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2020 Supreme(Guj) 949

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
VIKRAM NATH, J.B. PARDIWALA, JJ.
Pravinsinh Hematsinh Zala - Petitioner
Versus
State of Gujarat - Respondent
R/Special Civil Application No. 23321 of 2019 With R/Special Civil Application No. 22742 of 2019 With Civil Application (For Joining Party) No. 1 of 2020
Decided On : 27-07-2020

Advocates Appeared:
For the Petitioner: Mr. Mihir Joshi, Ld. Sr. Counsel with Mr. Dipen Desai.
For the Respondent:Mr. Kamal Trivedi, Ld. Advocate General with Mr. Vinay Vishen, Ld. AGP, Mr. Bharat T. Rao.

Point of Law: 1- Writ of Mandamus - To issue a writ of mandamus or a writ in the nature of mandamus or any other appropriate writ, order or direction, directing authorities to hold election of board of directors of The Jamnagar District Cooperative Bank Ltd. whose term is going to expire for the reasons stated in the memo of the petition, in the interest of justice.
2- Gujarat Specified Cooperative Societies Election- lapses either deliberate or otherwise for not holding election within a reasonable time could be considered for issuing necessary directions to hold election within the specified time limit but, the same cannot be considered to hold that appointment of the custodian under Section 74-D of the Act is illegal.

Headnote:

Constitution of India,1950 - Articles 226, 14 and 16 - Gujarat Cooperative Societies Act, 1961 - Sections 74C(2)(i) and 74c(2)(ii) - Gujarat Specified Cooperative Societies Election to Committee Rules, 1982 - Rule 68 - Writ of mandamus - Order or directions, directing and declaring that terms of elected members of managing committee of respondent - Seeking to challenge the constitutional validity - Whether Section 74C(2)(i) and 74C(2)(ii) respectively of the Amendment Act are ultra vires Article 14 of Constitution on ground of being manifestly arbitrary - Whether writ applicants are entitled to hold the office beyond - Alleged arbitrary action on part of respondent authorities, more particularly, respondents Nos.4 to 6 respectively of initiating the process of election of the members of the Managing Committee of Bank substantially on the ground that although the term of members of the Managing Committee has not expired, yet the respondents want to conduct the election - Case of writ applicants that as tenure to hold the office has not yet come to an end, the election cannot be said to have fallen due - Writ applicants also seek to challenge the constitutional validity of Sections 74C(2)(i) and 74C(2)(ii) respectively of the Gujarat Cooperative Societies Act, 1961 - Ground that said provisions are manifestly arbitrary being violative of Article 14 of Constitution of India –

Finding of the Court:

, Registrar is not concerned with the reason for not holding election for the new committee pointed out that much before expiry of the term of the elected members, process of holding election process had begun and even the stage for finalising voter list was over leaving sufficient time of at least more than 10 days before expiry of term of the elected body to take further steps for holding election however with clear intention to appoint custodian, term was allowed to expire and even now as per affidavit, further four months time is sought by concerned authorities to complete the process of election submitted that such conduct on the part of the statutory authorities would depict that in the facts of case, powers under Section 74-D are abused just to oust the elected members and not to permit the society to function through its members - Fresh Managing Committee is elected present dispensation of managing the affairs of the bank would continue with a rider no policy decision shall be taken by the present –

Result: Petition dismissed

JUDGMENT :

J.B. Pardiwala, J.

1. Since the issues raised in both the captioned writ application are interrelated, those were taken up for hearing analogously and are being disposed of by this common judgment and order.

2. We first take up the Special Civil Application No.23321 of 2019 for consideration.

3. By this writ application under Article 226 of the Constitution of India, the writ applicants, in their capacity as the elected Directors of the respondent No.6-Jamnagar District Cooperative Bank Ltd. (for short “the Bank”), have prayed for the following reliefs :

“(A) This Hon'ble Court be pleased to issue a writ of certiorari or writ in the nature of certiorari or any other appropriate writ, order or directions, quashing and setting aside the action on the part of the respondent authorities more particularly respondent Nos.4 to 6 in initiating the process of election of members of managing committee of the respondent No.6-Jamnagar District Co-operative Bank Limited by holding it illegal and arbitrary as the term of the members of managing committee has not expired and the election has not become due.

(B) This Hon'ble Court be pleased to issue a writ of mandamus or writ in the nature of mandamus or any other appropriate writ, order or directions, directing and declaring that the terms of the elected members of managing committee of respondent No.6-Jamnagar District Co-operative Bank Limited has not expired and the election has not become due.

(BB) This Hon'ble Court be pleased to quash and set aside the provisions of Sections 74C(2)(i) and 74c(2)(ii) of the Gujarat Cooperative Societies Act, 1961 by declaring the same to be manifestly arbitrary and in violation of Article 14 of the Constitution of India.”

(C) Pending admission, hearing and final disposal of the petition, this Hon'ble Court be pleased to restrain the respondent Nos. 4 to 6 from initiating the process of election of members of managing committee of respondent No.6-Jamnagar District Co-operative Bank Limited.

(D) This Hon'ble Court may be pleased to grant such other and further relief/s as deemed just and proper by this Hon'ble Court in the interest of justice.”

4. The facts, giving rise to this litigation, may be summarized as under;

4.1 The writ applicants seek to challenge the alleged arbitrary action on the part of the respondent authorities, more particularly, the respondents Nos.4 to 6 respectively of initiating the process of election of the members of the Managing Committee of the Bank substantially on the ground that although the term of the members of the Managing Committee has not expired, yet the respondents want to conduct the election. In other words, it is the case of the writ applicants that as the statutory tenure to hold the office has not yet come to an end, the election cannot be said to have fallen due. For this purpose, the writ applicants also seek to challenge the constitutional validity of Sections 74C(2)(i) and 74C(2)(ii) respectively of the Gujarat Cooperative Societies Act, 1961 (for short “the Act, 1961”) on the ground that the said provisions are manifestly arbitrary being violative of Article 14 of the Constitution of India. The foundation for such a plea is that the impugned Sections fail to take into account the period of injunction which may have been granted to which the Managing Committee would not be able to take charge.

4.2 It appears from the materials on record that the last election of the Bank was declared on 18th March, 2015 and the same was held on 29th April, 2015. The result of the said election was declared on 29th April, 2015 and the writ applicants were declared as the elected Directors of the Bank as required under Rule 68 of the Gujarat Specified Cooperative Societies Election to Committee Rules, 1982 (for short “ the Rules, 1982”). It also appears that the State Government appointed a government nominee on 31st March, 2015 in purported exercise of its powers under Section 80(3) of the Act after subscribing to the share ca

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