1996 Supreme(Ker) 114
Judges : K.SREEDHARAN,J.B.KOSHY
Kurien - Appellant
Versus
Registrar of Co-operative Societies - Respondent
Case No : OP. No. 429/92 & 7127/93
Decided On : 03/07/1996
Advocates Appeared :
M.K. Damodaran For Petitioner T.P.K. Nambiar (Sr. Advocate) & M. Ramesh Chander For Respondents Addl. Advocate General (Kurian Joseph) For State
The main legal point established in the judgment is that for an amendment to the bye-laws of a Co-operative Society to be valid, it must be carried by a 2/3rd majority of members present and voting, as per the provisions of the Co-operative Societies Act.
Headnote:
Administrator - Bye-laws Amendment - Co-operative Societies Act - [S.33(1)(b)(ii), R.44A, S.20] - The court considered the validity of the amendment to the bye-laws of the Apex Society under the Co-operative Societies Act. It was found that the amendment was not carried by a 2/3rd majority of members present and voting, rendering it invalid. The court also discussed the eligibility of delegates representing District Forums and the voting rights of the Administrator, ultimately striking down the amendment and directing a new election.
Fact of the Case:
The Administrator of the Apex Society amended its bye-laws, leading to a challenge by the petitioners. The court was tasked with determining the validity of the amendment and the election held under the amended bye-laws.
Finding of the Court:
The court found that the amendment to the bye-laws was not carried by a 2/3rd majority of members present and voting, rendering it invalid. The election held under the amended bye-laws was also set aside, and the respondents were directed to conduct a new election in accordance with the unamended bye-laws.
Issues: The key issues included the validity of the amendment to the bye-laws, the eligibility of delegates representing District Forums, and the voting rights of the Administrator.
Ratio Decidendi: The court held that for an amendment to the bye-laws to be valid, it must be carried by a 2/3rd majority of members present and voting. The court also clarified the eligibility criteria for delegates representing District Forums and the voting rights of the Administrator.
Final Decision: The court allowed the original petitions, struck down the amendment to the bye-laws, vacated the registration given to the amendment, set aside the elections held under the amended bye-laws, and directed the respondents to conduct a new election in accordance with the unamended bye-laws within three months.
Sreedharan, J.
Common issues arise in these Original Petitions. So, we consider it advantageous to dispose of them by a common judgment. Counsel appearing on either side also agreed to that course. Kerala State Co-operative Consumers' Federation Ltd. No. 4328, Ernakulam is an Apex Society. It was under the management of an elected body till 3.1.92. Administrator was appointed to the Apex Society and he took charge on 4.1.92. He passed a resolution to hold the election to the Managing Committee of the Apex Society on 18,3.92. While steps for the said purpose was in progress, Returning Officer postponed the election. While so, Administrator took steps to amend the bye-laws of the Apex Society. He convened the General Body of the Apex Society on 9.10.92. At that General Body, according to Administrator, 9 members were present representing the Apex Society and the District Societies. Two members representing the District Forums namely, Ernakulam and Trichur, voted against the proposed amendment. The others, it is averred, favoured the amendment. Thus the proposal for amendment moved by the Administrator of the Apex Society was carried by the General Body. It was forwarded to the Registrar and the Registrar registered the same in accordance with the provisions of the Co-operative Societies Act, hereinafter referred to as the Act, and the Rules framed thereunder. Petitioners in these original petitions challenge the amendment carried out to the bye laws of the Apex Society.
2. In O. P. 429/92 filed in January 1992, petitioners moved C. M. P. 23227/92 praying for restraining the Apex Society from convening the General Body meeting and discussing the amendment to the bye-laws. This court on 9.10.92 ordered mat any amendment made will be subject to the result of the O. P. Pursuant to the amended bye-laws, election to the Apex Society was sought to be held. To stop that election and for issuing a writ of mandamus directing the respondents to conduct the election with the voters' list as on 4.1.92, petitioners moved O. P. 7127/93. Along with that O. P. they moved C. M. P. 12379/93 praying for stay of operation of the amended bye-laws. This court did not stay the operation of the amendment. Thereafter election was held in terms of the amended bye-laws. Thereupon petitioners moved C. M. P. 5221/96 praying for staying the further steps for election to the Managing Committee of the Apex Society namely, Kerala State Co-operative Consumers' Federation. On 20.2.96, this Court ordered that the election to the Managing Committee shall be subject to the result of the O. P, and referred the O. P. to a Bench.
3. From the above, it is clear that the Administrator, who took charge of the Apex Society, took steps to amend its bye-laws. For the said purpose, General Body of the Apex Society namely, the Federation was convened on 9.10.92. According to respondents, 9 members of the General Body attended the meeting. Two among them voted against the amendment. Thereby it is contended that 7 members of the General Body voted in favour of the amendment. Itis the common case of parties that for carrying out the amendment to the byelaws, there must be 2/3rd majority of persons present and voting. According to respondents, since 7 out of 9 voted in favour of the amendment, that being more than 2/3rd present and voting, the amendment was properly carried. Consequently, it is argued that election to the General Body of the Apex Society held in conformity with, the amended bye-laws is proper and this court-is not to interfere with the election to the General Body. Therefore, it was argued mat the election to the Managing Committee of the Apex Society by the members so elected to the General Body of the Apex Society is also not open to challenge.
4. On the basis of these averments and contentions raised by the parties, the short question that arises for consideration is whether General Body of the Federation which met on 9.10.92 was proper or not. If the to