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IN THE HIGH COURT OF MADHYA PRADESH
Gulab C. Gupta and P.N.S. Chauhan, JJ.
Anurudh Prasad Shastri and Anr.
Vs.
State of Madhya Pradesh & Ors.
M.P. No. 1111 of 1990 (J.)
Decided On: 21.06.1993
CONSTITUTIONAL LAW - COOPERATIVE SOCIETIES - VALIDITY OF AMENDMENTS TO ACT - SECTIONS 48 (4), 49 (7-A) (III) AND 49 (8) OF M.P. CO-OPERATIVE SOCIETIES ACT, 1960 - CHALLENGED - HELD, SECTION 48 (4) AND 49 (8) ARE UNCONSTITUTIONAL AND QUASHED.
Fact of the Case:
Petitioners, elected officers and members of managing committees of cooperative societies registered under the M.P. Co-operative Societies Act, 1960 (the Act), challenged the constitutional validity of certain provisions of the Act, as amended by the M.P. Co-operative Societies (Amendment) Ordinance, 1990 and the M.P. Co-operative Societies (Amendment) Act, 1990. The challenged provisions related to reservation of seats for Scheduled Tribe members in the managing committee, the power of the Registrar to assume charge of a society if elections were not held, and the disqualification of Members of Parliament and Legislative Assembly from holding office in a cooperative society.
Finding of the Court:
The Court held that Section 48 (4) of the Act, which reserved two-thirds of the seats in the managing committee for Scheduled Tribe members, was unconstitutional as it violated the rule that reservation cannot be more than 50%. The Court also held that Section 49 (8) of the Act, which allowed the Registrar to assume charge of a society if elections were not held, was unconstitutional as it was arbitrary and unreasonable. The Court upheld the constitutional validity of Section 49 (7-A) (iii) of the Act, which empowered the State Government to direct that elections be held or cancelled in order to give effect to certain provisions of the Act.
Issues: 1. Whether Section 48 (4) of the Act, which reserved two-thirds of the seats in the managing committee for Scheduled Tribe members, was constitutional. 2. Whether Section 49 (8) of the Act, which allowed the Registrar to assume charge of a society if elections were not held, was constitutional. 3. Whether Section 49 (7-A) (iii) of the Act, which empowered the State Government to direct that elections be held or cancelled in order to give effect to certain provisions of the Act, was constitutional.
Ratio Decidendi: 1. The Court held that Section 48 (4) of the Act was unconstitutional because it violated the rule that reservation cannot be more than 50%. The Court reasoned that the provision was arbitrary and unreasonable as it did not take into consideration the membership of the society, but prescribed the reservation on the basis of Scheduled Tribe population in the geographical area. 2. The Court held that Section 49 (8) of the Act was unconstitutional because it was arbitrary and unreasonable. The Court reasoned that the provision encouraged the Registrar not to hold elections, as he would obtain management of the society for not performing his duties. 3. The Court upheld the constitutional validity of Section 49 (7-A) (iii) of the Act, holding that it was a valid exercise of the State Government's power to regulate cooperative societies.
Final Decision: The Court quashed Section 48 (4) and Section 49 (8) of the Act, as amended by the M.P. Act No. 14/90. As a necessary consequence, the provisions in these sections existing immediately before the aforesaid amendment would be deemed to be continuing legally and validly. As a necessary consequence, the officers of the earlier Managing Committee of the petitioners societies will continue to function, till elections are held, in accordance with law. They would be entitled to get charge of the society, where charge had been taken from them by the Registrar or his nominee, pursuant to this amendment. The petitioners are also held entitled to costs of this petition. Counsel' fee Rs. 250/- each. Outstanding amount of security, if any, shall be refunded to the petitioners.
1. This Order will govern disposal of Misc. Pet. No. 1141/90 (Mahendra singh v. State of M. P. & Others), Misc. Pet. No. 1197/90 (Umakant Dixit v. State of M. P. and Others), Misc. Pet. No. 1215/90 (O. P. Pandey v. State of M P.& Others), Misc. Pet. No. 1805/90 (D. Logan v. State of M. P. and. Others), Misc. Pet. No. 2380/90 (Brij Kishore Tiwari v. State of M. P. and Others), Misc. Pet. No. 230/91 (Executive Committee of Hariyana Nagar Grih Nirman Sahkari v. State of M. P. and Others), Misc. Pet. NO. 1047/92 (Vish-wanath Modi v. State of M. P. and Others), Misc. Pet. NO. 1937/89 (Raipur Co-op. Land Dev. Bank v. State of M: P. and Others), Mist. Pet. No. 2759/90 (J N. Vyas v. State of M. P. and Others), Misc. Pet. No. 3530,90 (Ram-narayan Idu v. State of M. P. and Others), Misc. Pet. No. 3662/90 (Mohanlal Gupta v. State of M. P. and Others), Misc. Pet. No. 263/91 (Devendra Khare & Others v. State of M. P. and Others), Misc. Pet. No. 376/91 (Ramswaroop Pathak v. State of M. P. and Others), Misc. Pet. NO. 846/91 (Smt. Ranjana Kumari Singh v. State of M. P. and Others) and Misc. Pet. NO. 4097/91 Radheshyam Kasar v. state of M. P. and Others), as all these petitions raise common questions of facts and law, for consideration of this Court.
2. Petitioners in all these petitions are elected officers and members of managing committee of Co-operative Societies registered under M.P. Co-operative Societies Act, 1960 (hereinafter referred to as the Act). The Managing Committee of all the petitioner societies had, in terms of Sec. 49 Of the Act), as it existed immediately before 26th April, 1990, passed resolutions to hold new elections of the officers and members of the Managing Committee and requested the Registrar, Co-operative Societies or his nominee to appoint the Returning Officer for the purpose. The respondent State promulgated an Ordinance called M. P. Co-operative Societies (Amendment) Ordinance, 1990 (Ordinance No. 2 of 1990) on 20th April, 1990, published in M. P. Rajpatra (Extra-ordinary) dated 26th April, 1990 making extensive change in the Act including Section 49 dealing with the election of the officers and members of the Managing Committee of registered societies. Constitutional validity of this Ordinance and particularly provisions relating to substitution of the Managing Committee of the Society by the Registrar or his nominee, pending election, was challenged in these writ petitions. The Ordinance was subsequently replaced by M. P. Co-operative Societies (Amendment) Act, 1990 (Act No. 14 of 1990) (hereinafter referred to as the Amendment Act) and hence the petitioners have been amended to include challenge to the corresponding provisions of the Amending Act. All these petitions have been heard together and are being decided by this common order.
3. Though the petitioners challenge almost all provisions of the Act, the challenge has been confined to the Constitutional validity, of Section 48 (4), Section 49 (7-A) (iii) and Section 49 (8) of the Act, and amended by the Amending Act, at the time of final hearing. These provisions read as under :-
Section 48 (4) :
48. Final authority in society,-
(4). In the case of resource society operating in a Scheduled Area not less than two-third of the total number of seats of the members on the Committee as may be provided in the bye-laws of the society shall be reserved for the members belonging to Scheduled Tribe;
Provided that in the event of a society operating in a Scheduled area, failing to elect the requisite number of such members or to elect less than such number of members, the members of the committee shall co-opt the requisite number of members from amongst members of such society eligible for such representation and in the event of the committee failing to do so, Registrar shall nominate the requisite number of members from amongst members of such society eligible for such representation.
Section 49 (7-A) (iii) :
49. Annual General Meeting.-
(7-A) (iii)--Notwithstanding an
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