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2025 Supreme(Gau) 1337
IN THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
ASHUTOSH KUMAR, C.J., MANISH CHOUDHURY, J.
Board of Directors of Greater Badarpur Primay Milk Production Co-operative Society Limited - Appellant
Versus
The State of Assam - Respondent
Writ Appeal No.226 of 2024
Decided on : 22-08-2025
For the Appellant :Mr. S. Banik, Advocate.
For the Respondent:Mr. S.K. Talukdar, Mr. B. Sinha, Advocate
An AGM not held within the statutory timeframe leads to automatic dissolution of a cooperative board; disputes regarding procedural validity must be examined with evidence and not adjudicated through summary judgments.
Headnote:(A) Assam Co-operative Societies Act, 2007 - Section 39 and 41(6) - Automatic dissolution of the Board for failure to hold AGM within mandated time - The failure of the Board to comply with statutory provisions resulted in dissolution and subsequent election deemed non est. (Paras 2, 11, 24)
(B) Jurisdiction of the court - Disputed questions of fact ought to be remitted to the appropriate authorities for taking evidence rather than resolved by the court. (Paras 24, 25)
Facts of the case:
The appellant Board claims that an AGM was properly held on 30.09.2021, while a complaint asserted it was not conducted within 6 months, leading to a judgment deeming the Board dissolved.
Findings of Court:
The court found that the lower authorities' conclusions regarding tampering of records lacked sufficient basis and the matter should be referred back for proper evidentiary examination.
Issues: The legitimacy of the AGM and eligibility of the Board were central questions along with propriety of review by higher authorities.
Ratio Decidendi: The court emphasized the need for fair adjudication on evidence in disputed fact scenarios and cautioned against resolving such issues in an appellate judicial manner without factual clarity.
Result: Judgment set aside and the matter remitted to the Registrar of Co-operative Societies for fresh consideration.
| Table of Content |
|---|
| 1. propagation of agm disputes and legitimacy (Para 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9) |
| 2. consequences of agm non-compliance (Para 10 , 11) |
| 3. arguments regarding agm validity and timeline (Para 12 , 15 , 16 , 17 , 18 , 19 , 20) |
| 4. court's critical view on reasonings presented (Para 21 , 22 , 23 , 24) |
| 5. directions for evidence gathering and decision remittance (Para 25 , 26 , 27 , 28 , 29 , 30) |
JUDGMENT :
Ashutosh Kumar, CJ.
We have heard Mr. S. Banik, learned Advocate for the appellants and Mr. S.K. Talukdar, learned Standing Counsel, Cooperation Department for the respondent Nos.1, 2 & 3. We have also heard Mr. B. Sinha, learned Advocate for the respondent No.4.
2. By the impugned judgment dated 15.07.2024 passed in WP(C) No763/2023, a learned Single Judge of this Court has held that the appellant/Board gets dissolved for not complying with the provisions of Section 39 of the Assam Co-operative Societies Act, 2007 (hereinafter to be referred as “Act of 2007”). As a sequel to this, the next election held on 17.04.2022 and approved on 25.04.2022 is also rendered non est in the eyes of law.
3. Short facts, which would be necessary for disposal of this case, are that the appellant/Board was constituted for the period 25.05.2017 to 25.05.2022. In accordance with the mandate of Section 39 of the Act of 2007, Annual General Meeting (AGM) was held, according to the Board, on 30.09.2021 with respect to budgetary approvals, etc., which was approved on 19.10.2021. However, the Secretary of the Board (respondent No.4) made a complaint before the Assistant Registrar of the Co-operative Societies, Karimganj that no AGM was held within a period of 6(six) months, as mandated under Section 39 of the Act of 2007 and, therefore, the Board gets automatically dissolved. However, this complaint preferred by the respondent No.4 before the Assistant Registrar, was not entertained.
4. The respondent No.4 thereafter appealed before the Registrar of Co-operative Societies, Assam alleging that, in fact, the AGM was held on 03.10.2021 but by tampering of the records, it was made to look like as if it was held on 30.09.2021.
5. The Registrar of Co-operative Societies, Assam, on perusal of records and after hearing all the concerned, observed that the AGM was held on 22.09.2021 but the meeting was adjourned because of lack of quorum. The adjourned meeting was held on 30.09.2021 for which there was quorum. Subsequently, the Assistant Registrar of the Co-operative Societies, Karimganj approved the proceedings of the AGM. With respect to the allegation of respondent No.4 that the date of the meeting was tampered with, the learned Registrar was of the view that it was the respondent No.4, who was in custody of the records of the proceedings of the Board and, therefore, if there was any manipulation or tampering, it was him and not any other functionary of the Board. With respect to the removal of the respondent No.4 as Secretary, no interference was made by the learned Registrar.
6. It would be relevant herein in this context to state that while all this was going on, elections were held and the present Board was constituted which was also confirmed later.
7. Not losing heart, the respondent No.4 preferred a review against the order passed by the Registrar and when the review was not being taken up, he rushed to this Court vide WP(C) No.5805/2022.
8. A Bench of this Court, vide order dated 05.09.2022, directed that the review filed by the respondent No.4 must be taken up for consideration and be disposed off by passing a speaking order.
9. Pursuant to the aforesaid direction, the review petition was heard and was disposed off by order dated 01.02.2023.
10. While reviewing the earlier order, the Reviewing Authority took note of the fact that the claim of the Board was that the AGM was held on 30.09.2021, which was in accord with the mandate of Section 39 of the Act of 2007. However, since there was a challenge to the correctness of the date mentioned in t
