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2023 Supreme(Gau) 1537

IN THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
DEVASHIS BARUAH, J.
Mazibur Rahman And Ors. - Petitioners
Versus
The State of Assam And Ors. – Respondents
WP(C) No.4691 Of 2023
Decided On : 16-08-2023

Advocates Appeared:
For the Petitioner: Mr. P.K. Roychoudhury.

Headnote:(A) Assam Cooperative Societies Act, 2007 - Sections 31, 39, 40(4)(a), and 40(4)(e) - Petition for mandamus to allow petitioners to participate in AGM and elections of cooperative society as former Board of Directors. Court observed that dissolution of Board was due to failure to hold AGM in a timely manner, exacerbated by Covid-19 restrictions. Court found that petitioners should not face disqualification under Section 40 due to circumstances beyond their control. (Paras 25 and 26)

(B) Legal Principle of Disqualification - The court establishes that petitioners cannot be disqualified for failing to hold an election due to external circumstances and directs that nominations should be accepted without penalties based on prior legislation. (Paras 24 and 25)

Facts of the case:
Petitioners, former Board of Directors, sought to participate in AGM and election after being dissolved due to non-compliance with statutory requirements concerning AGM as per the Assam Cooperative Societies Act. They apprehended disqualification based on their term expiration and non-holding of elections due to Covid restrictions.

Findings of Court:
The court ruled that the petitioners' disqualification under relevant provisions cannot be upheld due to non-holding of AGM for reasons beyond their control.

Issues: Whether the petitioners can participate in the elections notwithstanding their prior dissolution and the implications of statutory disqualification.

Ratio Decidendi: The court affirmed the principle that external circumstances such as a pandemic should preclude the imposition of disqualifications to ensure fair participation in election processes.

Result: Petition disposed of with directions against disqualification if nominations are submitted.

JUDGMENT :

(Devashis Baruah, J.)

The instant writ petition has been filed by the petitioners seeking a mandamus upon the respondents to allow the petitioners, who were earlier the Board of Directors of Tengaguri SS Ltd for participating in the AGM as well as in the election of the Board of Directors of Tengaguri SS Ltd, Morigaon for the year 2023-2024, which is to be held on 27.08.2023.

2. From a perusal of the writ petition, it transpires that the petitioners herein were elected as the Board of Directors of Tengaguri SS Ltd (for short 'the Cooperative Society') on the basis of an election held on 20.07.2017. In terms of the provisions of Section 31 of the Assam Cooperative Societies Act, 2007 (for short, the Act of 2007), the term of the said Board of Directors was to expire on 19.07.2022. Be that as it may, by an order dated 20.04.2021, the Zonal Joint Registrar of Cooperative Societies had dissolved the management of the Cooperative Society as it had failed to hold AGM/election for the year 2020-2021 as was required under Section 39 of the Act of 2007. By the same order, one Shri Bipul Kumar Bora, Senior Inspector/Auditor of Cooperative Societies was appointed as an Officer on Management and was entrusted to convene the AGM/Elections of the Cooperative Society to constitute the Board of Directors within 90 days.

3. It further reveals from the records that one Abdul Subhan and nine others had filed a petition on 12.05.2021 praying for restoration of the Board of Directors of the Cooperative Society. The learned counsel for the petitioner, however, submits that that the petitioners herein were not amongst the 10 persons who approached the Zonal Joint Registrar of the Cooperative Societies then.

4. Be that as it may, the Zonal Joint Registrar of Cooperative Societies by an order dated 13.05.2021 stayed the order dated 20.04.2021 till a date is fixed by the Assistant Registrar of Cooperative Societies as deemed fit and proper within seven days for holding of the AGM in terms of the order passed in WP(C) No.8891/2019 dated 05.12.2019. The Assistant Registrar of Cooperative Societies, Morigaon, thereafter by communication dated 21.06.2021 informed the said Abdul Subhan who was the Vice-Chairman of the Cooperative Society to conduct the Board of Directors meeting within seven days and to take necessary steps for holding the AGM of the said Society.

5. It further reveals that on 22.06.2021, an emergency meeting of the Board of Directors of the said Cooperative Society was held. In the said meeting, only the petitioner No.1 and 5 were present along with other Members of the Board of Directors. It was resolved in the said meeting that the AGM would be held on 16.07.2021 in the godown house of the Cooperative Society at 10 am. Thereupon, the said Abdul Subhan along with the Secretary of the said Cooperative Society sought for permission from the Deputy Commissioner, Morigaon for holding the AGM of the said Society for the year 2020-2021 on 16.07.2021 at the premises of the Cooperative Society at 10 am. This request was made on 28.06.2021 to the Deputy Commissioner, Morigaon.

6. It is not clear from the records whether any permission was granted by the Deputy Commissioner, Morigaon to the Board of Directors for conducting the AGM as well as election of the Society on 16.07.2021. This Court finds it relevant to take judicial notice that during this period the country was under the second wave of Covid and there were various restrictions imposed by the Disaster Management Department of the Government of Assam as well as the Home Ministry of the Government of India.

7. In the meantime, the orders dated 13.05.2021 and 21.06.2021 were stayed by this Court. Under such circumstances, as the said meeting could not be held, the order dated 20.04.2021 stood restored. It further reveals that on 12.11.2021, the One Man Committee issued a notice for holding the AGM/election of the Cooperative Society thereby fixing it on 27.11.2021 at 10 am. The

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