2006 Supreme(Guj) 245

Gujarat High Court
Judgename :J.M.Panchal, Bankim N.Mehta
BHAVNAGAR DIST.CO-OPERATIVE BANK LTD. - Appellant
Versus
STATE OF GUJARAT - Respondent
Special Civil Application 5753 Of 2006
Decided On : 04/10/2006

Headnote:Point in Issue :

       Right to vote - Specified Society - Bifurcation of District and Taluka - Taluka transferred to another revenue district - Deletion of their names from voter list of specified society - Propriety of - Sustainability - Finding of.

       Head Note :

       Gujarat Co-operative Societies Act, 1961 (Guj. Act 10 of 1962) - Sections 6, 13, 28(3), 26, 74-C 145-A to 145-Y - Gujarat Specified Co-operative Societies Election to Committees Rules 1982 - Rules 4, 4(1) and 6(2) - Right to vote - Specified society - Bifurcation of District and Talukas - Talukas transferred to another revenue district - Detention of their names from voter list of specified society - Propriety of - Sustainability - Finding of - It is evidently clear that structure of the Co-operative Societies from State level down to Taluka level is based on the revenue area - A District and Taluka Co-operative Society is required to have its membership within the District and Taluka - In view of bifurcation made in 1997, Saverkundla Taluka now form part of Ameti revenue district - The primary Co-operative Societies situated in Savarkundla revenue taluka, therefore, were not members of Bhavnagar District Co-operative Bank Limited which is a federal society for the purpose of claiming right to vote or contest as member of that society as on 31.03.2005 and, therefore, the decision taken by the Election Officer to exclude their names from the voters list cannot be regarded as illegal so as to warrant any interference of the Court - The plea that jurisdiction should not have been exercised by Election Officer on basis of application by respondent or that order so passed by Election Officer is not supported by the reasons have no substance - A bare look at the impugned order shows that respondent has merely filed objections and Election Officer having heard parties concerned and taking into consideration relevant documents to pass the impugned order which calls for no interference.

       Held :

       A perusal of the observations made by the Division Bench of this Court makes it evident that the structure of the co-operative societies from State level down to Taluka level is based on the revenue areas. A District and Taluka Co-operative Society is required to have its membership within the District & Taluka. The elections to the societies, federal or otherwise, are required to be conducted by the District Collector on the basis of the revenue areas of Taluka or District concerned.

       The principles would be applicable to the provisions of Section 6 of the Act which, inter alia, provide that no society with unlimited liability shall be registered unless all the persons forming the society reside in the same town or village or in the same group of villages. Therefore, it is clear that the structure of co-operative societies from the State level to Taluka level is based on the revenue areas. Under the circumstances, it is not possible for this Court to accept the contention advanced on behalf of the petitioners that the revenue areas of Taluka and District have no relationships with the holding of elections to co-operative society of District or Taluka level. Rule 4 of the Rules provides preparation of provisional list constituency wise as provided in the bye-laws of the societies. It is not possible for this Court to hold that regardless of the change of the area of Taluka of District and without amending its bye-laws, a co-operative society of primary level can send its members for vote of election to a federal society at Taluka Level when such societies do not fall within the revenue area of that Taluka. A member validly admitted to a primary or federal society has several right qua member. By virtue of membership or as a shareholder, he has a right to get advantage of his membership in the trade and business of the society. He has also other rights as member to have business transactions with the society. However, his rights in society qua member to vote and contest are dependent upon his being a member (individual or society) residing or having its operations within a particular territorial jurisdiction of Revenue Taluka. If a society as a member or an individual as a member ceases to belong to a Revenue Taluka, it/he cannot claim right to vote or contest as member of that society in election of Federal Society of that Taluka. [Para 9]

       On bifurcation of Districts and Talukas, the co-operative societies situate within Taluka cease to be members having rights to vote or contest as member of that society in election of the Specified Society. Therefore, the bye-laws were amended by the Specified Society, which came into force with effect from 26.10.2005. The primary co-operative societies situate in Savarkundla Revenue Taluka were not the members of Bhavnagar District Co-operative Bank Limited, which is a Federal Society for the purpose of claiming right to vote or contest as member of that society as on 31.03.2005 and, therefore, the decision taken by the Election Officer to exclude their names from the Voters List, cannot be regarded as illegal so as to warrant interference of this Court in the instant petitions filed under Article 226 of the Constitution. [Para 11]

       The plea that the jurisdiction under Rule 6(2) of the Rules could not have been exercised by the Election Officer on the basis of one application submitted by Mr. Sutariya, is devoid of merits. It may be stated that the names of all the primary co-operative societies situate in Savarkundla Revenue Taluka were included in the Voters List of the Federal Society, i.e. the bank. That action was contrary to the decision of the Division Bench of this Court. Therefore, Mr. Sutariya had filed objections and requested the Election Officer to exclude the names of those primary co-operative societies from the Voters List of the Specified Society. After considering the facts as well as the contents of the application filed by Mr. Sutariya and the provisions of law, the Election Officer has taken the decision to exclude the names of the primary co-operative societies situate in Savarkundla Revenue Taluka. For the purpose of bringing it to the notice of the Election Officer that the names of primary co-operative societies situate in Savarkundla Revenue Taluka were wrongly included in the Voters List of Federal Society, it was not necessary for Mr. Sutariya to file separate applications against ninety-one co-operative societies. [Para 12]

       The plea that the order passed by the Election Officer is not supported by the reasons and, therefore, should be set aside, has no substance. A bare look at the impugned order makes it very clear that Mr. Sutariya had lodged his objections by filing petition dated 16.03.2006. After lodging of the petition, the persons concerned were herad and the documents as well as legal provisions were taken into conisderation by the Election Officer. The impugned order further makes it evident that it was noticed by the Election Officer that the primary societies situate within Savarkundla Revenue Taluka were not the members of the Specified Society as on 31.03.2005 whereas the amended bye-laws were approved/sanctioned by the Specified Society in its General Meeting dated 26.10.2005 and, therefore, the primary co-operative societies situate within Savarkundla Revenue Taluka became the members of the Federal Society, i.e. the Bank, with effect from 26.10.2005 for the purpose of voting and contesting in the election of the Specified Society as contemplated by the Rules. In view of these conclusions, the Election Officer has passed the impugned order. [Para 13]

       Law Laid Down :

       The absence of Co-operative societies situated in Savarkundla Revenue Taluka being member of Bhavnagar District Co-operative Bank Ltd., exclusion of their names from voter list valid.

       Conclusion :

       The primary co-operative societies situated in Savarkundla Revenue Taluka were not the member of Bhavnagar District Co-operative Bank Ltd., therefore, decision taken by Election Officer to exclude their names from voters list cannot be regarded illegal so to warrant interference.

       Cases Referred :

       Siddhpur Taluka Co-operative Purchase & Sales Union & Ors. vs. State of Gujarat & Ors., 2002 (2) GLR 1357;; Apex Co-operative Bank of Urban Bank of Maharashtra and Goa Limited vs. Maharashtra State Co-operative Bank Limited, 2003 (11) SCC 66.

       Decided in Favour of :

       Respondent