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2004 Supreme(Guj) 498

Gujarat High Court
Judgename :M.S.Shah
MILK PRODUCERS CO-OPERATIVE FEDERATION LTD. - Appellant
Versus
REGISTRAR, CO-OP.SOCIETIES - Respondent
L.P.A.1446 of 2004
Decided On : 08/12/2004

Advocates Appeared: D.PANDEY, K.S.Nanavati, MIHIR JOSHI, P.K.JANIKIRAN, S.N.THAKKAR

Headnote:

Co-operative societies Act, 1961 - Sections 96, 145-Z, Sec. 76b, Sec. 82 (2) and sub-sees. (1) and (2) of Sec. 160 - Appears to have missed the significance of the above question, has moved this Court for challenging the order dated by which the learned single judge has restrained original respondent from functioning as the Chairman of respondent Mehsana District Milk producers Co-operative Federation Limited in view of the no-confidence motion passed against the appellant as out of members of the Managing Committee members have cast their vote in favour of the motion - Learned single Judge has further clarified that the vice-Chairman or any other person holding the office as In-charge Chairman shall continue to function as In-charge Chairman till final disposal of the petition with a further clarification that he shall not take any policy decision and shall not incur any expenses exceeding unless expressly authorized by members of the Managing Committee at its meeting held in due course as required under the bye-laws or otherwise - Learned single Judge also granted liberty to the Federal Society and Milk Producers Co-operative Society limited of village Mansa to move the Court for modification of the above interim order in case, the general body of the Society passes any resolution recalling any of the members of the Managing Committee or otherwise - Petition and subsequent development petitioners are members of the Managing Committee of the federal Society registered under the provisions Society was established in the year who spearheaded the co-operative movement in district and encouraged farmers, more particularly small and marginal farmers to rear cattle and encouraged co-operative movement in district for production and distribution of died in the year - Appellant came to be elected as the chairman of the Federal Society - Appellant is the respected leader of co- operative movement and all the petitioners accept that the appellant had contributed to the cause of milk producers in district. Appellant suffered serious brain stroke about two years back at the age - Appellant was taken to hospital for major brain surgery - Because of the serious impediment to his physical and mental abilities the appellant is not only unable to walk without some body help but he has complete impediment in his speech - He is also unable to put identical signatures in the proper manner - He has also lost his memory and is unable to move properly - But on account of insistence of his family friends not to relinquish the office of Chairman the appellant is continuing as such It is further stated that the Federal Society has large-scale business with turnover of crore in the year ended collected milk to the tune of crore litres in that year it has primary societies as its members who in turn have individual members and the Federal society also has persons on its pay roll as direct employees. In view of the aforesaid magnitude of the business of the Federal Society - Held, Legislature has provided a detailed procedure and mechanism for the entire election process right from the stage of issuance of notification by the Collector declaring the election program till the last stage of election of the officers of the specified categories including election of the Chairman by the Managing Committee and also challenge to the elections before the Election Tribunal under Sec. of the Act. provisions of Sec. 145-Z as set out are required to be read in the backdrop of the aforesaid statutory scheme - Special provision for election of officers of specified societies.- Section shall apply only to election of officers by members of committees of societies belonging to the categories specified in Sec - After the election of the members of the Committee or whenever such election is due the election of the officer or officers of any such society shall be held as provided in its bye-laws, but any meeting of the Committee for this purpose shall be presided over by the Collector or an officer nominated by him in this Collector of the district is of the entire election program right from the first stage till the last stage and the provision that the meeting for electing the officers of the Society shall be presided over by the Collector or his Nominee is in order to ensure that on account of any disruption at the meeting there is no dispute about the genuineness or authenticity of the elections of the office-bearers like the Chairman or the Vice-Chairman not possible to accept the contention that the meeting of the Managing committee for passing a motion of no-confidence against the Chairman must also be presided over by the Collector or his Nominee - There is no dispute about the genuineness or authenticity of the proceedings at the meeting of the Managing Committee held on at which the resolution expressing no-confidence against the Chairman was passed - No such dispute is raised either at the hearing before the learned single Judge or at the hearing of this appeal before us no substance in the last contention also - Learned Counsel for the appellants that the petitioners have not made out a strong prima facie case for obtaining the interim relief granted by the learned single Judge - We are unable to find any substance in the submissions of learned counsel for the appellants that this was not an extraordinary case calling for interim relief to restrain respondent from acting as the Chairman of the federal Society - Considering the facts already noticed earlier that respondent Federal Society has turnover of crores a year and employs persons, has co-operative societies as its primary members which in turn have milk producers as members, the affairs of such a Federal Society need to be managed properly and if elected members out of total elected members of the Managing Committee are of the view that the elected Chairman of the society is physically and mentally not capable of discharging onerous duties of the Chairman of such Federal Society the interim order passed by learned single Judge restraining the appellant from functioning as Chairman of the Federal Society cannot be said to be illegal or unjust - Co-operative Society submits that since a requisition is already moved for expressing confidence he should be permitted to function as the Chairman of the Federal Society or some direction should be given regarding convening extraordinary general meeting of the general body of the Federal Society - Informed that Special Civil Application is already pending before the learned single Judge wherein the learned single Judge has passed order dated directing the District registrar to verify genuineness of the requisition and the matter is posted before the learned single Judge for considering the question as to which item should be allowed to be discussed as the agenda of the meeting - Learned single Judge consider this aspect in Special Civil Application - Learned single Judge has also granted liberty to the Federal Society and the aforesaid primary member society to move the court for modification of the order under appeal, in case the general body of the Federal Society passes any resolution recalling any of the members of the managing Committee or otherwise - We are not required to consider submissions in these appeals - Record the statement coming from learned Counsel for the contesting respondents that the Managing Committee would like to put up a suitable memorial in recognition of the significant services rendered by the octogenarian leader to the cause of the dairy co-operative movement in District after the dust raised by all the disputes and litigations settles down - Appeals are dismissed.

M. S. SHAH, J.

( 1 ) WHEN should a leader retire from the office ; when others ask - "why?" or when others ask - "why NOT?". The octogenarian leader of the dairy co-operative movement in Mehsana district, who appears to have missed the significance of the above question, has moved this Court for challenging the order dated 20th July, 2004 by which the learned single judge has restrained original respondent No. 4-Shri Motibhai R. Chaudhary (appellant in L. P. A. No. 1446 of 2004 hereinafter referred to as "the appellant") from functioning as the Chairman of respondent No. 3-Mehsana District Milk producers Co-operative Federation Limited (the Federal Society, for brevity) in view of the no-confidence motion passed against the appellant, as out of 15 members of the Managing Committee, 13 members have cast their vote in favour of the motion. The learned single Judge has further clarified that the vice-Chairman or any other person holding the office as In-charge Chairman shall continue to function as In-charge Chairman till final disposal of the petition, with a further clarification that, he shall not take any policy decision and shall not incur any expenses exceeding Rs. 2,500-00 unless expressly authorized by members of the Managing Committee at its meeting held in due course as required under the bye-laws or otherwise. The learned single Judge also granted liberty to the Federal Society and Iswarpura Milk Producers Co-operative Society limited of village Mansa (a primary member of the Federal Society-appellant in L. P. A. No. 1447 of 2004 - hereinafter referred to as "ishwarpura Primary society") to move the Court for modification of the above interim order in case, the general body of the Society passes any resolution recalling any of the members of the Managing Committee or otherwise.

( 2 ) THE above interlocutory order is passed in Special Civil Application No. 7302 of 2004 filed on 26-6-2004 by 13 members of the Managing Committee of the Federal Society seeking certain final and interim reliefs on the basis of the following facts, as averred in the petition, and subsequent developments. 2. 1 The 13 petitioners are members of the Managing Committee of the federal Society registered under the provisions of the Gujarat Co-operative societies Act, 1961 (the Act for brevity ). The Society was established in the year 1960 by Shri Mansibhai Patel who spearheaded the co-operative movement in Mehsana district and encouraged farmers, more particularly small and marginal farmers, to rear cattle and encouraged co-operative movement in Mehsana district for production and distribution of milk. Shri Mansibhai Patel died in the year 1970. Thereafter, appellant Shri Motibhai Chaudhary came to be elected as the chairman of the Federal Society. The appellant is the respected leader of co- operative movement and all the 13 petitioners accept that the appellant had contributed to the cause of milk producers in Mehsana district. However, the appellant suffered serious brain stroke about two years back at the age of 83 years. The appellant was taken to Bombay hospital for major brain surgery. Because of the serious impediment to his physical and mental abilities the appellant is not only unable to walk without somebodys help, but he has complete impediment in his speech. He is also unable to put identical signatures in the proper manner. He has also lost his memory and is unable to move properly. But on account of insistence of his family friends not to relinquish the office of Chairman, the appellant is continuing as such. 2. 2 It is further stated that the Federal Society has large-scale business with turnover of Rs. 877-30 crores in the year ended on 31-3-2004, collected milk to the tune of 44 crore litres in that year, it has 1063 primary societies as its members who in turn have 4,78,965 individual members and the Federal society also has 1700 persons on its pay roll as direct employees. In view of the aforesaid magnitude of the business of


































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