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1982 Supreme(Ori) 145

High Court Of Orissa
RANGANATH MISRA, R. C. PATNAIK
BOARD OF MANAGEMENT, NAYAGARH CO-OPERATIVE LAND DEVELOPMENT Bank LTD - Appellant
Versus
DEPUTY REGISTRAR, CO-OPERATIVE SOCIETIES BHUBANESWAR - Respondent
O. J. C.  125  Of  1982
Decided On : 11/10/1982

Advocates Appeared:
B.D.BAUG, L.R.RATH, M.K.MALIK, R.BEHERA

The period of stay of operation of an election, during which the elected board is kept out of office, cannot be included in the computation of the term of office of the board.

Headnote:

CO-OPERATIVE SOCIETIES - TERM OF OFFICE OF BOARD OF DIRECTORS - STAY OF OPERATION OF ELECTION - PERIOD OF STAY - WHETHER TO BE INCLUDED IN COMPUTATION OF TERM OF OFFICE - EXPLANATION TO SECTION 28 (1-A) OF ORISSA CO-OPERATIVE SOCIETIES ACT, 1962 AS AMENDED BY SECTION 2 OF ORISSA CO-OPERATIVE SOCIETIES (AMENDMENT) ORDINANCE, 1981.

Fact of the Case:

Petitioners, the Board of Management of Nayagarh Co-operative Land Development Bank and its President, challenged an order of the Deputy Registrar of Cooperative Societies, which declared the term of their office to have expired and authorized another person to manage the bank's affairs. The dispute arose due to a stay order obtained by a defeated candidate in an election dispute, which prevented the petitioners from assuming office for a period of time.

Finding of the Court:

The court held that the period during which the petitioners were kept out of office due to the stay order could not be included in the computation of their term of office. The court interpreted the explanation to Section 28 (1-A) of the Orissa Cooperative Societies Act, 1962, as amended by the Orissa Cooperative Societies (Amendment) Ordinance, 1981, to apply only to cases where the elected body is put into office and the period is to run from the date indicated in the explanation. The court reasoned that the explanation was intended to legislatively indicate the time for computation of the period of 4 years, which is the statutory term fixed by the amendment, and not to cover cases where the elected body would be kept out of office under orders of the court.

Issues: Whether the period of stay of operation of an election, during which the elected board is kept out of office, can be included in the computation of the term of office of the board.

Ratio Decidendi: The court held that the period of stay of operation of an election, during which the elected board is kept out of office, cannot be included in the computation of the term of office of the board. The court reasoned that the explanation to Section 28 (1-A) of the Orissa Cooperative Societies Act, 1962, as amended by the Orissa Cooperative Societies (Amendment) Ordinance, 1981, applies only to cases where the elected body is put into office and the period is to run from the date indicated in the explanation. The court further reasoned that the purpose of the explanation is to legislatively indicate the time for computation of the period of 4 years, which is the statutory term fixed by the amendment, and not to cover cases where the elected body would be kept out of office under orders of the court.

Final Decision: The court allowed the application, set aside the order of the Deputy Registrar of Cooperative Societies, and directed that the petitioner-board with petitioner no. 2 as its president shall remain in office until a term of 4 years expires with effect from 27-9-79, subject to other provisions of the Act.

R. N. MISRA, J.

( 1 ) PETITIONER NO. 1 IS THE BOARD OF MANAGEMENT OF the NAYAGARH CO-OPERATIVE LAND DEVELOPMENT BANK LIMITED WHILE PETITIONER no. 2 IS ITS ERSTWHILE PRESIDENT. THE BOARD WAS ELECTED ON 25-11-76 AND petitioner NO. 2 WAS ELECTED AS ITS PRESIDENT ON 31-8-76. UNDER THE BYE-LAWS of THE BANK, THE TERM OF OFFICE OF A COMMITTEE WAS 3 YEARS OR UNTIL A NEW committee WAS FORMED. THE NEW COMMITTEE WAS TO BE TAKEN AS CONSTITUTED when AFTER FRESH ELECTION, NOMINATIONS WERE RECEIVED FROM GOVERNMENT FOR formation OF THE COMMITTEE, SOON AFER THE ELECTION WAS OVER, A DEFEATED candidate FILED DISPUTE CASE NO. 33 /76-77 BEFORE THE ASSTT. REGISTRAR CHALLENGING THE election OF THE COMMITTEE. IN A REVISI ON FILED AGAINST THE ORIGINAL ORDER relating TO STAY OF OPERATION OF THE ELECTION, BEING REVISION CASE NO. 33/76, the REGISTRAR OF CO-OPERATIVE SOCIETIES PASSED AN ORDER ON 1 -9-76 STAYING THE taking OVER OF THE MANAGEMENT OF THE BANK BY THE PETITIONER-BOARD. THE direction DATED 2-9-76 RAN THUS :"in THE CIRCUMSTANCES, WITH A VIEW TO PREVENTING THE MISCARRIAGE OF justice, I HEREBY PASS AN INTERLOCUTORY ORDER UNDER SECTION 114 OF the ORISSA CO-OPERATIVE SOCIETIES ACT, 1962 STAYING THE TAKING over OF THE MANAGEMENT OF THE NAYAGARH LAND DEVELOPMENT bank BY THE NEWLY CONSTITUTED BOARD OF DIRECTORS WHICH WAS alleged TO HAVE BEEN IMPROPERLY CONSTITUTED, TILL A FINAL DECISION in THE MATTER OF HIS PETITION IS FINALLY PRONOUNCED". THE ORDER OF STAY REMAINED EFFECTIVE TILL 15-9-79. THE NEW BOARD ASSUMED office WITH EFFECT FROM 27-9-79. THE ORISSA CO-OPERATIVE SOCIETIES. AMENDMENT) ordinance, 1980 CAME INTO FORCE WITH EFFECT FROM 7-2-1980 AND IN DUE COURSE, the PROVISIONS IN THE ORDINANCE BECAME AN ACT. UNDER THE ORDINANCE, A TERM of 4 YEARS WAS FIXED FOR THE BOARD OF EVERY CO-OPERATIVE SOCIETY AND THE 4 YEARS TERM WAS TO BE COMPUTED WITH REFERENCE TO THE DATE OF ASSUMPTION of OFFICE. THE DATE WHEN THE PRESIDENT WAS ELECTED WAS DEEMED TO BE the DATE OF ASSUMPTION OF OFFICE AS PER PROVISIONS IN THE AMENDING ORDINANCE of 1981 WHICH CAME INTO FORCE WITH EFFECT FROM 10-7-81. THE DEPUTY registrar OF COMPARATIVE

SOCIETIES MADE AN ORDER ON 30th DECEMBER 1981 (ANNEXURE-5) TO THE FOLLOWING EFFECT:"the TERM OF THE OFFICE OF THE COMMITTEE OF THE NAYAGARH CO-OPERATIVE land DEVELOPMENT BANK LIMITED HAS EXPIRED IN PURSUANCE OF section 28 (I-B) OF THE ORISSA CO-OPERATIVE SOCIETIES ACT, 1962 AS amended BY SECTION 2 OF THE ORISSA CO OPERATIVE SOCIETIES (AMENDMENT) ORDINANCE, 1981, ORISSA ORDINANCE NO. 4 OF 1981); and, WHEREAS ON THE EXPIRATION OF THE TERM OF OFFICE OF THE MANAGEMENT of THE AFORESAID BANK HAS VESTED IN ME, THEREFORE, I, SHRI G. S. MOHANTY, DEPUTY REGISTRAR, CO-OPERATIVE SOCIETIES, BHUBANESWAR division BHUBANESWAR, DO HEREBY, IN EXERCISE OF THE POWERS conferred ON ME UNDER THE AFORESAID SECTIONS, AUTHORISE SBRI G. SATYANARAYAN RAO, SUB-ASSISTANT REGISTRAR OF CO-OPERATIVE societies, NAYAGARH CIRCLE, TO MANAGE THE AFFAIRS OF THE NAYAGARH co-OPERATIVE LAND DEVELOPMENT BANK LTD. UNTIL FURTHER ORDERS. "the PETITIONERS HAVE ASKED FOR QUASHING OF THIS ORDER AS BEING CONTRARY TO LAW.

( 2 ) THE OPPOSITE PARTY, DEPUTY REGISTRAR OF CO-OPERATIVE SOCIETIES, HAS filed A COUNTER AFFIDAVIT SUPPORTING BIS ORDER. RELIANCE HAS BEEN PLACED ON THE explanation ADDED TO SUB-SECTION (1-A) OF SECTION 28 OF THE AMENDING ACT of 1981 WHERE IT HAS BEEN SAID :"the DATE OF ELECTION OF THE PRESIDENT SHALL BE DEEMED TO BE THE DATE of ASSUMPTION OF OFFICE BY THE COMMITTEE. "admittedly, PETITIONER NO. 2 WAS ELECTED AS PRESIDENT ON 31-8-76. THOUGH there IS NO DISPUTE ABOUT THE PERIOD OF STAY OF THE OPERATION OF THE ELECTION AND actually THE NEW BOARD AND THE PRESIDENT CAME INTO OFFICE ON 27-9-79 AFTER the VACATION OF THE ORDER OF STAY, IT HAS BEEN CONTENDED THAT TNS PETITIONER-board CANNOT CONTINUE IN OFFICE TILL 27-9-83 AND TOE 4 YEARS' PERIOD MUST BE taken TO HAVE BEEN OVER WITH EFFECT FROM 30-8-80.

( 3 ) ADMITTEDLY, THE NEW BOARD CAME INTO OFFICE ON 27-9-79 AS IT HAD BEEN kept



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