BASVANTHAPPA BASAPPA HIRARADDI v. REGISTRAR OF CO-OPERATIVE SOCIEITIES
1986-02-18
K.A.SWAMI
body1986
DigiLaw.ai
K. A. SWAMI, J. ( 1 ) SRI Somayaji, the learned High Court Government Pleader, to take notice for respondent-1. A copy of the petition is also furnished to the learned Government Pleader. Since this petition can be disposed of on a short point without notice to respondents 2 to 4, it is heard for final disposal itself. ( 2 ) IN this Writ Petition under Article 226 of the Constitution of India, the petitioner has sought for quashing the order dated 12-9-1985 bearing No. CRD. 40 KMC 84-85, passed by the 1st respondent, registering the bye-laws of the Karnataka State Co-operative Apex Bank Limited, bangalore under Section 12 (3) of the Karnataka Co-operative Societies Act, 1959, (hereinafter referred to as the 'act') in so far as the order relates to registering bye-law No. 14 of the bye-laws. Thus, the grievance of the petitioner is confined only to the validity of bye-law 14 of the Bye-laws of the Karnataka State Co-operative Apex Bank Ltd. . Bangalore, produced as annexure-C. ( 3 ) THE contention of the petitioner is that bye-law 14 is in conflict with and violative of. Sub-section (3) of Section 28a of the Act. Bye-law No. 14 reads thus:- " term OF OFFICE OF THE BOARD. The term of Office of the elected members of the Board shall be deemed to expire on the date of the Annual General Meeting of the Bank but they will continue in Office until their successors are elected. " Sub-section (3) of Section 28-A reads; " (3) Notwithstanding anything contained in this Act, the rules and the bye-laws of any co-operative Society, the term of office of the committee of a Co-operative Society shall be three co-operative years and the elections shall be held for the entire committee other than the nominated members. Provided that if elections to the Committee or part of the Committee of any co-operative society has already been held on or after 1st July, 1983 in accordance with the bye-laws of such society, the term of the Committee of such Co-operative Society, shall also be three Co-operative years. Explanation :- For the purpose of this section, where elections to a Committee have been held in the middle of a co-operative year, for purpose of computing the term of office of the Committee, the remaining part of the Co-operative year shall be deemed to be a co-operative year.
Explanation :- For the purpose of this section, where elections to a Committee have been held in the middle of a co-operative year, for purpose of computing the term of office of the Committee, the remaining part of the Co-operative year shall be deemed to be a co-operative year. " It is also relevant to refer to bye-law 16 of the Bye-laws which provides that "the Directors other than the nominated Directors shall cease to hold office if : (i) he ceases to be a member of the Managing Committee of the Bank or Society which he represents. " The other contingencies mentioned in Bye-law 16 are not relevant for our purposes. ( 4 ) THERE is no doubt that the term of office of the committee of a Co-operative Society is three co-operative years as provided by Section 28a (3) of the Act. Co-operative year is defined by section 2 (d-1) of the Act which is inserted by the Karnataka Act No. 5 of 1984 meaning the year ending with the thirtieth day of June, or, in the case of any Cooperative Society or class of co-operative Societies the accounts of which are made upto any other date, with the previous sanction of the Registrar, the year ending with such date. Rule 13 (3) of the Karnataka co-operative Societies Rules. 1960 (hereinafter referred to as the 'rules') also provides that the election of the members of the Committee shall be held on or before the date specified in the bye-laws for the expiry of the term of office of the members, and in case no such date is specified in the bye-laws, the term of office of the members of the Committee shall be deemed to expire at the time of the Annual General Meeting and the election of the new members shall be held at such Annual General Meeting. The proviso to the aforesaid Sub-rule (3) further provides that the Committee whose term of office is deemed to so expire, shall continue in office till the new Committee is elected and shall thereafter handover charge of the office to such new committee.
The proviso to the aforesaid Sub-rule (3) further provides that the Committee whose term of office is deemed to so expire, shall continue in office till the new Committee is elected and shall thereafter handover charge of the office to such new committee. Clause (f) of Sub-rule (2) of Rule 12b of the Rules inserted by the Notification No. RDC 75 CLM 78 dated 9-3-1979 published in the Gazette dated 22-3-1979 provides that the term of the delegates elected from each district to the representative general body shall be three years or till he continues to be a member of the Cooperative Society, whichever is earlier. Thus, it is clear that Sub-section (3) of Section 28a of the Act and Sub-rule (3) of Rule 13 of the Rules deal only with the term of the Committee of Management as a whole. Whereas Clause (f) of sub-rule (2) of Rule 12b of the Rules deals with the term of individual member of the Managing committee. Bye-law 14 in question deals with the term of Office of the. Board of Directors as a whole and not the term of office of Individual Directors. All that bye-law 14 provides, is that the term of Board of Directors expires on the date of Annual General Meeting of the Bank but they will continue in office until their successors are elected. Sub-rule (3) of Rule 13 of the Rules referred to above also provides the same thing. Subsection (3) of Section 28a of the Act fixes tenure of office of the Board of Directors by providing that it shall be for a period of three co-operative years. Bye-law 14 in question does not curtail that period. It only provides that at the end of the third Co-operative year when the term of the Beard of Directors Expires, the office bearers will continue until their successors are elected. It may so happen that the Annual General meeting of the Bank may or may not take place at the end of the third Co-operative year. In case it does not take place at the end of the 3rd Co-operative year, the Board of Directors irrespective of the expiry of their office, continue in office until the successors are elected. Therefore, it is not possible to hold that bye-law 14 is in any way opposed to or in conflict with Section 28a (3) of the Act.
In case it does not take place at the end of the 3rd Co-operative year, the Board of Directors irrespective of the expiry of their office, continue in office until the successors are elected. Therefore, it is not possible to hold that bye-law 14 is in any way opposed to or in conflict with Section 28a (3) of the Act. Bye law 14 is in conformity with Section 28a of the Act and Sub-rule (3) of Rule 13 of the Rules. An individual Director elected from a District Co-operative Bank as per bye-law 16 of the Bye-laws, ceases to hold office if he ceases to be a member of the Managing Committee of the Bank or Society which he represents. Therefore, it is possible that an individual director may or may not continue for a full period of three years. The uration of office of an individual director depends upon his continuation as a member of the Managing Committee of the Bank which he represents. Clause (f) of Sub-rule (2) of Rule 12b provides that the term of such member shall be three years or till he continues to be a member of the Co-operative Society, whichever is earlier. Bye-law 16 referred to above is in conformity with Clause (f) of Sub-rule (2) of Rule 12b of the Rules. That being so, it is not possible to hold that bye-law 14 is violative of Section 28a of the Act. For the reasons stated above, the Writ Petition is dismissed.