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2000 Supreme(Ker) 218

Judges : S.RAJENDRA BABU,Y.K.SABHARWAL
Jt.Registrar of Co-operative Societies - Appellant
Versus
T.A.Kuttappan - Respondent
Case No : C.A. No. 1930, 1931, 1932, 1933, 1934, 1935, 1936 of 1999
Decided On : 05/09/2000
Advocates Appeared :
Mugal Rosthagi; C.S. Vaidyanathan; G. Prakash; For Appellants P. P. Rao; L. Nageswara Rao; Roy Abraham; Baby Krishnan; For Respondents

The main legal point established in the judgment is that the administrator or committee appointed during supersession of the Committee of Management of a Co-operative Society does not have the power to enrol new members, based on the interpretation of relevant provisions and a comparison with similar provisions in another state's co-operative societies act.

Headnote:

Registrar of Co-operative Societies - Enrolment of new members - S.32 of the Kerala Co-operative Societies Act, 1969 - S.32(1)(a) and (b) - S.30 and 30A of the Karnataka Co-operative Societies Act, 1959 - Interpretation of powers and functions of the administrator or committee appointed during supersession of the Committee of Management - Decision based on comparison of provisions of the Kerala Act and the Karnataka Act

Fact of the Case:

The appeals were filed against the order made in O.P. Nos. 12184,14840,14686, 15700,17258,18398 and 20913/97. The issue revolved around the power of the administrator appointed during supersession of the Committee of Management of certain Co-operative Societies to enrol new members to the society.

Finding of the Court:

The Court held that the administrator or a Committee appointed during supersession of the Committee of Management of a Co-operative Society does not have the power to enrol new members. The decision was based on the interpretation of S.32 of the Kerala Co-operative Societies Act, 1969 and the comparison of provisions with S.30 and 30A of the Karnataka Co-operative Societies Act, 1959.

Issues: The main issue was whether the administrator appointed during supersession of the Committee of Management of a Co-operative Society can enrol new members.

Ratio Decidendi: The Court interpreted the provisions of S.32 of the Kerala Co-operative Societies Act, 1969 and compared them with S.30 and 30A of the Karnataka Co-operative Societies Act, 1959 to determine the powers and functions of the administrator or committee appointed during supersession. It was held that the administrator or committee does not have the power to enrol new members.

Final Decision: The appeals were dismissed, affirming the view that the administrator or a special officer in the Karnataka Act is not vested with the power to enrol new members of the Co-operative Society. No order as to costs was made.

Judgment :-

1. These appeals by special leave are against a common order made in O.P. Nos. 12184,14840,14686, 15700,17258,18398 and 20913/97. S.32 of the Kerala Co-operative Societies Act, 1969 (hereinafter referred to as 'the Act') enables the Registrar of Co-operative Societies to supersede the Committee of Management under the circumstances set forth in sub-s. (1) thereto. After supersession of the Committee of Management, the Registrar can appoint an administrator or administrators or a committee as provided in S.32(1)(a) and (b) of the Act. Such Committee or administrator or administrators so appointed shall, subject to the control of the Registrar and to such instructions as he may form time to time give, have power to exercise all or any of the functions of the Committee or of any officer of the society and take all such action as may be required in the interests of the society. When the administrator appointed on supersession of the committee of management of certain Co-operative Societies wanted to enrol new members to the society the same was objected to and the Original Petitions under Art.226 of the Constitution were filed before the High Court on the ground that the Registrar is only expected to carry on day to day functions of the society and see that election is conducted and a new committee in accordance with the Act, Rules and bye-laws of the society is constituted. It was contended before the Court that the earlier decision in George v. Joint Registrar, 1985 KLT 836, is no longer good law in the light of the decision of this Court in K. Shantharaj & Ann v. M.L. Nagaraj & Ors., 1997 (6) SCC 37. The Full Bench of the High Court, after referring to the earlier decision of the High Court and the decision of this Court in K. Shantharaj's (supra) held that the admission of a member is not mere 'function' of the Committee, but is a 'power' of the Committee to admit members or not as provided in Bye-laws of the society. The Committee can exercise only certain functions and not any powers and, therefore, the administrator or a Committee appointed as aforesaid has no power to enrol new members. This order is in challenge in these appeals.

2. It is now brought to our notice that subsequent to the decision of the High Court, the provisions of S.32 have been amended so that the administrator or the Committee will have power to exercise all or any of the powers and functions of the Committee. It is further brought to our notice that in Cherthala Agricultural Rural Development Bank & Ors. v. Joint Registrar & Ors., 2000 (1) KLJ 291 (FB) it has been held that the decision in the case before us holding that the administrator has no power to enrol new members would have prospective and not retrospective effect. The scope of neither amended S.32 of the Act nor the decision in Cherthala Agricultural Rural Development Bank & Ors. (supra) is required to be considered by us in these proceedings.

3. The question whether an administrator appointed during supersession of a Committee of Management of a Co-operative Society can enrol new members is no longer res integra. When an identical question came up before this court for consideration in K. Shantharaj's case (supra), this Court held that from the language of S.30 (which is similar to S.32(4) of the Act) and 30A of the Karnataka Co-operative Societies Act, 1959, it would be clear that the administrator, subject to control of Registrar exercise all or any of the functions of the society, and the Special Officer subject to control of the State Government and the Registrar exercise and perform all the powers and functions of the committee of the society and in the interest of the society can take such action as is necessary for proper functioning of the society as per law. He should conduct elections as is enjoined thereunder, that is, he is to conduct election with the members as on the rolls and by necessary implication, he is not vested with power to enrol new members of the society.






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