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2022 Supreme(Guj) 11

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
J.B.PARDIWALA, NIRAL R. MEHTA, JJ.
VAGHASAR SEVA SAHAKARI MANDLI LIMITED - Appellant
Versus
THE MEHSANA DISTRICT COOPERATIVE MILK PRODUCERS UNION LIMITED - Respondent
LETTERS PATENT APPEAL NO. 311 of 2021 In SPECIAL CIVIL APPLICATION NO. 15478 of 2020 With CIVIL APPLICATION (FOR STAY) NO. 1 of 2021
Decided On : 07-01-2022

Advocates Appeared:
For The Appellant : MR PK JANI SENIOR COUNSEL WITH MR SHIVANG P JANI
For The Respondent: MR MIHIR JOSHI SENIOR COUNSEL WITH MR DIPEN DESAI

Headnote:

Constitution of India, 1950 - Article 227 and 226 - Gujarat Co-operative Societies Act, 1961 - Sections 145B(b), 145U, 2(9), 74(C)(vi-a), 28(8) and 96 - Gujarat Specified Cooperative Societies Elections to Committees Rules, 1982 - Rule 35(1) - Gujarat Co-operative Societies Rules, 1965 - Rule 15 - Election - Enrolling individual members by violating Bye-laws - Resolution for allotment of seats Taluka - Voting rights of individual member in a federal society - Appellant herein instituted Lavad (Arbitration) Case in Court of Board of Nominees at under Section 96 of Act, 1961 - District Co-operative Milk Producers Union is a milk producers union registered under Cooperative law, which is registered at Serial Union has registered its Bye-laws office-bears of Union are responsible and bound to run administration in accordance with Act, law and bye-laws - Whether at time of institution of Lavad Suit before Board of Nominees was there any dispute relating to an election of a member or members of Committee of a specified society as envisaged under Chapter XI-A of Act - Whether learned Single Judge committed any error in passing impugned judgment and order - Held, The term “election” has been defined under Section 145B(b) of Act and it means election of a member or members of committee of a specified society. “A specified society” means a society belonging to any of categories specified in Section 74C of Act. Rule 15 of Rules, 1965 referred to above lays down procedure for electing delegates equal to one tenth of number of societies admitted to membership upto relevant date or one delegate for every twenty five individual members (fraction being neglected), whichever is less - Dispute arises out of election of delegates, same would not be covered under Section 145U of Act and it can be referred to under Section 96 of Act - Election petition before Tribunal would lie only against dispute relating to election of Managing Committee - Role of Collector, in the election process of a specified federal society, would start only after election of delegates from individual members and passing of resolutions by the affiliated society nominating their members - Federal society of individual members, having representatives in general body as well as in Committee through their delegates, election of delegates amongst individual members is not an election, as defined under Section 145B(b) of Act - Appeal allowed.

JUDGMENT :

J.B.PARDIWALA, J.

1. This appeal under Clause 15 of the Letters Patent is at the instance of an unsuccessful original respondent No.1 of a writ application filed by the respondents Nos.4 to 9 herein (original writ applicants) and is directed against the judgement and order passed by a learned Single Judge of this Court dated 10th February 2021 in the Special Civil Application No.15478 of 2020, whereby the learned Single Judge allowed the writ application holding that the Lavad Suit instituted by the appellant herein before the Board of Nominees is not maintainable as the Board of Nominees has no jurisdiction to try such a suit in view of the specific bar of Section 145U of the Gujarat Cooperative Societies Act, 1961 (for short, “the Act, 1961”).

2. The facts giving rise to the present appeal may be summarized as under:

3. The appellant herein instituted the Lavad (Arbitration) Case No.183 of 2020 in the Court of the Board of Nominees at Mehsana under Section 96 of the Act, 1961. The original plaint reads thus:

    “Plaintiff:- (1) Vaghasar Service Co-Operative Society Limited, at Vaghasar, Post Kansa, Taluka Saraswati, District: Patan.

Versus.

Defendants:- (1) The Mehsana District Co-operative Milk Producers Union Limited, Address: Mehsana Dudh Sagar Dairy, Highway, Mehsana-384 002.

(2) The Managing Director, The Mehsana District Co-operative Milk Producers Union Limited, Address: Mehsana Dudh Sagar Dairy, Highway, Mehsana-384 002.

Dispute under Section 96 of the Gujarat Co-operative Societies Act, 1961.

The version of the plaintiff is that:

1. Defendant No. 1 The Mehsana District Co-operative Milk Producers Union is a milk producers union registered under the Cooperative law, which is registered at Serial No. Se/1 on 8-11-1960 (which has hereafter been referred to as “the Union”). The Union has registered its Bye-laws. The office-bears of the Union are responsible and bound to run the administration in accordance with the Act, law and bye-laws. Applicant (Defendant) No. 2 is the managing director of the Union; and the plaintiff is the member of defendant No. 1 Union.

2. As per Bye-law 35 of the Bye-laws of defendant No. 1 Union, the board of the Union comprises of 21 members. Rule 35(1) of the Byelaws of the Union is as under:

“Rule 35(1) of the Bye-laws.

The Board of directors of 21 members will comprise as stated hereunder:

(A) 15 representatives of the affiliated societies as per subrule (6)(A)(1) who are elected as per Bye-laws, out of which 3 seats will be reserved for female representative.

(1) 11 seats will be as per following Taluka wise:

1. Kadi-one.

2. Kaloll and Gozaria-one.

3. Kheralu, Vadnagar and Satlasana-one.

4. Chanasma and Bahuraji-one.

5. Patan and Vagdod-one.

6. Mehsana-one.

7. Mansa-one.

8. Vijapur-one.

9. Visnagar-one.

10. Sami and Harij-one.

11. Siddhpur and Unjha-one.

Out of the aforesaid 11 seats, 3 seats will be reserved for female representatives, which 3 seats will get changed every time in the election year as per the above serial order.

(2) 4 seats will be as decided by the Board of Directors in existence at the relevant time by its resolution for allotting the seats Taluka wise mentioned at serial No. 1 above having regard to the average stock of milk of three years preceding the election year.

(B) One representative of the other societies and individual members as per Bye-law 6(A)(2) and 6(A)(3) who is elected as per the Bye-laws.

(C) One representative appointed by the Registrar, Co-operative Societies.

(D) One representative of the financial institutions such as N.D.D.B. and one representative of the Mehsana District Central Bank if loan is taken from it till the same is repaid, thus total two representatives who can be changed every year.

(E) Managing Director of the Union Ex-officio member.

(F) One representative of Gujarat Co-operative Milk Marketing Federation.”

Thus, there is a provision for constituting a Board of 21 members as aforesaid as per Rule 35 of the Bye-laws of the Union.

3. A Notification regarding elect

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