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Gauhati High Court · body

2000 DIGILAW 308 (GAU)

Pioneer Co-Operative Marketing Ltd. and Anr. v. State of Assam and Ors.

2000-10-04

D.BISWAS

body2000
D. BISWAS, J- This petition is directed against the orders communicated by the letter dated 13th July, 2000 (Annexure-15) issued by the Assistant Registrar of Cooperative Societies, Guwahati refusing to approve the proceedings of the Annual General Meeting of the petitioner Society held on 30.6.2000 and the order dated 15th/17th July, 2000 (Annexure-16) passed by the Registrar of Co-operative Societies constituting an Ad-hoc Committee replacing the petitioner's Society. 2. This Court while issuing notice of motion stayed the order dated 15th/17th July, 2000 for the reason that the Registrar of Cooperative Societies was influenced by the letter dated 14.7.2000 written by the Minister of Cooperation, Assam to the Zonal Joint Registrar requesting him to form an Ad-hoc Committee. Thereafter this Court by the order dated 1.8.2000 directed the Deputy Commissioner, Kamrup to manage the affairs of the Society either by himself or by an officer to be appointed by him. 3. The Assistant Registrar of Co­operative Societies by the impugned order dated 13th July, 2000 declared the Annual General Meeting held on 30.6.2000 as irregular on the following grounds:-"l)The Annual General Meeting of the Society held on 30.6.2K as per Member Register started from the 441 to 780. The original Member Register started from SI. No. 1 to 440 was not available in the Society's office till the date of aforesaid Annual General Meeting. 2) Out of 440 of its original share holders, only 181 have got invitation letter of the Annual General Meeting from the present management and the rest 259 Nos. of original share holders have been deprived from their democratic right and natural justice." 4. The Registrar of Cooperative Societies by the impugned order dated 15th/17th July, 2000 constituted the Ad-hoc Society replacing the petitioners Society relying upon the decision of the Assistant Registrar communicated by the letter dated 13.7.2000. The relevant excerpts from the order of the Registrar are quoted below:- "And whereas due to the said irregularity the proceedings of the AGM held on 30.6.2000 was disapproved by ARCS, Guwahati vide order No. CKOO 18/20/340 dt. 13.7.2000; And whereas as a result there has been a vacuum in the management of Pioneer Coop Market 'Ltd. and the intervention of the Registrar of Coop. Societies has become unnecessary. Now, therefore, in the interest of shareholders of Pioneer Coop. Marketing Ltd. in particular and cooperative movement in general, Shri A. Ahmed, IAS, Registrar of Coop. 13.7.2000; And whereas as a result there has been a vacuum in the management of Pioneer Coop Market 'Ltd. and the intervention of the Registrar of Coop. Societies has become unnecessary. Now, therefore, in the interest of shareholders of Pioneer Coop. Marketing Ltd. in particular and cooperative movement in general, Shri A. Ahmed, IAS, Registrar of Coop. Societies, Assam in exercise of powers conferred under Section 31(3) of the Assam Coop. Societies Act, 1949 do hereby constitute an ad-hoc body with the following members to manage the affairs of the society and to perform the functions of the managing body. 1. Shri Bhupendra Kr. Sarma President 2. Shri Anil Kalita Vice- President 3. Shri Muzamil Haque Secretary 4. Shri Farooq Ali (Nurul) Treasurer 5. Shri Jamini Kanta Sarma Member 6. Shri Ramizul Hoque Member 7. Shri Samarendra Kr. Sarma Member 8. Shri Mehbub Hussain Member 9. Smti. Jinuwara Begum Member The ad-hoc body so constituted shall arrange to hold the AGM of the society within 90 days from the date of issue of the order. Five members will form a quorum." 5. There is, therefore, no doubt that an elected body has been thrown out and replaced by and ad-hoc body on the ground that there has been a vacuum caused due to non-approval of the proceeding of the Annual General Meeting. In this context, it has to be examined whether non-approval of the proceedings of the Annual General Meeting for any reason whatsoever creates any vacuum or a situation where the Registrar of the Cooperative Societies can act in exercise of the powers under Section 31(3) of the Assam Cooperative Societies Act, 1949. That apart, it has to be examined whether the grounds relied upon by the Assistant Registrar for non-approval of the proceedings are genuine and based on ground realities or subsequent concoction designed to fulfill the illegal desire of the Minister communicated by the letter dated 14.7.2000. 6. It appears that the Registrar has passed the impugned order under sub­section (3) of Section 31. Section 31 deals with the constitution of the General Assembly and the powers thereof. Sub­section (3) of Section 31 nowhere speaks of dissolution of a Society for non-approval of the proceedings of the Annual General Meeting. This section also does not empower the Registrar to dissolve a duly elected Society and to reconstitute an ad-hoc Body/Society. 7. Section 31 deals with the constitution of the General Assembly and the powers thereof. Sub­section (3) of Section 31 nowhere speaks of dissolution of a Society for non-approval of the proceedings of the Annual General Meeting. This section also does not empower the Registrar to dissolve a duly elected Society and to reconstitute an ad-hoc Body/Society. 7. Section 32 of the Act of 1949 deals with Annual General Meeting. Sub-section (1) makes it mandatory for a Society to hold the Annual General Meeting atleast once in every cooperative year. Sub­section (2) provides that such a meeting shall be held within 60 days from the date of expiry of the cooperative year. Sub­section (3) empowers the Registrar to extend time for holding Annual General Meeting. Sub-section (4), (5) and (6) deal with dissolution of a Society and management of its affairs by an officer or ad-hoc Body. Sub-section (4) and (5) reads as follows:- "(4) If any society fails to hold the meeting with the period of 60 days mentioned in sub-S.(2) or when an application is made for extension under the proviso to sub-S.(2) within the period so extended or when no extension is granted, before the expiry of 20 days from the date on which the order rejecting the application for extension is communicated, the Administrative Council and/or the Managing Body of the society shall stand dissolved from the date of expiry of the aforesaid period. (5) When the Administrative Council and/or Managing Body are dissolved under sub-S.(4), the Registrar may appoint an officer or officers or any ad-hoc body to manage the affairs of the Administrative Council and Managing Body till the new Body is elected or formed." 8. It would appear that an Administrative Council and/or Managing Body of the Society shall stand dissolved if the Society fails to hold the meeting within the period of 60 days or within the time extended under sub-section (3). In the instant case, the petitioner Society held the meeting on 30.6.2000. The meeting was held under the guidance and supervision of the Cooperative officials. It is evident from the order dated 6th June, 2000 passed by Shri H. Ahmed, Registrar of Cooperative Societies, Assam convening the Annual General Meeting. In the instant case, the petitioner Society held the meeting on 30.6.2000. The meeting was held under the guidance and supervision of the Cooperative officials. It is evident from the order dated 6th June, 2000 passed by Shri H. Ahmed, Registrar of Cooperative Societies, Assam convening the Annual General Meeting. The Assistant Registrar of Cooperative Societies by the letter dated 7th June, 2000 also directed the President/Secretary of the petitioner Society to attend the office for an urgent discussion regarding smooth completion off Annual General Meeting of the Society. Thereafter, the Assistant Registrar of Cooperative Societies by the letter dated 12th June, 2000 communicated the decision that the venue of the meeting shall be in the Society's registered office. The Assistant Registrar of Cooperative Societies by the letter dated 17th June, 2000 requested the Superintendent of Police to depute adequate police personnel to control law-and-order situation in the meeting to be held on 30.6.2000 in the premises of the Bazar Campus. The notice of the meeting was issued to the members of the Society and in addition was also published in the issues of the 'North East'. 'The Assam Tribune' and 'Amar Asom' (newspapers). The Assistant Registrar in his letter dated 13th July, 2000 observed that the original register of the members of the Society starting from serial No. 1 to 440 was not available in the Society's office and out of 440 of the original share holders, only 181 received invitation letter for attending the Annual General Meeting. If this lapse was there from before, it was incumbent upon the Assistant Registrar to take note of it before the meeting was held on 30.6.2000. Taking advantage of his own lapse, the Assistant Registrar indicted the Society and declared the Annual General Meeting as irregular. This is highly reprehensible for the simple reason that the Assistant Registrar at the relevant time was under influence of the Minister and, therefore, he had acted in a manner prejudicial to the interest of the Society. It is strange that Shri A. Ahmed, Registrar of Cooperative Society also toed the line of the Assistant Registrar and passed the impugned order dated 15th/17th July, 2000 reconstituting the Society to satisfy the Minister. Law do not provide that a meeting held in an irregular manner creates any vacuum. It is strange that Shri A. Ahmed, Registrar of Cooperative Society also toed the line of the Assistant Registrar and passed the impugned order dated 15th/17th July, 2000 reconstituting the Society to satisfy the Minister. Law do not provide that a meeting held in an irregular manner creates any vacuum. Sub-section (4) of Section 32 speaks of automatic dissolution when there is a failure to hold the meeting within the period of 60 days or within the extended period. In the instant case, the meeting held by the Society under active supervision of the Cooperative Department has been branded as irregular and in such a situation it would have been appropriate on the part of the Registrar of Cooperative Societies to fix another date for holding the Annual General Meeting again by extending the time as per provisions of Section (2) and (3). Instead of doing that, the Registrar has issued the impugned notification imposing a Committee consisting of members of their own choice. And by this action, the Registrar has overthrown a duly elected Committee to sub serve the interest of his political master at the cost of an elected body. Both the Assistant Registrar and the Registrar by their conduct appear to have acted contrary to the provisions of law and against the spirit of cooperative movement. 9. Preamble of the Act of 1949 reads as follows:- "Whereas it is expedient further to facilitate the formation and working of Co-operative Societies for the purpose of thrift, self-help, mutual aid and creating the quality of credit worthiness among agriculturists, artisans and other persons with common economic needs so as to bring about a higher standard of living, better business, better methods of production, equitable distribution and exchange and for that purpose to consolidate and amend the law relating to Co-operative Societies in the Province of Assam." 10. It appears that the persons who were entrusted by the people to lead the cooperative movement in the State were not aware of the very purpose for which the Act of 1949 has been elicited. Self-governance is the very essence of the cooperative movement and all endeavour should be directed to achieve the object for which the Act of 1949 have been enacted. This Court is unable to reconcile with the idea of imposition of an ad-hoc body over an elected body. Self-governance is the very essence of the cooperative movement and all endeavour should be directed to achieve the object for which the Act of 1949 have been enacted. This Court is unable to reconcile with the idea of imposition of an ad-hoc body over an elected body. It is the duty of the State respondent to take care that an important matter like that of the cooperative movement in the State is not placed in wrong hands. The decisions in Sanjay Kumar Mahanta and another- Vs-State of Assam and others (1993) 2 GLR 170 and Nalin Chandra Hazarika- Vs-State of Assam and others (1994)1 GLR 1 also suggest that the Registrar is required by the law to act judicially while according approval to the proceedings of the meeting. The decision in Nalin Chandra Hazarika (supra) also suggest that dissolution of the Administrative Council/Society under Section 32(4) of the Act is sustainable only when the Society fails to hold the Annual General Meeting within time. This is not the case here. The meeting in the instant case was held within time under the supervision of the Assistant Registrar. If for any reason the meeting was found to be irregular, the best course would have been to go for another meeting. 11. There is, therefore, no doubt that the impugned order dated 15th/17th July, 2000 passed by the Registrar of Cooperative Societies, Assam is not sustainable in law. Hence, this petition is allowed and the aforesaid impugned order passed by the Registrar is hereby set aside. The matter is remitted back to the Registrar of the Cooperative Societies with the direction to fix another date for holding the Annual General Meeting by extending time in exercise of powers under sub­section (2) and (3) of Section 3 2 of the Act of 1949. Till then, as directed earlier, the Deputy Commissioner, Kamrup shall continue to manage the affairs of the Society. No costs.