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1987 Supreme(SC) 159

A.P.SEN, V.BALAKRISHNA ERADI
Balasinor Nagrik Co-operative Bank LTD. – Appellant
Versus
Babubhai Shankerlal Pandya – Respondent


Advocates:
Ayesha Mishra, B.K.MEHTA, P.H.Parekh, P.M.RAVAL, RAJ SHEKHAR RAO, VIMAL DAVE

Judgement Key Points

Based on the provided legal document, here are the key points:

  • The Supreme Court held that under Section 36 of the Gujarat Co-operative Societies Act, 1961, if the Registrar fails to communicate approval or disapproval of a resolution expelling a member within three months of submission, the Registrar becomes functus officio and loses jurisdiction to set aside the resolution (!) (!) .
  • The Court ruled that the second proviso to Section 36(1) places a strict limitation on the Registrar's powers, intending that the lapse of the three-month period renders the resolution effective automatically (!) (!) .
  • In the specific case of Balasinor Nagrik Co-operative Bank Ltd. vs. Babubhai Shankerlal Pandya, the District Registrar was found to have no jurisdiction to disapprove a resolution passed in October 1982 after the three-month deadline had expired in January 1983 (!) (!) .
  • The High Court's judgment dismissing the society's writ petition was set aside, and the appeal by the society was allowed (!) .
  • The Court clarified that this judgment does not determine the validity of the expulsion resolution itself, leaving that issue to be resolved by the appropriate statutory authority under Section 96 of the Act (!) .
  • The statutory requirements for expulsion include passing a resolution by a three-fourths majority and providing the member an opportunity to represent their case before the resolution is submitted to the Registrar (!) (!) .
  • The resolution remains in abeyance until the Registrar approves it, but the Registrar must communicate their decision within the specified three-month window (!) (!) (!) .

JUDGMENT :- The short point involved in this appeal by special leave is whether the failure of the Registrar to communicate his disapproval of a resolution passed by a society expelling a member under sub-s. (1) of S. 36 of the Gujarat Co-operative Societies Act, 1961 within the period of three months as specified therein, entails in the consequence of rendering the Registrar functus officio.

2. By a resolution passed at its general meeting held on September 30, 1982, the Balasinor Nagrik Co-operative Bank Limited., the appellant herein, expelled respondent No. 1 Babubhai Shankerlal Pandya from the primary membership of the society under sub-s. (1) of S. 36 of the Act. On October 6, 1982 the society forwarded a copy of the resolution to the District Registrar as enjoined by the first proviso to S. 36(1). There was no response from the Registrar for a period of three months, in consequence whereof the society on January 24, 1983 addressed a letter to the District Registrar conveying its view that due to his failure to communicate his disapproval within the period specified, the resolution had become effective. Thereupon the Registrar by his letter dated July 15, 1983 expressed his di









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