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1991 Supreme(Cal) 396

High Court Of Calcutta
S. K. MUKHERJEE, ABANI MOHAN SINHA
BALAKA CO-OPERATIVE HOUSING SOCIETY LTD. - Appellant
Versus
SHIBDAS RAHA - Respondent
C. O.  1389  Of  1991
Decided On : 08/22/1991

Advocates Appeared:
MIHIR DAS, NIRMAL GHOSHAL, P.B.GHOSH, P.K.PATRA

Bye-laws framed by a Co-operative Society cannot be inconsistent with the provisions of the Co-operative Societies Act or the Rules framed thereunder.

Headnote:

CO-OPERATIVE SOCIETY - BYE-LAWS - VALIDITY - CONFLICT WITH RULES - IMPOSITION OF FINE - CONFIRMATION BY GENERAL MEETING - NOT REQUIRED.

Fact of the Case:

A Co-operative Society imposed a fine on a member for violating a bye-law by parking an extra car in the society's compound. The member challenged the fine, arguing that the resolution imposing the fine was not confirmed by the members in a general meeting, as required by the bye-laws. The Arbitrator rejected the member's claim, but the Co-operative Tribunal set aside the Arbitrator's order, holding that the resolution was invalid without confirmation by the general meeting.

Finding of the Court:

The court held that the bye-law requiring confirmation of the resolution imposing the fine by the general meeting was invalid and unenforceable because it conflicted with the Co-operative Societies Rules, which did not require such confirmation. The court reasoned that bye-laws cannot go beyond the express authority conferred on the society by the statute, and that the provision for confirmation by the general meeting was unreasonable and unworkable.

Issues: Whether a bye-law requiring confirmation of a resolution imposing a fine by the general meeting is valid and enforceable, even if it conflicts with the Co-operative Societies Rules.

Ratio Decidendi: Bye-laws framed by a Co-operative Society cannot be inconsistent with the provisions of the Co-operative Societies Act or the Rules framed thereunder. In the present case, the bye-law requiring confirmation of the resolution imposing the fine by the general meeting was in conflict with Rule 48 of the Co-operative Societies Rules, which did not require such confirmation. Therefore, the bye-law was invalid and unenforceable.

Final Decision: The court set aside the order of the Co-operative Tribunal and restored the order of the Arbitrator, upholding the imposition of the fine on the member.

ABANI MOHAN SINHA, J.

( 1 ) THIS application under Article 227 of the Constitution for revision, at the instance of the petitioner-Co-operative Society, is directed against the judgment and order passed by member of West Bengal Co-operative Tribunal in Appeal No. 45 of 1989 from the order passed by the Arbitrator, Assistant Registrar, Co-operative Society. It is the case of the petitioner that the opposite party is a member of the petitioner-Co-operative Housing Society which was registered under the bengal Co-operative Societies Act, 1940 in November, 1972. The members were allotted flats in the multi-storeyed building owned by the society and each member was allotted a space for parking one car in the ground floor of the said building. The opposite party on his letter of request given to the Secretary of the Society on 7/09/1987 was permitted to park his second car temporarily in the space of the Co-operative Society in addition to his space, for parking one car. As he continued to keep the car for long he was requested by the Secretary on 13/01/1988 to remove the second car from the compound of the society. As the other members did not agree to the continuance of such permission, the society in the meeting of the Managing Committee held on Aug. 11, 1988 directed the members keeping more than 1 car in the compound to remove it by 12/09/1988. As the opposite member did not remove his extra car, by a resolution adopted in the meeting held on 10/10/1988 which was attended by the opposite party, he was directed to remove the car without delay. The opposite party did not comply with such direction and instead gave a reply by way of show-cause justifying that his action was in accordance with law. The society in the meeting of the Managing Committee held on 10/11/1988 which was attended by the opposite party and other members adopted a resolution against the opposite party imposing a fine of Rs. 30. 00 per day on him payable from 13/09/1988 till the date of removal of the car. The opposite party filed a dispute case before the Registrar of Co-operative Societies, West Bengal challenging the fine imposed upon him as illegal and inoperative and also demanding that this order was liable to be quashed.

( 2 ) THE arbitrator rejected the claim of the opposite party and held that the opposite party as a member violated the bye-law No. 46 (a) framed by the Co-operative Society and as such liable to pay the fine imposed by the society for violation of the bye-laws by keeping an extra car in the compound of the society. Being aggrieved by such judgment and order, the opposite party preferred an appeal before the member of the Co-operative Tribunal against the award of the arbitrator. The Appellate Authority, i. e. , the Tribunal set aside the order of the arbitrator holding that the resolution imposing fine on the opposite party could not be legal and valid as it was not confirmed by the members in the general meeting. Accordingly, he set aside the order of the arbitrator. Being aggrieved by such decision, the society has come up in revision before this court under Art. 227 of the Constitution.

( 3 ) THE short point involved in this case is the impugned resolution dt. 10/11/1988 imposing fine on the opposite party is legal and valid.

( 4 ) MR. Nirmal Ghosal, learned Advocate, duly assisted by Sri Mihir Das and Sri B. K. Ghosal representing the petitioner has taken us to the relevant provisions of the different Sections and the rules thereunder contained in West Bengal Co-operative Societies Act, 1940, 1973 and 1984 and has urged that the resolution imposing fine on the opposite party is valid and legal and that no confirmation of such resolution by the members in the general meeting was necessary for making it effective.

( 5 ) MR. B. B. Ghose, learned Advocate, duly assisted by Mr. P. K. Patra on the other hand has urged that the judgment and order of the Appellate Authority, i. e. member of Co-operative Tribunal are correct and the im












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