Searching Case Laws & Precedent on Legal Query..!
Scanned Judgements…!
Searching Case Laws & Precedent on Legal Query..!
Scanned Judgements…!
Some judgments recognize that the Board of Directors or general body can re-elect members even after removal, especially if the bye-laws do not specify disqualifications or restrictions on re-election ["Brijesh Kumar Singh VS Central Registrar Co-Operative - Allahabad"], ["Kuldeep Srivastava : Santosh Singh : Dr. Hari Singh VS State of Rajasthan - Rajasthan"].
Analysis and Conclusion:
References:- ["Brijesh Kumar Singh VS Central Registrar Co-Operative - Allahabad"]- ["KUMARADAS VS INDIAN MEDICAL PRACTITIONERS CO-OP. PHARMACY AND STORES LTD. - Delhi"]- ["Dr. Kumardas vs The Indian Medical Practitioners Co-Op. Pharmacy & Stores Ltd. & Ors. - Delhi"]- ["Dr. Kumardas vs The Indian Medical Practitioners Co-Op. Pharmacy & Stores Ltd. & Ors. - Delhi"]- ["Renukaprasad K. V. S/o. K. M. Venkataramana Gowda VS M. Puttaswamy, S/o. Late Motaiah - Karnataka"]- ["Renukaprasad K. V. S/o K. M. Venkataramana Gowda VS M. Puttaswamy S/o Late Motaiah - Karnataka"]- ["Kuldeep Srivastava : Santosh Singh : Dr. Hari Singh VS State of Rajasthan - Rajasthan"]
In the world of cooperative societies and housing associations, disputes over board elections are common. A frequent question arises: find judgements where it has been held that board of directors can be re-elected even after being removed by the general body of the society. This issue touches on corporate governance, bylaws, and statutory provisions under Indian laws like the Societies Registration Act and state-specific Cooperative Societies Acts.
While direct precedents are scarce, legal principles from related judgments suggest that re-election is generally permissible unless explicitly barred by bylaws or law. This blog post analyzes key rulings, integrates insights from case law, and offers practical guidance. Note: This is general information, not legal advice. Consult a lawyer for specific cases.
Legal documents and judgments primarily deal with disqualifications, removals, and election procedures but do not directly prohibit re-election post-removal. Principles indicate that removal by the general body vacates the office but does not inherently disqualify a director from future contests. Courts emphasize procedural fairness and adherence to bylaws. For instance, once a director is removed, their seat becomes vacant, but subsequent elections can fill it without automatic bars Election Commission of India VS Bajrang Bahadur Singh - 2015 0 Supreme(SC) 317.
Key takeaway: Removal is procedural; re-election depends on eligibility at the time of the new poll.
Several cases highlight the general body's supreme authority in elections while underscoring no automatic disqualification:
General Body's Role in Elections: The board is elected by the general body, with bylaws dictating post-election roles like president selection. In one case, bye-law no. 14 specified that after general body election, the board elects its president Dr. Kumardas vs The Indian Medical Practitioners Co-Op. Pharmacy & Stores Ltd. & Ors.. This reinforces that elections are open unless restricted.
Removal Does Not Bar Re-Election: A director removed as secretary was later contested in elections. The court noted removal from post and membership but focused on ex-officio status and res judicata, not perpetual bans St. Jude's College, Kanniyakumari District VS Government of Tamil Nadu, Rep. By Secretary to Government, Higher Education Department - 2013 Supreme(Mad) 2852. The 4th respondent had been removed from the post of Secretary of the College on 17.03.2010, and that this removal was not challenged... St. Jude's College, Kanniyakumari District VS Government of Tamil Nadu, Rep. By Secretary to Government, Higher Education Department - 2013 Supreme(Mad) 2852
Bylaws Govern Eligibility: Inconsistencies between bylaws and statutes can affect participation, but courts allow remedies to enable elections. One ruling addressed bye-law 24(viii) vs. Section 44(2) of the Multi-state Cooperative Societies Act, directing acceptance of a candidate's nomination Laxmannagari Shashidhar Reddy VS State of Telangana - 2024 Supreme(Telangana) 102. The petitioner's fundamental right to participate in the election process was violated due to the inconsistency... Laxmannagari Shashidhar Reddy VS State of Telangana - 2024 Supreme(Telangana) 102
No Implied Removal Powers: Boards lack power to remove presidents without specific provisions; general body holds ultimate authority Thottadi China Satyanarayana VS Adduri Ramulu - 1980 Supreme(AP) 173. In the absence of a specific provision in the Act, Rules, or Bye-Laws, the Board of Directors... does not have the jurisdiction to move a no-confidence motion... Thottadi China Satyanarayana VS Adduri Ramulu - 1980 Supreme(AP) 173
These principles apply analogously: post-removal, absent disqualification, re-election is viable.
Removal by the general body typically follows bylaws or statutes, vacating the seat immediately Election Commission of India VS Bajrang Bahadur Singh - 2015 0 Supreme(SC) 317. However, like legislator disqualifications under Articles 190-192, it ends with the event unless extended. Once a legislator incurs disqualification, their seat becomes vacant Election Commission of India VS Bajrang Bahadur Singh - 2015 0 Supreme(SC) 317. For societies, this vacancy is filled via new elections, open to prior members unless disqualified.
Disqualification (e.g., under Section 9A, Representation of the People Act) is distinct and may persist, but general body removal alone does not trigger it Election Commission of India VS Bajrang Bahadur Singh - 2015 0 Supreme(SC) 317. In cooperative contexts, Sections 48-AA and 50-A (M.P. Cooperative Societies Act) require hearings for disqualifications, applying pre- and post-election Bhopal Cooperative Central Bank Maryadit, Bhopal VS State of M. P. - 2021 Supreme(MP) 682. Section 48-AA shall apply in both situations i.e., at the time of election... or if any person is disqualified after election Bhopal Cooperative Central Bank Maryadit, Bhopal VS State of M. P. - 2021 Supreme(MP) 682.
Courts uphold democratic processes. Removed directors can stand again if bylaws allow. For example, in a Kerala case, expelled directors challenged removal successfully, affirming membership rights post-alleged misfeasance TESSY VARGHESE VS SECRETARY TO GOVERNMENT, CO-OPERATIVE DIPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM - 2015 Supreme(Ker) 904. The expulsion of the petitioners from the primary membership of the society was illegal and impermissible TESSY VARGHESE VS SECRETARY TO GOVERNMENT, CO-OPERATIVE DIPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM - 2015 Supreme(Ker) 904.
Another case permitted election participation despite disputes, appointing interim committees Board of Directors of The Decent Junction Service Co-Operative Bank Ltd. VS Registrar of Co-Operative Societies, Thiruvananthapuram - 2017 Supreme(Ker) 947. Managing committees can remove ineligible members, but electoral authorities handle voter lists separately Board of Directors of The Decent Junction Service Co-Operative Bank Ltd. VS Registrar of Co-Operative Societies, Thiruvananthapuram - 2017 Supreme(Ker) 947.
Re-election amid suspicions invites review. Courts pierce the veil for sham transactions Subhra Mukherjee VS Bharat Coking Coal LTD. - 2000 5 Supreme 88. The court’s power to pierce the corporate veil in cases of sham transactions... Subhra Mukherjee VS Bharat Coking Coal LTD. - 2000 5 Supreme 88. Ensure transparency to avoid challenges.
Re-election is not absolute:- Bylaws Restrictions: If bylaws bar removed directors (e.g., term limits or explicit bans), they prevail Board of Directors of Kottappady v. Joint Registrar and others Service Coop. Bank - 1994 Supreme(Online)(Ker) 198.- Statutory Disqualifications: Defaults or crimes may disqualify until resolved Bhopal Cooperative Central Bank Maryadit, Bhopal VS State of M. P. - 2021 Supreme(MP) 682.- Court Orders or Res Judicata: Unchallenged removals bind future claims St. Jude's College, Kanniyakumari District VS Government of Tamil Nadu, Rep. By Secretary to Government, Higher Education Department - 2013 Supreme(Mad) 2852.- Ex-Officio Roles: Cannot be removed like elected ones St. Jude's College, Kanniyakumari District VS Government of Tamil Nadu, Rep. By Secretary to Government, Higher Education Department - 2013 Supreme(Mad) 2852.
Societies like banks have amended bylaws for terms, showing flexibility Board of Directors of Kottappady v. Joint Registrar and others Service Coop. Bank - 1994 Supreme(Online)(Ker) 198.
In summary, board directors removed by a society's general body can typically be re-elected unless bylaws, statutes, or courts prohibit it. Judgments stress general body authority, procedural adherence, and no automatic bars Election Commission of India VS Bajrang Bahadur Singh - 2015 0 Supreme(SC) 317Subhra Mukherjee VS Bharat Coking Coal LTD. - 2000 5 Supreme 88.
Key Takeaways:- Removal vacates office but not future eligibility.- Bylaws and hearings are crucial.- Courts intervene for fairness, not to block democracy.
For tailored advice, consult legal experts. Stay informed on society governance to foster smooth operations.
References:- Election Commission of India VS Bajrang Bahadur Singh - 2015 0 Supreme(SC) 317, Subhra Mukherjee VS Bharat Coking Coal LTD. - 2000 5 Supreme 88, Malwa Cotton & Spinning Mills Ltd. VS Virsa Singh Sidhu - 2008 5 Supreme 611- Dr. Kumardas vs The Indian Medical Practitioners Co-Op. Pharmacy & Stores Ltd. & Ors., St. Jude's College, Kanniyakumari District VS Government of Tamil Nadu, Rep. By Secretary to Government, Higher Education Department - 2013 Supreme(Mad) 2852, Laxmannagari Shashidhar Reddy VS State of Telangana - 2024 Supreme(Telangana) 102, Thottadi China Satyanarayana VS Adduri Ramulu - 1980 Supreme(AP) 173, Bhopal Cooperative Central Bank Maryadit, Bhopal VS State of M. P. - 2021 Supreme(MP) 682, Board of Directors of The Decent Junction Service Co-Operative Bank Ltd. VS Registrar of Co-Operative Societies, Thiruvananthapuram - 2017 Supreme(Ker) 947, TESSY VARGHESE VS SECRETARY TO GOVERNMENT, CO-OPERATIVE DIPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM - 2015 Supreme(Ker) 904
#SocietyDirectors, #ReElectionLaw, #CoopSociety
Section 47 -Removal of elected members by general body An elected member of a board, who has acted adversely to the interests of multi-State co-operative society, may on the basis of a report of the Central Registrar or otherwise be removed from the board ... It has been submitted before us that the term of the Board of Directors of the Bank has been expired and no election for constituting the general#H....
Removal of Elected members by General Body:- an elected member of a board, who has acted adversely to the interests of multi-State Co-operative society, may on the basis of a report of the central Registrar or otherwise be removed from the board upon a resolution of the general body passed at its meeting ... In the case in hand, so far as respondent no. 1-society is concerned, I find#HL_....
The members of the board are elected by the general body of the society. The election of the O.M.P. ... In the case in hand, so far as respondent no.1-society is concerned, I find that bye-law no. 14 provides that after the members of board of directors are elected by the general body, they shall elect from among themselves a President ... As per bye-law 30, ....
The members of the board are elected by the general body of the society. The election of the O.M.P. ... In the case in hand, so far as respondent no.1-society is concerned, I find that bye-law no. 14 provides that after the members of board of directors are elected by the general body, they shall elect from among themselves a President ... As per bye-law 30, ....
... 3 A special general body meeting of the Bank held on 14-3-1993 amended Clause.35 of the bye laws of the Bank stipulating the term of the Board of Directors as three years instead of two years. ... general body of its members. ... The existing managing committee was elected on 12-7-1992. At the time of its election the term of the committee as per Clause.35 of the bye laws was only 2 years. Clause.35 of the bye law was sought to be amended by th....
In view of the said allegations, the Board of Directors of the Educational Agency in the meeting held on 17.03.2010, removed the 4th respondent from the post of the Secretary of the College and subsequently, he was removed from the primary membership of the Society by the General Body of the Society ... It is the yet another contention of the learned senior counsel for the petitioner that the Secretary of the College is to be #HL_ST....
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. ... It is stated that several candidates applied for being elected to the Board of Directors for the ensuing electi....
If he is restrained in between the General Body of Electorate, would be deprived of their elected representative to look after the general interest of the Electorate. ... Thereafter, the election to the Sangha was held on 12.12.2021 to elect the Directors. Accordingly, 35 directors were elected by the members of the Sangha. In the meeting of the Executive Committee dated 05.01.2022, the Directors of the Sangha elected#HL_E....
If he is restrained in between the General Body of Electorate, would be deprived of their elected representative to look after the general interest of the Electorate. ... Thereafter, the election to the Sangha was held on 12.12.2021 to elect the Directors. Accordingly, 35 directors were elected by the members of the Sangha. In the meeting of the Executive Committee dated 05.01.2022, the Directors of the Sangha elected#HL_E....
The general Body of the said society elected 7 Board of Directors on 31-3-1978 for a period of three years and the Board of Directois in turn elected the petitioner as its President on the same day. ... If the president is not acting in accordance with the decisions of the Board of Directors may be that is a matter to be brought to the notice of the general body and the #HL_START....
- (1) Every Board of Directors of society shall at the time of election of Chairman or Vice-Chairman, also elect representative who shall represent it in other society and the representative so elected shall not be withdrawn by the Board of Directors till the next election of the Board of Directors. (3) If the byelaws of a society provide for the constitution of its general body by the elections of the delegates, the society shall reserve seats in the general body for the members belonging to Scheduled Castes, Scheduled Tribes and other Backward Classes in such a manner tha....
Now the period of the society is due to expire on 07.10.2017. The members can be removed from the membership if they are ineligible after issuing notice and hearing them by the managing committee of the society. However, Rule 35A of the Kerala Co-operative Societies Act Rules enable the electoral authorities to remove ineligible members from the voters list. The Board of Directors of the society is operated by a democratically elected body, and as per the prescriptions contained in the Kerala Co-operative Societies Act and the Rules, election to the society shall be conducted suffi....
They have also sought a declaration that the Board of Directors of the Society has no authority or jurisdiction to expel other Directors of the Board from the primary membership of the Society, which is in addition to a declaration that a Director elected to the Board of Directors of a Co-operative Society is entitled to continue till the expiry of his elected term. Indeed the petitioners have also sought a writ of certiorari or "any other appropriate writ or order" for the quashment of Exhibits P12, P12(a) and P12 (b). They have, inter alia, sought a mandamus seeking the q....
A reading of Section 33 shows that it provides for the nature and composition of the Board, giving representation to women and members of the weaker sections of the society, Scheduled Caste and Scheduled Tribe, in deference to the constitutional mandate. It is not disputed that as per Section 33, the Board is an elected body, the members themselves being the members of the society and elected by the general body. It also provides for professional management, which fits in with the professional management contemplated under Articles 43B and 243ZJ.
It is the general body which has the right and the obligation to appoint the Directors on the Board to run the management of the company. As per clause 5.2, as extracted above, the number of Directors of GNCTD and IDFC is equal. Therefore, in the present context it cannot be said that either IDFC or the GNCTD is the absolute owner of the petitioner company. The Board of Directors are answerable to the general body of members and the Directors can be removed by the General Body from the Board, by following the prescribed procedure under the Companies Act.
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