IMPORTANT POINT
In terms of Section 27 of Maharashtra Cooperative Societies Act, a society which had invested any part of its funds in shares of a federal society and three years had completed since the investment, shall be eligible to vote in affairs of federal society.

Headnote:Maharashtra Cooperative Societies Act, 1960—Section 27(3)—Maharashtra Specified Cooperative Societies Election to Committee Rules, 1971—Rule 4—Voting power of members for election of office bearers of federal society—Federal Society being a specified cooperative society, election to the committees thereof was governed by Rules—A society which had invested any part of its funds in shares of a federal society, could appoint one of its members to vote on its behalf in affairs of federal society—Condition of eligibility was completion of period of three years from the date of its investing any part of its fund in share of federal society—Appellant society had invested its funds in shares of federal society respondent No. 2 on 30-12-2002 and became eligible to vote in affairs of that society after 30-12-2005—Election of federal society was due for April 2006 and appellant society was entitled to appoint its member to vote—There was no inconsistency between Section 27 of the Act and Rule 4 of Rules and even if there was any inconsistency, Act was to prevail over rules—Impugned judgment of High Court holding appellant society ineligible to cast vote was liable to be set aside.
       Held : A mere reading of Section 27 makes it explicit that a society, which has invested any part of its fund in the shares of a federal society, may appoint one of its members to vote on its behalf in the affairs of the federal society. Proviso to sub-Section (3) of Section 27 of the Act lays down the condition of eligibility which is to the effect that any new member of a federal society shall be eligible to vote in the affairs of the federal society only after the completion of the period of 3 years from the date of its investing any part of its fund in the shares of such federal society. We may also note sub-Section (3A) of Section 27 of the Act which relates to an individual member of a society. In his case it is provided that he shall not be eligible for voting in the affairs of that society for a period of two years from the date of his enrollment as a member of such society. The Legislature has consciously employed in Sub-Sections (3) and (3A) words which are of significance. In the proviso to Sub-Section (3) the period of 3 years is reckoned from the date of the society investing any part of its fund in the shares of a federal society, whereas sub-Section (3A) provides that the period of 2 years shall be computed from the date of enrollment of an individual as a member of such federal society.(Para 7)
       Having regard to the plain words used in Section 27(3) of the Act, the appellant society having invested its fund in the shares of Kolhapur District Central Cooperative Bank Ltd.-respondent No. 2 herein on 30.12.2002, it became eligible to vote in the affairs of the federal society after 30.12.2005. We are informed that the date of investment by the appellant society and its enrollment as a member of the federal society is the same, namely, 30.12.2002. Ex facie, therefore, in terms of Section 27(3) of the Act, in April, 2006 when the election was due to be held, the appellant society was entitled to appoint one of its members to vote on its behalf in the affairs of the federal society-respondent No. 2, having completed the period of 3 years from the date of its investment in shares of the respondent No. 2 society on 30.12.2005. (Para 8)
       In fact, the express words of Rule 4 provide that he should have completed minimum period of 2 years. To read Rule 4 in the manner suggested by the respondents would amount to rewriting the rule. It was submitted that Rule 4 must be read into Section 27 and so read there may be inconsistency between the Act and the Rules. In fact, the District Collector as well as the High Court took the view that the District Collector was bound by the Rules and, therefore, it has rejected the claim of the appellant society. On a careful consideration of the provisions of the Act and the Rules, there is no inconsistency between Section 27 of the Act and Rule 4 of the Rules. Even if there was any inconsistency as argued by the respondents, the Act must prevail over the Rules.(Para 12)

JUDGMENT

B.P. Singh, J.—In this batch of appeals since the issue involved is identical, - they are being disposed of by this common judgment and order.

2. These appeals by special leave impugn the judgment and order of the High Court of Bombay dated 12.1.2006 in Writ Petition No. 49/2006. The High Court by its impugned judgment and order dismissed the writ petitions filed by the appellant-societies and upheld the order of the District Collector holding that the appellant-societies were not eligible to vote in the election which were to be held in the month of April, 2006. The answer to the question which arises for consideration is dependent upon the interpretation of Section 27(3) of the Maharashtra Cooperative Societies Act, 1960 (hereinafter referred to as the “Act”) and Rule 4 of the Maharashtra Specified Co-operative Societies Election to Committee Rules, 1971 (hereinafter referred to as the “Rules”).

3. For the sake of convenience we are taking the representative facts in C.A. No. 2122/2006.

4. The facts not in dispute are that the appellant-society is a primary society. It contributed to the capital of a federal society known as “Kolhapur District Central Cooperative Bank Ltd.”-respondent No. 2 herein on 30.12.2002. It is also not disputed before us that it became a member of the federal society with effect from that very date. Election of the office bearers of the federal society was due to be held in April, 2006 and a question arose as to whether the appellant society was eligible to be a voter. The controversy arose because the name of the appellant society was not included in the provisional list of voters. The matter came for decision before the District Collector who rejected the contention of the appellant society and held that it was not eligible to vote. Aggrieved by the order of the District Collector, the appellant society filed the instant writ petition before the High Court which has been dismissed by the impugned judgment and order.

5. The relevant part of Section 27 of the Act is as follows:

27. Voting powers of members —(1) Save as otherwise provided in sub-sections (2) to (7), both inclusive, no member of any society shall have more than one vote in its affairs; and every right to vote shall be exercised personally, and not by proxy:

Provided that, in that case of an equality of votes the Chairman shall have a casting vote.

(2) .........

(3) A society, which has invested any part of its funds in the shares of any federal society, may appoint one of its members to vote on its behalf in the affairs of that federal society; and accordingly such member shall have the right to vote on behalf of the society :

Provided that, any new member society of a federal society shall be eligible to vote in the affairs of that federal society only after the completion of the period of three years from the date of its investing any part of its fund in the shares of such federal society:

(3A) An individual member of a society shall not be eligible for voting in the affairs of that society for a period of two years from the date of his enrollment as a member of such society.

(4) to (11) ...........”

6. The federal society being a specified cooperative society, election to the committees thereof are governed by the Rules. The relevant part of Rule 4 reads as follows:-

“4. Provisional list of voters—(1) A provisional list of voters shall be prepared by every society for the year in which general election is due to be held. The persons who have completed minimum period of two years as members from the date of their enrollment before 30th June of the year immediately preceding the year in which such election is due shall be included in the provisional list. If different constituencies are provided in the bye-laws, the names of voters shall be arranged constituencywise as laid down in the bye-law:

Provided that, if in any case, the preparation of the provisional list of voters falls due after the expiry of a period of six months from t

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2006 Supreme(SC) 433

IMPORTANT POINTIn terms of Section 27 of Maharashtra Cooperative Societies Act, a society which had invested any part of its funds in shares of a federal society and three years had completed since the investment, shall be eligible to vote in affairs of federal society.

IMPORTANT POINT
In terms of Section 27 of Maharashtra Cooperative Societies Act, a society which had invested any part of its funds in shares of a federal society and three years had completed since the investment, shall be eligible to vote in affairs of federal society.