ORDER 1. The instant petition has been filed by the petitioner challenging the order Annexure P-4, passed by the Under Secretary, State of M.P., dated 6th June, 95 in appeal and allowing the appeal by setting aside the order passed by Registrar of Firms & Society. 2. The contention of the petitioner is that at Bhind, Kusumbai Jain Kanya Mahavidyalaya Prabandh Samiti is a registered society under the M.P. Society Registrikaran Adhiniyam, 1973 (hereinafter referred to as the' Act'). According to the petitioner, this society was superseded by the orders of Government under section 33 (1) of the Act on 13.9.91. The Sub-Divisional Officer was appointed as an administrator of the society. The administrator conducted the elections of the society on 9.9.94 and declared the results of the election. The Administrator/Sub-Divisional Officer has handed over the charge of the society to the newly elected body. After newly elected body took over the charge, an appeal was filed by respondent No.3 before the State Government assailing the ministerial work of the Registrar under section 27 of the Act. The contention of the learned counsel for the petitioner is that no appeal lay before the State Government against the ministerial act of the Registrar registering the names of elected members of the society. Learned counsel for the applicant• further submitted that since the appeal was not maintainable, the order passed by the appellate authority is non est. 3. The learned counsel for the petitioner submitted that the order of setting aside election by the State Government is on flimsy grounds. The question also arose whether the Registrar should induct the members when the society is under super-session? The administrator published advertisement in newspaper and invited application offering membership to the interested person, in daily newspaper 'Shram Sadhana' published from Gwalior. The State Government while considering the appeal was of the opinion that the appointment of the administrator is to remove blocks in the society and to keep the society in order and handover charge to the newly elected body. It is not provided under the Act. The administrator is not empowered to start movement for inducting membership in the society. The Registrar has also not invited the members who were existing on the date of super-session of the society. The Registrar has wrongly held that the membership of members have been terminated automatically.
It is not provided under the Act. The administrator is not empowered to start movement for inducting membership in the society. The Registrar has also not invited the members who were existing on the date of super-session of the society. The Registrar has wrongly held that the membership of members have been terminated automatically. The action of the administrator was also not accepted by the State Government and State Government vide its order set aside the order dated 25.10.94 passed by the Registrar of the Societies. 4. Main question is whether the administrator can hold the elections of the body after inducting members by excluding the members existing on the roles of the society? The powers of administrator to induct or enroll new members is also to be considered. '" 5. Section 33 of the Act provides for super-session of the society and powers of the administrator are provided under sub-section (4) of section 33 of the Act. Sub-section (4) of section 33• of the Act is reproduced below for its consideration – ''The person or persons so appointed shall, subject to the control of Registrar and to such instructions as he may from time to time give, have power to exercise all or any of the functions of the governing body or of any officer of the society, and to take all such actions as may be required in the interest of the society." Sub-section (4) of section 33 of the Act provides for powers of administrator of the superseded society. Sub-section (4) provides that persons or person so appointed shall, subject to the control of the Registrar and to such instructions as he may from time to time give, have power to exercise all or any of the functions of the governing body or of any officer of the society, and to take all such actions as may be required in the interest of the society. The intention of sub-section (4) of section 33 is that the administrator may exercise all or any of the powers of the Governing body as prescribed by the Registrar. For this purpose, we have to look to the order appointing administrator. The order appointing administrator has been filed by respondent No. 3 as Annexure R-3A. The order under section 33 (1) is appointment of Administrator after superseding the governing body to look after the work and management of the society.
For this purpose, we have to look to the order appointing administrator. The order appointing administrator has been filed by respondent No. 3 as Annexure R-3A. The order under section 33 (1) is appointment of Administrator after superseding the governing body to look after the work and management of the society. The operative part of the .order is reproduced below: -- ** vr% vf/kfu;e dh /kkjk 33 ¼1½ ds v/khu dqlqeckbZ dU;k egkfo|ky; lfefr] fHkaM ds "kklh fudk; dk Hkax dj dkedkt dk izca/k djus ds fy, vuqfoHkkxh vf/kdkjh ¼jktLo½] fHkaM dks ,d o'kZ ds fy, iz"kkld fu;qDr fd;k tkrk gSa The word *dkedkt dk izca/k* means that the administrator was empowered only to do the routine work or to look after day to day management and nothing else. No powers were given to the administrator to enroll members. The power of enrolling the members vested with the governing body was not entrusted upon the administrator. 6. Learned counsel for the petitioner submitted that the administrator had no other option but to enroll members of the society in the event of super-session. It has been held by the Government that there is no valid member in the society and only one member who is life member was available who was managing the affairs of the society in his personal interest. From reading order Annexure R-3A, it appears that the order was passed when the President of Society did not appear before the authority and on the note of Registrar Firms and Societies action under section 33 was taken. During the enquiry, the then Secretary, Principal and Accountant were heard and certain irregularities were found and the explanation of the society was not accepted. Charges were held to be proved and society was then superseded The contention of the learned counsel for the petitioner is that since there was no member, Administrator had power to induct the new members in the society as earlier members have committed default in payment of their subscription. The learned counsel relied upon rule 5 of the bye-laws of the society which provides that members who have not paid subscription for three months, their membership shall be terminated. Since none of the ordinary member has paid the subscription, therefore, they ceased to be member of the society and had no right to participate in the election.
The learned counsel relied upon rule 5 of the bye-laws of the society which provides that members who have not paid subscription for three months, their membership shall be terminated. Since none of the ordinary member has paid the subscription, therefore, they ceased to be member of the society and had no right to participate in the election. The learned counsel for the petitioner submitted that the order Ann. P-4 is vague and once the State Government found that Registrar has not passed the order after due enquiry, the case should have been remitted back to the Registrar for passing appropriate orders after hearing both the parties. The counsel for the respondents supported the order of State Govt. except the finding that Registrar had powers to induct members. The counsel for the respondents also submitted that the new body is constituted by the members who had been inducted by the Registrar and it cannot be said to be properly constituted body. The learned counsel for the respondents submitted that appeal was not filed against the order passed under section 27 of the Act but against the action of the administrator and the manner in which elections were held. Section 32 empowers Registrar to hold an enquiry but instead of holding enquiry, Registrar sent the papers for the comments of administrator and on the basis of comments of the administrator he decided the objection, therefore, appeal under section 40 of the Act was maintainable before the State Government. He submitted that scope of section 40 is very wide and any order made by the Registrar is appeal-able to the State Government. Section 40 of the Act is reproduced below : - Appeal-- (1) An appeal against the order of the Registrar shall lie – (a) if the order is made by the Registrar, to the State Government; (b) if the order is made by any other person to the Registrar and against such order of the Registrar to the State Government. (2) An appeal under sub-section (1) shall be filed within two months of the date of communication of the order: Provided that the appellate authority may admit an appeal after the expiry of such period if the appellant satisfies the appellate authority that he had sufficient cause for not preferring the appeal within such period.
(2) An appeal under sub-section (1) shall be filed within two months of the date of communication of the order: Provided that the appellate authority may admit an appeal after the expiry of such period if the appellant satisfies the appellate authority that he had sufficient cause for not preferring the appeal within such period. From perusing the above provision, I hold that the appeal before the State Government was maintainable. Now main question to be adjudicated by this Court is whether new members could be inducted by the administrator? By reading Annexure P-3A and provisions of sub-section (4) of section 33 of the Act, it is clear that the administrator was not empowered by Registrar to induct the member. Powers to induct members which is vested with the governing body of the society was not entrusted to the administrator by the Registrar. As such the administrator had no jurisdiction or power to induct new members in the society. For inducting new members in the society procedure of bye-laws is to be followed. There is no provision in the bye-laws to invite application by publishing an advertisement in the newspaper. The advertisement published in the newspaper published from Gwalior whereas the society is at Bhind. Clause 6 of the bye-laws provides that if an application is moved for membership in a prescribed form then it shall be considered by the governing body. There is no provision under the bye-laws for inviting application for membership. Thus, the act of administrator in inviting the membership by publication is improper. The advertisement was without authority and has rightly been held to be improper. The members so inducted by the administrator do not acquire any right to become the members of the society. 7. The State Govt. has also held that the administrator has wrongly held that all the members have ceased to be member of the society as they had not paid the subscription. Bye-laws No.8 provides that the membership can be terminated in the event of death of a member, insanity of a member, on the resignation of the member and for non-payment of dues of the member and some defect in the character. But any termination of membership is to be communicated to the member after resolution for termination of membership is communicated to the member in writing.
But any termination of membership is to be communicated to the member after resolution for termination of membership is communicated to the member in writing. The contention of the learned counsel for the petitioner cannot be accepted that the termination of membership is automatic on non-payment of dues. Rule 9 provides that membership can be terminated by passing a resolution and the copy of resolution should be communicated to the members informing them that their membership is• terminated. No document has been filed to show that the membership of all the members on the date of super-session of the society was superseded. The elections held by' the administrator by inducting new members cannot be said to be valid or according to rules. The State Government has rightly set aside the elections. As discussed above, the administrator was not empowered to induct members. The petition, therefore, deserves to be dismissed, however, order Annexure P-4 deserves to be modified to the extent that the body so elected is not constituted properly and the Registrar, Co-operative Society is directed to hold the election of the society amongst the members who were existing on the date of super-session in the society. It is further directed that before holding the election, the members should be communicated with the provisional voter list and objection should be invited. After hearing the objection, voter list be finalised. Thereafter the election should be held in accordance with law. This action should be done within a period of two months from the communication of the order. Till then the administrator appointed by the Registrar shall function as an administrator of the society. From the foregoing discussions above, petition is dismissed without any orders as to costs.