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2014 Supreme(All) 582

ALLAHABAD HIGH COURT
(Full Bench)
BEFORE : DR. DHANANJAYA YESHWANT CHANDRACHUD, C.J., DILIP GUPTA AND A.P. SAHI, JJ.
COMMITTEE OF MANAGEMENT, SAHKARI GANNA VIKAS SAMITI LTD. AND ANOTHER .....Petitioners
Versus
STATE OF U.P. AND OTHERS .....Respondents
(Civil Misc. Writ Petition No. 47233 of 2012, decided on 14th March, 2014)

Advocates:
Counsel :
H.R. Misra, Rohit Agrawal, Anil Kumar Srivastava and Swarn Kumar Srivastava for the Petitioners; C.S.C. and Ravindra Singh for the Respondents.

Headnote:Constitution of India, 1950—Articles 226, 243-ZJ(2) and 243-ZK—U.P. Co-operative Societies Act, 1965—Sections 29 and 35—Co-operative Society—End of term—Power of High to direct for continuance of a Committee of Management—Direction to the effect that the erstwhile Committee of Management would continue until elections are held, would be plainly contrary to Section 29(5) prior to amendment by U.P. Act 13 of 2013—However, the position as it stood has been substantially altered by enactment of Act 13 of 2013—There cannot be a vacuum in management—Section 35 is an enabling provision—Now, High Court in an appropriate case under Article 226 can issue such direction if it considers just and proper—Full Bench answered the question formulated by the Division Bench holding that prior to Amendment brought by U.P. Act 13 of 2013, High Court had no power to direct the continuance of a Committee of Management, even though term of such a society had come to an end—Now by deleting sub-section (5) of Section 29, position has been altered. [Paras 8 and 9]

       Result; Reference Answered Accordingly.

JUDGMENT

By the Court.—This Full Bench has been constituted in pursuance of a reference made on 14 September 2012 by a Division Bench of the following question:

Whether the High Court may issue a writ, order or direction in the exercise of its writ jurisdiction under Article 226 of the Constitution of India for continuance of a Committee of Management of a co-operative society even though the term of the co-operative society has come to an end in accordance with the provisions of Section 29 of the U.P. Co-operative Societies Act, 1965.

2. The issue turns upon an interpretation of Section 29 of the Uttar Pradesh Cooperative Societies Act, 1965. Immediately before Section 29 was amended with effect from 28 March 2013 by U.P. Act 13 of 2013, Section 29, as it stood, read as follows:

“29. Committee of Management.—(1) The management of every co-operative society shall vest in a Committee of Management constituted in accordance with this Act, the rules and the bye-laws, which shall exercise such powers and perform such duties as may be conferred or imposed by this Act, the rules and the bye-laws.

(2) (a) The term of every Committee of Management shall be three years and the term of the elected members of the Committee of Management shall be co-terminus with the term of such Committee.

(b) The provisions of clause (a) shall apply also to a Committee of Management in existence on the date of the commencement of the Uttar Pradesh Co-operative Societies (Second Amendment) Act, 2011 and to the elected members of such Committee.

(c) The term of the Committee of Management, which has completed on or before the date of commencement of the Act referred to in clause (b), the period of three years from the date of its constitution and the term of its elected members, shall expire on such commencement.

(3) Election to reconstitute the Committee of Management of a Co-operative Society shall be completed in the prescribed manner under the superintendence, control and direction of the Registrar at least fifteen days before the expiry of the term of the Committee of Management and the members so elected shall replace the Committee of Management whose term expires under sub-section (2):

Provided that where the Registrar is satisfied that circumstances exist which render it difficult for him to hold the election on the date fixed, he may postpone the election, and all proceedings with reference to the election shall be commenced afresh in all respects.

(4) It shall be the duty of the Secretary or the Managing Director of the Co-operative Society, as the case may be, to send to the Registrar, four months before the expiry of the term of Committee of Management, a requisition for conducting the election and to furnish all such information as may be required by him, within such period as may be fixed by him.

(5) (a) Where, for any reason whatsoever, the election of the elected members of the Committee of Management has not taken place or could not take place before the expiry of the term of elected members, the Committee of Management shall, notwithstanding anything to the contrary in any other provision of this Act or the rules made thereunder, or the bye-laws of the society, cease to exist on the expiry of such term.

(b) On or as soon as may be after the expiry of such term, the Registrar shall appoint an Administrator or a Committee of Administrators (hereinafter, in this section, referred to as the Committee) for the management of the affairs of the society until the reconstitution of the Committee of Management in accordance with the provisions of this Act, the rules and the bye-laws of the society and the Registrar shall have the power to change the Administrator or, as the case may be, any member of the Committee or to appoint Committee in place of an Administrator or vice versa from time to time.

(c) Where a Committee is appointed under clause (b), it shall consist of a Chairman and such other members not exceeding eight as may be nominated by th


















































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