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2014 Supreme(Ker) 514

High Court of Kerala
P.D. RAJAN, J.
N. Divakaran & Another
Versus
The Joint Registrar of Co-Op. Societies & Others
WP (C).No. 16734 of 2009 (J)
Decided on: 01-09-2014

Advocate Appeared
For the Petitioners:K. Ramakumar, Sr. Advocate, S.M. Prasanth, M. Manojkumar (Chelakkadan), Advocates.
For the Respondents:R2 & R3, V.M. Kurian, R4 to R6, S. Sreekumar (Adukkath), Advocates, R1, Government Pleader.

Headnote:Kerala Co-operative Societies Act, 1969, Explanation to Section 33(1) - Kerala Co-operative Societies Rules, 1969, Rule 38(4) - Rule 38(4) inconsistent with section 33(1)was held as void and ultra virus and this act gives the immediate effect to the resignation and thus the subordinate legislation cannot contradict the parent act.

Judgment

1. The writ petition is filed under Article 226 of the Constitution of India to quash the order issued by the Joint Registrar (General) Palakkad on the ground that there is procedural irregularities in the order and seeking a direction to the 1st respondent to convene a meeting of the Managing committee to decide the question whether the resignation of the members from the Managing committee could be accepted or not. The petitioners are the Director Board members of the Karakurissi Service Co-operative Bank Ltd in Palakkad District. On 4.5.2009, respondents 4 to 6, who were members of the 2nd respondent, submitted their resignation, which was accepted by the President. Later, on 9.5.2009 at 10 a.m. the President convened the Managing committee meeting and referred the resignation letter to the Joint Registrar of Co-operative Societies, Palakkad for obtaining legal opinion. After getting opinion, petitioners and other members of the managing committee requested the Secretary to convene a meeting to decide on the question of acceptance of resignation, which is not possible according to the provisions of the Act. Hence the writ petition.

2. In the counter affidavit of the 1st and 3rd respondents, it is stated that the resignation will come into effect from the tender of resignation itself. The 1st respondent contended that the Joint Registrar had simply explained the rule and it is not a mandatory direction. The 3rd respondent submitted that explanation to the Section 33(1) says that a tender of resignation by a member of the committee shall have effect of terminating his membership from the committee. Thus it can be seen that an elected member of a committee on tendering resignation loses his membership in the committee forthwith. There is no requirement that the committee has to accept the resignation and the Rule does not empower the committee to reject the resignation.

3. The Managing Committee of the Society consists of 9 members selected in the year 2007 of which three of them resigned. The quorum of the Managing Committee will be five and therefore, there is no reduction in the quorum since six members are there in the Managing Committee. Respondents 4 to 6 submitted resignation on the ground that they have no confidence in the existing President. Since there was no reduction in the quorum of the Managing Committee required for the transaction of the business, President can act on the basis of existing strength.

4. Section 33 of the Co-operative Societies Act 1969, reads as follows:

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 other wise 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; or (aa) there is stalemate in the constitution or functions of the Committee.

(b) that a new committee is prevented from entering upon officer or a new committee fails to enter upon office, on 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 one administrator or an administrative committee consisting of not more than three individuals, who need not be members of the society, one amount them as convener to manage the affairs of the society, for a period not exceeding six months as may be specified in the order, which period may, at the discretion





























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