1984 Supreme(Gau) 59
GAUHATI HIGH COURT
K. LAHIRI AND S. HAQUE, J.
Baladmari Gobindapur Machmara and Jalbowa Samabay Samity -Appellant
Versus
State of Assam and others -Respondent
Civil Rule No. 1 of 1984
Decided On : 10-05-1984
B. M. Goswami, M. K. Bhattacharyya, P. Roy, Govt. Advocate, Assam, D. P. Chaliha, B. D. Agarwalla and L. Ali
The Registrar's power to dissolve a Managing Committee under Section 36 of the Assam Cooperative Societies Act, 1949 is subject to certain conditions, including an inquiry and an opportunity for the committee to state its case.
Headnote:
CO-OPERATIVE SOCIETY - DISSOLUTION OF MANAGING COMMITTEE - GROUNDS - IRREGULARITY IN NOTICE OF ANNUAL GENERAL MEETING - ELECTION OF MEMBERS AND OFFICE BEARERS - VALIDITY - INTERPRETATION OF SECTIONS 32 AND 36 OF THE ASSAM CO-OPERATIVE SOCIETIES ACT, 1949 AND RULES 24 AND 25 OF THE RULES FRAMED THEREUNDER.
Fact of the Case:
The petitioner, a registered cooperative society, challenged the order of the Registrar of Cooperative Societies dissolving its Managing Committee and the subsequent order of the Deputy Registrar appointing an ad hoc committee. The Registrar had found that the Annual General Meeting held by the society was irregular as the notice did not specifically mention that there would be an election of members to the Managing Committee, despite it being an Annual General Meeting.
Finding of the Court:
The court held that the Registrar's order was invalid and without jurisdiction. It interpreted Sections 32 and 36 of the Assam Cooperative Societies Act, 1949 and Rules 24 and 25 of the Rules framed thereunder, and found that the Registrar could only dissolve a Managing Committee if it was not functioning properly or according to the Act, Rules, and bye-laws, after an inquiry and giving the committee an opportunity to state its case. In this case, no such inquiry or opportunity was provided.
Issues: 1. Whether the Registrar had the power to dissolve the Managing Committee on the ground that the notice of the Annual General Meeting did not specifically mention the election of members to the Managing Committee? 2. Whether the follow-up order of the Deputy Registrar appointing an ad hoc committee was valid.
Ratio Decidendi: 1. The court held that the Registrar's power to dissolve a Managing Committee under Section 36 of the Act was subject to certain conditions, including an inquiry and an opportunity for the committee to state its case. In this case, these conditions were not met, and therefore the Registrar's order was invalid. 2. The court also held that the Deputy Registrar's order appointing an ad hoc committee was invalid as it was based on the invalid order of the Registrar.
Final Decision: The court allowed the petition and declared both the Registrar's order dissolving the Managing Committee and the Deputy Registrar's order appointing an ad hoc committee to be void, illegal, and without jurisdiction.
LAHIRI, J.:- What is the contour of power of the Registrar of Co-operative Societies to dissolve the Managing Committee of a Co-operative Society under the Assam Co-operative Societies Act, 1949, for short "the Act" and "the Rules" framed thereunder? Could the Registrar of the Co-operative Societies dissolve the Managing Committee of the Co-operative Society on the ground that in the notice served on the members there was no mention that in the meeting of the General Assembly there would be election of members and officers to the Managing Committee of the Co-operative Society, albeit it was specifically mentioned that it was an Annual General Assembly or the Annual General Meeting of the General Assembly and S.32(1) of "the Act" "clearly specified that election of the members to the Managing Committee and other Committees could only be transacted in an Annual General Meeting of the Assembly? Was the follow up order of the Deputy Registrar appointing the ad hoc Committee valid and legal on the facts and in the circumstances of the case? These are the main questions posed in this writ application presented by the petitioner Co-operative society. The case involves the interpretation of the provisions of Sections 32 and 36 of "the Act" and Rr.24 and 25 of "the Rules".
2. To resolve the questions posed, a bare outline of the relevant facts are set out omitting the fringe matters. The petitioner is a Registered Co-operative Society. The President/Secretary of the Co-operative Society was intimated by the Assistant Registrar of the Co-operative Society by his letter dt. 15-7-1983 that the Co-operative year had expired on 30-6-1983 and, therefore, under the provisions of "the Act", Rules and the Bye-Laws the Co-operative Society was to call an Annual General Meeting "within 60 days between 1-7-1983 to 29-8-1983". It was also intimated that the Co-operative Society was required to inform "all the members about the date and time of the meeting and pass necessary resolution." The then Managing Committee decided to hold the Annual General Meeting on 25-8-1983 at 10 A.M. in the permanent office of the Co-operative Society. In due course the Assistant Registrar of the Co-operative Society, Goalpara asked two Junior Inspectors of Co-operative Societies to attend the Annual General Meeting of the Co-operative Society on 25-8-1983. Admittedly, the Annual General Meeting of the Society was held on that date at the venue and various businesses were transacted and office bearers were elected. As many as 111 members attended the meeting. The records of the proceedings of the Co-operative Society were placed before us by Mr. B. M. Goswami, learned counsel for the petitioner. We have perused the proceedings book which was signed by one of the Junior Inspectors of Cooperative Societies, Goalpara. The quorum of a meeting of the General Assembly is 1/5th of the total number of members under Rule 24 of "the Rules". There is no dispute that the businesses were transacted in the annual meeting of the General Assembly, which had quorum. The members present in the Annual General Meeting elected members, the Chairman, Vice-Chairman and other office bearers, as required under R.25 of "the Rules". The resolutions adopted in the meeting were duly recorded, as required under R.25 of "the Rules" and duly forwarded to the Registrar, Co-operative Societies for obtaining his approval. It is also not disputed that one of the prime purposes of the annual General Meeting is to elect members to the Managing Committee and other Committees, as set forth in S.32(1)(a) of "the Act". A notice that there would be annual meeting of the General Assembly of a Co-operative Society automatically implies that amongst other business the members were to elect members to the Administrative Council, Managing Committee or other Committees of the Society as well as to elect Chairman, Vice-Chairman and other office bearers. It is not disputed by the parties that none took the tech