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IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
Nagesh Bheemapaka, J.
Kashapogu Mahesh - Appellant
Versus
The Central Registrar of Cooperative Societies - Respondent
Writ Petition No. 33211 of 2023
Decided On : 02-02-2024
Illegal Amendment - Multi State Co-operative Societies - Section 11(4)(iii)(iv)(v)(vi)(vii) of the Multi State Co-Operative Societies Act, 2002, Section 15 of the Multi State Co-operative Societies( Amendment ) Act, 2023 - 84. Reference of disputes
Fact of the Case:
The petitioner filed a Writ Petition to challenge the illegal amendment of the Bye-Laws of the 4th respondent Society without following due procedure of law. The petitioner sought to declare the election notifications and conduct of elections as illegal and violative of the Constitution of India and various statutes.
Finding of the Court:
The Court found that the amendment of the Bye-Laws violated the provisions of the Multi State Co-Operative Societies Act, 2002 and the Multi State Co-operative Societies( Amendment ) Act, 2023. The Court also held that the election process was vitiated due to the failure to provide reservation for SC & ST and women as required by Section 15 of the 2023 Act.
Issues: The main issues were the legality of the amendment of the Bye-Laws, the validity of the election notifications and conduct of elections, and the availability of writ remedy against a Co-operative Society.
Ratio Decidendi: The Court held that the amendment of the Bye-Laws without following due process of law and the failure to provide reservation for SC & ST and women in the election process amounted to gross violation of statutes. The Court also found that the Writ Petition was not maintainable against the Co-operative Society as an effective alternate remedy was available under Section 84 of the Multi-State Co-operative Societies Act.
Final Decision: The Writ Petition was dismissed by the Court, and the election process was held to be vitiated. The Court also ruled that the Writ Petition was not maintainable against the Co-operative Society.
JUDGMENT
Nagesh Bheemapaka, J. - This Writ Petition is filed to declare the action of the respondents, without following the due procedure of law, in amending the Bye-Laws 24(viii) of the 4th respondent Society which was approved by the 1st respondent vide Proceedings F.No.L-11016/20/1986(e), dated 28.01.2023 and without providing Rule of reservation for SC & ST and Women candidature under Section 15 of the Multi State Co- operative Societies ( Amendment) Act, 2023 and issued the election notification for elect Delegates on 28-08-2023 and conducted elections for the delegates on 17-10-2023 & 19-10-2023 and also announced results on 25-10-2023 to 30-10-2023 and issued election notification for elect Directors on 11-11-2023 and elections conducted on 25-11-2023 and announced results on 25-11-2023 at 1:30 PM of the 4th respondent South Central Railway Employees Cooperative Credit Society Limited as ex-facie illegal, violative of principles of natural justice and the provisions of the Multi State Co-operative Societies Act, 2002, the Multi-State Co-operative Societies( Amendment) Act 2023 and Articles 14, 19 & 21 of the Constitution of India and also against the catena of judgments of this Hon'ble Court and the Apex Court. Consequently, direct the respondents to issue fresh election notification for the delegates and directors by following due procedure of law which occupies the field by providing reservation for SC & ST and Women under provisions of the Multi State Co-operative Societies( Amendment) Act, 2023.
2. It is stated, the Managing Committee of the Society amended Bye-Law 24 (viii) on 13.07.2022 to the effect that 'has held office as a Director of the Board for two immediately preceding consecutive terms" in place of 'has held office as a Director of the Board/Delegate for two immediately preceding consecutive terms" by violating Sec.11(4) (iii), (iv)(v)(vi) (vii) of the Multi State Co-Operative Societies Act, 2002, which is violating due procedure of law and the due procedure of law is basic structure of the Constitution of India. Section 11(4) (iii), (iv), (v), (vi), (vii) of the Multi-State Co-Operative Societies Act, 2002 occupies the field to amend Bye-Laws of the Society, which was registered under Sec. 11(4) (iii), (iv)(v)(vi)(vii) for the Society registered in 1923 under the provisions of the Act, vide Regd. No. 1548(SCRECCSL) and serving approximately 44,000 members, who are discharging duties of the South Central Railway. It is further stated that Section 11(4) (iii), (iv), (v), (vi), (vii) of Act contemplates that to amend any bye-Law, Section 11(4) (iii), (iv), (v), (vi), (vii) of the Act, 2002 prescribes procedure; in every case in which a multi-state co-operative society proposes to amend bye-laws, an Application to register such amendments shall be made to the Central Registrar together with the total number of members of Multi-State Co-operative society, quorum required for such meeting, number of members present at the meeting, number of members who voted in such meeting, number of members who voted in favor of such amendments. The Society has not followed the above statutory and mandatory provisions in amending the bye-law on 13.07.2022 and the same was approved by the Central Registrar on 28.01.2023 and issued proceedings vide F.No.L-11016/20/1986(e) -Reg is not tenable in the eye of law.
It is stated that based on the above-said impugned bye-law, election notifications were issued by the 5th respondent to elect Delegates and Directors of the Society for five years and process started from 28.08.2023 to 25.11.2023, without following Section 15 of the Multi State Co-operative Societies( Amendment ) Act, 2023 and providing reservation for Scheduled Castes, Scheduled Tribes, Women.
It is the case of petitioner that the Society has no right to act as an individual, without following due procedure of law, which occupies the field in amending the byelaw.
3. Petitioner filed additional affidavit stating that Sectio
The main legal point established in the judgment is the violation of the petitioner's fundamental right to participate in the election process due to the inconsistency between Bye-law 24(viii) and Se....
The bye-laws governing elections within co-operative societies are valid and enforceable, as they regulate participation without infringing on voting rights, thereby promoting effective governance wh....
The classification of a cooperative society as aided or unaided determines the authority responsible for conducting elections under the A.P. Cooperative Societies Act.
The right to contest elections is a statutory right, not a fundamental right, and arbitrary term restrictions violate the autonomy of co-operative societies.
Sub-rules (4) and (4A) would specifically make it clear that what was being sought to be explained by explanation was with regard to right to be included in a voters list and therefore, eligibility t....
Compliance with statutory election procedures within cooperative societies is mandatory to ensure valid electoral processes; neglecting to notify ineligible voters invalidates election actions.
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