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2007 Supreme(Bom) 609

Bombay High Court
S. A. BOBDE, N. A. BRITTO
LAXMAN LADU RAUT -Appeallant
Versus
UNION OF INDIA -RESPONDENTS
WRIT PETITION 43 Of 2006
Decided On: 04/25/2007

Advocates Appeared:
A.KANSAR, A.N.S.NADKARNI, C.A.FERREIRA, H.D.NAIK, Rama Rivankar, S.K.KAKODKAR, S.N.JOSHI, S.N.Sawaikar

Headnote:Civil Procedure Code, 1908 - Section 9, Order XXI - Decree passed by Court without jurisdiction - Is a nullity - Its invalidity could be set up whenever and whenever it is sought to be enforced or relied upon, even at the stage of execution and even in collateral proceedings.

       Constitution of India - Article 226 - Duty of Court in writ petition - Process of applying amendment - Courts should ordinarily insist on the parties being confined to their specific written pleadings and should not be permitted to deviate from them by way of modification or supplementation except through the well known process of formally applying for amendment.

       Constitution of India - Articles 226 and 227 - Writ of certiorari - Issue of letter by Director, Co-operation with the approval of Central Registrar of Co-operative Societies regarding terms of office of Board of Directors (respondents 5 to 20) will be of 5 years from the date of election (25.1.2003) - Challenge to this letter being arbitrary and unauthorised - Fixation of tenure by certificate of Registration is 3 years and for future Board of Director elected tenure is 5 years - Writ to quash said clarification contained in letter dated 20.12.2005 - Prayer to direct Respondent No. 3 to appoint Administrator to administer affairs of respondent No. 4 bank and to hold election of Board of Directors (5 to 20) expired on 31.1.2006 - Challenge is limited to certificate of amendment of Regis- t ration dated 1.3.2004 - Another certificate of Registration of amendment dated 30.9.2002 by which Central Registrar registered proposed bye law No. 31 where tenure of 5 years is set - Tenure of chairman and vice-chairman fixed for 3 years - Respondent No. 4 is deemed Multi-State Co-operative Society by virtue of Section 95 of Multi-State Co-operative Societies Act 1984 (old Act) - There term of Direction was 3 years - Repeat of old Act by Multi- State Co-operative Societies Act 2002 and letter issued for tenure of 5 years under Section 45(5) of Act - Election earlier held on 25.1.2003 when certificate of Registration was in full force and effect - Chief Director (Co- operation) in the department of Agriculture and Co-operation was exercising power of Central Registrar - On 21.1.2003 cancelled the registration to bring situation back providing a tenure of 3 years - By law approved for tenure of 5 years - Objection by respondents 5 to 7 and 9 to 11 regarding locus standi of petition - Petitioner No. 1 share holder, No. 2 is chairman has locus stand as contained by petitioner - Certificate dated 30.9.2002 revoked by certificate dated 21.1.03 providing for a term of 3 years - Rejection of objection - Registration of bye laws by certificate dated 1.3.2004 with tenure of 3 years could not enlarge said tenure by way of clarification by letter dated 20.12.05 which is arbitrary and unauthorised - Quashing of letter dated 20.12.2002 proper - Petition allowed.

N. A. BRITTO, J.

( 1 ) BY this petition filed under Articles 226 and 227 of the Constitution of India, the petitioners assail the letter/communication dated 20-12-2005 issued by the Director (Co-operation) with the approval of the Central Registrar of co-Operative Societies, by which it has been clarified that the term of Office of the present Board of Directors (Respondent Nos. 5 to 20) will be 5 years from the date of election (25-1-2003 ).

( 2 ) THE petitioners have assailed the said letter essentially on the ground that it is grossly illegal, arbitrary and unauthorized since the Certificate of registration dated 1-3-2004 had fixed the tenure of the present Board of directors to 3 years and the tenure of 5 years was for the Board of Directors to be elected in future. The petitioners have therefore sought, interalia, for a writ of certiorari or a writ in the nature of certiorari or any other writ or order and direction to quash and set aside the said clarification contained in the said letter dated 20-12-2005 and also for a further direction to Respondent No. 3-Central registrar to appoint an Administrator to admins. ister the affairs of respondent no. 4-Bank and to direct respondent no. 3 to forthwith hold the elections for the board of Directors of respondent no. 4-Bank as the term of the present Board of directors (Respondent Nos. 5 to 20) expired on 31-1-2006.

( 3 ) ALTHOUGH the petitioners' challenge is limited to the said letter dated 20-12-2005 in relation to the Certificate of Amendment of Registration dated 1-3-2004, there are two other such Certificates brought into controversy, on behalf of the respondents, namely the Certificate of Registration of amendment dated 30-9-2002 by which the Central Registrar had registered the proposed Bye-Law No. 31 setting out the term of Office of the elected members of the Board from 3 years to 5 years and the Certificate of Registration of amendment dated 21-1-2003 by which the Registration Certificate of amendment dated 30-9-2002 was cancelled and the earlier proposed enblock amendment fixing the tenure of the Board for 3 years and that of the Chairman and Vice-Chairman also for 3 years was again fixed for 3 years and that is to say by virtue of the Bye-Laws No. 31 and 35 (ii) of the Bye-Laws sent for registration, on behalf of the Respondent-Bank by letter dated 17-6-2002.

( 4 ) SOME more facts are required to be stated to dispose of this petition.

( 5 ) ON or about 30-5-1987 on the formation of a separate State of Goa and the Union Territory of Daman and Diu, the respondent no. 4 became a deemed Multi-State Co-operative Society by virtue of Section 95 of the multi-State Co-operative Societies Act, 1984 (old Act, for short ). The tenure of the Board of Directors then was for a period of 3 years and that was in view of section 35 (3) of the old Act which provided that the term Office of the elected members of the Board would be such, not exceeding 3 years from the date of election, as may be specified in the Bye-Laws of the Multi-State Co-operative society. On or about 17-6-2002, the Respondent-Bank addressed a letter to the central Registrar seeking registration of amendments to the Bye-Laws and there is no dispute that as per the said letter what was proposed to be registered, inter alia, was Bye-Law No. 31 which provided that the term of Office of the elected members of the Board would be 3 years from the date of election or as may be provided in the Act. It also provided that the elected members would continue to hold Office till their successors were elected or nominated under the provisions of the Act or the Rules framed thereunder. Likewise Bye-Law No. 35 (ii) provided that the term of Office of the Chairman and Vice-Chairman should be for a period of 3 years unless removed from Office by motion of no confidence as per procedure prescribed by Sub-Clause III i. e. by virtue of a motion of no confidence at a meeting of the Board of Directors by a simple majority.

( 6 ) WHIL




























































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