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2022 Supreme(Online)(Bom) 29

HIGH COURT OF BOMBAY
MANISH PITALE, J
Premanand Chawdikar – Appellant
Versus
The Registrar of Cooperative Societies, Government of Goa – Respondent
Writ Petition Nos. 1242 | Writ Petition No. 1219 | Writ Petition No. 2611



Advocates:
For the Appellants/Petitioners: Dinesh Eknath Naik, Trupti Bethkar, S. S. Kantak, G. Panandikar, K. Ceaser, S. R. Rivankar, N. Rivankar
For the Respondents: S. Samant, P. Chawadikar, Nilesh Takkekar, Deep Shirodkar, S. R. Rivankar, Shivan Desai

Eligibility for election to cooperative societies hinges on strict compliance with bye-law stipulations concerning profit and dividend distribution to members, not merely record keeping.

Headnote:(A) Goa Cooperative Societies Act, 2001 - Sections 52 and 58 - Interpretation of bye-law 30 A(16) - Nomination papers for board elections - Nomination papers of certain candidates rejected for not complying with profit and dividend distribution criteria - Impugned Tribunal decisions conflicting; one approving election, another rejecting based on same bye-law interpretation. (Paras 1-4, 7, 23-28)

(B) Statutory compliance - Requirement for societies to pay dividends and maintain records for eligibility criteria as per bye-law - Annual payment to members necessary for compliance and eligibility determination. (Paras 20-21, 27)

(C) Nature of election process - Unopposed election deemed valid if only one candidate meets eligibility criteria, even if objections raised on procedural grounds. (Paras 31-32)

Facts of the case:
The petitions challenge conflicting Tribunal decisions concerning election eligibility based on bye-law compliance regarding profit and dividend distribution amongst members of a cooperative society. (Paras 1-4, 7)

Findings of Court:
Court upheld rejection of certain nomination papers, while quashing contradictory decision allowing election of other candidates; remanded for further examination of compliance with statutory requirements. (Paras 32-34)

Issues: The main issues addressed involve the interpretation of bye-law 30 A(16) regarding dividend compliance for election eligibility and whether the Tribunal's conflicting decisions were appropriate. (Paras 1-4)

Ratio Decidendi: The court reasoned that compliance with criteria mandated by bye-law 30 A(16) is essential for nomination acceptance; merely specifying dividends without distribution does not satisfy eligibility requirements. (Paras 23-24, 27)

Result: Writ petitions present conflicting Tribunal orders, necessitating remand for further consideration; certain elections declared invalid, while others upheld based on statutory interpretation.

Table of Content
1. interpretation of bye-law 30 a(16) (Para 1 , 2 , 3 , 4)
2. rejection and acceptance of nomination papers (Para 5 , 6 , 7 , 8)
3. arguments on compliance with bye-law (Para 10 , 11 , 12 , 13)
4. counterarguments on compliance (Para 14 , 15)
5. general body and statutory compliance (Para 18 , 19 , 20 , 21)
6. distribution of dividend condition (Para 22 , 24 , 26)
7. final legal ruling on tribunal's decisions (Para 23 , 32)
8. conclusion and orders of the court (Para 33 , 36 , 37)

JUDGMENT

1. A common question arises in these Writ Petitions concerning the interpretation of bye-law 30 A(16) of the Bye-laws pertaining to the Respondent no.3-Goa State Co-operative Bank Ltd. and in that context, the correctness or otherwise of the impugned Judgments and Orders passed by the Co-operative Tribunal of Goa.

2. Writ Petition no. 1242 of 2021, is filed by Ramchandra Govind Mule, challenging the impugned order passed by the Tribunal upholding the rejection of his nomination papers for contesting in the elections to the board of Directors of the Respondent no.3-Society.

3. Writ Petition No. 1219 of 2021 is filed by Krishna Vasudev Kudnekar and Upasso Putu Gaonkar, challenging the same impugned Judgment and Order of the Tribunal to the extent that their election as Directors of the Respondent no.3-Society stood quashed and set aside on the basis that their nomination papers were wrongly accepted by the Respondent no.2-Returning Officer.

4. Writ Petition No. 2611 of 2021, is filed by Premanand Chawdikar, to challenge Judgment and Order dated 29.11.2021 passed by the Tribunal, whereby his election as Member of Board of Directors of the Respondent no.3-Society has been set aside and it has been declared that the rejection of nomination papers of the Respondent no.4 in the said Writ Petition was illegal. It is significant that the Tribunal in the said Judgment and Order dated 29.11.2021, has taken a view on the same bye-law, diametrically opposite to the view adopted by the Tribunal in the Judgment and Order dated 30.04.2021, which is the subject matter of challenge in Writ Petition nos. 1219 of 2021 and 1242 of 2021. Thus, the decision in the Writ Petitions depends upon the interpretation of bye-law 30 A(16) of the aforesaid Bye-laws of Respondent no.3- Society.

5. Election program for electing members for the Board of Directors of the Respondent no.3-Society was declared. The scrutiny of nomination forms was to take place on 08.08.2019, to be completed by 10.08.2019 and on 14.08.2019, the final list of the contesting candidates was to be published. The Respondent no.1- Returning Officer scrutinized the nomination papers and passed an order on 10.08.2019, rejecting the nomination papers of Petitioner- Ramchandra Mule (Petitioner in Writ Petition No. 1242 of 2021) on the ground that he did not fulfil the eligibility criteria as per bye-law 30 A(16) of the aforesaid Bye-laws and held that the nomination papers of Respondent nos. 4, 5 and 6 were accepted since they fulfilled all the eligibility conditions as per the Bye-laws. As a consequence of the order passed by the Returning Officer, in the category in which the Petitioner and the aforesaid Respondent nos. 4, 5 and 6 were contesting elections, it was found that only the aforesaid Respondents were eligible candidates in the field and accordingly they stood elected unopposed.

6. Aggrieved by the said order of the Respondent no.1- Returning Officer and the consequent declaration of Respondent nos. 4, 5 and 6 as elected in the concerned category as members of the Board of Directors of Respondent no.3-Society, the Petitioner in Writ Petition No. 1242 of 2021, Ramchandra Mule, filed a dispute before the Tribunal under Section 83 of The Goa Co-operative Societies Act, 2001 , (hereinafter referred to as the aforesaid Act). In the dispute filed before the Tribunal, the said Petitioner emphasized upon alleged wrongful rejection of his nomination papers and also that he was challenging the acceptanc

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