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2022 Supreme(Raj) 2371

HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
Vijay Bishnoi, J.
Naresh Dhakad & Ors. – Appellants
Versus
State Of Rajasthan & Ors. – Respondents
S.B. Civil Writ Petition No. 8566/2022 Connected with S.B. Civil Writ Petition No. 8577/2022, S.B. Civil Writ Petition No. 8578/2022, S.B. Civil Writ Petition No. 8580/2022, S.B. Civil Writ Petition No. 8586/2022, S.B. Civil Writ Petition No. 8592/2022, S.B. Civil Writ Petition No. 8779/2022, S.B. Civil Writ Petition No. 8780/2022 & S.B. Civil Writ Petition No. 8870/2022
Decided On : 03-08-2022

Advocates appeared:
Mr. Paramveer Singh Mr. Mahaveer Singh, Advocate, for the Petitioner
Mr. Mrigraj Singh, Dy.GC, for the Respondent

The main legal point established in the judgment is the interpretation and application of the provisions of the Rajasthan Co-operative Societies Act, 2001, in relation to the amendment of Bye-laws and its impact on the election process and the rights of the members.

Headnote:

Amendment of Bye-laws - Cooperative Societies - The court considered the amendment of the Bye-laws of the Cooperative Societies and its compliance with the Rajasthan Co-operative Societies Act, 2001. The petitioners argued that the amendment was contrary to the provisions of the Act and curtailed the rights of the members. The respondents contended that the amendment was within the legal framework and aimed to provide proportional representation.

Fact of the Case:

The petitioners, chairmen of respective Cooperative Societies, challenged the amendment of the Bye-laws by the Registrar, Cooperative Societies, alleging that it was done without following the procedure laid down under Section 11 of the Rajasthan Co-operative Societies Act, 2001. The amendment changed the manner of election of the managing committee members, leading to a reduction in the rights of the members.

Finding of the Court:

The court admitted the petition for consideration and decided not to stay the already notified elections. However, it ruled that the result of the election shall remain subject to the final decision of the writ petition.

Issues: The issues revolved around the legality of the amendment of the Bye-laws, compliance with the provisions of the Act, and the impact of the amendment on the rights of the members.

Ratio Decidendi: The court considered the provisions of the Rajasthan Co-operative Societies Act, 2001, particularly Sections 8, 11, 123, and Schedule B, to determine the legality of the amendment and its impact on the election process and the rights of the members.

Final Decision: The court admitted the petition for consideration and decided not to stay the already notified elections. However, it ruled that the result of the election shall remain subject to the final decision of the writ petition.

JUDGMENT

1. These writ petitions have been filed by the petitioners, who are the chairman of the respective Cooperative Societies, being aggrieved with the action of the respondents of amending the Bye-laws of the Gram Seva Sahakari Samiti. The Registrar, Cooperative Societies has proposed the amendment in the Bye- laws Nos.11 (2)(a) and 11(2)(b) of theGram Seva Sahakari Samiti and in the Bye-laws No.34 (2)(a) and 34 (2)(b) of the o'gn d'f'k cgqn~ns"kh; lgdkjh lfefr.

2. Learned counsel for the petitioners have submitted that amendment in the Bye-laws is done by the Registrar concerned without following the procedure laid down under Section 11 of the Rajasthan Co-operative Societies Act, 2001 (hereinafter to be referred as 'the Act of 2001').

3. Learned counsel for the petitioners while referring to the provisions of Section 8 and 123 as well as Scheduled B of the Act of 2001 has argued that amendment in the Bye-laws is contrary to the above referred provisions of the Act of 2001. It is submitted that before amendment in the aforesaid Bye-laws, all members of the Cooperative Societies, loanee and non-loanee, were entitled to elect 11 members from the loanee category and one member from the non-loanee category, however, now as per the amendment in the Bye-laws, elections of the members of the managing committee are to be conducted ward-wise and for that purpose, 12 wards are to be constituted in each Co-operative Societies.

4. The grievance of the petitioners is to the effect that earlier, the members of the Co-operative Societies were having right to elect 11 members of the managing committee of the co-operative societies under loanee category and one member under non-

5. loanee category, but after formation of the wards, right to elect 11 members of the managing committee curtail to elect only one member of the managing committee in the category of loanee and non-loanee.

6. Learned counsel for the petitioner has argued that when the State Government has no power under the provisions of Act of 2001 to change the manner of election of the members of the managing committee, the action of the respondent of amending the provisions of bye-laws is absolutely without jurisdiction.

7. In support of his contention, learned counsel for the petitioners have placed reliance on the decision of this Court rendered in SB Civil Writ Petition No.7465/2010 (Hari Ram Bishnoi v. State of Rajasthan & Ors.) and other connected writ petitions.

8. It is also submitted that above referred decision has already been affirmed by the Division Bench of this Court vide judgment dated 18.05.2022. Learned counsel for the petitioners has, therefore, argued that the respondents may be directed to conduct the election of the managing committee of the co-operative societies as per the un-amended Bye-laws.

9. While opposing the writ petition, learned counsel for the Cooperative-societies has argued that the State Government has not committed any illegality in amending the Bye-laws of the Co- operative societies. It is argued that as per Section 8, 123 and Schedule B of the Act of 2001, the respondents are fully competent to hold elections of the managing committee of the Co- operative societies while formation of wards. It is also submitted that by amending the Bye-laws, right to elect the members of Co-operative societies has not been curtailed.

10. Learned counsel for the respondents has further submitted that amendment in the Bye-laws is introduced with the intention to give proportional representation and, in such circumstances, it cannot be said that it is detriment to the interest of the society.

11. It is also submitted that the procedure laid down under Section 11 of the Act of 2001 has religiously been followed while amending the Bye-laws.

12. Learned counsel for the respondents has also invited my attention towards the notification issued by the Rajasthan State Co-operative Election Authority dated 31.07.2022, whereby, the election programme for elections of all the

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