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2014 Supreme(UK) 448
IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL
Alok Singh, J.
Avinash Sharma - Petitioner
Versus
State of Uttarakhand and others - Respondents
Writ Petition No. 1934 (MS) of 2014
Decided On : 25.08.2014
Advocate Appeared:
Mr. S. Bhupendra Singh, Advocate for the petitioner.
Mr. Gajendra Tripathi, Brief Holder for the State of Uttarakhand/respondent no. 1 & 3.
Mr. Paresh Tripathi, Advocate for respondent no. 2.
Mr. Manav Sharma, Advocate for respondent no. 4.
The main legal point established in the judgment is that upon being elected as a member of certain local or legislative bodies, a member of a cooperative society ceases to be a member of the society, and the presiding authority at a meeting must be valid. Additionally, the obligation to refer matters to the Registrar is not absolute.
Headnote:
Cooperative Society - Membership Disqualification - Rule 473, Rule 94, Rule 146 - The court discussed Rule 473 of the Uttaranchal Cooperative Society Rules, 2004, which outlines the disqualifications for a member of a cooperative society. The court also analyzed Rule 94, which specifies the presiding authority at society meetings, and Rule 146, which deals with the referral of matters to the Registrar for decision. The court held that the member of the cooperative society, on being elected as a member of certain local bodies or legislative bodies, shall cease to be a member of the cooperative society. The court also emphasized that the presiding authority at the meeting was not valid and that the impugned order was not obliged to be referred to the Registrar. The court dismissed the petition.
Fact of the Case:
Sri Gurnam Singh, holding the office of Vice Chairman of a cooperative society, was elected as Gram Pradhan and resigned from the society. A meeting was held under his chairmanship, and the petitioner was allegedly elected as Vice Chairman. The Managing Director/Secretary held that Singh ceased to be a member of the society upon being elected as Gram Pradhan, and the meeting was deemed void. The petitioner challenged this order.
Finding of the Court:
The court found that Singh ceased to be a member of the society upon being elected as Gram Pradhan, rendering the meeting and the resolution void. The court also held that the impugned order was not obliged to be referred to the Registrar and dismissed the petition.
Issues: The issues revolved around the validity of the meeting, the authority of the presiding member, and the obligation to refer the matter to the Registrar.
Ratio Decidendi: The court's decision was based on the interpretation of the disqualifications for a member of a cooperative society, the validity of the presiding authority at the meeting, and the obligation to refer matters to the Registrar.
Final Decision: The petition was dismissed, and the impugned order was upheld.
Alok Singh, J.
Undisputedly, Sri Gurnam Singh, son of Late Sri Lakkha Singh, was holding the office of Vice Chairman, Bajpur Ditya Kishan Sewa Sahkari Samiti Limited, District Udham Singh Nagar (hereinafter referred to as “society”); meanwhile, Sri Gurnam Singh contested the election of Village Pradhan of Village Diyohari, Tehsil Bajpur and was declared as Gram Pradhan on 28.06.2014; a meeting of the Society was held under the chairmanship of Sri Gurnam Singh on 08.08.2014 wherein Sri Gurnam Singh tendered his resignation from the post of Vice Chairman as well as membership of the Society; in the meeting held on 08.08.2014 under the chairmanship of Sri Gurnam Singh, petitioner was allegedly elected as Vice Chairman of the Society, after accepting the resignation of Sri Gurnam Sigh; respondent no. 2 Managing Director/Secretary of the Society vide order dated 13.08.2014 (Annexure No. 3 to the writ petition) impugned, herein, was pleased to hold that since Sri Gurnam Singh was elected as Gram Pradhan on 28.06.2014 of Village Diyohari, therefore, he would be deemed to have discontinued from the membership of the Society as well as from the post of Vice Chairman of the Society with effect from 28.06.2014, as per mandate of Rule 473 of the Uttaranchal Cooperative Society Rules, 2004 (hereinafter referred to as Rules, 2004); it was further held that since Sri Gurnam Singh was not a member/Vice Chairman of the Society, in view of Rule 473 with effect from 28.06.2014, therefore, meeting held on 08.08.2014 under his chairmanship was ab initio void and nullity, therefore, resolution made in the meeting dated 08.08.2014 would be deemed to be nullity and non est. Petitioner, who was allegedly elected as Vice Chairman of the Society in the meeting dated 08.08.2014, has filed present writ petition challenging the order dated 13.08.2014 (Annexure No. 3 to the writ petition).
2. I have heard Mr. S. Bhupendra Singh, Advocate for the petitioner, Mr. Gajendra Tripathi, Brief Holder for the State of Uttarakhand/respondent no. 1 & 3, Mr. Paresh Tripathi, Advocate for respondent no. 2. and Mr. Manav Sharma, Advocate for respondent no. 4 and have carefully perused to record.
3. Rule 473 of the Rules 2004 reads as under:
“473. (1) No person shall be eligible to be or to continued as a member of the Committee of Management of any co-Operative Society, if-
(a) he is under 21 years of age; (except in case of societies of students)
(b) he is declared insolvent;
(c) he is of unsound mind, or is deaf and dumb, or blind or suffers from leprosy;
(d) he has been convicted for any offence involving, in the opinion of the Registrar, moral turpitude, such conviction not having been set aside in appeal;
(e) he, or in the opinion of the Registrar, member of his family enters into or carries on, without the permission of the Registrar, within the area of operation of the Society, the same kind of business as done by the Society itself;
(f) he enters into any transaction or contract with the society against the provisions of the Act or the Bye-laws of the Society.
(g) he accepts or holds any office of profit under the society or under any society affiliated to such society:
Provided that this restriction shall not apply in case of such producers or workmen’s society as have been permitted by the State Government to provide in their bye-laws for the participation of employees in the management of the society;
(h) he is not a member of the General Body of the society;
(i) he has been convicted of any offence under the Act or the Rules, unless a period of 5 years has elapsed from the date of the conviction;
(j) he is a person against whom an order under Section 91 has been obtained by a co- operative society and is pending satisfaction;
(k) he is in default (at least for a period of six months), to the society in respect of any loan taken by him, or he is a judgment-debtor of the society;
(l) if he is already a member of the Committee of Management of three co –operative societi
