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1995 Supreme(Ori) 401

IN THE HIGH COURT OF ORISSA
D.M. Patnaik, A. Pasayat, JJ.
MANORANJAN SAHOO - APPELLANT
Versus
CHANDRA KUMAR PUROHIT AND OTHERS - RESPONDENT
O.J.C. No. 8367 of 1994
Decided On : 23-03-1995

Advocates Appeared:
Ganeswar Rath and S. Mishra, for the Appellant; Akhaya Kumar Sahoo, S. Mohaptra, S. Mohanty and S.B. Das (for opp. party No. 1), P.K. Mohaptra, (for opp. party No. 4) and Addl. Standing Counsel for opp. party Nos. 2 and 3, for the Respondent

The word "due" as used in Section 28 (3-a) of the Orissa Co-operative Societies Act, 1962 means a sum legally recoverable, i.e., sum which is admitted or proved to be due and cannot be extended to sum which is alleged or claimed to be due.

Headnote:

CO-OPERATIVE SOCIETY - ELECTION - DISQUALIFICATION - DEFAULT IN PAYMENT OF DUES - INTERPRETATION OF SECTION 28 (3-A) OF THE ORISSA CO-OPERATIVE SOCIETIES ACT, 1962 - MEANING OF "DUE" - HELD, "DUE" MEANS A SUM LEGALLY RECOVERABLE, I.E., SUM WHICH IS ADMITTED OR PROVED TO BE DUE AND CANNOT BE EXTENDED TO SUM WHICH IS ALLEGED OR CLAIMED TO BE DUE.

Fact of the Case:

Petitioner filed nomination for the election to the office of President of the Sambalpur Wholesale Consumer Co-operative Society. His nomination was challenged on the ground that his society had failed to pay dues after service of notice and therefore, incurred disqualification u/s 28 (3-a) of the Orissa Co-operative Societies Act, 1962. The Tribunal set aside the election of the petitioner, and opp. party No. 1 was declared as Member of Constituency No. 3.

Finding of the Court:

The court held that the word "due" as used in Section 28 (3-a) of the Act means a sum legally recoverable, i.e., sum which is admitted or proved to be due and cannot be extended to sum which is alleged or claimed to be due. 'Due' always imports a fixed and settled obligation or liability. It means a legal liability to return something. The amount in order to constitute "due" must be legally enforceable.

Issues: Whether the petitioner was a defaulter to attract disqualification for contesting election to the office of President, Sambalpur Wholesale Consumer Co-operative Society.

Ratio Decidendi: The court interpreted the expression "due" as appearing in Section 28 (3-a) of the Act and held that it means a sum legally recoverable, i.e., sum which is admitted or proved to be due and cannot be extended to sum which is alleged or claimed to be due. 'Due' always imports a fixed and settled obligation or liability. It means a legal liability to return something. The amount in order to constitute "due" must be legally enforceable.

Final Decision: The court allowed the writ application and set aside the impugned judgment of the Tribunal. The election of the petitioner, as a Member of the Apex Society was held to be in order.

JUDGMENT :

A. Pasayat, J. - Sole question that arises in this writ application for consideration is whether the petitioner was a defaulter to attract disqualification for contesting election to the office of President, Sambalpur Wholesale Consumer Co-operative Society (in short the 'Apex Society').

2. The factual background as. projected by the petitioner is almost undisputed.

Petitioner filed nomination for the election to the office of President. Notification was issued for the election in question on 24-3-1994. The Sasan Service Co-operative Society (in short, 'the society') filed an application before the Assistant Registrar of Co-operative Societies for a declaration that the society was a non-defaulting society so that the. petitioner would be eligible to contest the election as a Member of Apex Society. The petitioner also, filed a separate application for granting interim order permitting him to contest the election. The Assistant Registrar admitted the case and passed an order of stay. Petitioner filed his nomination on 10-4-1994. Chandra Kumar Purohit ( opp. party No, 1 ) also filed his nomination representing Maneswar Service Co-operative Society. Both the society and opp. party No. 1's .society belong to Constituency No. 3. Opp. party No. 1 made a motion for rejection of the petitioner's nomination on the ground that the society had failed to pay dues after service of notice and therefore, incurred disqualification u/s 28 (3-a) of the Orissa Co-operative Societies Act, 1962 (in short, the 'Act'). The prayer was rejected and the election proceeded. Opp. party No.1 moved the Co-operative Tribunal, Orissa (in short, the 'Tribunal') for interference. The Tribunal has set aside the election of the petitioner, and opp. party No. 1 has been declared as Member of Constituency No. 3-on the basis that the petitioner's society. suffered from disqualification as provided in Section 28:(3-a) of the Act.

3. According to the petitioner, the conclusions of the Tribunal are erroneous, while the opposite party No. 1 supports them. Fate of this case hangs on interpretation of expression "due" as appearing in Section 28 (3-a) of the Act. The said provision read as follows :

"28. Society to have a committee:

X X X X X X

(3-a) A representative of a society or a body corporate shall not be eligible for. being chosen or for continuing as a member or President of the committee of any other society in cases where the society or the body corporate which he represents-

(i) has failed to pay any amount due in cash or in kind, to the society or any other society on account of any loan or otherwise within three months from the date of notice by such society for payment of such dues; or

(ii) ceases from the membership of the society; or

(iii) is ordered to be wound up or dissolved."

The pivotal expression is "has failed to pay any amount due" within three months from the date of notice by such society for payment of such dues. According to the petitioner mere demand and non-payment would not bring in application of the default clause, so as to attract a disqualification. Reliance was placed on a decision of this Court in Gobind Ch. Panda Vs. Darsan Ch. Rout and Others which related to a case under the Orissa Grama Panchayat Act, 1964. Reliance was also placed on a decision of this Court in Mahendar Prasad Rout Vs. The Election Officer and Others, where the language used was "accrued due'. "The Tribunal made a distinction between "accrued due'' and "due" and held that use of the expression "'accused" made the difference as "accured" obviously would involve quantification. The Tribunal was of the view that the Orissa Co-operative Societies Rules, 1965 tin short, the 'Rules') define "default" to mean adjudicated dues, and if the Legislature wanted that it was the only adjudicated dues which were relevant for the purpose of disqualification, it could have and the words "defaulted dues", instead of using "arrear dues".

4. It is to be noticed that the Ac






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