IN THE HIGH COURT OF GAUHATI, ASSAM: NAGALAND: MIZORAM AND ARUNACHAL PRADESH
DEVASHIS BARUAH, J.
Ayub Uddin Laskar and Ors. - Petitioners
Versus
The State of Assam and Ors. – Respondents
WP(C) No.1476 Of 2024
Decided On : 31-08-2024
(A) Assam Cooperative Societies Act, 2007 - Sections 26(3), 41(6), and 45 - Writ petition challenging the order of the Registrar of Cooperative Societies disapproving the AGM/Election of Meherpur Krishnapur Cooperative Society - The Registrar's order was set aside for lack of application of mind and failure to provide proper reasons for disapproval - The elections were held with valid nominations and a duly prepared voters list approved by the Zonal Joint Registrar. (Paras 25, 26, 29)
(B) Quasi-Judicial Authority - The power of the Registrar to disapprove elections must be exercised with proper reasoning and not arbitrarily - An order passed without application of mind is violative of Article 14 of the Constitution. (Paras 26, 27)
Facts of the case:
The petitioners, elected uncontested in the AGM of the Cooperative Society, challenged the Registrar's order disapproving the elections based on a complaint alleging irregularities in the voters list and election process. The petitioners argued that they were not heard before the order was passed. (Paras 2, 11, 19)
Findings of Court:
The Court found that the Registrar's order lacked proper reasoning and was arbitrary, thus setting it aside and allowing the writ petition. (Paras 29, 30)
Issues: Whether the Registrar's disapproval of the AGM/Election was justified based on the complaints received and whether the petitioners were given a fair hearing. (Paras 19, 25)
Ratio Decidendi: The Court held that the Registrar's decision was arbitrary and lacked a factual basis, emphasizing the need for proper reasoning in quasi-judicial decisions. (Paras 26, 29)
Result: Writ petition allowed, and the impugned order set aside.
JUDGMENT :
(Devashis Baruah, J.)
Heard Mr. S Banik, the learned counsel appearing on behalf of the petitioners. Also heard Mr. SK Talukdar, the learned counsel appearing on behalf of the Cooperation Department of the Government of Assam as well as the officials under the Cooperation Department of the Government of Assam. Ms. S Parveen, the learned counsel appears on behalf of the respondent No.6.
2. 14 writ petitioners, who have been elected uncontested in the Annual General Meeting (for short, ‘the AGM’)/Election of Meherpur Krishnapur Cooperative Society Limited (for short, the Cooperative Society) held on the 18.08.2023 have approached this Court by filing the instant writ petition challenging the order dated 21.09.2023 passed by the Registrar of Cooperative Societies, Assam.
3. The brief facts leading to the challenge is that the Board of Directors of Meherpur Krishnapur Cooperative Society Limited was dissolved on account of not holding the AGM/Election within the statutory period and a One-Man Committee was appointed by the jurisdictional authority vide the order dated 17.12.2022 for managing the affairs of the Co-operative Society as also for holding the AGM/Election within 90 days so as to constitute the new managing committee.
4. Before further proceeding, this Court finds it very pertinent to take note of that in view of Section 41 (6) of the Assam Cooperative Societies Act, 2007 (for short, the Act of 2007), a responsibility is cast upon the Officer of the Cooperation Department for constitution of a Board within 90 days from the date of such appointment. This aspect of the matter is pertinent in view of the fact that with the dissolution of the Board, the entire responsibility, therefore, is in the shoulder of the One-Man Committee, so appointed by the Department of Cooperation.
5. Proceeding further, it is seen that under the aegis of the One-Man Committee, a voters list was prepared on 26.12.2022. Thereupon, a notice was issued on 11.01.2023 notifying the names of dead persons in the draft voters’ list, which would be corrected by substituting the names of the legal heirs and that applications to that effect be submitted before the said Secretary from 14.01.2023 to 31.01.2023. Consequent upon the publication of the said notice dated 11.01.2023, 13 candidates applied for substitution of the names against dead shareholders and a correction was duly effective and the final voters’ list was published on the 08.02.2023 by the One-Man Committee. It is pertinent to mention that this final voters list was approved and countersigned by the Zonal Joint Register of Cooperative Society, Silchar Zone, Silchar. A resolution, thereupon, on 08.02.2023 was adopted, whereby it was made clear that 2081 voters were from weaker section and 218 voters from stronger section were eligible to cast vote. Thereupon, the final voters list was published on 08.02.2023. The said voters list was not challenged as per the mandate of the Act of 2007. Subsequent thereto, the Secretary of the Cooperative Society issued a notice dated 23.02.2023 whereby it was notified that the date for submission of the nominations was 01.03.2023 and the date for withdrawing of the nomination was upto 03.03.2023. It was also mentioned that the date for AGM/Election was on 11.03.2023.
6. At this stage, it is very pertinent to mention that the respondent, No.6, along with 10(ten) others on 09.03.2023, submitted a complaint to the Minister for Cooperation, Government of Assam. A perusal of the complaint, which has been enclosed as Annexure-E to the writ petition transpires that allegations were made that the Ex-Chairman of the Cooperative Society had been running the Society, without following Statutory Government Guidelines and Rules, and the Ex-Chairman and his associates, have been involved in malpractices and corruption in respect to the management of the society. It was also alleged that the Ex-Chairman circulated a notice for general meeting of the Society proposed
The Registrar's disapproval of the AGM/Election was arbitrary and lacked proper reasoning, violating the principles of natural justice.
The annulment of cooperative society elections requires clear evidence of material irregularities affecting the election's outcome, with proportional measures aligned to the alleged violations.
Appointment of a one man committee is only as an interim measure for convening meeting and holding election.
The Assistant Registrar of Cooperative Societies lacks jurisdiction over election disputes, which must be adjudicated by the Cooperative Election Commission per the relevant regulations.
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 main legal point established in the judgment is the prima facie evidence of the membership register and the limitations on the jurisdiction of deciding the claims and objections to the voters lis....
The main legal point established in the judgment is that objections to the provisional voters list for co-operative society elections must be within the jurisdiction of the Election Officer and must ....
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