1981 Supreme(Bom) 315
IN THE HIGH COURT OF BOMBAY
Dharmadhikari C.S. and Deshpande S.J. JJ.
Maloji Vishnusabale .... Petitioner.
Versus
Regional Deputy Director of Sugar, Kolhapur and others .... Respondents.
Writ Petn. No. 3402 of 1981 decided on 30-11-1981. Bombay
Advocate appeared:
For petitioner-B. R. Naik with Y. R. Naik.
For respondents Nos. 1 and 4-M. F. Saldana, Asstt. Govt. Pleader.
For State-C. J. Sawant, Addl. Govt. Pleader.
For respondents Nos. 2 and ’S-P. M. Pradhan.
The nomination of an expert on the Managing Committee is not a must but is left to the discretion of the Managing Committee itself.
Headnote:
CO-OPERATIVE SOCIETIES - BYE-LAW - NOMINATION OF EXPERT DIRECTOR - VALIDITY - MAHARASHTRA CO-OPERATIVE SOCIETIES ACT, 1960, SECTIONS 9, 13, 14, 73, 73B, 73G, 77A, 91, 144A, 144C - BYE-LAW NO. 29(1)(F) OF DUDHANGA VEDGANGA SAHAKARI SAKHAR KARKHANA LTD. - INTERPRETATION.
Fact of the Case:
Petitioner challenged the validity of Bye-law No. 29(1)(f) of Dudhanga Vedganga Sahakari Sakhar Karkhana Ltd. and the co-option of respondent No.3 Dattatraya Dhondi Pharakte as an Expert Director on the Board of Directors of the said specified society.
Finding of the Court:
The court held that the nomination of an expert on the Managing Committee is not a must but is left to the discretion of the Managing Committee itself. The expression used is ‘nomination’ or ‘appointment’ and not ‘election’. The power to nominate or appoint an expert on the Committee or Board is vested in Managing Committee or the Board of Directors. Such provisions are made in other enactments also, such as, Maharashtra Municipalities Act, which provides for co-option of the persons who have special knowledge or practical experience in the field of public health, local self Government or education.
Issues: Whether the nomination of an expert on the Managing Committee is a must or is left to the discretion of the Managing Committee itself.
Ratio Decidendi: The court held that the nomination of an expert on the Managing Committee is not a must but is left to the discretion of the Managing Committee itself. The expression used is ‘nomination’ or ‘appointment’ and not ‘election’. The power to nominate or appoint an expert on the Committee or Board is vested in Managing Committee or the Board of Directors. Such provisions are made in other enactments also, such as, Maharashtra Municipalities Act, which provides for co-option of the persons who have special knowledge or practical experience in the field of public health, local self Government or education.
Final Decision: The petition was dismissed.
provisions of the Maharashtra Co-operative Societies Act, 1960 and the co-option of respondent No.3 Dattatraya Dhondi Pharakte as an Expert Director on the Board of Directors of the said specified society is also illegal.
2. It is not necessary to make a detailed reference to the various al1ega-tions made in the petition because ultimately this was the only point which was argued before us.
3. The bye-law No. 29 deals with the constitution of the Managing Committee of the respondent No.2 specified society. Clause 29(1)(f) of the
bye-law with which we are concerned in this petition reads as under:
That the Board of Directors may nominate an expert on the Board of Directors.
4. Dr. Naik the learned counsel appearing for the petitioner contended that the nomination contemplated by bye-law No. 29(1)(f) is in the nature
of an election and therefore by virtue of the provisions of section 730 of the Maharashtra Co-operative Societies Act (hereinafter referred to as the Act) the election of an expert on the Board of Directors is also subject to the provisions of Chapter XI A of the Act. Under Chapter XI A power to hold such an election is vested in the Collector and not in the Board. Therefore in view of the provisions of section 144 C read with other provisions of the Act such an election could have been held by the Collector alone. Hence the election of the respondent No.3 which is not held under the control of the Collector is wholly illegal. This is more so in view of the non-abstante clause in section 73G(3) of the Act. It is not possible for us to accept this contention of Dr. Naik.
5. It cannot be disputed that from prima fade reading of the bye-law No. 29(1)(f) it is clear that the nomination of an expert on the Managing Committee is not a must but is left to the discretion of the Managing Committee itself. The expression used is which means nomination or appointment and not election. In legal “'parlance the' words appointment, nomination, co-option and electioD have a distinct and different meaning aud connotation. The distinction between these processes is well known, though sometimes procedure followed is overlapping. For running a sugar factory on scientific lines, which is the main business of the respondent Society, some guidance from an expert may become necessary. Therefore it cannot be said that the bye-law is beyond the scope of the enactme'nt. It is no doubt true that in some cases this power of nominating an expert could be mis-used but on that count alone the bye-law itself cannot be declared as ultra vires. If the power is abused, the said abuse of the power is open to challenge iri an appropriateproceedingsin the Courtsof law.
6. Under section 9 of the Act, registration of society, is confemplated. A society can be registered if it has complied with the provisions of the Act, and the rules and its proposed bye-laws are not contrary to the provisions of the Act, or the rules. Sections 13 and 14 deal with the amendment of bye-laws. It is not disputed that bye-law No. 29 is duly approved by the competent authority. Then the section 73 of the Act, provides fo.r tpe constitution of the Committee in accordance with the Act, rules and bye-laws; which can exercise such powers and perform such duties as may be conferred or imposed by the Act. the rules and the bye-laws. Section 73G makes a provision for the conduct of elections to the committees of certain specified societies. Under bye-law 29(f) power to nominate or appoint an expert is vested in the Managing Committee or the Board of Directors. Even under section 73B, a power is conferred upon the Managing Committee to co-opt a person from amongst the persons entitled to such representatron, to reserve seats, if no such persons are elected or appoin