SUNARI G S S SAMITI LTD Vs. STATE OF RAJASTHAN
LAWS(RAJ)-1987-8-36
HIGH COURT OF RAJASTHAN (AT: JAIPUR)
Decided on August 04,1987

SUNARI G.S.S.SAMITI LTD. Appellant
VERSUS
STATE OF RAJASTHAN Respondents

JUDGEMENT

M.B.SHARMA, J. - (1.) An important question is involved about the powers of the Registrar, Co-operative Societies Rajasthan, Jaipur to order postponement of the elections of Bharatpur Central Co-operative Bank Ltd. The Registrar, Co-operative Societies Rajasthan Jaipur under his order dt. April 18, 1987 (Annr.-5) has stayed the programme of elections of the Bharatpur Central Cooperative Bank Ltd. Bharatpur. It is the aforesaid order of the Registrar, Co-operative Societies Rajasthan Jaipur which is under challenge in this writ petition.
(2.) The challenge to the aforesaid order is on two grounds, (i) that under the Rajasthan Co-operative Societies Act, 1965 (for short, the Act) and the Rajasthan Co-operative Societies Rules, 1966 (for short, the Rules), the Registrar of the Co-operative Societies Rajasthan, Jaipur has no jurisdiction to issue the aforesaid order Annr.-5 and the same is without jurisdiction and (ii) it is not in public interest to postpone the elections and it has been so wrongly stated in the order that the election programme has been postponed in the public interest.
(3.) The Act deals with the Co-operative Societies in Rajasthan. S.2(a) of the Act defines 'bye-laws' which means the bye-laws registered or deemed to be registered under the Act and for the time being in force and includes the registered amendments of such bye-laws. S.2(g) defines 'financing bank' which means a co-operative society the main object of which is to lend money to other societies and includes a Land Development Bank. Vide notification No. F.(1)30 Co-op. 11/65 dt. 2-3-66 published in Rajasthan Gazette Extraordinary Part IV-C dated March 2, 1966 in exercise of the powers conferred by C1.2(e) of the Reserve Bank of India Act, (Central Act), the Central Government declared the Bharatpur Central Co-operative Bank Ltd. Bharatpur along with other 25 Central Co-operative Banks and the Rajasthan State Industrial Co-operative Bank, Jaipur to be a Central Co-operative Bank within the meaning of the said clause. Under S.2(h) 'Government' means the Government of the State of Rajasthan. Under S.2(k) 'prescribed' means prescribed by rules made under the Act and under S.2(1) 'Registrar' means a person appointed to perform the functions of the Registrar of Co-operative Societies under the Act and includes any person appointed to assist the Registrar when exercising all or any of the powers of the Registrar. S.7 deals with the powers of the Registrar to decide certain questions. Under S.17, the Registrar has powers to direct amalgamation, division and re-organisation in public interest etc. of a co-operative society. Chap. III deals with the Members of Co-operative Societies and their rights and liabilities, and it consists of Ss.19 to 28. Under S.19(1)(b) any other co operative society can be admitted as a member of the society. The proviso to sub-sec.(1) of S.19 provides that an individual shall not be eligible to the membership of a financing bank other than a Land Development Bank or such class of co-operative society as may be prescribed in this behalf. Under S.22 every member of a co-operative society shall have one vote in the affairs of the society. S.23 gives the manner of exercising votes and under its sub-sec.2(a) a co-operative society which is a member of another co-operative society may subject to any rules made under the Act appoint one of its members to vote on its behalf in the affairs of that other society. Under S.29, the final authority in a cooperative society shall subject to the provisions of the Act and the Rules vest in the general body of the members. Under its proviso where the bye-laws of a co-operative society provide for the constitution of a smaller body consisting of delegates of members of the society elected in accordance with such bye-laws, the smaller body shall exercise such powers of the general body as may be prescribed or as may be specified in the bye-laws of the society. Under the second proviso to S.29 nothing in that section shall affect any powers conferred on a committee or any officer of a co-operative society by the rules or the bye-laws. Under sub-sec.(1) of S.30 it is incumbent on every co-operative society to call annual general meeting for the purposes mentioned in Cls.(a) to (e) within the prescribed time. In Cl.(b) the purpose is election, if any, in the prescribed manner of the members of the committee other than nominated members. Under the proviso to sub-sec.(1) if no such meeting is called within the time aforesaid the Registrar or any person authorised by him may call such meeting in the manner prescribed, and that meeting shall be deemed to be a general meeting duly called by the society. Under the second proviso to sub-sec.(1) the Registrar may order that the expenditure incurred in calling such a meeting under the foregoing proviso shah be paid out of the funds of the society or by such person or persons who in the opinion of the Registrar, were responsible for the refusal or failure to convene the general meeting. Under S.32 the Registrar has power to rescind certain resolutions of the co-operative society or any of the committee which in his opinion is opposed to the objects of the society or is prejudicial to the interests of the society or is in excess of the powers of the society. He can do so only after giving an opportunity to the society being heart. It is the general body of the co-operative society which has power under S.33 of the Act to constitute a committee in accordance with the bye-laws and it is that committee which has to be entrusted with the management of the cooperative society. S.35 of the Act deals with the removal of the aforesaid committee and S.36 deals with removal of committee or member thereof. Under S.46 it is provided that it shah be the duty of the Government to encourage and promote the co-operative movement in the State and to take such steps in this direction as may be necessary. S.70 vests powers in the Registrar to either hold himself or order any person in writing to hold inquiry into the constitution working and financial condition of a co-operative society. Under S.71 he has also powers to inspect the books of a co-operative society or direct any person authorised by him in this behalf to inspect the book of the co-operative society. Chapter IX of the Act deals with the dispute to be referred to arbitration. The disputes mentioned therein are to be referred to the Registrar for decision, but there is no provision to refer the dispute between the Registrar and the Co-operative Society for arbitration. S.76 deals with limitation in respect of disputes enumerated in S.75 of the Act. Under S.139 of the Act the Government may by general or special order exempt any co-operative society or any class of societies from any provisions of the Act or may direct that such provisions shall apply to such society or class of societies with such modifications as may be specified in the order. S.147(1) of the Act provides that the Government may by notification in the official gazette and subject to such conditions if any as it may think fit to impose, delegate all or any of the powers of the Registrar under the Act to any apex or central society as classified under the Rules or to an officer of any such society. Under sub-sec.(2) of S.147 the Government may by notification in the official Gazette direct that all or any of the powers exercisable by it under the Act or the Rules may be exercisable by the Registrar or such other officer and subject to such conditions if any may be specified in the notification. S.148(1) of the Act vests powers in the State Government to make Rules to carry out the purposes of the Act, provided that any rule may be made under sub-sec.(1) of S.148 without previous publication if the State Government considers that it should be brought into force at once. Under sub-sec.(2) of S.148 in particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the matters mentioned therein including the matters of election and matters of general meetings of the members as contained in clause (xxii) of sub-sec.(2) of S.148. These are the relevant provisions for the disposal of the points involved in the writ petition in respect of the powers of the Registrar as well as the Government on the matter of election of cooperative society.;


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