was set in motion in contravention of the mandatory provision contained in Section 73-B and the relevant rules, the result of the election has been materially affected and accordingly declared the election of respondents Nos. 3 to 16 as void and ineffective and directed the Collector, Nasik to hold the election de novo.

2. Respondents Nos. 3 to 7 and 9, 10 and 12 and 14 to 16 filed Writ Petition No. 392 of 1982* in the High Court of Judicature at Bombay under Art. 227 of the Constitution for a writ of certiorari. A Division Bench



























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