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1969 Supreme(MP) 61

High Court of Madhya Pradesh
A.P. Sen & G.P. Singh, JJ.
Satna Central Cooperative & Land Mortgage Bank Ltd.
Vs.
Puranlal Agrawal & others
M. P. No. 371 of 1968
Decided on: 1-7-1969

Advocates Appeared:
Y.S. Dharmadhikari for petitioner;
S.C. Chaturvedi for respondent No.1.

Headnote:(1) Co-operative Societies Act, 1960 (M. P.) - Ss. 55 (2) & 77 - binding effect of decision of the Registrar - is subject to result in appeal.

       The words "his decision shall be binding", which appear in section 55 (2) of the Act are susceptible of no other construction than this, that a decision of the Registrar under the section is binding so long as it exists and it pre-supposes the existence of a decision. There can be no finality attached to a decision of the Registrar under section 55 (2), as its binding effect is always subject to the result of an appeal taken from the decision. 1966 RN 189 = 1966 JLJ 422 referred to. [Para 6

       (2) Interpretation of Statutes - duty of Courts - must construe the words of statute as they are - terms cannot be added or altered.

       It is a cardinal rule of construction of statutes that a Court must interpret a provision as it exists, and it is not permissible to add to or alter its terms in any manner whatsoever. [Para 6

       (3) Meetings - Byelaw prescribing quorum as "2/5ths of the members of the Board" -meaning of - meaning is two fifths of the members of the Board for the time being - Co-operative Societies Rules, 1960 (M. P.) - R. 37 (1).

       Bye-law No. 35 of the Satna Central Co-operative and Land Mortgage Bank Ltd. provides that 'two-fifths of the members of the Board of Directors shall form a quorum'. Byelaw 30 provided for 18 members. At the crucial time when the meeting was held there were only 11 members in the Board. The question arose whether the two fifths should be of 18 or 11 members to form the quorum.

       Held: The construction of the words 2/5ths of the members of the Board' appearing in Byelaw 35 is that they mean 2/5ths of the Directors constituting the Board for the time being. 32 MPLC 59 relied on. [Paras 10 & 25

       The deviation in the words of this Byelaw from the words used in Rule 37 (1) of the M. P. Cooperative Societies Rules is deliberate. [Para 11

       Even if there are two different interpretations possible of Byelaw 35, the Court would adopt that which is just, reasonable and fair rather than one which may lead to general inconvenience. [Para 13

       The continuing Directors may act though there are vacancies in the Board of Directors. [Para 14

       (4) Co-operative Societies Act, 1960 (M. P.) - S. 51 - object of.

       The provision has been introduced as a matter of policy and necessary to protect the interests of the public. Even where there was no quorum for a meeting, the proceedings are validated by section 51 of the Act. [Para 17

       (5) Powers - officer-in-charge of current duties - can discharge only administrative or financial powers - cannot exercise statutory powers - Memorandum No. 213.

       There is a difference between a person who is appointed to officiate on a higher post and a person who is merely appointed to be in-charge of current duties of that post in addition to his own. Such a person without being clothed with that rank as in the case of officiating appointment can only exercise administrative or financial powers vested in the incumbent but not any statutory powers of that post. 1964 JLJ 24 relied on. [Para 19

       (6) Cooperative Societies Act, 1960 (M. P.) - Ss. 55 (2) & 77 - powers of the Board in appeal - may order reinstatement and back wages.

       The second appeal to the Board in cases arising under section 55 (2) is competent. In such an appeal the Board has jurisdiction to order re-instatement of the employee and give a direction to pay the back wages. These are all matters which fall within the ambit of "a dispute regarding terms of employment", as envisaged by section 55 (2) for the adjudication of which a reference is made to the Registrar. [Para 20

       (7) Master and Servant - resignation - when takes effect.

       Resignation by a servant does not operate as discharging the contract by bringing it lawfully to an end, unless such resignation be accepted by the master. [Para 21

       

ORDER

A. P. Sen, J. - 1. By this application under Articles 226 and 227 of the Constitution, the petitioner Satna Central Co-operative and Land Mortgage Bank Ltd. (hereinafter referred to as "the petitioner Bank"), seeks the issue of a writ in the nature of Certiorari for quashing an order of the Board of Revenue, Madhya Pradesh, dated 2nd April 1968, and for an appropriate writ or direction in the nature of Mandamus to restrain the authorities from giving effect to the impugned order, in the manner threatened.

2. The relevant facts leading to this application are these. By the order impugned, the Board of Revenue, Madhya Pradesh has in a second appeal under section 77 (2) of the Madhya Pradesh Co-operative Societies Act, 1960 (Act No. XVII of 1961), (hereinafter referred to as "the Act"), reversed an order passed in first appeal by the Joint Registrar of the Co-operative Societies, confirming the acceptance of resignation of the respondent No.1, Puranlal Agrawal, against whom the petitioner Bank had instituted an enquiry into certain charges, by a resolution of the Board of Directors passed at its meeting held on 13th July 1965 and instead, set aside the resolution on the grounds that: (i) the Board of Directors of the petitioner Bank was not during the material time, duly constituted and (ii) there was no quorum for its meeting held on 13th July 1965 at which the said resolution was passed. Upon these findings, the Board of Revenue has set aside the resolution of the Board of Directors accepting the resignation of the said Puranlal as being legally invalid and, accordingly directed his re-instatement to his post forthwith, with a direction for payment of all the back wages and other allowances for the period during which he was "illegally kept out of office", and held that his resignation had still so far not been "legally accepted".

3. The operative part of the impugned order of the Board of Revenue proceeds on these lines. According to Bye-law No. 30 of the bye-laws, there has to be constituted a Board of Directors consisting of 18 persons. Of these, the Registrar, Co-operative Societies or his nominee not below the rank of the Assistant Registrar is one. It appears that at the time when the meeting of the Board was held on 13-7-1965, the Board consisted only of 11 members and was not fully constituted for some reason or the other, as prescribed in bye-law No. 30. Bye-law No. 35 prescribes that 2/5th of members of the Board of Directors shall form a quorum. If the total strength of the Board of Directors is taken as the basis, then 7 members will constitute the quorum. On behalf of the Bank it was urged that number of members required for the quorum should be determined with reference to the actual number of Directors and not with reference to the prescribed strength of 18. Thus, as against the strength of 11 members, the number of members required to be present for the quorum was 5. According to the Board of Revenue, the number of persons required to be present to form a proper quorum had to be determined "with reference to the total number of members of the Board", as prescribed under Bye-law No. 30, and not the number of the Directors actually working in the Board. The Board of Revenue further held that any other view will lead to impossible situation as according its view, a quorum for proper functioning of any representative body was prescribed to ensure that some minimum number of persons take part in deliberations and take decisions on behalf of the Board they represent. Thereafter, the Board proceeded to deal with the question, whether Bank Inspector P. M. Gore who was in current charge of the duties of the Assistant Registrar, and held that he was not entitled to participate in the meeting as a nominee of the Registrar under Byelaw No. 30 (vi). Eventually, the Board of Revenue came to the conclusion that Resolution No.8 of the Board of Directors, accepting the resignation of the respondent No. 1 was not legally and v


























































































































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