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2009 Supreme(Gau) 717

GAUHATI HIGH COURT
H.N.Sarma, J.
Abdul Rahman and Anr. -Appellant
Versus
State of Assam and Ors.(And other cases) -Resopndent
WP(C) Nos.2373, 2374 and 2461 of 2009
Decided On : 24-09-2009

Advocates Appeared:
P.Roy, A.K.Goswami, S.Haque, A.Hussain, M.U.Mondal, A.M.Mazumdar

Headnote:

Assam Cooperative Societies Act, 1949 - Section 32(1) to 32(6) - Assam Co-operative Societies Rules - Rule 27 – Consideration – Jurisdiction - Common challenge in all these writ petitions is legality and validity of impugned notification issued by Secretary of Government of Assam Co-operation Department exempting all Panchayat of State of Assam from operation of section 32(1) to 32(6) of Assam Cooperative Societies Act, 1949 extending term of existing managing committees for a further period of six months May - It is further reflected in notification that order has been issued in order to give GPSS reasonable time for holding AGM/Election in view of parliamentary election which has just ended - Further prayed made in WP is for a direction to hold annual general meeting of petitioners society within days whereas in WP it is prayed that petitioners be allowed to hold AGM/election of GPSS within tenure of years from date of holding of first meeting of elected body in terms of rule 27 of Assam Co-operative Societies Rules – Held, Impugned notification thus having passed taking into consideration of certain irrelevant consideration ignoring relevant considerations as regards adverse affect due to non holding of AGM of society indicates clear non-application of mind and error in decision making process while passing impugned order - Impugned notification was issued without considering adverse affect and impact that fell upon these primary co-operative societies functioning at grass root level virtually closing their operations in accordance with provisions of Act, Rules and bye-laws of society - Term of managing committee of a society is fixed by Act under section 32, as well as bye-law of society - Neither Act nor rules nor bye-law of society empowers that managing committee whose term has already expired can be allowed to be continued for further period of six months - Accordingly such extension of life of expired committee is wholly unauthorized and without jurisdiction - After expiry of term of an elected body unless statute otherwise empowers State Government is not entitled to extend its life for any further period under color of its purported power conferred under section 92 of Act - Exercise of power under section 92 of Act in instant case is nothing but colorable exorcise of power without any bona fide intention behind to meet object of Act - No nexus was found to exist between direction issued under impugned notification with object of Act - Petitions allowed

1. These writ petitions, arising out of almost similar facts and having given rise to common question for determination, have been finally heard analogously at the admission stage itself, in view of the order dated 18.8.2009 passed in WA No.231/2009, and are disposed of by this common judgment.

2. The common challenge in all these writ petitions is the legality and validity of the impugned notification issued by the Secretary of the Government of Assam Co-operation Department, dated 28.5.2009, exempting all Gaon Panchayat Samabai Samitees (GPSS) of the State of Assam from operation of section 32(1) to 32(6) of the Assam Co­operative Societies Act, 1949, extending the term, of the existing managing committees for a further period of six months w.e.f. 1st May, 2009. It is further reflected in the notification that the order has been issued in order to give, the GPSS reasonable time for holding the AGM/Election in view of the parliamentary election 2009 which has just ended. The further prayed made in WP(C) Nos.2374 and 2373 of 2009 is for, a direction to hold the annual general meeting ('AGM') of the petitioner's society within 45 days whereas in WP(C) No.2461 it is prayed that the petitioners be allowed to hold the AGM/election of the GPSS within 31.3.2009, i.e., within the tenure of 3 years from the date of holding of the first meeting of the elected body, in terms of rule 27 of the Assam Co-operative Societies Rules.

3. Heard the learned counsels for the petitioners and Mr. P. Roy, learned Addl. Senior Government Advocate appearing on behalf of the State and official respondents in all the writ petitions.

Let us have a glance of the pleaded facts in all the writ petitions.

In WP(C)No.2373

The two petitioners are shareholders of Jaluguti S.S. Ltd. and the petitioner No. 1 was elected as Chairman of the managing committee of the society for the period 2002 to 2006. The petitioner No.2 is a shareholder and Ex-officio member of the society, the petitioners are interested in constituting a democratically-elected managing committee and for holding of the AGM of the society. The first annual general meeting was held on 18.6.2006 in which the respondent No.7 was elected as Chairman. The term of the managing committee expired on 31.3.2009 as per the provisions of the Co-operative Societies Act, 1949, and bye-law of the society. The committee of the respondent No.7 having failed to hold the AGM/election of the society as per the provision of the Act, the petitioners approached the respondent No.1 for necessary direction to that effect but without any result. Subsequently on 28.5.2009 the respondent No.1 issued the impugned notification whereby all the GPSS were exempted from the operation of section 32(1) to 32(6) for a period of six months and allowed the existing committee to manage the affairs of the society which is in violation of the provisions of the Co-operative Societies Act, 1949 and rules framed thereunder and the bye-laws of the society. It is further pleaded that the parliamentary election in the State was held on 16.4.2009 and 23.4.2009 and the result were declared on 25.4.2009 and as such the ground on which the exemption from operation under section 32 of the Act so granted is wholly irrelevant and the impugned notification was passed in violation of the scope, spirit and provision of the Co-operative Societies Act, violation of the scope, spirit and provision of the Co­operative Societies Act, 1949.

In WP (C) No.2374/09

The petitioners are the existing shareholders of Charaibahi S.S. Ltd. The petitioner No. 1 was elected as Vice President of the Managing Committee of the Society for the period of 2002 to 2006. As the AGM of the society was held on 28.6.2006 in which the respondent No.7 was elected as Chairman of the Managing Committee of the Society, the term of the said managing committee expired on 31.3.2009 as per the provisions of the Assam Co-operative Act, 1949 and the bye-law of the society. The erstwhile managing comm









































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