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2024 Supreme(Guj) 1658

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
VAIBHAVI D. NANAVATI, J.
Shree Chotila Milk Producers Cooperative Society Ltd. & Anr. – Appellant
Versus
State Of Gujarat & Ors. – Respondent
R/Special Civil Application No. 8462 of 2024
Decided on : 21-06-2024

Advocates:
Advocate Appeared:
For the Appellant : MR BHARAT T RAO
For the Respondent: MR VC VAGHELA, MS POOJA ASHAR, AGP

IMPORTANT POINT
The court established that participation in the amendment process precludes subsequent challenges to its validity under cooperative society regulations.

Headnote:

Cooperative - Gujarat Cooperative Societies Act, 1961 - Sections 74(1B), 153, 155 - The court interpreted the provisions regarding reservation of seats for Scheduled Castes and Scheduled Tribes in cooperative societies, emphasizing the necessity of adherence to statutory procedures and the implications of amendments to bye-laws.

Fact of the Case:

The petitioners, members of a cooperative society, challenged an amendment to the bye-laws regarding the reservation of seats for Scheduled Castes and Scheduled Tribes, claiming it violated the provisions of the Gujarat Cooperative Societies Act, 1961.

Finding of the Court:

The court found that the petitioners lacked locus standi as they were not members of the S.C./S.T. community and had consented to the amendment in the bye-laws, thus estopping them from raising grievances against it.

Issues: Whether the petitioners had the standing to challenge the amendment to the bye-laws regarding the reservation of seats for S.C./S.T. and if the amendment was in accordance with the Gujarat Cooperative Societies Act.

Ratio Decidendi: The court held that the petitioners, having participated in the approval of the amendment, could not later contest its validity, and that the amendment complied with the statutory requirements of the Act.

Result: The petition was dismissed as premature and without merit.

ORDER :

1. Heard Mr. Bharat T. Rao, the learned advocate appearing for the petitioners, Ms. Pooja Ashar, the learned AGP appearing for the respondents No.3 and 4 and Mr. V. C. Vaghela, the learned advocate appearing for the respondent No.5.

2. The petitioners herein are members of the respondent No.5 Society which is a Cooperative Societies registered under the provisions of the Gujarat Cooperative Societies Act, 1961 (hereinafter referred to as “the Act, 1961). The District level cooperative millk producers' union having plant at Wadhwan G.I.D.C. and is also having chilling centre at Patadi and collecting milk from its area of operation through B.M.C. The petitioner herein are milk producer Cooperative Societies registered under the Act, 1961 and engaged in the business of collecting milk from the members and thereafter the milk is being transported to the respondent no.5 through vehicle deployed by respondent no.5 daily regularly in the morning and evening. The administration and management of the petitioner society is being looked after by the Managing Committee of the respective societies.

3. By way of present petition it is the case of the petitioner herein that the amendment to the bye-law No.17.1.1(3) dated 16.8.2019 (page-33) Annexure-B by the respondent No.5 has been made to facilitate the present Board of Directors of the respondent No.5 that, one seat elected uncontested from this category because the respondent no.5 is not giving NOC or permitting to allow to register new society of S.C./S.T. milk producers for the reasons best known to the respondent.

4. It is the case of the petitioner that the reservation for S.C./S.T. seat has to be by rotation and it is to be rotated alphabetically Taluka wise whether there is S.C./S.T. in a particular Taluka or not. If there is no society of S.C./S.T. in a particular Taluka, then the seat may remain vacant. But by amending bye-laws, restriction cannot be put against the provisions of Sec.74(1B) of the Act.

5. It is the case of the petitioner that the term of the present Managing Committee of respondent no.5 is expiring on 1.8.2024 and, therefore, now election is due. On account of election of Loksabha, the election has been postponed by the Govt. of Gujarat by Notification No.GHKH/42/2024/GCS/10/2020/115/CHH dated 18.3.2024 and intimation to that effect has been given by the respondent no,4 to the Vice Chairman of respondent no.5 that the proposal sent by respondent no.5 to hold election will be sent to Collector after 15.6.2024.

6. It is the case of the petitioner that the respondent no.5 has forwarded proposal to the respondent no.4 for holding election of the Board of Directors of respondent no.5 for the term 2024 25 to 2028-29. The said proposal is already lying with the office of the respondent no.4 but the respondent no.4 has refused to provide the copy thereof despite request made by the petitioner to provide the same vide letter dated 25.5.2024.

7. It is the case of the petitioner that on 23.4.2024, 10 primary milk producers cooperative societies affiliated with the respondent no.5 have made representation to the respondent no.4 inviting attention of the bye-law no. 17.1.1 of respondent no.5 and requested that reservation for one S.C/S.T. seat should be Taluka wise and it should be rotated alphabetically. The request was made that the rotation has not been made and it is clarified that it should be rotated Talukawise alphabetically and this specific mention should be there in the proposal. The said communication is dated 23.4.2024. The said communicated was replied by the respondent No.4 by communication dated 14.5.2024 wherein it is stated that the power is vested with the Deputy Collector who is holding election of the respondent no.5. Pursuant thereto, the petitioner also addressed communication to the District Registrar on 14.5.2024 and to the Collector on 20.5.2024 and reiterated the aforesaid request.

8. It is the case of the petitioner that since in earlier term the se

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