1998 Supreme(AP) 261

Andhra Pradesh High Court
Judges : B.S.A.SWAMY
B.Ramanaiah - Appellant
Versus
District Collector and Election Authority (Co-operation) Nellore - Respondent
Decided On : 04-09-98

Headnote:

Co-operative Societies Act - Sections 27,19,6 (2) cc,32 (7),15-A,15-A(2), (2),21,21(3) - A. P. Co-operative Societies Rules, 1964 – Rules 2(j),22-AAA,20,22-A,11,11-A and 11–AA – Quashing Of Order - Trying to get members of society who are not residents of Indukurpet deleted from membership of society by contending that they are not residing in area of operation of society and as such they seized to be members of society - Questioning orders passed by Director of Handlooms and Textiles in capacity of functional Registrar for Handlooms and Textiles under Section 27 of Co-operative Societies Act in seeking a writ of certiorari and also to quash above proceedings, wherein Director gave directions to District Co-operative Officer to delete names of members of society who are residing at by accepting contention of s group - Whether there is any legal bar for weavers residing at village for their continuance as members of Society as per provisions of Co-operative Societies Act? (2) Whether villages were deleted from area of operation of Society during re-organisation of Weavers Co-operative Societies in 1984 ? If so whether authorities concerned have followed statutory provisions and guidelines issued by Government in ? Whether weavers residing in and villages were removed from membership of Society after alleged re-organisation of Weavers Co-operative Societies ? Whether department officials are justified in removing majority of members under various categories from membership of society under guise of holding an enquiry under Section 52 of Co-operative Societies Act more so residents of village at this length of time after completion of re-organisation of Societies were over way back in - Held, Court will answer above issues in seriotam - Issue No Under Section 2 (J) of Co-operative Societies Act a member is defined as a member of society and includes a nominal or associate member - Under Section 2 (q) "society with limited liability means a society in which liability of its members for debts of society in event of its being wound up is limited by its bye-laws to amount if any unpaid on shares by each of them or to such amount as they may undertake to contribute to the assets of society Under Section 4, a co-operative society can be registered for a group of persons - Under Section 6 of Act, or more individuals belonging to same class or pursue same occupation can submit an application for provisional registration of society to Registrar - Under clause (c) of sub-section (2) of Section 6 if object of society is to raise funds to lend to its members applicant shall reside or own immovable property in same town village or group of villages or belonging to same class or pursue same occupation - Under proviso in case of a society with unlimited liability members thereof shall reside in same town village or group of villages Sub-clause (cc), deals with productive societies where objectives of society include production and sales activity by supplying raw material to members for production of finished products all applicants have to reside in area of operations proposed for society and belong to same class or pursue same occupation - Under Section 18 of Act Registrar shall classify Societies in accordance with their objectives area of operation membership or any other matter specified in rules - Court hold that there is no statutory prohibition for residents of to continue as members of Society - Issue officers resorted to this action by contending that in year at time of re-organisation of Weavers Co-operative Societies and villages were deleted from area of operation of Society and as such weavers residing in these two villages are ineligible to continue as members of society - Stating so about persons were removed from membership of society - UNDER Section 15-A (2)Registrar is bound to pass an order and publish it in manner prescribed - Under sub-section (5) every member of society residing in area so transferred shall be deemed to have been transferred together with loans share capital etc - But Registrar failed to take action as required under Section 21-A of Act read with Rule 20 of rules procedure prescribed for removal of ineligible members consequent upon their disqualification by virtue of transfer of area in which they are residing was not followed and all these years from residents of these two villages were not only continued as members of society but also were participating in elections to society from time to time - It is seen that one need not hold a loom to claim membership in society - Applicant has to satisfy Registrar that he has attained majority and is of sound mind and is a person belonging to group of persons for whose upliftment society is formed - Except these it is no where mentioned either in statute or in rules that one has to possess a loom also to seek membership in society - Hence action of Asst Director Handlooms and Textiles in deleting these members from membership of society is not a bona fide one and only intended for extraneous consideration - Court hold that elections to society are not in accordance with law - As no one preferred an election petition questioning validity of elections only course left open to this Court is to direct Registrar to take action under Section 32 (7) of Act for appointment of a part time person incharge and to hold elections to society afresh after restoring membership of persons as directed above at earliest at any rate not later than three months from date of receipt of a copy of order - Writ Petition Allowed