1965 Supreme(Cal) 85

HIGH COURT OF CALCUTTA
C. N. Laik
MADAN MOHAN SEN GUPTA - Appellant
Versus
STATE OF WEST BENGAL - Respondent
.   Of  .
Decided On : March 30, 1965

The Managing Committee of a Co-operative Society is created by the Act and not merely registered and the affairs and activities of such Societies are entirely controlled by the Registrar of the Co-operative Society who is undoubtedly a public authority.

Headnote:

CO-OPERATIVE SOCIETY - ELECTION - DISPUTE - WRIT - MAINTAINABILITY - ALTERNATIVE REMEDY - ELECTION SUB-COMMITTEE - APPOINTMENT - APPROVAL OF REGISTRAR - MANDATORY - REGULATION - FRAMING - MANDATORY - ELECTION - WITHOUT REGULATION - INVALID.

Fact of the Case:

The petitioners are employees of the Gun and Shell Factory, Cossipore, and of the Inspectorate of Armaments, being an allied organisation of the Factory. A Co-operative Society in the name of the Gun and Shell Factory Co-operative Society Limited (hereinafter referred to as the Society) was formed and registered under the provisions of the Bengal Co-operative Societies Act, 1940 (shortly stated hereinafter as the Act ). The State of West Bengal is the respondent No. 1 in the instant Rule. The Registrar and the Assistant Registrar of the Co-operative Societies of the State of West Bengal and one of their Officers are respondents Nos. 2, 3 and 7 respectively. The Society itself is respondent No. 4. The Managing Committee of the Society and its Chairman are respondents Nos. 5 and 6 respectively. The added respondents Nos. 8 to 13 are the newly elected Directors of the Managing Committee of the Society

Finding of the Court:

The Court held that the election was bad, held without jurisdiction and fit to be set aside. The Court further held that the appointment of the Election Sub-Committee was illegal being without the approval of the Registrar. The Court also held that the absence of regulation framed under Section 27 (sic Rule 27?) made the election held in the absence of the same bad and without jurisdiction.

Issues: 1. Whether a writ lies against a Co-operative Society or its Managing Committee? 2. Whether the alternative remedy is available to the petitioners? 3. Whether the appointment of the Election Sub-Committee is illegal? 4. Whether the election held in the absence of the regulation is bad?

Ratio Decidendi: 1. The Court held that a writ lies against a Co-operative Society or its Managing Committee as the Managing Committee of the Society stands on a different footing. The Court observed that the Managing Committee is created by the Act and not merely registered and that the affairs and activities of such Societies are entirely controlled by the Registrar of the Co-operative Society who is undoubtedly a public authority. 2. The Court held that the alternative remedy is no bar to the instant application as the existence of such alternative remedy is not however always a sufficient reason for refusing a party a quick relief by a writ. 3. The Court held that the appointment of the Election Sub-Committee is illegal being without the approval of the Registrar as the approval portion in the By-Law is not ultra vires Rule 43 and the power in the Rule is neither unfettered. 4. The Court held that the election held in the absence of the regulation is bad as the expression "regulation" has a well-defined meaning in law and the same cannot be equated with the resolution passed in a meeting of the Committee.

Final Decision: The Rule is accordingly made absolute. All interim orders stand dissolved. In the particular circumstances of this case, the parties would bear their own costs. Rule made absolute.