IN THE HIGH COURT OF JUDICATURE AT ALLAHABAD
SURYA PRAKASH KESARWANI, JAYANT BANERJI, JJ.
Hariraj Singh Choudhary – Petitioner
Versus
State of U.P. and Others – Respondents
Writ (C) No. 20356 of 2022
Decided On : 03-08-2022
UP Cooperative Societies Rules 1968 - Rule 457, 458, 459, 464 and 465 - UP Cooperative Societies Act 1965 - Notice of no-confidence motion - Elected as Chairman of Committee of Management of Bank – Seeking direction in the nature of mandamus commanding the opposite parties to strictly adhere to the provisions as contained in UP Cooperative Societies Act 1965 and Rules 1968, in the interest of justice - Respondent no. 2 shall himself give at least 21 days clear notice of the meeting to all the members within a week from today. The notice shall strictly comply with the provisions of sub-rule (1) and sub-rule (2) of Rule 458 of the Rules, 1968. (Para 14)
Finding of the Court :
As already noticed above, meeting has been adjourned, not because of any circumstances created or because of any fault on part of members who moved the notice for no confidence motion, instead the meeting was adjourned by Presiding Officer on first occasion for administrative reasons and on second event, i.e. today, on account his being tested Corona positive and therefore, it is not possible for Presiding Officer to hold meeting - However, considering the second proviso to sub-rule (1) of Rule 458 that provides for at least 21 days notice to be given for holding a meeting for purpose of consideration of proposed no confidence motion, it stands to reason that adequate time ought to be afforded to members of Cooperative Bank to attend that meeting. Giving of adequate time as provided in second proviso aforesaid is necessary because members of Cooperative Society/Bank can make due arrangements for attending meeting. Therefore, second proviso aforesaid is required to be compulsorily followed.
Result: Writ petition dismissed
JUDGMENT :
1. Heard Shri Nirankar Singh, learned counsel for the petitioner, Shri Satyam Singh, learned Standing Counsel for the respondent nos. 1, 2, 3, Shri Bal Mukund Singh, learned counsel for the respondent no. 4 and Shri Nikhil Kumar, learned counsel for the respondent no. 4.
2. This writ petition has been filed praying for the following relief:
(II) Issue a writ order or direction in the nature of mandamus commanding the opposite parties especially the opposite party nos. 3 and 4 herein not to give effect to the order dated 20.06.2022, issued by the opposite party no. 2 herein, in the interest of justice.
(III) Issue a writ order or direction in the nature of mandamus commanding the opposite parties to strictly adhere to the provisions as contained in the UP Cooperative Societies Act 1965 and the UP Cooperative Societies Rules 1968, in the interest of justice.
(IV) Issue any other order or direction which this Hon'ble Court may deem fit and proper in the circumstances of the case, in favour of the petitioner, in the interest of Justice.”
3. Briefly stated facts of the present case are that the petitioner was elected as Chairman of the Committee of Management of the District Cooperative Bank Limited, Ghaziabad in the election held on 10th-11th May, 2018. There are total 12 members of the Committee of Management. Learned counsel for the petitioner has stated that these 12 members have elected the petitioner as Chairman in the election held on 11th May, 2018. The respondent nos. 5 to 11 are elected members of the Committee of Management, who presented a notice for no confident motion in terms of Rule 455, 456 and 457 of the Uttar Pradesh Co-operative Societies Rules, 1968 (hereinafter referred to as the ‘Rules 1968’) on 17.6.2022. Pursuant to the aforesaid notice for no confidence motion, the respondent no. 2 fixed the date, time and place of meeting and nominated the Additional District Magistrate (City), Ghaziabad as Presiding Officer for the meeting. However, on the date fixed i.e. 20.7.2022 the meeting could not be held by the Presiding Officer for administrative reasons as reflected in his order dated 19.7.2022 adjourning the meeting for 3.8.2022.
4. Today, Shri Nimai Das, learned Additional Chief Standing Counsel and Shri Satyam Singh, learned Standing Counsel representing the State-respondents have stated on instructions that today's meeting of no confidence motion cannot be held since the Presiding Officer has tested Corona positive and is in quarantine. They further informed that under the circumstances, a notice in terms of sub-rule (1) and sub-rule (2) of Rule 458 of the Rules, 1968 shall be issued by the District Magistrate, Ghaziabad within three days and on the date fixed the meeting shall be held.
Submissions
5. Learned counsel for the petitioner submits as under:
(ii) In the impugned notice of no-confidence motion dated 22.6.2022, there is no compliance of Sub-Rule (2) of Rule 458 and, therefore, the notice is defective.
(iii) Since, 35 days period for meeting as provided in the first proviso to sub-rule (1) of Rule 458 has expired, therefore, the meeting for no confidence cannot be held by the respondent no. 2 i.e. District Magistrate.
6. Learned Standing Counsel and learned Counsel for the respondent no. 4 and 7 support the impugned order.
Reasons an
If the motion for no confidence fails for want of quorum or lack of requisite majority at meeting, no subsequent meeting for considering motion of no confidence shall be held within six months of dat....
Procedural lapses in convening meetings under cooperative rules do not invalidate no confidence motions; such rules viewed as directory, ensuring democratic processes are upheld.
The main legal point established in the judgment is the interpretation of the mandatory provisions of the Telangana Cooperative Societies Act, 1964 and the Rules framed thereunder, particularly regar....
Rule 14 – AKK of Rules, 1960 reads as no Confidence Motion.
Point of Law : Rule 43-A of Kerala Co-operative Societies Rules, 1969 reads as removal of President, Vice-President etc. by no-confidence motion.
The statutory provisions governing cooperative societies, specifically Section 59A of the Goa Cooperative Societies Act, 2001, take precedence over conflicting bye-laws, ensuring democratic principle....
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