IN THE HIGH COURT OF JUDICATURE AT PATNA
Ahsanuddin Amanullah, Hemant Gupta, JJ.
Indradeo Prasad & Ors. - Appellants
Versus
The State of Bihar through the Principal Secretary, Department of Cooperative & Ors. - Respondents
Letters Patent Appeal No.2029 of 2015 Arising out of Civil Writ Jurisdiction Case No. 11665 of 2015 Along with Interlocutory Application No. 9298 of 2015 In Letters Patent Appeal No.2029 of 2015
Decided On : 11-11-2016
Resignation - Dissolution of Managing Committee - Bihar Cooperative Societies Act, 1935, Section 14(9), Section 41(5), Section 44AT, Section 44BF(2)
Fact of the Case:
The case involved the challenge to the dismissal of C.W.J.C. No. 11665 of 2015, filed by the appellants, after the Managing Committee of a Primary Agriculture Credit Society was superseded due to resignations by the majority of its members.
Finding of the Court:
The court found that the dissolution of the Managing Committee was valid under Section 41(5) of the Act, and the power of the Registrar to supersede the Managing Committee was not curtailed by other provisions of the Act.
Issues: The main issue was whether the dissolution of the Managing Committee was valid under the relevant sections of the Bihar Cooperative Societies Act, 1935.
Ratio Decidendi: The court held that the dissolution of the Managing Committee was in accordance with the provisions of Section 41(5) and Section 44BF(2) of the Act, and the resignation of the majority of the members led to a lack of quorum, satisfying the conditions for supersession.
Final Decision: The court dismissed the Letters Patent Appeal, upholding the judgment of the learned Single Bench.
Ahsanuddin Amanullah, J.
Heard learned counsel for the parties.
2. The challenge in the present intra-court appeal under Clause X of the Letter Patent of Patna High Court is to the judgment dated 17.08.2015 by which C.W.J.C. No. 11665 of 2015, filed by the appellants, has been dismissed by the learned Single Bench.
3. Consequent upon election, a Managing Committee of eleven persons was constituted for Bhaiswan Primary Agriculture Credit Society (hereinafter referred to as the ‘PACS’), including the appellants, on 11.11.2014. Out of them, 10 persons, including the appellants no. 2 to 6 and respondents no. 5 to 9, submitted their resignation to the Manager of the PACS on 03.12.2014. Thereafter, the respondent no. 5 filed Supersession Case No. 423 of 2014 before the Registrar, Co-operative Societies, Bihar, Patna. The case was heard and finally disposed off by order dated 22/25-05-2015 by the Additional Registrar, Co-operative Societies, Bihar, Patna by which the Managing Committee was superseded with immediate effect with a direction to appointment an Administrator till elections were held in accordance with law.
4. Being aggrieved by the same, the appellants preferred C.W.J.C. No. 11665 of 2015, which was dismissed by the learned Single Bench by judgment dated 17.08.2015, which is the subject matter of the present Letters Patent Appeal.
5. Learned counsel for the appellants submitted that even if majority of the Members of the Managing Committee resigned, a case for supersession under Section 41(5) of the Bihar Cooperative Societies Act, 1935 (hereinafter referred to as the ‘Act’) is not made out, as the same have to be treated as casual vacancies in terms of the second proviso to Section 14(9) of the Act. Learned counsel submitted that in terms of Section 44BF(2) of the Act, supersession of the Managing Committee (Board) of a Primary Agriculture Credit Society, under Section 41 of the Act, can be done by the Registrar only under four conditions enumerated therein under sub-sections (a) to (d), which in the present case are not satisfied. He further contended that in view of appellants being 07 in number opposing the supersession of the Managing Committee, the power under Section 41(5) of the Act ought not to have been exercised. Learned counsel submitted that Section 14(9) of the Act stipulating the terms of the elected members of the Board and its office bearers being fixed for five years, the election of the remaining members, who had not tendered their resignations, could not have been curtailed. Learned counsel submitted that in view of the over-riding effect of Section 44AT of the Act, the supersession can be only under Section 44BF and not under Section 41(5) of the Act.
6. Learned counsel for the appellants relies upon a decision of the learned Single Bench of this Court in the case of Deepak Kumar Jha vs. The State of Bihar & Ors. reported as 2009(4) PLJR 1042, for the proposition that even vacancy exceeding 50% in the Managing Committee, would not lead to election of the entire Managing Committee and shall be limited to the shortfall, either to be filled up by election to the extent of shortfall or by co-option from amongst the members.
7. Learned counsel for the respondents, while opposing the contentions of learned counsel of the appellants, reiterated the arguments advanced before the learned single Bench and has supported the reasoning given in the order under appeal.
8. We have heard learned counsel for the parties at length and find no merit in the present appeal. However, we would like to add our own reasoning. The issue basically is quite simple and direct; as to whether an order of dissolution of the Managing Committee, on account of resignation of more than half of the members, under Section 41(5) of the Act, is valid, being the normal consequence of such resignations. In view of the arguments advanced, the issue has to be tested on the touchstone of Sections 14(9) and 41(5) read with 44AT and 44BF(2) of t
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