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2000 Supreme(Ker) 132

Judges : S.SANKARASUBBAN
Narayanan - Appellant
Versus
Trichur Dt.M.I.E.Co-op.Society - Respondent
Case No : O.P. No. 2545 8 of 1999
Decided On : 03/07/2000
Advocates Appeared :
N.P. Samuel & B.K. Purushothaman For Petitioners Kurian Joseph (Sr. advocate), Firos K. Robin & Government Pleader (N. Santha) For Respondents

Headnote:

Kerala Co operative Societies Rules 1969 Rule43(1) & 5 - Chairman - Respondent Society- Industries Centre- General Manager - Chairman of the Mini Estate Society shall always be General Manager District Industries Centre members have to be elected to the Board of Directors of which members should be from Mini Industrial Estates of Thrissur District and one cannot be in force after amendment Kerala Co-operative Societies Act - After amendment of the Kerala Co-operative Societies Act no member can be nominated to the Managing Committee by Government or Registrar -Held, Right above facts clause of bye-law is illegal - If that be so petitioners are legally correct in electing one among President - supersession of order is merely on basis of that petitioners are acting against the bye-laws is not correct - Hence Court quash order and declare that Managing Committee elected in elections of first respondent society held in shall continue - Administrative Committee will handover charge to elected committee within one week from date of receipt of copy of judgment - Petition allowed.

Judgment :-

S. Sankarasubban, J.

The first respondent in the O.P. is the Thrissur District Mini Industrial Estate Cooperative Society Ltd., which is a society registered under the Kerala Co-operative Societies Act. It was registered on 3.5.1976 with the object of establishing and running of Industrial Estates for Small Scale Industries. According to petitioners. Clause 19 of the bye-law deals with the management of the Society. Clause 19 of the bye-law is as follows:

"19. The Management of the Mini Estate Society shall vest in a Board of Directors consisting of 9 members to be elected as follows: -

2.9 Directors to be elected as per Rules now in force, by the member Unit holders, whose membership on the Board shall not exceed 7, one each from 7 Mini Industrial Estates in the District and one each from among women unit holders and SC unit holders including SC Shopping Complex Cum-Service Centre at Nadavaramba.

3. The Deputy Registrar of District Industries Centre shall be the representative of the Registrar of Industrial Co-operative Society to safe-guard the interest of the Government.

4. Managing Director (Ex. Officio)

5 The Chairman of the Mini Estate Society Shall always be the General Manager, District Industries Centre."

Clause (5) of Clause 19 of the Bye-law states that the Chairman of the Mini Estate Society shall always be the General Manager, District Industries-Centre. As per the bye-law 9, members have to be elected to the Board of Directors of which 7 members should be from 7 Mini Industrial Estates of Thrissur District and one each from among women unit holders and Scheduled Caste Unit holders/The petitioners contend

.that bye-law 19(5) cannot be in force after the amendment of S.28 of the Kerala Cooperative Societies Act. After the amendment of S.28 of the Kerala Co-operative Societies Act, no member can be nominated to the Managing Committee by the Government or Registrar. Further as per R.43 of the Kerala Co-operative Societies Rules, the President has to be elected by the elected committee members and hence Clause 19(5) is repugnant to the Rules. R.5 of the Kerala Co-operative Societies Rules makes it clear that the bye-laws of the society shall not be contrary to the provisions of the Act and the rules. The last election to the Managing Committee of the Society was held in the year 1998 and the petitioners were elected to the Board of Directors. There were only 8 members now. The second respondent is the General Manager of the District Industries Centre. He wanted to continue as the President of the elected Board of Directors. Then the members brought to the notice of the second respondent that a Chairman has to be elected. Since the second respondent refused to acceed to the demands of the petitioners, they had elected the first petitioner as the President and second petitioner as the Vice President and gave information to the financing institutions and recorded the minutes of the meeting in the minutes book. The second respondent has issued a show cause notice to the first petitioner on 15.3.99. Similar show cause notices were issued to other members also. The petitioners submitted reply to Ext. P2 by filing Ext. P3. Similar explanations were given by other members. Now second respondent has passed Ext. P4 order superseding the Managing Committee and appointing an Administrative Committee. It is challenging Ext. P4 order that the O.P. is filed.

4. Counter affidavits have been filed on behalf of the second respondent. The main contention taken in the counter affidavit is that as per clause 19(5) of the bye-law, the Managing Director has to be the Chairman and so long as that bye-law is not amended, the petitioners cannot elect the new Chairman.

5. I heard the counsel for the petitioners and counsel for the respondents. Under R.5 of the Kerala Co-operative Societies Rules, the bye-laws of a society shall not be contrary to the provisions of the Act and the Rules. R.43 deals with the election of President, Vice Preside


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