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1996 Supreme(Bom) 518

IN THE HIGH COURT OF BOMBAY
R.M. Lodha, J.
Sau. Minakshi Murlidhar Ghodke and others.... Petitioners.
Versus
The Additional Commissioner, Nashik Division,
Nashik and others.... Respondents.
Writ Petition No. 4788 of 1996, decided on 21-9-1996.
Advocates appeared :
A.Y. Sakhare, for the petitioners.
Mrs. Magre, A.G.P., for the respondents Nos. 1 to 3.

Bye-Laws framed by a co-operative society and approved by the Registrar have equal force as the provisions of the Act and the Rules under the Act, and are required to be taken into consideration in determining the eligibility of a candidate to contest an election.

Headnote:

CO-OPERATIVE SOCIETY - ELECTION TO COMMITTEE - DISQUALIFICATION - BYE-LAWS - INTERPRETATION - MAHARASHTRA CO-OPERATIVE SOCIETIES ACT, 1960 - SECTION 144-E - MAHARASHTRA SPECIFIED CO-OPERATIVE SOCIETIES ELECTIONS TO COMMITTEE RULES, 1971 - RULE 23.

Fact of the Case:

Petitioners challenged the rejection of their nominations for election to the committee of a specified society by the Returning Officer and the Additional Commissioner, contending that the Returning Officer erred in relying on Bye-Law No. 31 of the society's Bye-Laws, which provided for eligibility for election as director, and that the Additional Commissioner erred in sustaining the order.

Finding of the Court:

The court held that Bye-Law No. 31 of the society's Bye-Laws, which provided for eligibility for election as director, was not inconsistent with section 144-E of the Maharashtra Co-operative Societies Act, 1960, and therefore had to be considered in determining the eligibility of a candidate to contest the election.

Issues: 1. Whether Bye-Law No. 31 of the society's Bye-Laws, which provided for eligibility for election as director, was inconsistent with section 144-E of the Maharashtra Co-operative Societies Act, 1960. 2. Whether the Returning Officer erred in relying on Bye-Law No. 31 of the society's Bye-Laws in rejecting the petitioners' nominations.

Ratio Decidendi: The court relied on the Supreme Court's decision in Babaji Kondaji Garad and others v. Nasik Merchants Co-operative Bank Ltd., Nasik and others, which held that Bye-Laws of a co-operative society cannot be held to be law or to have the force of law, and that in case of conflict between a statute and a Bye-Law, the statute prevails. However, the court also noted that Bye-Laws framed by a society and approved by the Registrar have equal force as the provisions of the Act and the Rules under the Act, and are required to be taken into consideration in determining the eligibility of a candidate to contest an election.

Final Decision: The court dismissed the writ petition, holding that the Returning Officer did not commit any error of law in rejecting the petitioners' nominations by referring to Bye-Law No. 31 of the society's Bye-Laws, and that the Additional Commissioner also did not commit any error in rejecting the appeal filed before him under section 152-A of the Maharashtra Co-operative Societies Act.

JUDGMENT - R.M. LODHA, J.:---Mr. Sakhare, the learned Counsel for the petitioners, contends that the Returning Officer committed serious error in rejecting the nominations of the petitioners by relying upon Bye-Laws No. 31 of Bye-Laws of the Bank and the Additional Commissioner also seriously erred in sustaining the said order. According to Mr. Sakhare, the disqualification for being elected to the committee of respondent No. 4 society which is specified society is governed by section 144-E of the Maharashtra Co-operative Societies Act, 1960 and while scrutinizing the nomination papers, the Returning Officer has to act in accordance with Rule 23 of the Maharashtra Specified Co-operative Societies Elections to Committee Rules, 1971. Mr. Sakhare contends that bye laws have no statutory force and cannot be equated with the statutory provision and even if Bye-Laws No. 31 of Bye-Laws of the society provided for eligibility for election for director, the same could not have been considered in view of the provisions of section 144-E of the Maharashtra Co-operative Societies Act, 1960. In support of his contention Mr. Sakhare, relied on the decision of the Apex Court in (Babaji Kondaji Garad and others v. Nasik Merchants Co-operative Bank Ltd. Nasik and others)1, A.I.R. 1984 S.C. 192

2.Per contra, Mrs. Magre, the learned Assistant Government Pleader for respondent Nos. 1 to 3 submits that the present Bye-Laws of the society were approved by the Registrar and accordingly the said Bye-Laws have equal force as the provisions of the Maharashtra Co-operative Societies Act and the Rules under the Act and the said bye laws have to be considered while examining the eligibility and the qualification of a person contesting election to the committee of the society. In support of her contention, the learned Assistant Government Pleader relied on a decision of this Court in (Jairam v. The State of Maharashtra)2, 1996 C.T.J. 235.

3.I have considered the contentions of the learned Counsel for the parties. Section 144-E of the Maharashtra Co-operative Societies Act reads thus :

"144-E. Disqualifications for membership.

(1)A person shall be disqualified for being elected as, and for being a member of the committee of any specified society,---

(a)if he is a salaried employee of any society (other than a society of employees themselves) or holds any office of profit under any society, except when he holds or is appointed to the office of a Managing Director or any other office declared by the State Government by general or special order not to disqualify its holder or is entitled to be or is elected, appointed or co-opted to any reserved seat on the committee of a society under section 73-BB;

(b)if he has been convicted of an offence punishable under section 153-A or section 171-E or 171-F or sub-section (2) or sub-section (3) of section 505 of the Indian Penal Code, or unless section 144-Q or Clause (a) of sub-section (2) of section 144-R of this Act, unless a period of six years has elapsed since the date of his conviction;

(c)if he has found convicted by a Court in India for any offence and sentenced to imprisonment for not less than two years, unless a period of five years has elapsed since his release;

(d)if he is found guilty of a corrupt practice by the Commissioner of the Division, unless a period of six years has elapsed since the date on which the decision of the Commissioner takes effect;

(e)if he so disqualified by or under any other provision of this Act.

(2)For the purpose of Clause (a) of sub-section (1), a person shall not be deemed to hold an office of profit under a society, if he does not receive any remuneration other than compensatory allowance, or honorarium payable under sub-section (2) of section 65 not exceeding rupees six thousand per year.

Explanation.---In this sub-section, "compensatory allowance" means the travelling allowance, the daily allowance or such other allowance which is paid to the holder of the office for the purpose of m































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