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2005 Supreme(Bom) 938

IN THE HIGH COURT OF BOMBAY
Anandrao Yashwantrao Nalawade
Versus
State of Maharashtra
Decided on 22.7.2005

Headnote:Maharashtra Co-operative Societies Act, 1960 - Sections 73-G(2B), 73-H and 77-A - Mandate of Section 73- H - Term of Board of Directors of Sugar Co-operative Factory expired on 5th June, 2005 - No election of the members of the committee held before expiry of the term for which the committee was constituted - The Board of Directors ceased to hold office after expiry of the term - Registrar can appoint a committee of three members to manage affairs of the factory till the new committee enters upon the office. - The mandate of Section 73-H of the Maharashtra Co-operative Societies Act is clear that if the election is not held before expiry of the period for which the committee is constituted, the committee has to authority to function any further. The section clearly provides that the committee shall cease to function on the expiry of its term and the members thereafter shall cease to hold office. This statutory provision is known to the committee members. It is, therefore, their duty to see to it that the election is held in time. If they do not hold the elections in time, their authority comes to an end. It is only to avoid the resultant vacuum that Section 73- H(2) provides that in view of the eventuality, the Registrar may take over the management and appoint an Administrator. On reading this section with Section 77-A(ii) it is found that the Registrar can appoint a committee of three members of the society or one or more Administrators who need not be members of the society to manage its affairs till the new committee enters upon the office. In the facts and circumstances of this case, therefore, it is just and necessary that respondent No. 3 Commissioner for Sugar, who is Registrar for purposes of Sugar Co-operative, ought to be directed to take over the management of the society and appoint a committee of three Administrators to run its administration until the election is held. One of the three members should be a nominee of the Collector of the rank of not less than Deputy Collector, the second member the District Deputy Registrar of Co-operatives at Sangli and the third member will be the present Managing Director of respondent No. 5-Sugar factory. The Collector’s nominee will be the Chairman. In the circumstances the petition is allowed and the respondent No. 3-Commissioner for Sugar, Maharashtra State Pune, is directed to appoint a committee of three Administrators to take over the Management of respondent No. 5-Sugar factory until the elections thereof are held and thereafter to hand over the Management to the elected body. The three Administrators will be (1) a Deputy Collector nominated by the Collector, Sangli, who will be the Chairman of three members’ committee, (2) District Deputy Registrar of Co-operative, District Sangli and (3) the present Managing Director of respondent No. 5-Sugar factory. The committee will forthwith proceed to take steps for election and take over management in the meanwhile. 2004 (4) Mh LJ 255 - Relied.

Judgment

H. L. GOKHALE, J.

( 1 ) THIS petition is filed seeking a writ of mandamus against the State of Maharashtra and its officers (and particulars against Commissioner for Sugar) to either appoint an Administrator or a Board of administrators to respondent No. 5-Sugar Co- operative Factory situated at Sangli, of which respondent Nos. 6 to 20 are its Directors. The prayer is made since elections to respondent no. 5-Sugar Co-operative factory are not being held although the statutory period of 5 years is over long back. The petitioners are the members of respondent No. 5-Sugar Co- operative factory. The interim prayer is also to the same effect. The State of Maharashtra, secretary, Co-operatives, Commissioner for sugar and Collector of Sangli, are respondent nos. 1 to 4, respectively. The Commissioner for Sugar is also the Registrar in Sugar Co- operatives under the Maharashtra Co-operative societies Act, 1960.

( 2 ) LOOKING to the prayers in this petition, we were of the view that the petition should be disposed of at the admission stage itself inasmuch as any interim order would almost amount to allowing the petition and, therefore, a notice was given recording that, if possible, the petition will be heard finally at the admission stage.

( 3 ) A reply has been filed on behalf of respondent No. 5 by one Mr. Vikramsingh sarnobat, its in charge Managing Director, to which the 1st petitioner has filed a rejoinder. One more affidavit is filed by one Mr. Vasant kumbhar, Assistant Legal Officer of respondent no. 5. An affidavit is filed by one Mr. S. A. Thorat, Regional Joint Director, Sugar, kolhapur on behalf of respondent Nos. 1 to 3 and one more by one Mr. M. G. Gadhve for commissioner for Sugar, respondent No. 3.

( 4 ) WE have heard the learned counsel for all the parties.

( 5 ) THE petition makes a grievance that this Sugar factory, which was once upon a time a leading sugar factory in this area, is in financial difficulties and is suffering from mismanagement for last few years. The cultivation of sugar in its area of allotment and the actual crushing of the sugarcane have gone down. At page 12 of the petition, there is a letter written by the Joint Director of Sugar, Kolhapur recording that as per the information made available by the Sugar factory during crushing season of 2003-2004 sugar cultivation within its area of operation was 7330 Hectares. Out of this area, respondent No. 5-Sugar factory crushed the sugarcane cultivated in an area of only 310 Hectares. Thus, the factory crushed only 14503 Metric Tonnes of sugarcane as against 5. 70 lakhs Metric Tonnes sugarcane which was actually available to the factory. In the year 2004-2005, sugarcane was cultivated in 8476 Hectares and the production of the sugarcane was 3. 50 lakhs Metric Tonnes. However, no crushing activity was conducted in the year 2004-05. This is because the factory has been closed down.

( 6 ) IN these circumstances, when some of the members wrote to the Joint director Sugar, Kolhapur, by their letter dated 24th May, 2005, asking for appointment of an administrator, a reply was sent on 31st May, 2005 that an inquiry under Section 83 (1) of the Maharashtra Co-operative Societies Act, 1960 ("mcs Act", for short) was being conducted. However, no specific answer was given to the request for appointment of an administrator. Another letter dated 21st May, 2005 was addressed to the Collector of Sangli (respondent No. 4) with copies thereof to the commissioner of Sugar in which it is stated that the term of this sugar factory was getting over on 5th June, 2005. The factory was not functioning. During the last year, no sugarcane was crushed and thousands of farmers, employees, agriculturists and transporters had suffered. Para 8 (g) of the petition states that this factory has 34,000 sugar cultivators in its area who are suffering. Therefore, it was high time that an Administrator or a Board of administrators should be appointed for this factory.

( 7 ) MR. Patil,






















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