BEED DISTRICT CENTRAL CO OP BANK LIMITED Vs. JAGANNATHS SHAHANE
LAWS(SC)-1992-3-61
SUPREME COURT OF INDIA (FROM: BOMBAY)
Decided on March 13,1992

BEED DISTRICT CENTRAL CO OPERATIVE BANK LIMITED Appellant
VERSUS
JAGANNATHS.SHAHANE Respondents

JUDGEMENT

Kasliwal, J. - (1.) Special leave granted.
(2.) This appeal is directed against the judgment of High Court of Judicature of Bombay at Aurangabad dated November 19, 1991. Brief facts of the case are that elections to the Board of Directors of the Beed District Central Co-op. Bank Limited a specified cooperative society under the Maharashtra Co-operative Societies Act, 1960 (hereinafter referred to as 'the Principal Act) were to be held for the years 1991-1996. The elections are held as provided under the provisions of S. 73G of the Act read with Maharashtra Specified Co-operative Societies (Elections to Committees) Rules, 1971 (hereinafter referred to as the Rules of 1971'). The constitution of the Board of Directors of the Beed District Central Co-op. Bank Ltd., (hereinafter referred to as the Beed Co-op. Bank) is provided in bye-law No. 28 of the bye-laws of the Beed Co-op. Bank. The elections to the Board of Directors for the year 1991-96 had become due in November, 1990. With a view to conduct the elections, voters' lists were initially finalised on 28-2-1990 but the same were postponed on account of Government directions. Eventually the Collector declared the elections of the Beed Co-op. Bank under Rule 16 of the Rules of 1971 on 8-10-1991. According to the election programme last date for filing nominations was 23-10-1991, last date for scrutiny 25-10-1991, last date for withdrawal 11- 11-91 and the date of polling was fixed on 27-11-91. Jagannath, respondent No. 1 an individual member of the Beed Coop. Bank and Ramkrishna Maroti being member of Agriculture Service Co-operative Society, Bhayala and delegate of the said society in the Beed Co-op. Bank filed writ petition in the Bombay High Court challenging the aforesaid election. The High Court took the view that the election process had been started in derogation and violation of S. 73(2) of the Act and as such the same was declared as illegal and invalid. It was directed that it will be open to the authorities to start a new election programme adhering to the mandatory requirement of S. 73(2) of the Act taking every step in a proper and careful manner. The Beed Co-op. Bank and its Chairman have come in appeal before this Court challenging the order of the High Court.
(3.) In order to appreciate the controversy we find it necessary to mention the background of the litigation as well as the various changes brought from time to time in the relevant provisions of law. The Maharashtra Legislature by the Maharashtra Act No. (XLV) of 1983 sought several amendments in the Maharashtra Co-operative Societies Act, 1960. The relevant amendment for our purpose is the following proviso added to sub-s. (3) of S. 27 of the Act: "Provided that, notwithstanding anything contained in this Act or in the Rules made thereunder or in any bye-laws of any society, where such other society is a federal society belonging to any of the categories specified in S. 73G, then all the members elected to, and the members, if any, co-opted or appointed under S. 73-B on the committee of such first society shall have the right to vote .on its behalf in the affairs of such other society: Provided further that, where the election is to a reserved seat under S. 73-B, no person shall have more than one vote." ;


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