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PUNJAB & HARYANA HIGH COURT
Jawahar Lal Gupta, J.
Pritam Singh And Ors.
Versus
State Of Punjab
Civil Writ Petition No. 994 of 1992,
Decided On : JUNE 2, 1993
CO-OPERATIVE SOCIETY - MEMBERSHIP - ENROLLMENT - VALIDITY - ARBITRATOR'S AWARD - APPEAL - REVISION - CHALLENGE - WRIT PETITION - MAINTAINABILITY - NECESSARY PARTIES - IMPLEADMENT - DISCRETION OF COURT - EQUITY - LACHES.
Fact of the Case:
Petitioners, members of a Co-operative Society, challenged the Arbitrator's award and subsequent orders upholding the enrollment of 48 additional members. They argued that the Administrator lacked the authority to enroll members and that the Arbitrator could not decide the rights of non-parties. The respondents, including the 48 members, contended that the enrollment was valid, that they had been members for over 35 years, and that the petitioners were barred by laches.
Finding of the Court:
The Court held that the Arbitrator's award and subsequent orders were valid. It found that the Administrator had the authority to enroll members, that the 48 members had been duly enrolled and had been participating in the Society's activities for over 35 years, and that the petitioners had failed to challenge the enrollment within a reasonable time. The Court also held that the petitioners' writ petition was not maintainable because they had not impleaded all necessary parties, including the 48 members, and because they had not shown any equity in their favor.
Issues: 1. Whether the Administrator had the authority to enroll members in the Co-operative Society. 2. Whether the Arbitrator could decide the rights of non-parties. 3. Whether the petitioners were barred by laches from challenging the enrollment of the 48 members. 4. Whether the petitioners' writ petition was maintainable.
Ratio Decidendi: 1. The Court held that the Administrator had the authority to enroll members in the Co-operative Society, as per the provisions of Rule 17 of the Punjab Co-operative Societies Rules, 1963. 2. The Court held that the Arbitrator could decide the rights of non-parties, as the dispute referred to him was whether the enrollment of the 48 members was valid or not. 3. The Court held that the petitioners were barred by laches from challenging the enrollment of the 48 members, as they had failed to do so within a reasonable time and the members had been acting as members of the Society for over 35 years. 4. The Court held that the petitioners' writ petition was not maintainable because they had not impleaded all necessary parties, including the 48 members, and because they had not shown any equity in their favor.
Final Decision: The Court dismissed the petitioners' writ petition.
Jawahar Lal Gupta, J.
1. The petitioners are aggrieved by the award of the Arbitrator, a copy of which has been produced as Annexure P-3 with this writ petition. By this award, it was held that the 48 persons named therein "are members of the Budhlada Scheduled Caste Land Owning Society Ltd. as per Bye-laws and provisions of the Punjab Co operative Societies Act, 1961" (hereinafter referred to as the Society) Aggrieved by this order, to petitioners filed an appeal which was dismissed by the Assistant Registrar, Co operative Societies by this order dated May 13, 1991. Their revision having met the same fate, they have approached this court through the present writ petition. A few facts may be noticed.
2. On January 19, 19S7, the Registrar, Co operative Societies registered the society. It consisted of 12 members. In view of this registration and enrollment of. members, an application for transfer of Nazaol land was made to the District Collector, Bhatinda on December 9, 1957 A copy of this application has been produced on record as Annexure P. 1. Vide order dated February 22, 1972, the Collector, Bhatinda allotted land measuring 174 kanals 12 marlas to the Society on payment of a total amount of Rs. 3,212.20 N P. The petitioners aver that after the registration of the Society, 48 members were enrolled by the Administrator. This enrollment of new members was "never approved by the general body of the society .....". It has been further averred that the Administrator cannot enroll the members of the Society. On this basis, it has been averred that "the admission of 48 members of the Co-operative Society by the Administrator without the resolution of the general body is illegal, null and void and is liable to be ignored". This matter was referred to the Arbitrator at the instance of some of the respondents and vide order dated November 19, 1990, the Arbitrator "allowed the admission of 48 members......." According to the petitioner this was done without impleading the Society to the suit. The appeal filed by the petitioners was rejected by the Assistant Registrar vide order dated May 13, 1991, a copy of which has been produced on record as Annexure P-4. The revisional authority upheld this order. A copy of the order dated October 31, 1991 passed by the Commissioner (Appeals) Jullundur Division has been produced on record as Annexure P-5. Thereafter, the Assistant Registrar, Co-operative Societies (respondent No. 2) passed an order suspending the managing committee of the Society under Section 27(2) of the Punjab Cooperative Societies Act, 1961 (hereinafter to be referred to as the Act). A copy of this order has been produced on record as Annexure P-6. The petitioners have impugned the award given by the Arbitrator and the orders passed in appeal and revision. They have also challenged the order of suspension passed by respondent No. 2. These orders have been challenged on various grounds.
3. A written statement has been filed on behalf of respondents Nos. 3 to 9 and 12 to 14 through respondent No. 4. Various preliminaries objections have been raised. It has been averred that the petitioners have concealed vital facts. It has been further stated that the petitioners cannot be allowed to challenge the membership of the respondents after the lapse of 35 years It has been further averred that a Division Bench of this Court has held in Bhag Singh v. Ranjodh Singh, 1976 P. L. J. 377, that the Administrator is competent to enroll members. It has also been stated that "the respondents are enjoying the rights of membership since 1957. All the 60 members have been electing their executive body continuously since 1957. Audit Book, Inspection Re register etc. show 60 members. 60 members are giving the land on ch kota since 1957. These respondents have been taking part in the proceedings election on and had been elected several times for President/Vice President into management committee At the time when the respondents become members
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