Bhandara District Central Co-operative Bank LTD. vs State Of Maharashtra

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

1992 Supreme(SC) 626

SUPREME COURT OF INDIA
L.M. SHARMA, S. MOHAN AND N. VENKATACHALA, JJ.
Bhandara District Central Co-operative Bank Ltd. and others, etc. etc., Appellants
Versus
State of Maharashtra and another etc., Respondents.
Civil Appeal No.2706 of 1988, (WITH C.A. Nos. 5030 of 1985, 1762 of 1986, 2692-2705, 2707-2735, 4148 of 1988; Writ Petn. (Civil) Nos. 686, 810, 880, 1065, 1202 and 1251 of 1988, 85, 265, 283, 488, 687, 728, 799, 998, 1051, 1178 and 1362 of 1989, 43 and 403 of 1990, S.L.P. (C) Nos. 9635 of 1983, 13360 of 1986, 4947 and 15205 of 1989 and 8584 of 1992)
Decided on 10-9-1992.

Advocates:
A.M.KHANWILKAR, A.S.BHASME, Anil B.Divan, B.A.Masodkar, G.B.SETHI, K.L.Taneja, K.R.CHOUDHARY, R.B.Masodkar, R.K.Sharma, S.B.Bhasme, S.K.AGNIHOTRI, V.B.JOSHI, V.D.KHANNA, V.N.GANPULE, Y.K.Naik

Headnote:
Constitution of India – Article 14, 19(l)(c) and 19(l)(g) – Maharashtra Co-operative Societies Act, 1960 – Sections 73A, 73C, 73D and 73E – Being violative – Treated as the leading case – Designated officer – Petitioners (including the appellants in civil appeals also) have challenged the constitutional validity Maharashtra Co-operative Societies Act, 1960, as being violative – As all these cases have been heard together, they are being disposed of by this common judgment – Except where otherwise indicated, we are proceeding to refer to the facts of Civil Appeal which has been treated as the leading case – By the impugned provisions a designated officer as defined is not allowed to hold office in more than one society in violation of the restrictions mentioned in sub-sections (2) and (4) thereof; and by sub-sec. (5) the maximum period available to a designated officer to continue in office has been fixed in peremptory terms – Held, For appreciating the next argument it is necessary to mention that the provisions as initially inserted in the Act in 1969 have been modified from time to time – When the section was inserted for the first time, the bar under sub-sec. (5) was with reference to a consecutive period of 6 years – This period was later changed to a consecutive period of 10 years – In the sub-section as it stands now, the consecutive period of 10 years has been substituted by a period of 10 years in the aggregate – Learned counsel has challenged this last amendment as being arbitrary – Argument is that if earlier a decision was taken to link the bar with a consecutive period of 10 years it should not have been changed again – Court do not see any merit in this point either – It was again a question of policy which was adopted only after a thorough examination – Joint Committee to which the relevant Bill was referred, after studying the situation, stated in its report that its conclusion was that because of the "concept of consecutive period of 10 years in the existing S. 73A(5), the provisions of the Act were not being implemented in the letter and spirit of the law" – Court do not find any merit in the points raised on behalf of the petitioners – Order accordingly.

JUDGMENT

SHARMA, J.:—The petitioners (including the appellants in civil appeals also) have challenged the constitutional validity of S.73A of the Maharashtra Co-operative Societies Act, 1960, as being violative of Arts. 14, 19(l)(c) and 19(l)(g) of the Constitution of India. As all these cases have been heard together, they are being disposed of by this common judgment. Except where otherwise indicated, we are proceeding to refer to the facts of Civil Appeal No. 2706 of 1988 which has been treated as the leading case.

2. By the impugned provisions a designated officer as defined in Section 73A(l) is not allowed to hold office in more than one society in violation of the restrictions mentioned in sub-sections (2) and (4) thereof; and by sub-sec. (5) the maximum period available to a designated officer to continue in office has been fixed in peremptory terms. Before proceeding further it will be useful to examine the provisions of sub-sections (1), (2), (4) and (5) of S. 73A which are in the following terms:

"73A. (1) In this section and in Ss. 73C, 73D and 73E, "a designated officer" means the Chairman and the President, and includes any other officer of the society as may be declared by the State Government, by notification in the Official Gazette, to be a designated officer, but does not include, any officer appointed or nominated by the State Government or by the Registrar."

"(2) No person shall at the same time, be or continue to be a designated officer of more than one society falling in Category I or Category II or Category III of the categories mentioned below; and shall not be or continue to be a designated officer in more than two societies in the aggregate in the three categories:

Category I - Societies, the area -of operation of which extends, to the whole of the State,-

Category II - Societies, the area of operation of which does not extend to the whole of the State

(a) but extends to Greater Bombay and the authorised share capital of which is more than Rs. 10 lakhs; or

(b) but extends to one or more districts; or

Category III -Societies, the area of operation of which does not extend to the whole of a district but extends to one or more talukas, or the authorised share capital of which is not more than Rs. 10 lakhs but is not less than Rs. 5 lakhs.

Explanation For the purposes of this sub-section, the expression "society" shall not include a society with no share capital and a society not engaged in commercial activities. "

"(4) If any person becomes, at the same time, a designated officer of societies, in excess of the number prescribed under sub-set. (2), unless he resigns his office in the society or societies in excess of the said number within a period of ten days from the date on which he is elected or appointed a designated officer of more than the permissible number of society or societies, or if the elections or appointments are held or made simultaneously, from the date on which the result of last of such elections or appointments is declared, he shall, at the expiration of the said period of ten days, cease to be a designated officer of all such societies and thereupon, notwithstanding anything contained in any other provisions of this Act, a person so resigning or ceasing to be a designated officer of any or all such societies shall not be eligible for being re-elected or re-appointed as a designated officer of such society or societies during the remainder of the term of office for which he was so elected or appointed; and at no point of time such person shall be a designated officer of societies in excess of the number prescribed under sub-sec. (2)."

"(5) No person shall be, or shall continue to be, a designated officer of any society of any of the categories referred- to in sub-section (2), for a period of more than ten years in the aggregate and at the expiration of that period any such person shall cease to be a de

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1992 Supreme(SC) 626

Cases Referred (1)