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2022 Supreme(AP) 349

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
M. GANGA RAO, J.
Y. Nageswar Rao – Appellant
Versus
State of Andhra Pradesh – Respondent
Writ Petition No. 15605 of 2022
Decided On : 04-11-2022

Advocates:
Advocate Appeared:
For the Appellant : V. Himabindu.

Headnote:

Andhra Pradesh Cooperative Societies Act, 1964 – Section 34 (1) –Andhra Pradesh Cooperative Societies Rules, 1964 – Rule 6-A (1) – Illegal, arbitrary – Jurisdiction and contrary – Case of the petitioner is that in elections conducted for electing Managing Committee of Andhra Pradesh Sheep and Goat Development Cooperative Federation Limited petitioner was elected as Chairman for a period – Federation is a registered body under provisions of Andhra Pradesh Cooperative Societies Act, 1964 – Held, Contention of learned counsel for petitioner that provisions of Section 34-A of Act, 1964 are not applicable in respect of Chairman of cooperative society elected by members of general body from among themselves is untenable, as petitioner was selected as Chairman of Federation not by any general body of Cooperative Society – A.P. Sheep and Goat Development Cooperative Federation Limited is a Federation consisting of President of District units as Directors and members of Board and hence, said contention holds no water – Decision of Apex Court in case of Joint Registrar of Cooperative Societies, Supra relied upon by learned counsel for petitioner is of no help to petitioner as said observations of High Court that Registrar before exercising power to supersede committee, members should be given an opportunity to rectify defects pointed out by audit, have not been accepted by Apex Court – Writ Petition dismissed.

ORDER :

1. The Ex-Chairman of Andhra Pradesh Sheep and Goat Development Cooperative Federation Limited, Guntur, Guntur District filed this writ petition to issue writ of mandamus declaring the action of the 2nd respondent in passing the impugned order dated 09.05.2022, wherein and whereby the 2nd respondent has superseded the Managing Committee of the Federation under section 34 (1) of the Andhra Pradesh Cooperative Societies Act, 1964 with effect from 09.05.2022 as illegal, arbitrary, without jurisdiction and contrary to the provisions of Andhra Pradesh Cooperative Societies Act, 1964 and violative of principles of natural justice.

2. The case of the petitioner is that in the elections conducted on 08.03.2019 for electing the Managing Committee of the Andhra Pradesh Sheep and Goat Development Cooperative Federation Limited (for brevity called as “Federation”), the petitioner was elected as Chairman for a period of five years. The Federation is a registered body under the provisions of Andhra Pradesh Cooperative Societies Act, 1964 (in short “the Act, 1964”). All the Presidents of the Primary Societies who are forming the members of the District Committee in turn elect the President and other managing committee members of the District Committees. All the District Union Presidents being members of the Federation will in turn elect the Chairman, Vice Chairman and Directors of the Federation. All the District Presidents who are members of the Federation are Directors of the Federation among them, they will elect Chairman and Vice Chairman, the remaining to be Directors of the Federation. Like that there are 13 Directors, one Director from each district units from all 13 Districts. From among them they elected the petitioner as Chairman, Vice Chairman and remaining as Directors of the Federation. The nine Board of Directors/members of the Federation have issued notice of “Motion of No Confidence” against the petitioner, Chairman under Rule 6-A (1) in Form AAA as per the provisions of Andhra Pradesh Cooperative Societies Rules, 1964 (hereinafter called as ‘the rules’) to the Managing Director and Registrar of the Federation. By virtue of the powers vested, the Director, Animal Husbandry Department as a Functional Registrar authorized the Managing Director under the provisions of Section 34-A (1to 14) of the Act, 1964 for taking necessary action. On 07.04.2022, a notice was issued to all the 13 Board of Directors, including Chairman and Vice Chairman informing the date and time of Special Board meeting scheduled to be held on 25.4.2022 as per the provisions of Section 34-A of the Act, 1964 and Rule 24-A. However, the same could not be taken place due to resignation of the eight (8) Board of Directors and two (2) Directors term expired on completion of their term as President of the District Units. There are only three (3) members in the Federation, including the petitioner as a Chairman and another Director as Vice Chairman. The eight (8) Board of Directors had submitted their resignation stating that they were not satisfied with the functioning of the Board as it is acting detrimental to the interest of the members of the Federation and submitted their resignation letter to the Managing Director, Chairman and Director of Animal Husbandry/Functional Registrar on 22.4.2022. The resignations were accepted. Then, the 2nd respondent issued show cause notice dated 25.4.2022 under Section 34 (1) of the Act as to why the Managing Committee should not be superseded on account of short fall in the Board of Directors in the Federation. As the petitioner submitted explanation stating that the acceptance of the resignation of the eight (8) Directors/members of the Federation is contrary to the Bye-law No. 20 of the Federation and show cause notice of superseding the Managing Committee is contrary to the provisions of Section 34(1) of the Act, 1964. Considering the same, the 2nd respondent passed the impugned order dated 09.05.2022 superseding the

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