- (1.) IN these petitions the constitutional validity of Section 3 of Rajasthan Co-operative Societies (Amendment) Ordinance, 2004 has been challenged. As per Section 3 of the Ordinance, sub-section (2-B) has been inserted in existing Section 30 of the Co-operative Societies Act, 2001. The impugned provision provides for contingency where before expiry of the term of the elected managing committee of any society, a new committee is not constituted. IN such event, it enables the Govt. to direct the Registrar of Co-operative Societies to appoint a Government Servant as Administrator to manage the affairs of the society till a new committee is constituted provided that no member of the committee replaced by an administrator under this sub-section shall be deemed disqualified under sub-sec. (5) of Section 28.
(2.) UNDER the parent Act before amendment also an Administrator could be appointed to take over the management of a society by removing the existing committee under Section 30 (1), but in that event the members of a committee removed under Section 30 become disqualified to be a member of a committee, as per Section 28 (5) of the Act. The Act also made provision for amalgamation of two or more co-operative societies under Section 13. The Act of 2001 was reserved for consideration of the President and had received assent of the President. In view thereof, such of the provisions of Act of 2001, which provides for any of the matters enumerated in sub-clauses (a) to (e) of Clause (1) of Article 31-A, including taking over management of property by the State were protected from being challenged on the ground of being inconsistent with Articles 14 and 19 of the Constitution of India, notwithstanding declaration under Article 13 (2) of the Constitution. In Daman Singh vs. State of Punjab (1), the Co-operative Society has been held to be an entity falling within the purview of expression "Corporation" under Article 31-A(1)(c), repelling the contention that protection afforded by Article 31-A (1) (c) of the Constitution was not available to Co-operative Societies since the expression "corporation" did not comprehend Co- operative Societies within its expanse. In all these petitions, the elections of the Managing Committee of the Co-operative Society concerned were held much prior to enactment of Rajasthan Co-operative Societies Act, 2001 which was brought into effect from 14.11.2002. Under the repealed law (The Cooperative Societies Act, 1965), the period of elected members of the managing committee was not prescribed under the Act but was left to be provided for under bye laws. As per bye laws approved, the period of managing committee was prescribed three years but they were to hold office until new committee was constituted. According to the repealed law there was no hiatus between the existing elected managing committee and new committee to be elected and it would continue to hold office until successor committee is elected to take over. Neither there was any provision for holding election of new committee well in advance before expiry of the term of existing committee, nor under the Act of 2001 it was envisaged, until Ordinance No. 1 of 2004 was promulgated, for such election in advance. Unlike the repealed Act, under the new statute the term of elected members of a committee is provided five years under Section 32 itself. No provisions are made, either under the Act or the Rules or bye laws, for continuance of the committee of elected members beyond the term of five years. Under the saving clause only such action taken under the repealed law were saved which are not inconsistent with the provisions of the Act of 2001.
(3.) HENCE on commencement of New Act, life of the existing committee could not extend beyond five years of its existence. Since in respect of all the Co-operative Societies in question, period of five years had already expired since their constitution after the commencement of the Act, the term of existing committees had been extended but has not been extended after 2003. No election process had been initiated either under the provisions of the Act of 2001 so far by the general body or elected managing committee. The Ordinance makes amendment, apart from the impugned provisions, also by substituting Chapter V of the Act of 2001 to provide for an elaborate procedure ensuring that elections of succeeding committee may be held prior to the expiry of the term of existing committee by mandating that the process for electing new committee be initiated at least six months prior to expiry of the term of existing committee. Simultaneously, the impugned sub- section (2-B) in Section 30 was also inserted enabling the State Govt. to direct the Registrar for appointing Administrator, where the election for constituting new committee has not taken place, before the expiry of term of existing committee. In the aforesaid circumstances, where the term of the elected committee has expired, without electing successor managing committee, in terms of such amendment, Administrator so appointed can continue until new committee is constituted. ;