SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1983 Supreme(AP) 143

Andhra Pradesh High Court
Judges : JEEVAN REDDY
Chintala Appala Swamy - Appellant
Versus
Deputy Registrar of Co-operative societies, Parvathipuram Division, Vizianagaram dist - Respondent
Decided On : 04-05-83

The amendment to the rule superseded the bye-law relating to quorum and the Deputy Registrar should have considered the advisability of appointing the remaining members of the Managing Committee as persons-in-charge.

Headnote:

CO-OPERATIVE SOCIETIES - BYE-LAWS - QUORUM - AMENDMENT OF RULES - EFFECT ON BYE-LAWS - APPOINTMENT OF PERSON-IN-CHARGE - DISCRETION OF DEPUTY REGISTRAR.

Fact of the Case:

The society had a bye-law that the quorum for the meeting of the Managing Committee was four. The rule was amended to provide that the quorum for the committee meeting shall be the majority of members of the committee as prescribed under rule 22-A. Seven out of eleven members of the Managing Committee resigned, leaving only four members including the president. The Deputy Registrar appointed a taluk Co-operative Officer as part-time person-in-charge of the society to manage its affairs for six months.

Finding of the Court:

The court held that the amendment to the rule superseded the bye-law relating to quorum. The court also held that the Deputy Registrar should consider the advisability of appointing either the four persons or some of them as persons-in-charge or the president as the person-in-charge, as the case may be, pending the election of a committee.

Issues: 1. Whether the amendment to the rule superseded the bye-law relating to quorum? 2. Whether the Deputy Registrar should have appointed the remaining members of the Managing Committee as persons-in-charge?

Ratio Decidendi: 1. The bye-laws of a society are subsidiary to the Act and the Rules. If any provision is made in the Act and the rules which is inconsistent with any of the bye-laws, the bye-laws must give away to that extent. 2. The scheme of the act and the Rules is that the affairs of a society shall by managed by an elected committee. Only in cases where there is no committee to manage the affairs of a society, does the Act empower the registrar to appoint a person in-charge or persons in-charge, as the case may be, to manage the affairs of the society until a new committee is elected.

Final Decision: The court allowed the writ petition partly and directed the Deputy Registrar to consider the advisability of appointing either the four persons or some of them as persons-in-charge or the president as the person-in-charge, as the case may be, pending the election of a committee.

( 1 ) THE four petitioners are the members of the Managing Committee of piridi Primary Agricultural Co-operative society Ltd. The first petitioner is its president. They were elected on 25th october, 1981. The total strength of the managing Committee is eleven. Of the eleven members, seven tendered their resignation on 11th January, 1983, which was accepted by the appropriate authority on 25th February, 1983, leaving only four members on the Committee including the president. On 23rd February, 1983, the deputy Registrar of Co-operative Societies passed the impugned Order appointing the taluk Co-operative Officer, Bobbili as parttime person-in-charge of the said society to. manage the affairs of the said Society for a period of six months from the date of assumption of the charge or till the elected committee assumes office, whichever is earlier. This appointment was made on the ground that after the resignation of seven members and its acceptance, the remaining four members do not constitute the quorum, as prescribed under rule 22-A of the Andhra pradesh Co-operative Societies Rules, 1964 (as amended ). Indeed the impugned order says that there is no valid committee in office to manage the affairs of the society and therefore, action under section 32 (1) was being taken.

( 2 ) MR. P. Babulu Reddy, the learned counsel for the petitioners urged two contentions before me: (1) that according to the bye-laws of the society as they stand now, the quorum is four and since there are four members still left on the Committee, they satisfy the rule of quorum. The rule relied upon, or the grounds stated in the impugned order, has no application to the society herein and therefore, the appointment of a person-in-charge is incompetent and illegal; and (2) that in any event, the appointment of a taluk Co-operative Officer as part-time person-in-charge of the society is not in the interests of the Society and is not a proper exercise of discretion- on the part of the deputy Registrar. It is submitted that the remaining four members or the president could have been appointed as persons-in-charge or persons-in-charge, as the case may be.

( 3 ) ACCORDING to the approved bye-laws of the society. , it is not in dispute that the quorum is four. The question is whether this bye law survives, or subsists after the amendment to rule 23 introduced by G. O. Ms. No. 388, dated 2nd November, 1982. Mr. Babulu Reddy s reasoning on this score, runs as follows: at the time of the registration of the society, a society has to submit inter alia four copies of the proposed bye-laws of the society as required by section 6 (2) (a), which have to be examined by the deputy Registrar to see whether they are not contrary to the provisions of the Act and the Rules and then register the society with those bye-laws. Once the bye-laws are so registered, they govern the working of the society. Further under section 31 of the Act, the Managing Committee has to be constituted in accordance with the bye-laws and this Managing Committee has to manage the affairs of the society in accordance with the bye-laws. Any subsequent amendment or change in the rules cannot have the automatic effect of superseding or nullifying the bye-laws which may be inconsistent with the amended rule or new rule, as the case may be. The bye-laws continue to be effective and operative, until they are changed to bring them in accordance with the Rules, according to the procedure prescribed by the Act and the Rules. Accordingly, (it is argued) the proviso inserted by, the aforesaid amendment in rule 23 cannot have the effect of nullifying or superseding the bye-law of the society relating to quorum; the bye-law as it now stands still operates to the exclusion of the aforesaid proviso to rule 23.

( 4 ) I find it difficult to agree with this reasoning. A society has to function under and in accordance with the provisions of the act and the Rules. It is true that the Act contemplates that every society sho








Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top