IMPORTANT POINTS
Members of cooperative society under liquidation continue to be office bearers, but are devoid of certain powers and functions.
“Co-operative societies dispensing agricultural credit in the market area” indicates nature of the society and not currency of its activities.
An Agricultural Credit society under liquidation does not lose its nature nor is permanently debarred from its function. It may resume its activity of “dispensing agricultural credit”. Hence its managing committee members cannot be debarred from discharging their statutory obligation under the Market Act.

Headnote:(a) Gujarat Co-operative Societies Act, 1961 – Section 107 and 108 r/w section 11, Gujarat Agricultural Produce Markets Act, 1963 – Members of cooperative society under liquidation – They continue to be office bearers devoid of certain powers and functions – Existence or lack of such rights and functions depend upon the scheme and tenor of the statute and the subordinate legislation creating them – Such rights and functions come to an end to only by the operation of law, the Societies Act – Further, additional rights and functions can be conferred by another law on the office bearers under the Societies Act – Section 11 conferring on the Officers of a class of Credit Societies an additional function of electing members of the market committees – This function cannot be taken away merely because the credit society is under liquidation. (Para 21, 22, 23, 24, 25)
       AIR 1959 SC 300 – Relied upon
       (b) Gujarat Agricultural Produce Markets Act, 1963 – Section 11 – “Co-operative societies dispensing agricultural credit in the market area” – Indicates nature of the society – Does not mean that it should be dispensing credit at the time of election – A society under liquidation does not lose its nature nor is permanently debarred from its function – It may resume its activity of “dispensing agricultural credit” – Hence its managing committee members cannot be debarred from discharging their statutory obligation under the Act. (Para 27, 28, 30, 32, 32)
       Facts of the case:
       The question arising in this case is whether the members of the Managing Committees of co-operative societies have a right to participate in the election process of an Agricultural Produce Marketing Committee constituted under the Gujarat Agricultural Produce Markets Act, 1963.
       Eight Societies were directed to be wound up.
       The High Court set aside the final orders and directed the Registrar to conduct an inquiry afresh under Section 107 of the SOCIETIES ACT and pass appropriate final orders. The said enquiry is pending.
       In the meantime elections to the SIRPUR market committee fell due in the year 2015. A voters list (under Rule 7 of the Gujarat Agricultural Produce Market Rules, 1965) came to be prepared consisting the names of the members of the managing committee of the above-mentioned 8 cooperative societies (alongwith other societies) operating within the market area of the SIRPUR market committee.
       Objections for the inclusion of the names of the members of the managing committees of the 8 cooperative societies were raised. Objections were upheld by the Additional Registrar and Co-operation Officer (Market), Patan, directing the deletion of the names of the members of the managing committee of the above-mentioned 8 cooperative societies.
       The members of the managing committee of the said society filed special civil applications invoking Article 226 of the Constitution of India which was allowed.
       Finding of the Court:
       There is no error in the impugned judgment.

JUDGMENT

Chelameswar, J.

1. All these eight appeals are preferred by the unsuccessful respondents in various special civil applications (writ petitions under Article 226 of the Constitution) before the High Court of Gujarat at Ahmedabad disposed of by a common judgment dated 17.3.2015.

2. Whether the members of the Managing Committees of co-operative societies (against whom proceedings under Section 107 of the Gujarat Co-operative Societies Act, 1961 are pending) have a right to participate in the election process of an Agricultural Produce Marketing Committee constituted under the Gujarat Agricultural Produce Markets Act, 1963. The two enactments mentioned above are referred to hereinafter as “the SOCIETIES ACT” and “the MARKETS ACT”.

3. The facts leading to the present litigation:

Sec. 9 of the MARKETS ACT contemplates the establishment of a “Market Committee” for every “market area”. Both expressions are defined under Section 2(xiii) and 2 (xiv) [Section 2 (xiii) “market area” means any area declared or deemed to be declared to be a market area under this Act;
Section 2(xiv) “market committee” means a market committee established or deemed to be established under this Act;
].

Section 10 of the MARKETS ACT declares market committees to be bodies corporate with perpetual succession and a common seal. Section 11 stipulates that every market committee shall consist of 17 members falling into 5 categories. Section 11(1)(i) stipulates that eight agriculturist members shall be elected by an electoral college consisting of the members of the managing committees of the “co-operative societies dispensing agricultural credit” (hereafter CREDIT SOCIETIES) in the market area.

Section 11(1)(i) of the MARKETS ACT reads as follows:

“eight agriculturists who shall be elected by members of managing committees of co-operative societies (other than co-operative marketing societies and milk produce co-operative societies) dispensing agricultural credit in the market area;”

4. The activity of co-operative societies in the State of Gujarat is regulated by the SOCIETIES ACT. Section 107 of the SOCIETIES ACT provides for the liquidation and winding up of the societies functioning under the Act. Section 107(1) authorises the Registrar to pass an interim order directing a cooperative society to be wound up for any one of the reasons specified in clauses (a), (b) and (c) of Section 107(1). Sub-Section(3), thereof authorises the Registrar to pass a final order after granting a hearing to the society against which an interim order under sub-Section(1) is made. Such a final order could be one either finally winding up the society by confirming the interim order or vacating the interim order passed earlier, whichever is appropriate in law having regard to the facts and circumstances of the case.

5. In exercise of the power under Section 107 of the SOCIETIES ACT proceedings were initiated by the Registrar [Section 2(17) of the Gujarat Co-operative Societies Act, 1961 -“Registrar” means a person appointed to be the Registrar of Co-operative Societies under this Act; and includes to the extent of the powers of the Registrar conferred on any other person under this Act, such person and includes an Additional or Joint Registrar;] against eleven Co-operative societies (established for the purpose of dispensing agricultural credit) operating in the market area of a market committee known as SIRPUR market committee, the details of which are not necessary for the present purpose.

6. We are concerned with only eight of the eleven co-operative societies mentioned above. Admittedly, with reference to each of the said eight co-operative societies, interim orders were passed initially under Section 107(1) [Section 107 Winding up – (1) [Except as otherwise provided in sub-section (1A) if the Registrar, –-
(a) after an inquiry has been held under section 86, or an inspection has been made under any of the provisions of sub-section (8) of section 84, section 87 or section 88

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