Sanjivraje Vijaysinha Naiknimbalkar and others vs Rajan Dinkarrao Pharate and others

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

1996 Supreme(Bom) 688

IN THE HIGH COURT OF BOMBAY
M.B. Shah, C.J. J.N. Patel, J.
Sanjivraje Vijaysinha Naiknimbalkar others ..... Appellants.
Versus
Rajan Dinkarrao Pharate others...... Respondents.
Letters Patent Appeal Nos. 233, 234, 235, 236, 237 238 of 1996, with Civil Application Nos. 7282, 7283, 7284, 7285, 7286 7288 of 1996, decided on 13-12-1996.
Advocates appeared :
A.V. Anturkar, for the appellants.
V.J. Patil, for respondents Nos. 1 and 2 in L.P. No. 234/96.
Y.S. Jahagirdar, for respondents 1 and 2.
V.A. Gangal Special Counsel with M.N. Zambre, A.G.P., for respondents 3 to 8.
M.A. Rane with Madhav Jamdar, for respondent No. 9.

Headnote:Sections 2(19)(a), 25(A) and 26-Maharashtra Specified Cooperative Societies Election to Committee Rules, 1971. Rule 6(4)(5)(6)-10,400 member excluded by Collector 7000 are founder members of society-Shares value increased-Collector debarred members on the ground of nonpayment-The persons who names are excluded were members also Paid does when they became member-Disqualifying to exercise their right as voters not proper Held no failure on part of members of the society In making payment Letter of Patent Appeal dismissed.
Rule 6(4),(5),(6)-See Maharashtra Co-operative Societies Act, Section 2(1)(a), 25(A) and 26.

JUDGMENT - M.B. SHAH, C. J. :---These Letters Patent Appeals are filed against the judgment and order dated 16th October 1996, passed in Writ Petition No. 4961 of 1996 and other allied matters.

2.Writ petitions were filed challenging the order dated 18th September 1996, passed by the Collector, Satara, excluding more than 10400 members of the Karkhana as voters out of a total number of 10687 members in the election of the Board of Directors of Shriram Sahakari Sakhar Karkhana Ltd.

3.At the time of the hearing of these Appeals, it is not disputed that the Society is registered under the Maharashtra Co-operative Societies Act, 1960; out of 10400 members who are excluded by the order passed by the Collector 7,000 are founder-members of the Society.

4.For becoming member of the Society, prior to the amendment of the bye-laws, a person was required to apply for share of the face value of Rs. 1,000.00 and was required to pay Rs. 250.00 along with the application. However, in the annual general body meeting of the Society held on 14th July 1995, the bye-laws were amended by which the value of share was increased from Rs. 1,000.00 to Rs. 2,000.00. The said amended bye-laws were approved by the Registrar of Co-operative Societies on 7th September 1995. On 16th October 1995, the Managing Director of the Karkhana issued notices to the members calling upon them to pay the increased share money within one month from the receipt of the notice. Thereafter, on 18th October 1995, the Board of Directors of the Karkhana passed a resolution and extended the time for payment of the increased value of the share money by one year. Subsequently, on 27th March 1996, in the annual general meeting of the Karkhana, a resolution was passed., extending further time to pay the balance share money by 31st July 1997.

5.It appears that as election to the Board of Directors was not held even though the prescribed time was over, Writ Petition No. 1237 of 1996 was filed before this Court. In that petition, by order dated 28th February 1996, a Division Bench of this Court directed the District Collector to commence the election process for electing Board of Directors and complete the same as expeditiously as possible. It was also directed that meanwhile the existing Board of Directors will remain in office till the new Board of Directors is elected and take charge.

6.The District Collector commenced the election process on 4th June 1996. However, Civil Application No. 3359 of 1996 was filed before this Court praying for review of the order passed by the Division Bench. That review application was subsequently rejected.

7.The District Collector, Satara, by his order dated 5th July 1996 held that those members who have not made full payment of the share value and those members who do not cultivate sugarcane to the extent of half an acre land in the jurisdiction of the Karkhana will not be entitled to have their names included in the voters list. That order was challenged by filing Writ Petitions Nos. 3038 of 1996 and 3040 of 1996. The said writ petitions were dismissed on 1st August 1996. Thereafter, on 2nd August 1996, the final voters list was published by the District Collector.

8.Thereafter, in another writ petition filed before this Court, the learned Single Judge of this Court upheld one of the preliminary objections and disposed of the petition by directing the District Collector to decide the objections raised by the persons whose names were not included in the final list of voters without being influenced by the District Collector's earlier order dated 5th July 1996.

9.On 18th September 1996, the District Collector passed the final orders deciding the various objections raised before him under the provisions of Rule 6 (4), (5) and (6) of the Maharashtra Specified Co-operative Societies Elections to Committee Rules, 1971.

10.Subsequently, present writ petitions were filed by various persons whose names were not included in the final voters list by the Distric

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