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HIGH COURT OF MADHYA PRADESH
A. P. Sen & G. P. Singh, JJ.
Basant Kumar
Vs.
Assistant Registrar, Co-operative Societies, Jabalpur and others.
M. P. No. 579 of 1968
Decided On : 26-3-1969
The representative of a society appointed under Byelaw 9 does not himself become a member of the general body or the managing committee of the Store, he is only a representative of the Co operative society which is the real member. This conclusion is further supported by the language used in Rule 45 which provides that no society shall elect any member, who suffers from any of the disqualifications laid down in Rule 44 as its delegate, to the committee of another society or to represent it to another society. The Rule thus contemplates that a society can appoint one of its qualified member as its delegate to the committee of another society. Such a delegate can always be withdrawn and another delegate appointed in his place by the society as is provided in Rule 45 (2)(c). The occasion for a society to nominate a delegate to the committee of another society can only arise when the society is a members of the committee and an individual is required to represent it in the committee. A delegate representing a society in the committee of another society is not himself a member but is only 1 representative of the society, which is really the member of the committee. [Para 4
(2) Co-operative Societies Rules, 1962 (M. P.)-R. 44, Byelaw 12-A- ‘person’-includes a society-General Clauses Act, 1957 (M. P.)-S. 2(31).
Rule 44 and Byelaw 12-A open with the words "no person shall be eligible for election as a member." The word "person" is defined in section 2 (31) of the Madhya Pradesh General Clauses Act, 1957 and includes an association or body of individuals whether incorporated or not. The General Clauses Act by virtue of section 31 (b) applies to the construction of Rules and Byelaws made under a Madhya Pradesh Act. Subject to a contrary context therefore, we must include a society within the word "person" in Rule 44 and Byelaw 12-A. the use of the words "if he" does not negative the inclusion of a society within the word "person". The word "he" in statutes may be used to include both sexes as well as Corporation. AIR 1963 SC 320 relied on. [Para 5
(3) Co-operative Societies Rules, 1962 (M. P.)-Rr. 45 & 44, Byelaw 12-A-disqualification-should not exist in the society as well as its delegate-any of them disqualified-ceases to be a member.
If a particular clause contains a disqualification which is wide enough to include both individuals and societies, there is no reason to give to that clause a restricted meaning. The disqualification arising out of being in default to the store for- a period exceeding twelve months in respect of any loan as provided by Rule 44 (h) and Byelaw 12-A (1) (e) is wide enough to include a society within it. Now, the object of the disqualification, that a person who is in default to the Store or to any member society should not be elected to the managing committee of the Store, is to avoid conflict of interest against duty. This object equally applies whether the person concerned is an individual or a society. [Para 5
The requirements of the Rules are twofold. The member society must not suffer from any disqualifications mentioned in Rule 44 and the delegate elected by it to represent it should also not suffer from any of the disqualifications the delegate however, has no independent existence. He only represents the society which is the real member in the committee and if the society ceases to be a member of the committee because of a disqualification incurred by it, the delegate will automatically cease to be delegate although he may not have himself incurred any disqualification under Rule 45. [Para 6
Singh, J.-
1. The petitioner by this petition under Article 226 of the Constitution seeks a writ in the nature of certiorari to quash an order of .he Assistant Registrar, Co-operative Societies, Jabalpur passed on 21st November, 1968 to the effect that his membership in the managing committee of the Jablapur Wholesale Consumers' Co-operative Store Limited, which was on behalf of the Motinala Primary Consumers' Co-operative Society Limited, has come to an end because the Society is in default to the Store for a period exceeding twelve months thereby incurring a disqualification for being a member of the managing committee of the Store under Byelaw No. 12-A (e).
2. The material facts are these. The petitioner is a member of the Motinala Primary Consumers' Co-operative Society Limited (hereinafter referred to as the Society). There is another society named as the Jaba1pur Wholesale Consumers' Co-operative Store Limited (hereinafter referred to as the Store). The society is a member of the store and the petitioner represents the society in the store. On 16th June, 1968 the petitioner in his representative capacity was elected as a member of the managing committee of the store. The society later became in default to the store for a period exceeding twelve months in respect of loans taken by it. The petitioner by the impugned order has been intimated that his membership in the managing committee has ceased because the society represented by him being in default has incurred a disqualification. The petitioner in this petition claims that his member ship continues.
3. Before adverting to the contentions raised by the learned counsel for the petitioner it is necessary to refer to the relevant statutory provisions. Section 19 of the Madhya Pradesh Co-operative Societies Act, 1960 deals with persons who may become members in a Co-operative Society. A Cooperative Society may have as its members individuals, any other society and the State Government. A society registered under the Act, as declared by section 31 of the Act, is a body corporate by the name under which it is registered and as provided in Rule 34 of the Madhya Pradesh Co-operative Societies Rules is managed by a committee of management which is elected with in a period of three months from the date of its registration. The disqualifications for", membership of the committee of management of a society are provided in Rule 44 which reads as follows:-
"44. Disqualification for membership of committee - No person shall be eligible for election as a member of the committee of a society and shall cease to hold his office as such, if he-
(a) is an applicant to be adjudicated or is an un-discharged insolvent; or
(b) is sentenced for an offence, other than an offence of a political character or an offence not involving moral turpitude and a period of five years has not elapsed from the date of expiry of the sentence ; or
(c) is or becomes of unsound mind; or
(d) holds or accepts any office of profit in the society; or
(e) carries on business of the kind carried on by the society; or
(f) has been held responsible under Section 63 ; or
(g) is or becomes a near relation of a paid employee of the society; or
(h) is or gets in default to the society or to any other society for a period-exceeding twelve months in respect of any loan or loans taken by him; or
(i) has been a member of a society for jess than twelve months immediately preceding the date of such election:
Provided that the disqualification specified in clauses (d) and (e) in the case of any member be removed with the previous sanction of the Registrar:
Provided further that the disqualification specified in clause (i) shall not apply for the conduct of an election to the committee of a society till fifteen months have elapsed after the registration of such society."
When a society is a member in another society it is represented by a person appointed or elected by it and disqualifications of such person for purposes of representation arc
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