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1973 Supreme(Ker) 234

Judges : V.P.GOPALAN NAMBIYAR,GEORGE VADAKKEL
DEPUTY REGISTRAR OF CO-OPERATIVE SOCIETY AND ANOTHER - Appellant
Versus
P.K.GEORGE - Respondent
Case No : W. A. No. 400 of 1973
Decided On : 11/21/1973
Advocates Appeared :
Government Pleader; For Appellant Thampan Thomas; For Respondent

Non-compliance with procedural provisions does not invalidate resignation, and the liberal view on the petitioner's locus standi in maintaining a writ petition.

Headnote:

Administrator - Co-operative Societies - S.33 of the Co-operative Societies Act - 33(1), 33(2), 33(3), R.38 - The court discussed the appointment of an Administrator under S.33 of the Co-operative Societies Act and the validity of resignation of committee members under R.38. The court interpreted the provisions of S.33 and R.38, emphasizing that non-compliance with procedural provisions does not invalidate resignation. The court also clarified the requirements for publication of notice and dismissed the allegations of mala fides.

Fact of the Case:

The appeal was against the judgment holding the appointment of an Administrator for a Co-operative Bank as illegal. The Managing Committee faced resignations and disqualifications, leading to the appointment of an Administrator under S.33 of the Co-operative Societies Act.

Finding of the Court:

The court found that the appointment of the Administrator was valid, the resignation process was in compliance with the law, and the allegations of mala fides were inadequate. The court also overruled the preliminary objection regarding the petitioner's locus standi.

Issues: Validity of Administrator's appointment, compliance with resignation process, allegations of mala fides, and petitioner's locus standi.

Ratio Decidendi: The court emphasized that non-compliance with procedural provisions does not invalidate resignation and clarified the requirements for publication of notice. The court also considered the liberal view on the petitioner's locus standi.

Final Decision: The appeal was allowed, the order of the learned judge was set aside, and the original petition was dismissed.

Judgment :-

1. This appeal is against the judgment of a learned judge of this Court holding that Ext. P11 order of the Deputy Registrar of Co-operative Societies, appointing an Administrator to manage the affairs of the Koodaranhi Service Co-operative Bank Ltd., was illegal. The learned judge was also inclined to think that the petitioner's allegations that the order was passed without proper care and caution and was vitiated by mala fides, was correct.

2. The Society (Bank) involved in this appeal had a Managing Committee of nine members, of which seven were elected, and two nominated. In or about July 1973, complaints appear to have been received against the conduct of three of the Directors in figuring as sureties in a number of chitties, and becoming "defaulters", under R.44 of the Co-operative Societies Rules. Notices were issued by the Deputy Registrar against these three Directors and they were removed from membership. Two of the nominated members one of them a Government Official followed with their resignations. The result was, that the strength of the Managing Committee was reduced from nine to four. This was less than the quorum required for the transaction of business, fixed by the byelaws at not less than fifty percent of the total strength of the Committee. It was in these circumstances that the Deputy Registrar took action under S.33 of the Co-operative Societies Act and appointed a Unit Inspector as Administrator by Ext. P11 order dated 20 9 1973.

3. The learned judge held in Para.4 of the judgment under appeal, that the question as to whether the three elected members had been validly disqualified or not, cannot be canvassed in these proceedings as it was for the disqualified persons to attack the order, if so advised. But he was of the view that there had not been a valid and proper acceptance of the resignation of the two nominated members, tendered by the one, by his letter dated 10 81973 to the Block Development Officer, which was forwarded to the Respondent; and by the other, by his letter direct to the Respondent on 20 91973. The learned judge held that the provisions of the first proviso to S.33(1) of the Act, requiring publication of notice of the action had not been complied with and that the Respondent had omitted to exercise his power to dispense with the requirement of notice enjoined by the second proviso to the Section. From the sequence and the dates of the events the learned judge was prepared to bold that the respondent had made up his mind to take over the Management of the Society from the Committee even prior to Ex. P11 order, and that the order was only an expression of his already made up mind. It was on these grounds that the learned judge allowed the writ petition.

4. S.33 of the Co-operative Societies Act as amended, reads as follows;

"33. Appointment of new committee or administrator on failure to constitute committee, etc. (1) 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 where the Registrar is satisfied,

(a) that a new committee cannot be constituted before the expiry of the term of office of the existing committee,

(b) that a new committee is prevented from entering upon office, or a new committee fails to enter upon office, an the date on which the term of office of the existing committee expires, the Registrar may, either suo motu or on the application of any member of the society after intimating the Circle Co operative

Union, appoint

(i) a new committee consisting of not more than three members of the society; or

(ii) one or more administ
















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