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2024 Supreme(Gau) 526

THE GAUHATI HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
Kalyan Rai Surana, J.
Dibru Dangari River Part I Meen Samabay Samity Ltd. - Appellant
Vs.
The State Of Assam And Ors. - Respondent
WP(C) No. 6243 of 2023, WP(C) No. 1975, 2094 of 2024
Decided On : 30-04-2024

Advocates:
Advocate Appeared:
For the Appellant : Mr. S Banik, Mr. N K Kalita
For the Respondent: SC, CO OP

IMPORTANT POINT
Non-compliance with the provisions of the Assam Cooperative Societies Act, 2007, regarding the holding of Annual General Meetings (AGMs) led to the automatic dissolution of the Board of Directors of the cooperative society.

Headnote:

Cooperative Society - Dissolution of Board of Directors - Assam Cooperative Societies Act, 2007, Section 43(8), Section 39 - The court found that the Annual General Meetings (AGMs) held by rival groups of DDRPMSS Ltd. were not valid due to non-compliance with the provisions of section 43(8) of the 2007 Act. As a result, the Board of Directors (BoD) of DDRPMSS Ltd. stood dissolved on and from 30.09.2023, in accordance with section 39 of the 2007 Act.

Fact of the Case:

The case involved a clash for the post of Chairman/President and Secretary of a cooperative society, leading to several writ petitions being filed. The court considered the proceedings of the Board of Directors and the Annual General Meeting (AGM) under the Assam Cooperative Societies Act, 2007.

Finding of the Court:

The court found that the AGMs held by rival groups of DDRPMSS Ltd. were not valid due to non-compliance with the provisions of the 2007 Act, leading to the dissolution of the Board of Directors of the society.

Issues: The main issue was the validity of the AGMs held by rival groups of DDRPMSS Ltd. and the dissolution of the Board of Directors in accordance with the provisions of the 2007 Act.

Ratio Decidendi: The court's decision was based on the non-compliance of the AGMs with the provisions of the 2007 Act, leading to the automatic dissolution of the Board of Directors.

Final Decision: The court held that all the writ petitions had become infructuous and need not be decided, and directed the Registrar of Cooperative Societies to ensure proper management of the society and constitute a new Board of Directors within three months.

 to mention herein that by a common order dated 19.04.2024, passed in W.P.(C) 1975/2024 and W.P.(C) 2094/2024, the writ petition registered as W.P.(C) No. 6243/2023 was tagged together for consideration. As per the said order, the counsel for the parties had given their consent that since the rival parties have presented their version in a separate writ petition, no counter-affidavit may be necessary. Accordingly, with the consent of the learned counsel for all the parties, W.P.(C) 1975/2024 and W.P.(C) 2094/2024 have been finally heard at the ‘motion’ stage, and W.P.(C) 6243/2023 has been finally heard at the ‘admission’ stage.

2. Heard the following learned counsel:-

Writ petition

Name of parties

Learned counsel

WP(C) 6243/2023

Dibru Dangari River Part-I Min Samabay Samity Ltd. (petitioner)

Mr. S. Banik

WP(C) 6243/2023

Cooperation Department (respondent nos. 1,2,3)

Mr. V. Rajkhowa, Standing counsel.

WP(C) 6243/2023

Bikash Das, (impleaded as respondent no. 4 vide order dated 22.01.2024 in I.A.(C) 3458/2023).

A.B.T. Hoque.

WP(C) 1975/2024

Dibru Dangari River Part-I Min Samabay Samity Ltd. (petitioner)

Mr. N.K. Kalita

WP(C) 1975/2024

Cooperation Department (respondent nos. 1,2,3)

Mr. G. Bardoloi, Standing counsel.

WP(C) 1975/2024

Bikash Das

Mr. S. Banik.

WP(C) 2094/2024

Ranjit Das (petitioner)

Mr. S. Banik

WP(C) 2094/2024

Cooperation Department (respondent nos. 1,2,3)

Mrs. M.D. Borah, Standing counsel.

WP(C) 2094/2024

Bikash Das (respondent no.4)

A.B.T. Hoque.

3. These cases have a common thread and a chequered history leading to several writ petitions being filed. It is essentially a clash for the post of Chairman/ President and Secretary of the cooperative society under the name and style of Dibru Dangari River Part-I Min Samabay Samity Ltd. (hereinafter referred to as DDRPMSS Ltd. for short). The writ petitions are (1) W.P.(C) 4414/2023, disposed of by order dated 04.08.2023; (2) W.P.(C) 4083/2023, disposed of by order dated 25.07.2023, (3) W.P.(C) 5512/2023, disposed of by order dated 20.09.2023, (4) W.P.(C) 5526/2023, disposed of by order dated 25.09.2023; (5) W.P.(C) 3458/2024 stated to be pending; (6) W.P.(C) 6243/2023; (7) W.P.(C) 1975/2024 and (8) W.P.(C) 2094/2024. The orders passed from time to time by the authorities under the Registrar of Cooperative Societies, Assam have lead to filing of these writ petitions.

4. The learned counsel for all appearing sides have submitted that some of the facts which arose in previously disposed of cases have not been elaborately pleaded in these three writ petitions. Hence, the brief facts and prayers in these three writ petitions are as follows:-

 

    a. W.P.(C) 6243/2023:

i. It has been submitted that under the provisions of the Assam Cooperative Societies Act, 2007 (“2007 Act” for short), the proceedings of the meeting of the Board of Directors and the Annual General Meeting (“AGM” for short) are required to be approved by the Registrar of Cooperative Societies, Assam or his subordinate authorities like the jurisdictional Zonal Registrar of Cooperative Societies, Jorhat (“ZRCS, Jorhat” for short) and/or the Assistant Registrar of Cooperative Societies, Tinsukia (“ARCS, Tinsukia” for short).

ii. By resolution no. 1 adopted in the BoD meeting of DDRPMSS Ltd. held on 16.06.2023, Bikash Das was removed from the post of Secretary of the said Society. Vide resolution no. 3 taken in the same meeting, Sanjay Das was appointed as the Secretary of DDRPMSS Ltd. The said resolution no. 1 was temporarily suspended by the ARCS, Tinsukia by order dated 27.06.2023, and Bikash Das was allowed to function as Secretary. Thereafter, on 04.07.2023, the ARCS, Tinsukia had withdrawn the order dated 27.06.2023 and Bikash Das was allowed to continue to function as Secretary.

iii. By an order which was communicated by the ARCS, Tinsukia by letter dated 27.06.2023, suspended the resolution no.1 dated 16.06.2023 and allowed Bikash Das to act as Secretary of DDRPMSS Ltd.

iv. The ZRCS, Jorhat, by order dated 05.07.2023, inter alia, vacated the orde

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