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2025 Supreme(Raj) 1936
HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
MUNNURI LAXMAN, J.
Ganpat Ram S/o Dula Ram - Appellant
Vs.
State Of Rajasthan - Respondent
S.B. Civil Writ Petition No. 2568 Of 2023
Decided On : 17-07-2025
Advocate Appeared:
For the Appellant : Mr. B.S. Sandhu Mr. S.K. Shreemali
For the Respondents: Mr. Hari Prasad Mr. Rajendra Singh Mr. Samir Shrimali, Govt. Counsel
Statutory remedies must be exhausted before approaching the High Court in cooperative disputes; relief lies with the Cooperative Tribunal.
Headnote:(A) Rajasthan Cooperative Societies Act, 2001 - Sections 58, 60, and 105 - Disqualification for election to Cooperative Society - Petitioner claimed to have repaid loan before filing, but deemed a defaulter - Court held that available statutory remedy before the Cooperative Tribunal not availed, hence writ petition is not maintainable. (Paras 7-10)
(B) Procedural Compliance - Registrar's decision in reference must follow clear statutory procedure - Lack of evidence and method under Rules 2003 questioned but left for resolution by tribunal. (Para 8)
Facts of the case:
Petitioner challenged Deputy Registrar's order declaring him ineligible due to loan default, claiming timely payment.
Findings of Court:
The High Court refused to entertain the writ due to the existence of an alternative statutory remedy.
Issues: Whether the petitioner incurred disqualification based on default and the propriety of Registrar's proceedings.
Ratio Decidendi: The presence of an alternative statutory remedy under the Cooperative Tribunal rendered the writ petition inadmissible, promoting adherence to cooperative statutory processes.
Result: Writ petition dismissed.
ORDER :
MUNNURI LAXMAN, J.
1. The present writ petition has been filed challenging the order dated 18.01.2023, whereby the Deputy Registrar has declared the petitioner ineligible on account of default in payment of dues to the society.
2. The case of the petitioner is that the petitioner obtained a loan from the society and he has paid the loan amount of Rs.28,593/- with interest on 08.09.2022. The society has not declared him as a defaulter and as soon as the dues list was prepared by the society, he paid the dues amount. The present impugned proceedings have been taken up on the basis of a complaint made by one of the contestants in the election. On the basis of such complaint, the Registrar decided the reference of dispute without any evidence and without following the procedure contained under the Rajasthan Cooperative Societies Act, 2001 (hereinafter referred to as ‘the Act of 2001’) and the Rajasthan Cooperative Society Rules, 2003 (hereinafter referred to as ‘the Rules of 2003’).
3. The case of the respondents, including the private respondents, is that the petitioner filed his nomination on 06.09.2022 to contest elections to the post of Member of the Executive Committee of the Society and as per the provision of the Act of 2001, whereunder if there is continuous default of three months, the member incurs consequences of default. The petitioner failed to make payment of the loan amount for more than three months as on the date of filing of the application for nomination, and all dues were paid two days subsequent to filing of nomination. As such, the acceptance of nomination by the election officer is incorrect, and he ought to have disqualified the petitioner, and such action of the election officer has been assailed before the Registrar by way of a reference under Section 58 of the Act of 2001 and the Registrar decided the reference by affirming that the petitioner incurred ineligibility.
4. Learned counsel for the respondents further submit that against an order passed under Section 30 of the Act of 2001, a remedy of appeal lies before the Cooperative Tribunal and the present writ petition is not maintainable. In this regard, it is relevant to refer to Section 58 , 60 and 105 of the Act of 2001, which read as follows:
“58. Disputes which may be referred to arbitration -
(1) Notwithstanding anything contained in any law for the time being in force, if any dispute touching the constitution, management or the business of a co-operative society arises -
(a) among members, past members and persons claiming through members, past members and deceased members, or
(b) between a member, past member or a person claiming through a member, past member or deceased member and the society, its committee or any officer, agent or employee of the society, or
(c) between the society or its committee and any past committee, any officer, agent or employee, or any past officer, past agent or past employee or the nominee, heirs or legal representatives of any deceased officer, deceased agent or deceased employee of the society, or
(d) between the society and any other co-operative society, or
(e) between the society and the surety of a member, past member or a deceased member, or a person other than a member who has been granted a loan by the society or with whom the society has or had transaction under section 52, whether such a surety is or is not a member of a society, such dispute shall be referred to the Registrar for decision and no court shall have jurisdiction to entertain any suit or other proceeding in respect of such dispute:
Provided that such disputes between the society and its employees, for which a remedy is available under the provisions of the service laws applicable on the employees, shall not be entertained under this section.
(2) For the purpose of sub-section (1), the following disputes shall also be deemed to be the disputes touching the constitution, management or the business of a co-operative society, namely:-
(a) a claim by the
