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2023 Supreme(Bom) 491

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
DHIRAJ SINGH THAKUR, SANDEEP V. MARNE, JJ.
Nashik Zilla Sarkari & Parishad Karmachari Sahakari Bank Niyamit Ltd. – Appellant
Versus
The State of Maharashtra – Respondent
Writ Petition No.6199 of 2023
Decided on : 21-06-2023

Advocates:
Advocate Appeared:
For the Appellant : Mr.Nitin Gaware Patil
For the Respondent: Mr. Dilip Patil Bankar, a/w. Ms. Pooja D. Patil, Mr. Sanjeev B. Deore, a/w. Ms. Suchita Pawar, Mr. A. I. Patel, Addl AGP a/w. N. K. Rajpurohit, Adv

The main legal point established in the judgment is that the State Co-operative Election Authority (SCEA) has the jurisdiction to issue directives for the preparation of electoral rolls and conduct of elections of societies, including the authority to exclude retired employees, as nominal members, from the provisional list of voters.

Headnote:

SCEA - Jurisdiction to Issue Directives - Maharashtra Co-operative Societies Act, 1960, Section 73CB

Fact of the Case:

The petitioners, a Salary Earner’s Co-operative Bank and some retired employees, challenged a communication issued by the State Co-operative Election Authority (SCEA) directing the exclusion of retired employees from the provisional list of voters for conducting elections of salary earners’ co-operative credit societies. The petitioners contended that the SCEA lacked jurisdiction to issue such directives under Section 73CB of the Maharashtra Co-operative Societies Act, 1960.

Finding of the Court:

The court found that the SCEA had the jurisdiction to issue directives for the preparation of electoral rolls and conduct of elections of societies, including the authority to issue directives to exclude retired employees from the provisional list of voters. The court also held that retired employees, as nominal members, did not have the right to vote and therefore their names should not be included in the voters list.

Issues: The jurisdiction of the SCEA to issue directives under Section 73CB of the Act of 1960 and the eligibility of retired employees to be included in the provisional list of voters.

Ratio Decidendi: The court held that the SCEA had the necessary jurisdiction to issue directives for the preparation of electoral rolls and conduct of elections of societies, including the authority to issue directives to exclude retired employees from the provisional list of voters. The court also found that retired employees, as nominal members, did not have the right to vote and therefore their names should not be included in the voters list.

Final Decision: The petition was dismissed, and the interim order staying the impugned communication was vacated. The court found no merit in the petition and ruled in favor of the SCEA. The intervention application was also disposed of, and no order as to costs was made.

JUDGMENT :

Sandeep V. Marne, J.

Rule. Rule is made returnable forthwith. With the consent of parties, petition is taken up for final hearing.

2. Petitioners before us are Nashik Zilla Sarkari and Parishad Karmachari Sahakari Bank Ltd., which is a Salary Earner’s Co-operative Bank and some of its members, who are retired employees. Petitioners have filed the present petition challenging communication dated 10 February 2023 issued by State Co-operative Election Authority (SCEA). By the impugned communication, the SCEA has issued directives to all District Co-operative Election Officers not to include names of retired employees while preparing provisional list of voters for conducting elections of salary earner’s co-operative credit societies. The challenge is essentially raised on the ground of lack of jurisdiction on the part of SCEA to issue such directives.

3. Petitioner No.1 is a Society registered under the provisions of Maharashtra Co-operative Societies Act, 1960 (Act of 1960). Petitioner No.1 is also a Bank. In Exhibit-A to Petition giving particulars about Petitioner No. 1 bank, it is described as a ‘salary earners cooperative society’. It has salaried employees of the State Government and Zilla Parishads, State Government Undertakings and Municipal Corporation as its members excluding police officials and primary teachers. Retired employees of these establishments are also members of the society. Byelaws of Petitioner No. 1 Society are filed along with the Petition, which permit retired employees being enrolled as its members.

4. The last elections of Petitioner No.1 Bank were held on 18 June 2017 and the period of 5 years came to an end on 18 June 2022. Elections of Petitioner No.1 Bank and other similarly situated cooperative societies were postponed by the State Government. SCEA issued directives to all District Co-operative Election Officers to commence election process of various societies from 1 March 2023 and to complete the same by 30 June 2023. The District Co-operative Election Officers were directed to prepare provisional list of voters by 1 February 2023.

5. On 10 February 2023, SCEA issued impugned communication directing District Co-operative Election Officers not to include names of retired employees in provisional voters lists. Petitioners are aggrieved by impugned communication dated 10 February 2023 and have accordingly filed the present petition. What Petitioners essentially question is the authority of the SCEA to issue such directives under Section 73CB of the Act of 1960. They contend that deletion of names of retired employees of Petitioner Bank would result in deletion of their names from membership register, which power can be exercised under Section 25A by the Registrar alone, that too after following the procedure prescribed. That the issue of eligibility to continue as a member is to be decided in accordance with the Byelaws of each society and therefore the SCEA could not have issued general directions for deletion of names of retired employees from provisional list of voters of all salary earners’ credit cooperative societies.

6. The Petition was moved before vacation court on 9th May 2023 and upon a submission made on behalf of Petitioners that SCEA has directed deletion of ‘members’ of Petitioner No. 1 bank, this court passed interim order staying the impugned communication dated 10 February 2023. The interim order passed on 9 May 2023 reads thus:

    1. Issue notice to the respondents, returnable on 12th June 2023.

2. The learned counsel for the petitioner invited our attention to the order dated 6th April 2023 passed by co-ordinate bench of this Court (Nagpur Bench) in Writ Petition no.2254 of 2023.

2. According to the petitioner, the Election Authority has no power under the Act or Rules to issue directions to delete the members. He invited our attention to eligibility of membership. He also invited our attention to the Bye-laws which provide for cessation of membership. According to him, none of t

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