CHITTARANJAN CHAKRABORTY & ORS. Vs. STATE OF WEST BENGAL & ORS.
LAWS(CAL)-1988-12-65
HIGH COURT OF CALCUTTA
Decided on December 23,1988

Chittaranjan Chakraborty And Ors. Appellant
VERSUS
STATE OF WEST BENGAL AND ORS. Respondents

JUDGEMENT

Mitra, J. - (1.) The short point involved in this case is whether the impugned Notification as contained in Memo No. 14524/2 dated 23.9.87/9.10.87 (Annexure 'F'), issued by the respondent no. 3 purportedly under the West Bengal Co -operative Societies Act. 1983 is valid and legal. The facts of the case, inter alia, are that the petitioners were all Directors of Midnapore District Wholesale Consumer's Co -operative Society Ltd., namely, the respondent no. 6 and they were so elected at the Annual General Meeting of the said Society held on 19th December, 1982. When the said meeting was held and the petitioners were elected as the directors of the said society, the West Bengal Co -operative Societies "Act, 1973 was in force. Under Sub -section (1) of Sec. 21 of the said Act, it was incumbent upon every Co -operative Society to hold the Annual General Meeting of the Society at least once in every co -operative year inter alia for the purpose of electing members of the managing committee other than members nominated under Sec. 28 of the said Act, and such other officers as might be provided in the bye -laws of the Society. Sub -section (2) of the said Sec. 21 provided that such meeting should be held not more than fifteen months after the date of the last preceding meeting held under Sub -section (1) of the said Sec. 21 and Sub -section (3) of the said Sec. 21 provided that on the failure of the managing committee of the Society to call the General Meeting within the aforesaid period of fifteen months the Registrar, namely, the Registrar of Co -operative Societies, West Bengal should call, or authorise any of his officers to call, a General Meeting within a period of three months from the date of expiry of the aforesaid fifteen months, without prejudice to the penal measures, that might be taken under the said Act against the members of the managing Committee of not holding the general meeting within such period as required under Sub -section (1) and Sub -section (2) while Sub -section (4) of the said Sec. (1), Sub -section (2) and Sub -section (3), the State Government might in special circumstances, permit the Registrar to call the general meeting even after the expiry of eighteen months, from the date of last preceding meeting held under Sub -section (4). Sec. 26A of the said Act of 1973 provided that notwithstanding anything to the contrary contained in the said act or in other law for the time being in force, the Managing Committee of any of the Co -operative Societies mentioned in the Fifth Schedule would, if the election of members of the Managing Committee of such Society had not been held within a period of fifteen months after the date of the last preceding meeting held in Sub -section (1) of Sec. 21, stand dissolved with effect from the date immediately following the date on which the said period of fifteen months, had expired and with effect from the date of such dissolution of the managing Committee of the Co -operative Society, the members of the managing Committee of the said Society would be. deemed to have vacated their offices and upon such dissolution of the Managing Committee, the Registrar would by notification in the Official Gazette, appoint a Special Officer for managing the affairs of the Co -operative Society and for making arrangements for the re -constitution of a new Managing Committee of the Co -operative Society in accordance with the provisions of the Act and the Rules framed therein and the by -laws of the Society within a period not exceeding one year from the date of such dissolution and such Special Officer was appointed, the highest Executive of the Society, by whatever designation he might be called, would manage the affairs of such Society.
(2.) The Executive Officer of the respondent no. 6 Society by the Notice contained in Memo No. M -2/83 -84/688 dated 29th February, 1984 (Annexure 'A') convened the annual General Meeting of the respondent no. 6 Society on 16th March, 1984. The said notice, however, was challenged by some of the members of the said Society in a writ application in this Hon'ble Court on 12th March, 1984 upon which A. K. Janah, J., was pleased to issue a Rule being C. R. No. 2430(W) of 1984 and pass an interim order of injunction restraining the respondents therein including the respondent no. 2 in the present Civil Suit from giving effect and/or further effect to the said notice. The said interim order, however, was vacated on 29th April, 1986. In this connection, it may be noted that the period of fifteen months as mentioned in Sub -section (2) of Sec. 21 of the West Bengal Co -operative Societies Act, 1973, however, had expired in the case of the respondent no. 6 Society on 19th March, 1984. Subsequently, the West Bengal Co -operative Societies Act, 1973 stood repealed with the coming into force of the West Bengal Co -operative Societies Act, 1983 on and from August 1, 1987. Thereafter on 29th September, 1987, the impugned Notification (Annexure 'F') was issued by the respondent No. 2 in exercise of the powers conferred upon him under Sec. 31(c) of the West Bengal Co -operative Societies Act, 1983, appointing the Additional District Magistrate, Midnapore, as the Special Officer of the respondent no. 6 Society for managing the affairs of the Society and for making arrangements for re -constitution of the Board in accordance with the provisions of the said Act and the Rules framed therein and the by -laws of the said Society within six months from the date of the said Notification on the ground that the election of the members of the Managing Committee of the respondent no. 6 Society had not been held within the period of fifteen months from the date of last election held on 19th December, 1982 under Sub -section (1) of Sec. 21 of the West Bengal Co -operative Societies Act, 1973 and whereas the managing committee of the said Society stood dissolved with effect from 19th March, 1984 in terms of Sec. 26A of the said Act. The petitioners have challenged the said Notification (Annexure 'F') in the present Civil Order, inter alia, on the grounds that the respondent no. 6 Society, not being a Society included in the Fifth Schedule either under the West Bengal Co -operative Societies Act, 1973 since repealed, or under the West Bengal Co -operative Societies Act, 1983, Sec. 31 of the said Act of 1983 is not applicable to the respondent no. 6 Society and that even if the respondent no. 6 Society falls within the Fifth Schedule of the said Act, exercise of power under Sec. 31(c) of the said Act of 1983 in the present case by the respondent No. 2 is without jurisdiction inasmuch as such powers can only be exercised if the election of the directors of the Co -operative Society is not held within a period of thirty -six months from the date of their election under Sub -section(1) of Sec. 25 of the said Act of 1983 and in which case only, the board of directors of the Co -operative Society stands dissolved. The said Notification (Annexure 'F') is also assailed on the ground that no action under the West Bengal Co -operative Societies Act, 1983 could be taken by the respondent no. 2 after the said Act came into force for any alleged violation of the West Bengal Co -operative Societies Act, 1973, as referred to in the said Notification, by the respondent no. 6 Society which Act stood repealed on and from 1st August 1987, with the coming into force of the West Bengal Co -operative Societies Act, 1983 and that since the last Annual General Meeting of the respondent no. 6 Society was held on 1st September, 1987 by the Executive Officer of the said Society, no action also could be taken by the Respondent no. 2 either under sub -section (3) of Sec. 25 or under any of the clauses of Sec. 31 of the West Bengal Co -operative Societies Act, 1983 as the time limit as contained in the said two Ss. viz, Ss. 25 and 31 had not expired on the date of issuance of the impugned Notification (Annexure - 'F'). Lastly, it has also been contended on behalf of the petitioners that the annual general meeting of the respondent no. 6 Society could not be held in due time because of the pendency of the interim order of injunction passed in Civil Rule No. 2430(W) of 1984 on March 12, 1984.
(3.) It has, however, been contended on behalf of the respondent Nos. 2 and 3 that since no annual general meeting of the Respondent No. 6 Society had either taken place as per Sec. 21 of the West Bengal Co -operative Societies Act, 1973 (since repealed) or under Sec. 25 of the West Bengal Co -operative Societies Act, 1983, the respondent no. 2 has rightly taken action against the said Society as per the provisions of Sec. 31 of the 1983 Act and the impugned Notification (Annexure 'F') is thus legal and valid. It has also been contended on behalf of the said respondents that even assuming that the operation of Ss. 21 and 25 of the West Bengal Co -operative Societies Act, 1973 were stayed or that no action could be taken under Sec. 25 or 26A of the said Act for violating the provisions of the said Sec. 21, because of the pendency of the interim order passed in Civil Order No. 2403 (W) of 1984, after the said interim order was vacated on 29th April, 1986, the hands of the respondent No. 2 were free to take appropriate action for dissolution of the Managing Committee of the respondent no. 6 Society and for. taking appropriate steps in the matter in view of the admitted fact that no Annual General Meeting of the respondent no. 6 Society was held even within fifteen months from the date when the said interim order was vacated.;


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