A.P. SEN AND V. BALAKRISHNA ERADI, JJ.
Civil Appeal No. 2587 of 1985,
D/-10-2-1987.
The Balasinor Nagrik Co-operative Bank Ltd., Appellant
Versus
Babubhai Shankerlal Pandya and others, Respondents.
Gujarat Co-operative Societies Act, 1961 - Section 36 - Constitution of India,1950 - Articles 226 and 227 - Special leave - Impugned order - Whether failure of Registrar to communicate his disapproval of a resolution passed by a society expelling a member - There was no response from the Registrar for a period of three months in consequence whereof society on January addressed a letter to District Registrar conveying its view that due to his failure to communicate his disapproval within the period specified resolution had become effective - Thereupon Registrar by his letter July expressed his disagreement with construction placed by society on his powers and directed parties to appear before him on - Aggrieved society preferred an appeal to Joint Registrar- appeal was decided by Additional Registrar who by his order December upheld order passed by District Registrar- society filed a revision before State Government but State Government by its order March declined to interfere - Society then filed a petition before High Court – Held, Registrar for his approval under first proviso there is a duty cast on Registrar to exercise his power of according approval or disapproval within a period of three months from of such submission as provided by second proviso- According to its plain terms second proviso places a limitation on powers of Registrar- It appears to us that obvious intention of Legislature was that once period of three months stipulated expires - Registrar becomes functions officio and his power to accord approval or disapproval to resolution passed by society for expulsion of a member under sub-s- (1) of S .36 of Act lapses - District Registrar therefore had no jurisdiction to set aside resolution passed by appellant-society under subs- (1) of S. 36 for expulsion of respondent from primary membership of society after expiry of a period of three months from October of submission of resolution- construction placed by learned single Judge on sub-s- (1) of S- 36 of Act read with two provisos thereto is patently erroneous and cannot be sustained- Appeal allowed.
Based on the provided legal document, here are the key points:
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 disagreement with the construction placed by the society on his powers and directed the parties to appear before him on July 25, 1983. On that date the society appeared under protest. On September 19, 1983 the District Registrar passed the impugned order according his disapproval to the resolution passed by the society under sub-s. (1) of S. 36 of the Act.
3. Aggrieved, the society preferred an appeal to the Joint Registrar. The appeal was decided by the Additional Registrar who by his order dated December 19, 1983 upheld the order passed by the District Registrar. The society filed a revision before the State Government but the State Government by its order dated March 31, 1984 declined to interfere. The society then filed a petition before the High Court under Arts. 226 and 227 of the Constitution challenging the impugned order of the District Registrar as upheld by the Additional Registrar and the State Government. A learned single Judge by his judgment and order dated November 29, 1984 dismissed the writ petition. The society preferred a Letters Patent Appeal against the judgment of the learned single Judge but a Division Bench by its order dated February 20, 1985 dismissed the appeal on the ground that no appeal lay against an order of a learned single Judge on a petition under Art. 227.
4. The decision of the appeal must turn on a construction of sub-s. (1) of S. 36 of the Act read with the two provisos thereto, which is in these terms :
"36. Expulsion of members- (1) A society may, by resolution passed by three-fourths majority of all the members present and voting at a general meeting of members held for the purpose, expel a member for acts which are detrimental to the proper working of the society :
Provided that, no resolution shall be valid. unless the member concerned is given an opportunity of representing his case to the general body, and no resolution shall be effective unless it is submitted to the Registrar for his approval and approved by him :
Provided further, that the approval or disapproval of the Registrar shall be communicated to the society within a period of three months from the date of such submission, and in the absence of such communication the resolution shall be effective."
It is an elementary rule that construction of a section is to be made of all parts together. It is not permissible to omit any part of it. For, the principle that the statute must be read as a whole is equally applicable to different parts of the same section. Keeping that in view, we have no doubt in our mind as to the purport and effect of sub-s. (1) of S. 36 of the Act which deals with the power of expulsion of a member for acts which are detrimental to the proper working of the society. It also provides for the manner of the exercise of such power. The
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