Judges : THOMAS
Subair Kunju - Appellant
Versus
Trivandrum Taluk M & P.Co-op.Society - Respondent
Case No : O.P. No. 7097 of 1960
Decided On : 09/10/1990
Advocates Appeared :
Cyriac Joseph For Petitioner Government Pleader (KJanardhanan) For Respondents
Quorum Interpretation - Cooperative Society - Kerala Co-operative Societies Act, 1969, Section 28(5), Section 33(1)
Fact of the Case:
Petitioner, a member and former director of a cooperative society, challenges the removal of the Board of Directors and appointment of an Administrator due to alleged loss of quorum. The dispute revolves around the interpretation of the strength of the Board and the quorum requirement.
Finding of the Court:
The court finds that the interpretation of the quorum requirement by the second respondent (Joint Registrar of Cooperative Societies) was erroneous, as the strength of the Board had not reached the upper limit prescribed in the Byelaws. The court quashes the removal of the Board and directs the third respondent to hand over the management to the previous committee.
Issues: Interpretation of quorum requirement, validity of the removal of the Board of Directors, appointment of an Administrator
Ratio Decidendi: The court interprets the relevant provisions of the Kerala Co-operative Societies Act, 1969, particularly Section 28(5) and Section 33(1), to determine the quorum requirement and the circumstances for the appointment of an Administrator. The court emphasizes that the upper limit of the Board's strength does not dictate the actual number of members required for quorum.
Final Decision: The court quashes the removal of the Board of Directors and directs the third respondent to hand over the management to the previous committee.
Petitioner is a member of Trivandrum Taluk Marketing and Processing Cooperative Society Ltd., (for short'the society'). He was also a member of the Board of Directors of the Society. On 12-7-90, the second respondent (a Joint Registrar of Cooperative Societies) as per Fjct.P1 proceedings removed the Board of Directors on the ground that the said Board lost its quorum. The third respondent was appointed as an Administrator of the Society in the place of the Board of Directors for a period of four months. Ext. P1 is challenged in this Original Petition.
2. Ext.P1 proceeds on the assumption that the strength of the Board is eleven. As a ma tier of fact, there were only 7 members on the Board. Out of them, two persons later resigned and the authority of another person was withdrawn by the member society, which nominated him. Consequently, the Board of Directors consisted of four persons with three vacancies. The 2nd respondent contended that the Board lost the quorum since its strength was reduced below fifty per cent.
3. Learned counsel for the petitioner contended that the strength of the Committee was only 7 and hence the resignation of two members and withdrawal of another's authority by his sender would not have reduced the quorum below the level prescribed. On the other hand, learned counsel for the 3rd respondent (Administrator) contended that as per Clause 5.1 of the Byelaws of the Society, the strength of the Board is 9, though elections have not been held for 2 seats.
4. The sole question to be decided in this Original Petition is whether the 2nd respondent's interpretation regarding the strength of the Board is correct or not.
5. S.28 of the Kerala Co-operative Societies Act, 1969 (for short 'the Act') is the relevant provision for the appointment and other functions of the Committee. (Board of Directors is the same as the committee.
The act uses the expression "committee" and not Board of Directors). S.28(5) of the Act reads thus:
"The quorum for a meeting of a committee shall be such number of members justs above fifty per cent of the total number of members of that committee".
An administrator can be appointed in the place of a committee due to emergence of any one of the exigencies enumerated in S.33 of the Act. S.33(1), which is relevant, says:
"Where the term of office of a committee has expired and a new committee has not been constituted, or where a no confidence motion is passed by the general body against the existing committee or where the existing committee resigns enbloc or where vacancies occur in the committee either by resignation or otherwise and the number of remaining members cannot constitute the quorum for the meeting of the committee, or where the committee fails to hold its regular meeting consecutively for six months or the Registrar is satisfied registrar, may either suomotu or on the application of any member of the society, after intimating the Circle Co-operative Union, appoint a new committee or one or more administrator or administrators".
6. Here it is admitted that two members of the committee had resigned and the authority of another was withdrawn by a member society, which sent him. Clause 5.1 of the Byelaws of the Society reads thus:
"Subject to such resolution as the General body may from time to time pass, the executive management of the affairs of the society shall vest in a Board of Directors. The Board of Directors shall consist of not more than 11 members of whom two shall be representatives of individual 'A' Class members duly elected by the General Body by ballot as per Rules, seven shall be representatives of Co-operative Societies 'B' Class members elected from among their delegates by themselves by ballot as per Rules and two representatives of the Government of Kerala nominated by the Joint Registrar of Co-operative Societies. The Managing Director of the Society will have a seat in the Board but shall not have a right to vote. A representative each of the Kerala Co-opera
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