High Court Of Delhi
A.S.GAHLOUT - Appellant
Versus
LIEUTENANT GOVERNOR DELHI - Respondent
Civil 2092 of 1993
Decided On : 11/26/1993
ELECTION - COOPERATIVE SOCIETY - DISPUTE - JURISDICTION - LT. GOVERNOR - REVIEW - DELHI COOPERATIVE SOCIETIES ACT, 1972 - SECTION 31(7) - REPRESENTATION OF PEOPLE ACT - APPLICABILITY - ELECTION IRREGULARITIES - FRESH ELECTION - COURT'S POWER TO ORDER - ARTICLE 226 - CONSTITUTION OF INDIA.
Fact of the Case:
Election to the Board of Directors of the Delhi State Cooperative Bank was challenged before the Lt. Governor under Section 31(7) of the Delhi Cooperative Societies Act, 1972. The Lt. Governor set aside the election and ordered fresh elections. The order was challenged in a writ petition before the Delhi High Court.
Finding of the Court:
The Delhi High Court held that the provisions of the Representation of People Act do not apply to elections to the committees of cooperative societies under the Delhi Cooperative Societies Act. The Lt. Governor has wide powers under Section 31(7) of the Act to ensure that the election is free and fair. The Lt. Governor had examined the records and found irregularities in the conduct of the election. The election could not be said to be free and fair. The Court also noted that there was horse-trading after the election and that a fresh election was necessary to remove all the irritants.
Issues: 1. Whether the provisions of the Representation of People Act apply to elections to the committees of cooperative societies under the Delhi Cooperative Societies Act? 2. Whether the Lt. Governor has wide powers under Section 31(7) of the Act to ensure that the election is free and fair? 3. Whether the Lt. Governor had examined the records and found irregularities in the conduct of the election? 4. Whether the election could be said to be free and fair? 5. Whether there was horse-trading after the election? 6. Whether a fresh election was necessary to remove all the irritants?
Ratio Decidendi: 1. The provisions of the Representation of People Act do not apply to elections to the committees of cooperative societies under the Delhi Cooperative Societies Act. 2. The Lt. Governor has wide powers under Section 31(7) of the Act to ensure that the election is free and fair. 3. The Lt. Governor had examined the records and found irregularities in the conduct of the election. 4. The election could not be said to be free and fair. 5. There was horse-trading after the election. 6. A fresh election was necessary to remove all the irritants.
Final Decision: The Delhi High Court set aside the order of the Lt. Governor and ordered fresh elections to be held under the superintendence, control, and supervision of an officer to be appointed by the Court.
( 1 ) THIS writ petition challenges the order dated: 16th April, 19. 93 passed by the Lt. Governor of Delhi in exercise his powers undersection 31 (7) of the Delhi Cooperative Societies Act, 1972 (hereinafter referred to as the Act ).
( 2 ) THE Delhi State Cooperative Bank Limited is a financing bank within. the meaning of Section 2 (1) of the Act and is duly registered as a society with the Registrar of Cooperative Societies, Delhi. It is thus a co-operative society. In a co-operative society the general body of members is supreme and it has the final authority in all matters. However, the day to day functioning of the society is entrusted to delegates of members of the society chosen in accordance with the bye-laws of the society and the law. This smaller body generally known as managing committee or committee exercises the powers of the general body. This concept is statutorily recognised in Section 28 of the Act. The elections of the members of the Committee are normally held in the Annual General Body meeting of the cooperative society as provided in Section 29 of the Act.
( 3 ) THE Delhi State Cooperative Bank Limited falls in a distinct class of cooperative societies. Rule 58a of the Delhi Cooperative Societies Rules, 1973 contains the classification of cooperative societies for the purpose of Section 31 of the Act and the Bank falls in that class being a financing bank. Section 31. of the Act contains provisions regarding election and nomination of members of committees of this class of co-operative societies. The following provisions of Section 31 of the Act are relevant for purpose of controversy involved in the present writ petition:
(1) The superintendence, direction and control of the preparation of the electoral rolls for and the conduct, of elections - of the inembers of the committees of such co-operative societies or class of cooperative societies as may be prescribed shall be vested in such returning officers not below the rank of gazetted officers as may be appointed by the Lieutenant Governor in this behalf.
(2) The vote at such elections shall be by secret ballot.
(7) Notwithstanding anything contained in this Act, any dispute relating to election of members of any committee of a cooperative society mentioned in sub-section (1) shall be referred to the Lieutenant Governor whose decision thereon shall be final.
(8) The Lieutenant Governor may make rules generally to provide for or to regulate matters in respect of elections of members of the committees.
( 4 ) THE Board of Directors of the Delhi State Cooperative Bank Limited (hereinafter referred to as the Bank) was superseded by the Registrar, Cooperative Societies in exercise of powers vested under Section 32 the Act on 23rd July, 1990. For the purpose of reconstitution of the Board of Directors elections were ordered to be held and Shri P. R, Meena. Deputy Registrar was appointed as. the Returning Officer. Shri P. R. Meena issued an Agenda Notice dated 13th April, 1992 notifying a special General Body meeting of the Bank to be held on 3rd May, 1992 at 8. 00 A. M. for conducting the election of the President and the Members of the Board of Directors of the Bank. The election took place in pursuance of the said Agenda Notice on 3rd May, 1992 and the results were declared. The election was challenged through petitions filed under Section 31 (7) of the Act before the Lt. Governor of Delhi. Vide order dated 21st September, 1992, the Lt. Governor set aside the election and directed the Registrar, Co-operative Societies to take necessary steps for holding of fresh elections. The Lt. Governor also appointed an. Administrator to look after the aflairs of the Bank till a newly elected Board took over. The said order of the Lt. Governor was challenged by way of a writ petition filed in this Court. On 21st October, 199 2 this Court set aside the order of the Lt. Governor dated 21st September, 1992 and remanded the case for fresh adjudication by the
AI
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.