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IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
Nagesh Bheemapaka, J.
Laxmannagari Shashidhar Reddy - Appellant
Versus
The State of Telangana - Respondent
Writ Petition No. 31608 of 2023
Decided On : 02-02-2024
Inconsistency - Bye-law 24(viii) of South Central Railway Employees' Cooperative Credit Society Limited - Section 44(2) of the Multi-state Cooperative Societies Act, 2002 - Summary: The court discussed the inconsistency between Bye-law 24(viii) and Section 44(2) of the Act, highlighting the disqualification of directors/delegates and the eligibility for chairperson/president/vice-chairman/vice-president, and the implications of the inconsistency on the petitioner's participation in the election process.
Fact of the Case:
The petitioner sought to participate in the election for the Board of Directors of the South Central Railway Employee's Cooperative Credit Society Ltd. and challenged the inconsistency between Bye-law 24(viii) and Section 44(2) of the Multi-state Cooperative Societies Act, 2002. The court directed the respondent authorities to accept the petitioner's application and allow him to participate in the election.
Finding of the Court:
The court found an inconsistency between Bye-law 24(viii) and Section 44(2) of the Act, and directed the respondent authorities to accept the petitioner's application and allow him to participate in the election. The court also modified the order to allow the election process to continue without prejudice to the impleaded respondents.
Issues: The main issue was the inconsistency between Bye-law 24(viii) and Section 44(2) of the Multi-state Cooperative Societies Act, 2002, and its impact on the petitioner's eligibility to participate in the election for the Board of Directors.
Ratio Decidendi: The court held that the petitioner's fundamental right to participate in the election process was violated due to the inconsistency between Bye-law 24(viii) and Section 44(2) of the Act. The court also emphasized the need for an effective and efficacious remedy and the limitations on the court's jurisdiction in election disputes.
Final Decision: The court directed the respondent authorities to accept the petitioner's application and allow him to participate in the election for the Board of Directors. The court also allowed the election process to continue without prejudice to the impleaded respondents.
ORDER
Nagesh Bheemapaka, J. - In this Writ Petition, petitioner seeks to declare byelaw 24(viii) of the South Central Railway Employees' Cooperative Credit Society Limited as it is inconsistent with Section 44(2) of the Multi-state Cooperative Societies Act, 2002 along with the Multi-State Cooperative Societies Rules, 2002, as illegal. A consequential direction is sought to allow petitioner to participate by accepting his Application without referring by-law 24(viii) of the Act as Board of Director, pursuant to notification dated 11.11.2023 issued by the 3rd respondent.
2. It is the case of petitioner that he has been working as Tech-1/DSL/MLY in South Central Railway and participated in the election of South Central Railway Employee's Cooperative Credit Society Ltd. in 2013 and 2018 and selected as Delegate and later as Director to the General Body. It is stated that the 3rd respondent Society issued notification dated 28-082023 to conduct election of Delegates to the General Body; election was conducted on 10.10.2023 and 12.10.2023 and results also were declared and 210 members elected as Delegates of General Body of the 3rd respondent society. Petitioner was elected as one of the Delegates for Constituency No.7.
It is further stated that in continuation of Election Notice dated 28.08.2023, the 3rd respondent Society issued another Notification dated 11.11.2023 for conducting elections to the Directors for the Board of Directors and Office Bearers (21 Board of Directors) on 25.11.2023 through secret ballot system. In the said notification, the election schedule mentioned, as per which, issuing and receipt of nomination forms was on 16.11.2023 from 10.00 AM to 5.00 PM and scrutiny of nominations and publication of valid nominations on 17.11.2023. As per the notification, disqualification for Board of directors/office bearers is at clause (b) "As per MSCS Act,2002 and registered by laws of the SCR ECCS Ltd". Disqualification was dealt with in Section 44 (2) of the MSCS Act, 2002 and bye-law 24 (viii) which is extracted here under:
Section 44: Prohibition to hold office of chairperson or president or vice-chairman or vice president in certain cases:
(2) No member of a board shall be eligible to be elected as the chairperson or president of a multi-state co-operative society, after he has held the office, as such during two consecutive terms, whether full or part:
Provided that a member who has ceased to hold the office of the chairperson or president continuously for one full term shall again be eligible for election to the office as such.
Explanation where any member holding the office of the chairperson or president at the commencement of this act is again elected to that office after such commencement, he shall for the purpose of this section, be deemed to have held office for one term before such election.
Comments: A member of a Board shall not eligible to be elected as the chairperson or president or vice-chairman or vice president of Multi- State Co-operative society if such member is a minister of the central government or State Government. No A member of a Board shall not eligible to be elected as the chairperson or president or vice-chairman or vice president of Multi-State Co- operative society after he has held the office as such during two consecutive terms.
Bye-Law 24. Disqualification for directorship as delegateship:
No person shall be eligible for being chosen as and for being a member of the board of delegate, if he (viii) has held office as a director of the Board/delegate For two immediately preceding consecutive terms.
The case of petitioner is that Section 44 (2) of the Act is referring disqualification of Chairperson or President or Vice-chairman or Vice-president of Multi-State Co-operative Society if he has held the office as such during two consecutive terms and such section is not applicable to Directors/Delegates; Bye-law 24 (viii) is referring to disqualification of Director/Delegate if he held the office as s
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....
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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....
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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