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2024 Supreme(Guj) 1528

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
SANGEETA K. VISHEN, J.
The Baiwada Vibhagiya Prathmik Krushi Dhiran Seva Sahakari Mandali Ltd. & Ors. – Petitioners
Versus
State Of Gujarat & Ors. – Respondents
R/Special Civil Application No. 6218 Of 2021
Decided On : 01-07-2024

Advocates Appeared:
For the Petitioners:Mr B.S. Patel, Senior Advocate With Mr Baiju Joshi.
For the Respondents:Ms Nidhi Vyas, AGP, Mr Mihir H Joshi, Senior Advocate With Mr Dipan Desai.

IMPORTANT POINT
The court established that the Administrator Committee cannot initiate amendments to bye-laws, which is the exclusive function of the Managing Committee, but the petition was dismissed due to alternative remedies being available.

Headnote:

Cooperative - Writ Petition - Gujarat Cooperative Societies Act, 1961 - Sections 13, 81, 153, 155 - The court interpreted the provisions regarding the powers of the Administrator Committee and the process for amending bye-laws, concluding that the Administrator exceeded its authority, but the petition was dismissed due to the availability of alternative remedies.

Fact of the Case:

The petitioners challenged the order of the District Registrar amending the bye-laws of a cooperative society, arguing that the Administrator Committee lacked authority to initiate such amendments, which should be the prerogative of the elected Managing Committee.

Finding of the Court:

The court found that the Administrator Committee acted beyond its powers by proposing amendments to the bye-laws, which should have been initiated by the Managing Committee. However, it ruled that the petition was not maintainable due to the availability of alternative remedies under the Act.

Issues: Whether the Administrator Committee had the authority to propose amendments to the bye-laws and whether the writ petition was maintainable given the alternative remedies available under the Act.

Ratio Decidendi: The court held that while the Administrator Committee exceeded its authority in proposing amendments, the petitioners should have pursued the available statutory remedies instead of seeking judicial intervention.

Result: The writ petition is dismissed.

JUDGMENT :

(Sangeeta K. Vishen, J.) :

With the consent of the learned advocates appearing for the respective parties, the captioned writ petition is taken up for final disposal.

2. Issue rule, returnable forthwith. Ms Nidhi Vyas, learned Assistant Government Pleader waives service of notice of rule on behalf of respondent nos.1 to 3. Mr Dipan Desai, learned advocate waives service of notice of Rule on behalf of respondent nos.4 to 8.

3. Captioned writ petition has been filed with the following prayers:

    “21. (A) This Hon'ble Court be pleased to issue a writ of mandamus and/or writ of certiorari or any other appropriate writ, order or direction, directing the respondent No.3 to remove the respondent Nos.5 to 8 as Administrator and appoint duly eligible and qualified skilled person as Administrator of the respondent No.4 Union.

(AA) YOUR LORDSHIPS may be pleased to issue a writ of mandamus and/or writ of certiorari and/or appropriate writ, order or direction, quashing and setting aside the order dated 7.7.2021 passed by the respondent No.3 - District Registrar amending the bye-laws of the respondent No.4 society which is produced at Annexure-J to the petition.

(B) This Hon'ble Court be pleased to issue a writ of mandamus and/or writ of certiorari and/or writ of prohibition or any other appropriate writ, order or direction, directing the District Registrar, Cooperative Societies to not to take any decision on the proposal for amendment of bye-laws submitted before it, as the same would without authority of law and jurisdiction.

(C) This Hon'ble Court be pleased to issue a writ of mandamus and/or writ of certiorari and/or writ of prohibition or any other appropriate writ, order or direction, declaring that the action of respondent Nos.5 to 8 as members of the Administrator Committee of respondent No.4 Union initiating proceedings for amendment of bye-laws is unjust, improper, ultra vires, highhanded and in violation of the principles laid down by the Supreme Court in the judgment reported in AIR 1997 SC 2925 and AIR 2000 SC 2378.

(D) During the pendency hearing and final disposal of this petition, this Hon'ble Court be pleased to restrain the respondent Nos.5 to 8 from functioning as members of the Administrator Committee of respondent No.4 Union and further be pleased to also restrain the respondent No.3 from taking any decision against the proposal for amendment of bye-laws submitted before it by respondent Nos.5 to 8, as for Administrator Committee of respondent No.4 Union.

(DD) During the pendency hearing and final disposal of this petition, Your Lordship may be pleased to stay the implementation, execution and operation of the order dated 7.7.2021 passed by the respondent No.3 - District Registrar amending the bye-laws of the respondent No.4 society which is produced at Annexure-J to the petition.

(E) Any other and further reliefs as deemed just and proper looking to the facts of this case, may kindly be granted in favour of the petitioner, interest of justice.”

4. Mr B. S. Patel, learned senior counsel appearing with Mr Baiju Joshi, learned advocate appearing for the petitioners, at the outset, submitted that in view of the subsequent development, prayers 21(A) and 21 (B), would not survive and hence, not pressed, restricting the challenge only qua the order dated 07.07.2021 passed by the District Registrar, Co-operative Societies, Banaskantha at Palanpur (hereinafter referred to as “respondent no.3 – District Registrar”). While inviting attention to the provisions of Section 81 of the Gujarat Co-operative Societies Act, 1961 (hereinafter referred to as “the Act of 1961”) and more particularly, sub-section (3), it is submitted that the Committee or Administrator so appointed have to exercise all or any of the functions of the committee and take action as may be required in the interest of the society subject to the instructions of the State Government and/or Registrar. Therefore, the language contained in sub-section (3) of Section 81 o

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