IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
M. GANGA RAO, J.
Yerragudipadu Primary Agricultural Co-operative Society – Appellant
Versus
State of Andhra Pradesh and Ors. – Respondents
Writ Petition No. 782 of 2021
Decided On : 24-08-2021
Andhra Pradesh Co-operative Societies Act, 1964 - Section 21(3), 25 and 115-C (a), 115(d) - Andhra Pradesh Co-operative Societies Rules, 1964 - Rules 18 and 75(2) - Writ Petition - Minimum business to be transacted or services or facilities to be utilized by a member of other societies - Whether 2nd respondent bank followed provisions of Sections 25 and 115(d) of Act, 1964 and Rules 18 and 75(2) of 1964 in passing impugned order – Held, petitioner society has transacted business during cooperative year of 2020 i.e., and states that society transacted business and utilized services of petitioner - Hence, impugned order is passed, erroneously stating that petitioner society has not transacted any minimum business and utilized services and thereby disqualified to contest in bank Governing Body elections - This Court found force in arguments advanced by learned counsel for petitioner - It is found that impugned order is passed contrary to provisions of Sections 25 and 115(d) of Act, 1964 and Rules 18 and 75(2) of Rules, 1964 - Writ Petition is allowed.
ORDER :
M. Ganga Rao, J.
1. The petitioner, Yerragudipadu Primary Agricultural Co-operative Society represented by its President, filed this writ petition being aggrieved by the proceedings dated 17.12.2020 passed by the 2nd respondent-District Co-operative Central Bank represented by its Chief Executive Officer, communicating the decision of the General Body meeting, whereby the petitioner's society was made ineligible to cast vote and disqualified to contest in the 2nd respondent bank's Governing Body elections even though it is a member of the bank for not transacting the required business with the bank as per bye-law No. 3(I) of the Kadapa District Cooperative Central Bank, as illegal, arbitrary and contrary to G.O. Rt. No. 292, Agriculture & Cooperation (Coop. IV) Department, dated 27.03.2020 and also G.O. Rt. No. 617, Agriculture & Cooperation (Coop. III) Department, dated 28.08.2020.
2. The brief facts of the case are that the petitioner is a member of the 2nd respondent bank. The 2nd respondent bank had issued a notice dated 09.07.2020 to the petitioner society as to why the society could not be disqualified from voting and contesting in the 2nd respondent bank elections for not transacting any business with the 2nd respondent bank, stating that one Sri Gandluru Veera Anil Kumar Reddy, the president of the petitioner society, contested the bank elections even though the petitioner society has not transacted business during the period from 18.02.2013 to 02.05.2015 on being exemption granted by the Government and he is one of the directors of the bank from 18.02.2013 to 03.05.2015 and the President of the bank from 03.05.2015 to 04.08.2019. Even during that period, the petitioner society has not made any transactions or business with the 2nd respondent bank. Questioning the said order, the petitioner society has field Writ Petition No. 17912 of 2020 before this Court.
3. This Court by order dated 05.10.2020 passed in W.P. No. 17912 of 2020 has set aside the notice dated 09.07.2020 on the ground that the same was passed without giving due opportunity to the petitioner and it was violative of principles of natural justice and also contrary to the provisions of Section 21(3) of the Andhra Pradesh Co-operative Societies Act, 1964 (for short 'the Act, 1964'). However, the 2nd respondent Bank was given liberty to issue an appropriate show-cause notice to the petitioner and take further action in the matter after due consideration of the explanation if any submitted by the petitioner pursuant to the said show-cause notice.
4. Accordingly, a notice dated 21.11.2020 was issued to the petitioner's society calling for explanation within 15 days from the date of receipt of the notice as to why the petitioner society's president/representative shall not be declared ineligible to participate in elections of the District Co-operative Central Bank. Against which, the president of the petitioner society submitted explanation through an advocate on 01.12.2020 stating that an amount of Rs. 1105/- was deposited on 17.02.2020 for a period of four years and also Rs. 1 lakh by way of Fixed deposit on 20.02.2020 for a period of one year and the 2nd respondent being a person in-charge is not authorized to issue show-cause notice and take action, without any enclosures.
5. The 2nd respondent, after considering the Bank review committee meeting resolution dated 15.02.2020, PIC committee meeting resolution dated 27.06.2020, 2nd respondent bank General Body meeting resolution dated 27.06.2020 and the explanation of the petitioner submitted through an advocate dated 01.12.2020, has passed the impugned order dated 17.12.2020 disqualifying the petitioner society from voting and contesting elections in the 2nd respondent bank.
6. The issue involved in this writ petition is that whether the 2nd respondent bank followed the provisions of Sections 25 and 115(d) of the Act, 1964 and Rules 18 and 75(2) of the Andhra Pradesh Co-operative Societies Rules, 1964 (for s
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