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HIGH COURT OF CALCUTTA
Satyabrata Sinha & Satya Narayan Chakrabarty, JJ.
Garbari Union Co-operative Agricultural Credit Society Limited & Anr.
vs.
Swapan Kumar Jana & Ors.
(Original Jurisdiction) Appeal No. 1543 of 1996
Decided on : June 21, 1996
CO-OPERATIVE SOCIETIES - WEST BENGAL CO-OPERATIVE SOCIETIES ACT, 1983 - BOARD OF DIRECTORS - FUNCTUS OFFICIO - WHETHER BECOMES FUNCTUS OFFICIO ON EXPIRY OF THREE YEARS - INTERPRETATION OF S. 25(1), 25(3), 25(4), 27(1) AND 27(8) OF THE ACT - BOARD OF DIRECTORS DOES NOT BECOME FUNCTUS OFFICIO ON EXPIRY OF THREE YEARS - REGISTRAR AND STATE GOVERNMENT CAN DIRECT HOLDING OF MEETING UPTO A PERIOD OF FIFTEEN MONTHS - NO PENAL PROVISION FOR NON-COMPLIANCE OF S. 25(1) - S. 31 OF THE ACT HAS NO APPLICATION.
Fact of the Case:
The dispute arose in a co-operative society, Garbari Union Co-operative Agricultural Credit Society Limited, where the Board of Directors were elected on 23.2.92. The life of the Board expired on 22nd February, 1995. The Annual General Meeting was held on 13.2.94 and the next annual general meeting was to be held on 13.2.95. The Board of Directors fixed 12.2.95 for holding the Annual General Meeting. However, due to an increase in the number of members, the Annual General Meeting could not be held. The Board of Directors met again and passed a resolution for holding election of delegates. The Assistant Registrar of Co-operative Societies directed the Board to complete election of delegates before expiry of two months from the date of proposed Annual General Meeting. The erstwhile Secretary issued a notice under the direction of the Assistant Registrar of Co-operative Societies that election will be held on 19.11.95. Questioning the said order, the writ-petition was filed. The writ-petitioner-respondent no. 1 filed a cross-objection against the findings of the learned Trial Judge.
Finding of the Court:
The court held that the Board of Directors did not become functus officio on the expiry of three years. The court interpreted S. 25(1), 25(3), 25(4), 27(1) and 27(8) of the Act and found that the Registrar and State Government can direct holding of meeting upto a period of fifteen months. There is no penal provision for non-compliance of S. 25(1). S. 31 of the Act has no application in the facts of the case.
Issues: Whether the Board of Directors becomes functus officio on the expiry of three years?
Ratio Decidendi: The court interpreted the relevant provisions of the West Bengal Co-operative Societies Act, 1983 and held that the Board of Directors does not become functus officio on expiry of three years. The court reasoned that sub-sections (3) and (4) of S. 25 of the Act allow the Registrar and in certain special circumstances the State Government to permit the Registrar to issue a direction upon the Board of Directors to hold a meeting either within a period of three months from the date of expiry thereof or even thereafter. If the Board of Directors had already become functus officio, a vacuum would be created in the management of the affairs of the co-operative society, which is not contemplated under the Act. Furthermore, if the Board of Directors becomes functus officio only on the expiry of three years in terms of clause (a) of sub-s. (1) of s. 25 of the Act or the directors are required to vacate their offices in view of the provision of sub-so (8) of S. 27 of the Act, Sub-sections (3) and (4) of S. 25 of the Act shall become absolutely otiose and meaningless.
Final Decision: The appeal was allowed. The judgment and order passed by the learned Trial Judge was set aside and the writ application of the writ-petitioner was dismissed. The cross objection was also dismissed.
S. B. Sinha, J.
1. This is an appeal against an order dated 10.5.90 passed by a learned Single Judge of this Court in Civil Order No. 19939(W) of 1995 whereby and whereunder the said learned Judge disposed of a writ application filed by the writ-petitioner-respondent no. 1 quashing n notice dated 24th October, 1995 as contained in annexure 'B' to the writ application.
2. The fact of the matter lies in a very short compass.
3. The parties are the members of a co-operative society known as Garbari Union Co-operative Agricultural Credit Society Limited (hereinafter referred to as the 'Society'}. On 23.2.92, the directors of the said Society were elected. According to the writ-petitioners life of the said Board of Directors expired on 22nd February, 1995 and Annual General Meeting was held on 13.2.94 and thus in terms of the provisions of the West Bengal Co-operative Societies Act, 1983 (hereinafter referred to as the 'said Act') the next annual general meeting was to be held on 13.2.95. The Board of Directors held a meeting on 4.12.94 fixing 12.2.95 for holding the Annual General Meeting. However, although in the year 1992 the number of the members of the Society was less than 1500, by 31.12.94, the number of members increased to 1714, which shot up by 8.1.95 to 2065. Admittedly, in view of the provision of Rule 27 of the Ru les framed under the said Act known as West Bengal Co-operative Societies Rules, 1987 (hereinafter referred to as the 'said Rules'), in the event number of members exceeds 1500, the delegates are to be elected. As delegates could not be elected, the Annual General Meeting dated 12.2.95 could not be held. Again the Board of Directors met on 19.2.95 and passed a resolution for holding election of the delegates. On 11.7.95, the Assistant Registrar of the Co-operative Societies in reply to a letter of the Society stated that since the period of implementing the course of action under s. (21)(3) of the said Act has been over, a fresh proposal for taking recourse to ,.,. 25( 4) of the said Act should be submitted, pursuant whereto a proposal was submitted by the Chairman of the Board on 7.8.95. However, by reason of the order dated 24.9.95, the Assistant Registrar, Co-operative Societies directed the Board to complete election of the delegates of the Societies before expiry of two months from the date of proposed Annual Genera] Meeting, whereafter 19.11.95 was the date fixed for holding the election of the delegates by a resolution adopted in a meeting dated 15.10.95. By reason of the impugned order dated 24.10.95, the erstwhile Secretary issued a notice under the direction of the Assistant Registrar of Co-operative Societies that dection will be held on 19.11.95. Questioning the said order the writ-petition was filed. Admittedly, the election of the delegates was held on the date scheduled therefor and result thereof has been published on 15.12.95. On 17.3.96, the election of Board of Directors was held. By reason of the impugned judgment the learned Trial Judge, inter alia, rejected the contention of the writ petitioners that the Society is a Society within the meaning of s. 31 of the said Act. A cross-objection as against the said findings It a been filed by the writ-petitioner-respondent no. 1. The learned Trial Judge however, held that on the expiry of the period of three years, the Secretary had no jurisdiction to issue the impugned order in view of the fact that the Registrar Co-operative Societies had no jurisdiction in the matter as the Board of Directors became functus officio.
4. Mr. Chattopadhyay, learned Counsel appearing on behalf of the appellants has raised a short question in support of this appeal. The learned Counsel submits that from a perusal of the provisions of s. 2(35) and s. 2(33) of the said Act, it would appeal that the appellant Society would come within the purview of s. 2(33) and not within the purview of s. 2(35) of the said Act and thus s. 31 of the said Act cannot be said to h
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