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1997 Supreme(Online)(SC) 23

SUPREME COURT
, J
Goa State Cooperative Bank Ltd. v. Pedne Taluka Prathamik Shikshak Pat Saunstha Ltd. and Others
WP No. 145 of 1996



Advocates:
For the Appellants/Petitioners: Shri Anil B. Divan
For the Respondents: Shri Mukul Mudgal, Shri Khanwilkar

Amendments to a cooperative society's bye-laws must be approved by the Registrar for validity in conducting elections.

Headnote:The Supreme Court addressed the election procedures for a cooperative society under the Multi State Cooperative Societies Act, 1984. It determined that the amendments to the bye-laws must be approved by the Registrar to be effective, impacting the validity of elections conducted. The Court allowed the appeal and set aside the High Court's order, directing the elections be conducted according to the relevant rules and bye-laws.

1 Leave granted.

2 We have heard the counsel on both sides.

3 This appeal by special leave arises from the judgment and order of the Bombay High Court, Panaji Bench, dated April 26,1996 made, in WP No. 145 of 1996. It is not necessary to dilate upon the entire controversy that has arisen between the parties. Suffice it to state that on September 20, 1996, this Court, after hearing all the counsel, passed the following as:
"It is now an admitted position that the appellant - Bank is neither National Cooperative Society, nor Statewide notified Cooperative Society falling under S.35 of Multi State Cooperative Societies Act , 1984. In that perspective the only procedure for conducting the election to other Societies is as per Para.8 of the Schedule which envisages conducting of elections in accordance with the procedure prescribed therein. It is not in dispute that the General Body of the Society resolved to adopt Para.2 to 7 of the Schedule for conducting elections to the society and resolution to that effect was passed and also the Bye laws were amended. The area of controversy is whether the amended Bye laws have been approved by the Registrar. The High Court has proceeded on the premise that the Registrar must have approved the Bye laws and on that premise directed the respondent to conduct the election. Unless the Bye laws are approved by the Registrar, they do not become effective. Resultantly any election conducted in transgression of the statutory rules would admittedly become invalid. Shri Mukul Mudgal, the learned counsel for the Registrar, is directed to file an affidavit whether the Bye laws have been approved by the Registrar, or not."

4 Pursuant thereto, the Registrar, Cooperative Societies, Shambhaji Dattajirao Desai has filed his affidavit in which he stated that an amendment to Bye law No. 36 was approved by the Central Registrar of the Cooperative Societies on September 6, 1994. The amended bye law was appended as Annexure R1 which would show that
"The Board of Directors shall consist of 13 Directors of which 3 Directors or 1/3 of the number of Directors whichever is less shall be nominated by the Government or any authority specified by it, in this behalf, if the Government has purchased share of the Bank. The Managing Director shall be the ExOfficio member of the Board of Directors. The other members of the Board of Directors shall be elected as per the Multi State Cooperative Societies Act , 1984 and Rules as prescribed under para.2 of the Schedule to the Multi State Cooperative Societies Rules, 1985. The Constituency and the Units of the affiliated Societies to the Bank shall be as under.
The voters in respective constituencies and units shall elect their own Directors. The representative of service (sic) and other Societies affiliated to the Bank shall be qualified to contest election through the respective units and constituency."

5 It is not in dispute that it was further amended and the bye law, as amended for the second time, was certified by the Registrar on February 8, 1996 which reads as under :-
"In pursuance of the provisions of the Multi State Cooperative Societies Act , 1984, the amendments to Bye law No. 1(a) of the Goa State Cooperative Bank Ltd., Panaji, Goa is hereby registered under S.9 of the Multi State Cooperative Societies Act , 1984 (51 of 1984).
Given under my hand and seal this the 8th day of February, 1996."

6 Shri Anil B. Divan, the learned senior counsel appearing for the appellant, has brought to our notice the procedure applicable to the conduct of elections to the Societies as envisaged in R.104 and Schedule.2, of the Multi State Cooperative Societies (Registration, Membership, Direction and Amendment. Settlement of Disputes, Appeal and Revision) Rules, 1985 (for short, "the Rules"). He contended that election to the Society should be conducted as per rules. Shri Khanwilkar, learned counsel appearing for the respondent, contended that after the amendment of the Bye laws a controver

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