S. B. DESHMUKH. J.:- Section 73-C(3), contemplates a restriction on the numerical strength of the category of non borrowing members on the managing committee. Second restriction clamped down is that such a representative from non borrowing members category is prohibited for being elected as Designated Officer. The term "Designated Officer" is defined under section 73-A(a) meaning thereby the Chairman and the President and includes any other officer of the society as may be declared by the State Government by notification in the official gazette to be a Designated Officer. Thus, important offices as Chairman President etc. are prohibited to officiate, by such a representative from non borrowing member category as contemplated under section 73-C(1) and (3) of the Act of 1960. Key words appearing in Section 73-C(3) "only from amongst members qualifies". the candidate/representative and not the constituency. From Section 73(C)(3) it cannot be inferred that creation of a separate constituency of non borrowing members is contemplated. Thus, "borrower members" or "non-borrowing members" are not intended to be cabined or enclosed such confinement or enclosure neither is intended from acquiring their status as a borrower member or non-borrowing members. Such interpretation of vertical split amongst the members of the cooperative society is not the legislative intent. It is the voluntary association of the members for promotion of their economical interests and welfare. 2008 ALL MR 404 (S.C.) and 2007(5) ALL MR 841 - Ref. to. (Paras 32. 33)

(II) Maharashtra Co-operative Societies Act (1960), S.73-C(3) - Maharashtra Cooperative Societies Rules (1961), Rr.7, 8 Election - Bye-laws of - Bye-laws of Cooperative Society do not have force of law.

S.B.DESHMUKH.J.:- Rights and liabilities of the members are determined by the Act of 1960 and not by the bye laws. Bye laws framed by the society and even if approved by the Registrar, do not have over-riding effect on any of the provisions of the legislative enactment. Bye laws must be construed in the manner so as to reflect the intention of the legislature and also make them effective and workable, relating to society concerned. They are for regulating the internal management of the society. They have to be in conformity with the Statutes and Supreme Court has held that if the bye law is not in conformity with the statute it has to be ignored. However it is true that society may have a bye law framed. Registrar may accept bye law but test has to be satistied by the bye law that they are in consonance with the statutory provisions and to further enactment and shall not in the circumstances, they have over riding effect or they cannot prevail over the statutory provisions. (1984)2 SCC 50 and AIR 1970 SC 245 - Rel. on. (Para 35)

(I) Maharashtra Co-operative Societies Act (1960), Ss.73-C(3), 27 - Maharashtra Cooperative Societies Rules (1961), Rr.7, 8 Bye-laws - Election - Bye-law cannot be said to be valid for restricting members right to vote without there being legal sanction or denial of right to vote. (Para 36)

CASES CITED:

1. Dinkar Pandurang Patil Vs. Chikali Vividh Karyakari Society Ltd., 1984 CTJ 147

2. Pandit R. Jagtap Vs. The Returning Officer Tarukhedle Vividh Karyakari Sahakari (Vikas) Society Ltd .. 1997 CTJ 5

3. Machindranath Bandu Kale Vs. Satali V.K.S. Society Ltd., 1998(5) Bom.C.R. 928

4. Dadarao Apparao Khatke V s. State of Maharashtra. 2002(1) ALL MR 599 : 2002 CTJ

5. Utrane Vividh Karyakari Seva Sahakari (V) Society Ltd. Vs. Laxman Dalpat Patil. 1989 Mh.L.J. 1125

6. Gulabrao Laxmanrao Kale Vs. Returning Officer to the elections of the Managing Committee of Shivana V.V.K.K.S.M. Shivana. W.P. No. 124/1993, Dt.:-18-1-1993

7. Shrimant Shahurao Deshmukh Vs. The State of Maharashtra. W.P. No.2071/1993. Dt.:-7- 7-1993

8. Bhajandas Gorekh Bhuirkru' Vs. District Election Officer. 2004(1) ALL MR 749 : 2004 CTJ 253 : 2004(1) Mh.L.J. 923

9. Vijay Shivaji Kokate Vs. Divisional Joint Registra

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