IN THE HIGH COURT OF GAUHATI
MANISH CHOUDHURY, J.
Babul Das and Others - Petitioners
Versus
State of Assam and Others - Respondents
WP(C) No. 5699 of 2021
Decided On : 31-05-2022
Co-operative Society - Motion of No Confidence - Assam Cooperative Societies Act, 2007, Section 36(4), Section 43(2), Section 43(5) - The Registrar set aside a resolution passed in a special meeting for lack of opportunity to the President to explain, but the court held that the President's presence was not essential and the motion was passed by requisite majority. The court also clarified the calculation of majority and directed the Society to fill the vacancy of the President in accordance with the Act.
Fact of the Case:
The petitioners challenged the Registrar's order setting aside a resolution passed in a special meeting for a motion of no confidence against the President of a Co-operative Society. The President was absent during the meeting, and the motion was passed by a majority of directors present.
Finding of the Court:
The court found that the President's presence was not essential in the special meeting, and the motion was passed by requisite majority. The court also clarified the calculation of majority and directed the Society to fill the vacancy of the President in accordance with the Act.
Issues: The issues involved the necessity of the President's presence in the special meeting, the calculation of majority, and the filling of the vacancy of the President in the Co-operative Society.
Ratio Decidendi: The court held that the President's presence was not essential in the special meeting for a motion of no confidence. The court also clarified the calculation of majority and directed the Society to fill the vacancy of the President in accordance with the Act.
Final Decision: The writ petition was allowed, the Registrar's order was set aside, and the Society was directed to fill the vacancy of the President in accordance with the Act.
JUDGMENT :
1. The petitioners, 7 in Nos., have joined together to institute this writ petition under article 226 of the Constitution of India by making assailment of an order dated 16.10.2021 passed by the Registrar of Co-operative Societies, Assam whereby the Registrar of Co-operative Societies, Assam has set aside a resolution taken on a motion of no confidence in a special meeting of the Board of directors of M/s. Chariduar Brahmaputra and Khaloibeel Fishery Co-operative Society Ltd., held on 19.8.2021, by declaring the resolution as null and void. The motion of no confidence was brought against the respondent No. 6 who was the President of the Board of directors of M/s. Chariduar Brahmaputra and Khaloibeel Fishery Co-operative Society Ltd. and as per the resolution, the motion of no confidence was held to have passed against the respondent No. 6.
2. M/s. Chariduar Brahmaputra and Khaloibeel Fishery Co-operative Society Ltd., District-Sonitpur (‘the Society’, for easy reference) is a co-operative society registered under the provisions of the Assam Cooperative Societies Act, 2007, as amended. In the Annual General Meeting (AGM')/Election held in the year 2018, as per the provisions of the Assam Co-operative Societies Act, 2007 (‘the Act, 2007’ and/or ‘the 2007 Act’), the members of the Society elected the directors, 13 in Nos., for the Board of directors of the Society. As the Society has no women shareholder members, the Election was held for 13 Nos. of directors keeping 2 posts, reserved for women shareholder members, vacant. It is not in dispute that since the year 2018, the Society has 13 Nos. of directors in its Board of directors. The Board of directors had elected the respondent No. 6 as the President of the Society, by following the procedure provided in section 36(1) of the Act, 2007.
3. A brief narration of the preceding events leading to the passing of the order dated 16.10.2021 by the Registrar of the Co-operative Societies, Assam (‘the Registrar’) appears necessary in order to appreciate the issues raised and involved in the writ petition:
3.1 On 1.7.2021, 12 Nos. of directors of the Board of the Society submitted a requisition notice to the respondent No. 6 expressing want of confidence in him as the President of the Board of directors of the Society and had requested him to convene a special meeting of the Board of directors of the Society at 09.00 a.m. on 7.7.2021 to discuss the motion of no confidence. On receipt of the said requisition notice dated 1.7.2021, the Secretary of the Society by a letter dated 3.7.2021 informed the respondent No. 6 that the directors of the Society expressed their displeasure in him for not responding to their requisition notice dated 1.7.2021 and for seeking their presence in a meeting called by the respondent No. 6 at his residence on 4.7.2021 instead of the office of the Society. It was informed to the respondent No. 6 by the Secretary of the Society through his letter dated 3.7.2021 that the directors had decided not to attend the meeting on 4.7.2021 called by the respondent No. 6 at his residence, subsequent to the requisition notice dated 1.7.2021. The requisition notice dated 1.7.2021, submitted by 12 Nos. of directors of the Society, did not culminate in a special meeting to discuss the motion of no confidence sought to be brought by them against the respondent No. 6. On 6.7.2021, it was informed to the respondent No. 6 that the meeting to discuss the motion of no confidence would not be held on 7.7.2021 due to Covid-19 pandemic situation and the next date for the meeting would be decided later on. Though the meeting was thereafter, scheduled on 2.8.2021 the same also could not be held purportedly due to some unavoidable circumstances. Be that as it may.
3.2 The genesis of the present lis is a requisition notice submitted, by 8 Nos. of directors of the Society on 5.8.2021 to the respondent No. 6 expressing want of confidence in him and they requested the respondent No. 6 to
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