1980 Supreme(AP) 239
Andhra Pradesh High Court
Judges : P.A.CHOUDHARY
Co-operative Central Bank Employees Union, Cuddapah - Appellant
Versus
District Co-operative Officer (Special cadre Deputy Registrar of Co-operative societies), Cuddapah - Respondent
Decided On : 09-11-80
A Co-operative Society is not subordinate to the Registrar of Co-operative Societies and therefore its orders or records are not revisable under section 77 of the Andhra Pradesh Co-operative Societies Act, 1964.
Headnote:
CO-OPERATIVE SOCIETIES - BYE-LAWS - AMENDMENT - REGISTRATION - CANCELLATION - JURISDICTION OF REGISTRAR - SECTION 77 OF THE ANDHRA PRADESH CO-OPERATIVE SOCIETIES ACT, 1964 - APPLICABILITY - CO-OPERATIVE SOCIETY NOT SUBORDINATE TO REGISTRAR - SHOW CAUSE NOTICE ISSUED BY REGISTRAR WITHOUT JURISDICTION.
Fact of the Case:
The Cuddapah District Co-operative Central Bank proposed an amendment to its bye-laws permitting its employees the facility of encashment of earned leave. The Registrar of Co-operative Societies registered the amendment on 31st August, 1978. However, on 30th April, 1979, the Registrar issued a show cause notice to the Bank to show cause why the bye-law should not be annulled from the date of its registration.
Finding of the Court:
The Court held that the show cause notice issued by the Registrar was without jurisdiction. The Court held that the Co-operative Society was not subordinate to the Registrar and therefore its orders or records were not revisable under section 77 of the Co-operative Societies Act. The Court also held that the proposal made by the Bank to amend the bye-law could not be revised under that section as it had no legal efficacy until it was registered by the Registrar.
Issues: Whether the Registrar of Co-operative Societies had jurisdiction to issue the show cause notice to the Bank under section 77 of the Andhra Pradesh Co-operative Societies Act, 1964.
Ratio Decidendi: The Court held that the Registrar did not have jurisdiction to issue the show cause notice because the Co-operative Society was not subordinate to the Registrar and the proposal made by the Bank to amend the bye-law could not be revised under section 77 of the Act.
Final Decision: The Court set aside the show cause notice and declared the orders of the interim suspension passed by the Registrar of Co-operative Societies as illegal.
Act Referred
( 2 ) IT is in pursuance of the requirements of section 16 that aforesaid proposal dated 26th july, 1978 was made by the Cuddapah District co-operative Bank for the purpose of its being registered by the Registrar of Co-operative societies. On receipt of the above proposal from the Cuddapah District Co-operative bank, Registrar of Co-operative Societies presumably finding nothing unreasonable about the proposals, by his proceedings dated 31st August, 1978, approved and registered the amendment of the special bye-laws by inserting a new bye-law No. 12-A. Strangely, within a period of 10 months, the Registrar of Co-operative Societies had issued the present show cause notice on 30th April, 1979, to the District Co-operative Central Bank, cuddapah to show the cause why the bye-law no. 12-A registered by him earlier should not be annulled from the date of its registration i. e. , 30th August, 1978. The validity of this show cause notice is challenged in this writ petition, by the Co-operative Central Bank employees Union, Cuddapah who are the beneficiaries of the aforesaid bye-law No. 12-A. The impugned show cause notice issued by the Registrar reads thus:- "whereas the Deputy Registrar of Co-operative societies (Divisional Co-operative officer), Cuddapah registered the amendment in the reference first read above to the special bye-laws relating to the service conditions of the employees of the cuddapah District Co-operative Central bank Ltd. , Cuddapah providing encashment of privilege leav