BOARD OF DIRECTORS OF NAGRIK SAHAKARI BANK MARYADIT, RATLAM v. STATE OF M. P, THROUGH CHIEF SECRETARY
1990-04-04
A.G.QURESHI, Y.B.SURYAVANSHI
body1990
DigiLaw.ai
A. G. QURESHI, J. ( 1 ) THIS petition has been filed by the Board of directors of Nagrik Sahakari Bank Maryadit, Ratlam through its President nirmal Katariya against the respondents seeking a writ or direction quashing the order dated 26-10-1988 (Annexurc P-4) passed by the Joint Registrar, co-operative Societies, Ujjain whereby the Assistant Registrar, Co-operative societies, Ujjain was appointed as Returning Officer to hold the election of the said Bank and to allow the Bank to work till the expiry of five years in accordance with the amendment in the M. P. Co-operative Societies Act. ( 2 ) THE facts of the case, in brief, are that the petitioner is a Bank registered under the M. P. Co-operative Societies Act, 1965, In the meeting held on 6-1-1986, the petitioner-Board of Directors was elected in accordance with the provisions of the Co-operative Societies Act. As per Section 49 (7-A)of the M. P. Co-operative Societies Act, 1960 the term was for a period of three years. However, by an Ordinance published in the M. P. Gazette (Extraordinary) dated 22nd June, 1988 the term of the office of the elected board of Directors was enhanced from 3 to 5 years. However, the Joint registrar, Co-operative Societies was of the view that the period of the petitioner-Bank has not been extended from 3 to 5 years and, therefore, vide annexure P-4 order dated 26-10-1988 the Joint Registrar, Co-operative societies, Ujjain Division appointed the Returning Officer for holding the election and the Returning Officer so appointed issued a letter Annexure P-6 to the Managing Director of the petitioner-Bank. The grievance of the petitioner is that when under the law by an amendment the term of the office of the elected body has been extended from 3 to 5 years, the respondents cannot lake a view different than the one provided under the law. The respondents have taken a wrong view of the provisions of law and, therefore, the direction has been issued to hold the election treating the term of the petitioner-Bank as three years. The aforesaid interpretation of the officers is against the provisions of law. ( 3 ) RESISTING the prayer of the petitioner the respondents have in their written statement stated that the petitioners have misconstrued the proviso of the ordinance taking a view that the term of the Board of the Bank has been extended from 3 to 5 years.
The aforesaid interpretation of the officers is against the provisions of law. ( 3 ) RESISTING the prayer of the petitioner the respondents have in their written statement stated that the petitioners have misconstrued the proviso of the ordinance taking a view that the term of the Board of the Bank has been extended from 3 to 5 years. Actually the provisions of the M. P. Co-operative societies (Amendment) Ordinance, 1988 do not apply to the term of the managing Committee, but it will actually affect the next election of the co-operative Societies. Thus, the respondents have a right to hold the election, Reliance has been placed on a Circular issued by the Joint Registrar of Co-operative Societies, Bhopal which has been issued on behalf of the commissioner, Co-operative Societies. ( 4 ) THE learned counsel for the petitioner Shri Patidar has strenuously argued that by amendment in Section 49 of the M. P. Co-operative Societies act, the term of the Bank has been extended and the amendment shall be applicable not only to the future elections but also the existing bodies also. On the other hand, Smt. Waghmare, Learned Dy. Government Advocate submits that the view taken by the Department is correct. ( 5 ) FOR appreciating the respective contentions of the parties it is necessary to read the provisions of sub-section (7-A) of Section 49 of the m. P. Co-operative Societies Act. The relevant portion of sub-section (7-A)of Section 49 before its amendment reads as under ; (7-A) Notwithstanding any thing contained in this Act or the rules made the reunder or the bye-laws of the Society (i) the term of the Committee shall be three years from the date of the Annual General Meeting or Special General Meeting, as the case may be, of the Society in which the election is held; (ii)now amendment has been effected by Ordinance No. 3 of 1988 published in the M. P. Gazette (Extra-Ordinary) on 22-6-1988. By Section 18 of the amending Act, amendment to Section 49 of the Co-operative Societies has been effected.
By Section 18 of the amending Act, amendment to Section 49 of the Co-operative Societies has been effected. In Section 18 of the Amending Ordinance, the relevant portion pertaining to the term of the office says :" (V) for sub-section (7-A), the following sub-section shall be substituted, namely : (7-A) (i) Unless otherwise provided hereinafter the term of the Committee shall be five years from the date on which first meeting of the Committee is held and shall continue in office till the expiry of the term specified ; (ii)as such by the Ordinance the existing term contained in sub-section (7-A) of 3 years has been changed to 5 years because the Ordinance substitutes the existing section. The Ordinance nowhere says that it shall be applicable only to future elections and shall not extend the term of the existing bodies. As such a plain reading of the amendment by Ordinance No. 3 of 1988 in sub-section (7-A) of Section 49, it is manifest that the term of the Committee has been extended from 3 years to 5 years and, therefore, the view taken by the joint Registrar, Co-operative Societies docs not appear to be correct. If it would have been the intention of the State to extend the benefit of the extension of the term only to the Committees which are to be elected in future, there would have been a specific mention of this fact. In the instant ordinance, only a new sub-section (7-A) has been inserted in place of sub-section (7-A) to Section 49 of the Act, and by virtue of the amendment in sub-section (7-A) the words "three years" have been replaced by "five years". As such the term of the petitioner-Bank is also extended to 5 years. ( 6 ) IN the result, we hold that the term of the petitioner-Bank shall be live years and not three years in view of the Ordinance No. 3 of 1988. The view taken by the Department that amended provision of sub-section (7-A) of Section 49 are not applicable to the petitioner is misconceived and, therefore, the order of appointing a Returning Officer for holding the election of the petitioner-Bank, treating the term of the Bank as three years, is quashed. ( 7 ) THE petition is allowed accordingly, with no order as to costs. Petition allowed. .