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2024 Supreme(Online)(SC) 5698

SHASHI KIRAN – Appellant
Versus
UNION OF INDIA – Respondent
SLP(C) No.-002712 / 2024 17-01-2024



Advocates:
KUMUD LATA DAS

The disqualification order issued after the final list of candidates does not retroactively affect their eligibility, ensuring the integrity of the electoral process.

Headnote:(A) Multi-State Cooperative Societies Act, 2002 - Section 43(2) - Disqualification of elected members of the Board of a Cooperative Society - Petitioners challenged the disqualification order issued by the Central Registrar, claiming it was ineffective post the final list of candidates published on 11 January 2024 - High Court ruled that the disqualification operates prospectively, allowing elections to proceed based on the final list - Clarification provided that statutory remedies under the Act remain available. (Paras 1-3, 8-9)

(B) Election Procedure - The High Court emphasized that the disqualification order does not affect the rights of candidates declared eligible prior to its issuance, thus ensuring the integrity of the electoral process. (Paras 2, 9)

Facts of the case:
The petitioners contested the disqualification of 15 members from the outgoing Board of the Cooperative Society, which was declared after the final list of candidates was published. The elections were held on 18 January 2024, with four disqualified members contesting, of whom one was elected. (Paras 1, 7)

Findings of Court:
The High Court allowed the elections to proceed based on the final list published before the disqualification order, affirming that the order would apply prospectively. (Paras 2, 9)

Issues: The main issues included the applicability of the disqualification order post the publication of the final list of candidates and the validity of the election process. (Paras 2, 9)

Ratio Decidendi: The court held that the disqualification order issued after the final list of candidates does not retroactively affect their eligibility, thus preserving the electoral process's integrity. (Paras 2, 9)

Result: The Special Leave Petition is disposed of, allowing the elections to proceed as per the final list of candidates.

ORDER

1 A Writ Petition under Article 226 of the Constitution was instituted before the High Court of Delhi by three individuals, namely, (i) Shri Arun Mishra; (ii) Shri S Madhusudan Babu; and (iii) Shri Umesh Babu Chaurasia. They challenged an order dated 13 January 2024 of the Central Registrar of Cooperative Societies holding that 15 elected members of the outgoing Board of the Supreme Court Bar Association Multi-State Cooperative Group Housing Society Limited stood disqualified and were not eligible to be elected as members of the Board for a period of five years from the date of the order.

2 The principal ground which was urged before the High Court in support of the petition was that a revised election programme was published on 28 December 2023; the final list of candidates was notified by the Returning Officer on 11 January 2024 and since the order of disqualification by the Central Registrar was passed only thereafter on 13 January 2024, it would have no bearing on the list Digitally signed by NEETA SAPRA Date: 2024.02.14 16:48:00 IST Reason:

    Signature Not Verified of candidates declared eligible to contest the election. The High Court, by its impugned order dated 16 January 2024, held that the order of disqualification will apply prospectively :
    “8. … the nominations were scrutinize by the RO and the final list was published on 11.01.2024. The impugned order passed by Respondent No. 2 being a declaration of disqualification after publication of final list of candidates on 11.01.2024 cannot affect the rights of the declared candidates, as the impugned order shall operate prospectively. In view of the statement of the RO i.e., Respondent No. 4, the present petition is disposed of directing that the elections will be conducted as per the final list of candidates published on 11.01.2024 and the Petitioners herein will not be excluded from contesting the scheduled elections.”

3 However, the High Court clarified that this would be subject to the availing of statutory remedies in respect of the order dated 13 January 2024 in accordance with the provisions of the Multi-State Cooperative Societies Act 2002 (as amended on 3 August 2023)1.

4 When these proceedings came up before the Court on 17 January 2024, notice was issued. While this Court did not stay the election programme, it directed that all steps taken in pursuance of the election shall be subject to the final result of these proceedings or subject to such further orders that may be passed by this Court.

The order passed by the Central Registrar of Cooperative Societies on 13 January 2024 was in exercise of powers conferred by Section 43 (2) of the MCS Act 2002.

The order directed that all the 15 elected members of the outgoing Board were “The MCS Act 2002”

not eligible for being elected as members of the Board of the Cooperative Society for a period of five years from the date of the order. The names of the persons who were disqualified were tabulated in paragraph 18 of the order of the Central Registrar, which is reproduced below :

    Among other defaults, the Central Registrar held that the outgoing Board since its constitution in 2018 was in default in calling the Annual General Meeting and placing the financial statement before the General Body.
    “S. No.Name of Directors
    1.Sh. Neeraj Kumar Sharma (Chairman)
    2.,Sh. Umesh Babu Chaurasia (Vice-Chairman)
    3.Sh. Vibhu Shankar Mishra
    4.Ms. Hema Sahu
    5.Sh. Arjun Kumar De
    6.Sh. Annam Tirupati Rao
    7.Sh. Rohitash Singh Nagar
    8.Sh. Arun Kumar Mishra
    9.Sh. Shaiiendra Tiwary
    10.Sh. S. Madhusudhan Babu
    11.Sh. Swetaketu Mishra
    12.Sh. P. S. Sharda
    13.Sh. Kanwar Anand Singh
    14.Sh. Ajay Kumar Sharma
    15.Ms. Poonani Parashar”
    “S. No.Name of Directors
    1.Sh. Neeraj Kumar Sharma (Chairman)
    2.,Sh. Umesh Babu Chaurasia (Vice-Chairman)
    3.Sh. Vibhu Shankar Mishra
    4.Ms. Hema Sahu
    5.Sh. Arjun Kumar De
    6.Sh. Annam Tirupati Rao
    7.Sh. Rohitash Singh Nagar
    8.Sh. Arun Kumar Mishra
    9.Sh. Shaiiendra Tiwary
    10.Sh. S. Madhusudhan Babu
    11.Sh. Swetaketu Mishra
    12



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