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1976 Supreme(P&H) 14

PUNJAB & HARYANA HIGH COURT
S.S.Sandhawalia and S.C.Mital JJ.
Sadhu Ram
Versus
State Of Haryana
Civil Writ No. 2842 of 1973,
Decided On : FEBRUARY 3, 1976

Bye-laws of a Co-operative Society cannot violate or run counter to the statutory provisions under which the same has been duly registered.

Headnote:

ELECTION - CO-OPERATIVE SOCIETY - VOTING - DELEGATES - BYE-LAW - VALIDITY - PUNJAB CO-OPERATIVE SOCIETIES ACT, 1961 - PUNJAB CO-OPERATIVE SOCIETIES RULES, 1963 - APPENDIX C - SECTION 19 - SECTION 23 - SECTION 26 - RULE 23 - BYE-LAW 15 - INDRI CANE GROWERS CO-OPERATIVE SOCIETY LTD. - HUKAM SINGH V/S. NIRANJAN SINGH - Bye-law 15 of the Indri Cane Growers Co-operative Society Ltd. providing that the members of the said Society will exercise their votes through their delegates and will have no vote of their own is violative of Appendix `C framed under Rule 23 of the Punjab Co-operative Societies Rules, 1963.

Fact of the Case:

The petitioners, members of the Indri Cane Growers Co-operative Society Ltd. (Society), challenged the election of respondents 7 to 10 to the Managing Committee of the Society, alleging that the election was held through delegates in violation of Appendix C framed under Rule 23 of the Punjab Co-operative Societies Rules, 1963 (Rules).

Finding of the Court:

The court held that bye-law 15 of the Society, which provided for an indirect mode of election through delegates, was in conflict with the statutory provisions and therefore invalid. The court further held that the election of respondents 7 to 10, held in accordance with the said bye-law, was illegal and set it aside.

Issues: Whether bye-law 15 of the Society, providing for voting through delegates, was violative of Appendix C framed under Rule 23 of the Rules.

Ratio Decidendi: The court interpreted Section 19 of the Punjab Co-operative Societies Act, 1961, which provides for the exercise of a vote primarily in person, with two exceptions: (a) a co-operative society may appoint one of its members to vote on its behalf, and (b) a class or classes of persons or associations of persons may appoint one of their representatives to vote on their behalf. The court also referred to Rule 23 of the Rules, which provides that the members of the Committee of a Co-operative Society shall be elected in accordance with the rules given in Appendix C. The court found that Appendix C, as it stood at the material time, did not countenance an election through delegates only or an indirect mode of election. The court further noted that a subsequent amendment to Appendix C, which expressly included delegates of a co-operative society within the definition of voters, strengthened the case for the petitioners.

Final Decision: The court allowed the writ petition, set aside the election of respondents 7 to 10, and directed the parties to bear their own costs.

Judgment

S.S.SANDHAWALIA, J.

1. Whether bye-law 15 of the Indri Cane Growers Co-operative Society Ltd. providing that the members of the said Society will exercise their votes through their delegates and will have no vote of their own is violative of Appendix `C framed under Rule 23 of the Punjab Co-operative Societies Rules, 1963 , is the primary and indeed the sole question which calls for determination in this writ petition before us on a reference.

2. Since the only legal issue pressed before us is the one mentioned above, it suffices to advert to the facts relevant thereto. The two petitioners are the members of the Indri Cane Growers Co-operative Society Ltd., (hereinafter called the Society) which is a body duly registered under the Punjab Co-operative Societies Act 1961. The Cane Commissioner Haryana (respondent No. 4) fixed the election to the Managing Committee of the Society on a zonal basis for the 31st of May, 1973, and appointed the Assistant Registrar, Co-operative Societies (respondent No. 5) as the Returning Officer therefor. The election programme provided that the nomination papers were to be filed on the 23.05.1973; which were to be scrutinised on the following day; the date for withdrawal of nominations and the allotment of symbols was fixed for the 26.05.1973. On this date, the Returning Officer declared respondents Nos. 7 to 10 as having been elected uncontested to the Managing Committee of the Society from zones Nos. 1 to 4. However, on the 30.05.1973, vide Annexure A , the Cane Commissioner Haryana postponed the election scheduled to be held on the following day till further orders. It is unnecessary to advert to the reasons or the validity of this postponement and it suffices to mention that the election of persons from zones Nos. 5 to 7 was ultimately fixed for the 16th of September, 1973.

3. The core of the petitioners case pressed on their behalf is that the aforementioned elections were required to be contested through delegates in accordance with the bye-laws of the Society (in particular bye-law 15 thereof) which were patently violative of Appendix C framed under Rule 23 of the Punjab Co-operative Societies Rules, 1963 (hereinafter referred to as the Rules). It has been claimed that such an election to be of validity must be held in accordance with the provisions of Appendix C . On behalf of the petitioners it has been pointed out that though the elections of all Co-operative Consumers Stores in the State were earlier held through delegates but after the promulgation and enforcement of Appendix `C these elections were now being held like all other Societies under the relevant provisions of Appendix `C . Consequently it is highlighted that the election through the medium of delegates to the Managing Committees of all Cane Growers Co-operative Societies including the present one is violative of the mandatory provisions of Rule 23 and Appendix `C thereto. It is the petitioners case that by virtue of the said provision the right to be a candidate in the election and the right to vote therein are vested in every member of the Society directly and not through the agency of the delegates of those voters. It is, therefore, alleged that any provision to this effect in the bye-laws cannot stand and be of validity against the prescribed statutory provisions and hence all elections held in accordance with the said bye-laws through the delegates are invalid. It is prayed that the elections of respondents Nos. 7 to 10 as members of the Managing Committee of the Society be struck down because the same had been held through the medium of delegates and further that the orders of respondent No. 4 for fixing the election in an identical manner from zones Nos. 5 to 7 on the 16.09.1973, be quashed.

4. The return has been filed on behalf of the official respondents Nos. 1 to 4. In the relevant paragraph thereof it has been claimed that the election to the Managing Committee of the Society has to be held under the dire





















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