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1987 Supreme(Raj) 236

High Court Of Rajasthan
Judgename : M.B. Sharma, I.S. Israni
Sunari Grain Sewa Sahkari Samiti Ltd. - Appellant
Versus
State of Rajasthan - Respondent
Civil Writ Petition No. 1129 of 1987
Decided On : 08/04/1987

Advocates:
Appearance :
D.L. Sharma, for the Appellant
N.L. Jain, Advocate General, M.I. Khan, Addl. Advocate General, G.C. Mathur, P.P. Tiwari and R.K. Kala, for the Respondents

The Registrar, Co-operative Societies Rajasthan, Jaipur, does not have the authority to postpone the elections of a co-operative society.

Headnote:

CO-OPERATIVE SOCIETIES - ELECTION - POSTPONEMENT - POWERS OF REGISTRAR - RAJASTHAN CO-OPERATIVE SOCIETIES ACT, 1965 (RAJASTHAN ACT NO. 14 OF 1966) - RAJASTHAN CO-OPERATIVE SOCIETIES RULES, 1966 - BYE-LAWS OF BHARATPUR CENTRAL CO-OPERATIVE BANK LTD. - INTERPRETATION.

Fact of the Case:

The Registrar, Co-operative Societies Rajasthan, Jaipur, postponed the elections of the Bharatpur Central Co-operative Bank Ltd. Bharatpur, citing public interest. The petitioners, a co-operative society and its delegate, challenged the order, arguing that the Registrar lacked the authority to do so and that the postponement was politically motivated.

Finding of the Court:

The court found that the Registrar had no jurisdiction under the Rajasthan Co-operative Societies Act, 1965, or the Rajasthan Co-operative Societies Rules, 1966, to postpone the elections. The court also found that the Registrar's decision was not taken independently but was influenced by political pressure.

Issues: 1. Whether the Registrar, Co-operative Societies Rajasthan, Jaipur, had the authority to postpone the elections of the Bharatpur Central Co-operative Bank Ltd. Bharatpur? 2. Whether the Registrar's decision to postpone the elections was influenced by political pressure?

Ratio Decidendi: 1. The court held that the Registrar did not have the authority to postpone the elections. The court interpreted the relevant provisions of the Rajasthan Co-operative Societies Act, 1965, and the Rajasthan Co-operative Societies Rules, 1966, and found that they did not grant the Registrar such power. 2. The court found that the Registrar's decision was influenced by political pressure. The court considered the evidence presented by the petitioners, including the fact that the Registrar's decision came shortly after a meeting with a local politician who had expressed concerns about the outcome of the elections.

Final Decision: The court quashed the Registrar's order postponing the elections and directed that the elections be held as per the original schedule.

Judgment

M.B. Sharma, J.-An important question is involved about the powers of the Registrar, Co-operative Societies Rajasthan, Jaipur to order postponement of the elections of Bharatpur Central Co-operative Bank Ltd. The Registrar, Co-operative Societies Rajasthan Jaipur under his order dt. April 18, 1987 (Annexure 5) has stayed the programme of elections of the Bharatpur Central Cooperative Bank Ltd. Bharatpur. It is the aforesaid order of the Registrar, Co-operative Societies, Rajasthan Jaipur which is under challenge in this writ petition.

2. Thechallenge to the aforesaid order is on two grounds, (i) that under the Rajasthan Co-operative Societies Act, 1965 (for short, the Act) and the Rajasthan Co-operative Societies Rules, 1966 (for short, the Rules), the Registrar of the Co-operative Societies Rajasthan, Jaipur has no jurisdiction to issue the aforesaid order Annexure 5 and the same is without jurisdiction and (ii) it is not in public interest to postpone the elections and it has been so wrongly stated in the order that the election programme has been postponed in the public interest.

3. The Act deals with the Co-operative Societies in Rajasthan. Section 2(a) of the Act defines ‘bye-laws’ which means the bye-laws registered or deemed to be registered under the Act and for the time being in force and includes the registered amendments of such bye-laws. Section 2(g) defines ‘financing bank’ which means a co-operative society the main object of which is to lend money to other societies and includes a Land Development Bank. Vide notification No. F. (1)30 Co-op. 11/65 dt. 2-3-66 published in Rajasthan Gazette Extraordinary Part IV-C dated March 2, 1966 in exercise of the powers conferred by Clause 2(e) of the Reserv

Bank of India Act, (Central Act), the Central Government declared the Bharatpur Central Co-operative Bank Ltd. Bharatpur along with other 25 Central Co-operative Banks and the Rajasthan State Industrial Co-operative Bank, Jaipur to be a Central Co-operative Bank within the meaning of the said clause. Under Section 2(h) ‘Government’ means the Government of the State of Rajasthan. Under Section 2(k) ‘prescribed’ means prescribed by rules made under the Act and under Section 2(1) ‘Registrar’ means a person appointed to perform the functions of the Registrar of Co-operative Societies under the Act and includes any person appointed to assist the Registrar when exercising all or any of the powers of the Registrar. Section 7 deals with the powers of the Registrar to decide certain questions. Under Section 17, the Registrar has powers to direct amalgamation, division and re-organisation in public interest etc. of a co-operative society. Chap. III deals with the Members of Co-operative Societies and their rights and liabilities, and it consists of Sections 19 to 28. Under Section 19(l)(b) any other co-operative society can be admitted as a member of the society. The proviso to Sub-section (1) of Section 19 provides that an individual shall not be eligible to the membership of a financing bank other than a Land Development Bank or such class of co-operative society as may be prescribed in this behalf Under Section 22 every member of a co-operative society shall have one vote in the affairs of the society. Section 23 gives the manner of exercising votes and under its Sub-section 2(a) a co-operative society which is a member of another co-operative society may subject to any rules made under the Act appoint one of its members to vote on its behalf in the affairs of that other society. Under Section 29, the final authority in a cooperative society shall subject to the provisions of the Act and the Rules vest in the general body of the members. Under its proviso where the bye-laws of a co-operative society provide for the constitution of a smaller body consisting of delegates of members of the society elected in accordance with such bye-laws, the smaller body shall exercise such powers of the general body as may be prescribed o





















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