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

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.

( 1 ) THE Joint Collector of Cuddapah, the District Co-operative Officer of Cuddapah, and the Secretary of the Co-operative Central bank, Cuddapah, all appointed to act together as the Managing Committee of the Cuddapah district Co-operative Bank resolved on 26th july, 1978 to amend the special bye-laws of that Co-operative Bank relating to the service conditions of its employees and to permit them to encash their earned leave. G. O. Ms. No. 334 (Finance and Planning) dated 28th September, 1977 issued by the State government allowed its employees the facility to encash earned leave. Drawing inspiration from that G. O. and the bye-laws framed by the Andhra Pradesh State Co-operative central Bank to which the aforesaid District co-operative Central Bank, Cuddapah is affiliated and the bye-laws of the other primary co-operative Agricultural Development Banks permitting their employees the facility of encashment of earned leave, the Cuddapah district Co-operative Bank proposed an amendment to its bye-laws permitting its employees also the facility of encashment of earned leave. The making of a bye-law of a co-operative Society is governed by the provisions of the Andhra Pradesh Co-operative societies Act, 1964. Section 16 of the andhra Pradesh Co-operative Societies Act, in material parts reads thus: "section 16 (1 ).-No amendment of any bye-law of a society shall be valid unless such amendment has been registered under this Act. Where such an amendment is not expressed to come into operation of a particular day then, it shall come into force, on the day, on which it is registered. (2) Every proposal for such amendment shall be forwarded to the Registrar who shall, if he is satisfied that the proposed amendment fulfils the conditions specified in sub-section (1) of section 7, register the amendment within a period of sixty days from the date of receipt of such proposal: provided that the Government may, for sufficient cause which shall be recorded in writing, extend the said period for a further period of sixty days. (3) The Registrar shall forward to the society a copy of the registered amendment together with a certificate signed and sealed by him, and such certificate shall be conclusive evidence that the amendment has been duly registered. (4) Where the Registrar is not so satisfied, he, shall communicate by registered post the order of refusal together with the reasons therefor, to the society within the period specified in sub-section (2)".

( 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








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