Research › Search › Judgment

Madras High Court · body

2005 DIGILAW 561 (MAD)

The Government Telecom Employees Co-operative Society Limited Staff Union, represented by its Treasurer, Chennai v. Director (Co-operative), Office of the Central Registrar, Government of India, Department of Agriculture and Co-operation, New Delhi and others

2005-03-30

P.D.DINAKARAN

body2005
ORDER: The petitioner in W.P.No.1070 of 2005 seeks of a writ of declaration declaring the action of the respondents 1 to 4 in recruiting persons to the post of Assistant Secretary for the fourth respondent society as communicated by their letter dated 30.8.2004 bearing reference No.RC-421 of 2002 to the Assistant Director, O/o Professional and Executive Employment Office, Chennai-600 004, Executive Employment Office, Chennai-600 004 as the same is illegal, arbitrary, mala fide, contrary to the bye-laws of the fourth respondent society, without jurisdiction and in violation of the second respondent Joint Registrars letter dated 23.7.2002. 2. In W.P.Nos.2322 and 9440 of 2005, the petitioners challenge their respective orders of transfer made by the administrator of the first respondent in W.P.No.1070 of 2005 and fourth respondent in W.P.Nos.2322 and 9440 of 2005 viz., Government Telecom Employees Co-operative Society Limited, which is admittedly a Multi-State Co-operative Society, governed under the provisions of the Multi State Co-operative Societies Act, 2002, which got the assent of the President on 3.7.2002 and was published in the Gazette of India on 3.7.2002 in Part-II-S.1, Ex.P.1(No.43). 3.1. The Multi-State Co-operative Societies Act, 2002 (hereinafter referred to as ‘the Act’) was enacted to consolidate and amend the law relating to Co-operative Societies, with objects not confined to one State and serving the interests of members in more than one State, to facilitate the voluntary formation and democratic functioning of Co-operatives as people’s institutions based on self-help and mutual aid and to enable them promote their economic and social betterment and to provide functional autonomy and for matters connected therewith and incidental thereto. 3.2. 3.2. Sec.123 of the Act provides for supersession of the Board of a specified Multi State Co-operative Society, which reads as follows: Sec.123: Supersession of Board of specified Multi-State Co-operative society: (1) If in the opinion of Central Government, the Board of any specified Multi-State Co-operative Society is persistently making default or is negligent in the performance of the duties imposed on it by this Act or the rules or the bye-laws or has committed any act which is prejudicial to the interests of the Society or its members, or has omitted or failed to comply with any directions given to it under Sec.122 or that Government may, after giving the Board an opportunity to state its objections, if any, and considering the objections, if received, by order in writing, remove the Board and appoint one or more administrators who need not be members of the Society, to manage the affairs of the Society for such period not exceeding six months, as may be specified in order which period may, at the discretion of the Central Government, be extended from time-to-time; so, however, that the aggregate period does not exceed one year; Provided that in the case of Co-operative bank, the provisions of this Sub-section shall have effect as if for the words, “one year”, the words “two years” had been substituted. (2) The Central Government may fix such remuneration for the administrators as it may think fit and the remuneration shall be paid out of the funds of the specified Multi-State Co-operative society. (3) The Administrator shall, subject to the control of the Central Government and to such instructions as it may from time-to-time give, have power to exercise all or any of the functions of the Board or of any officer of the Multi-State Co-operative Society and take all such actions as may be required in the interests of the Society. (4) Save as otherwise provided in Sub-sec.(5), the Administrator shall, before the expiry of his term of office, arrange for the constitution of a new Board in accordance with the bye-laws of the specified Multi-State Co-operative Society. (4) Save as otherwise provided in Sub-sec.(5), the Administrator shall, before the expiry of his term of office, arrange for the constitution of a new Board in accordance with the bye-laws of the specified Multi-State Co-operative Society. (5) If, at any time during the period the Administrator is in office, the Central Government considers it necessary or expedient so to do, it may, by order in writing giving reasons therefore, direct the administrator to arrange the constitution of a new board for such specified Multi-State Co-operative Society in accordance with the bye-laws of such Society and immediately on the constitution of such a board, the administrator shall hand over the management of such Society to such newly constituted board and cease to function. (6) Where a specified Multi-State Co-operative Society is indebted to any financial institution, the Central Government, shall, before taking any action, under Sub-sec.(1) in respect of that Society, consult the financial institution. Explanation: For the purposes of Secs.122 and 123, “specified Multi-State Co-operative Society” means any Multi-State Co-operative Society in which not less than fifty-one percent of the paid-up share capital or of total shares, is held by the Central Government. [Italics added] 3.3. Even though as per Sec.123(3) of the Act, the Administrator, of course, subject to the approval of the Central Government, has power to exercise all or any of the functions of the Board or any other specified Multi-State Co-operative Society and take all such actions as may be required in the custody of the Society, a careful reading of the explanation to Sec.123 makes it clear that a ‘specified Multi-State Co-operative Society’ means any Multi State Co-operative Society in which not less than fifty-one percent of the paid up share capital or of total shares, held by the Central Government. 3.4.That apart, Sec.126 deals with repeal and savings clause, which reads as follows: Sec.126: Repeal and Saving: The Multi-state Co-operative Societies Act; 1984 (51 of 1984) is hereby repealed. 3.4.That apart, Sec.126 deals with repeal and savings clause, which reads as follows: Sec.126: Repeal and Saving: The Multi-state Co-operative Societies Act; 1984 (51 of 1984) is hereby repealed. (1) Without prejudice to the provisions contained in the General Clauses Act, 1897 (10 of 1987) with respect to repeals, any notification, rule, order, requirement, registration, certificate, notice, decision, direction, approval, authorisation, consent, application, request or thing made, issued, given or done under the Multi-State Co-operative Societies Act, 1984 (51 of 1984) shall, if in force at the commencement of this Act, continue to be in force and have effect as if made, issued, given or done under the corresponding provisions of this Act. (2) Every Multi-State Co-operative Society, existing immediately before the commencement of this Act, which has been registered under the Co-operative Societies Act, 1912 (2 of 1912) or under any other Act relating to co-operative societies in force, in any state or in pursuance of the provisions of the Multi-Unit Co-operative Societies Act, 1942 (6 of 1942) or the Multi-State Co-operative Societies Act, 1984(51 of 1984) shall be deemed to be registered under the corresponding provisions of this Act, and the bye-laws of such Society shall, in so far as they are not inconsistent with the provisions of this Act, or the rules, continue to be in force until altered or rescinded. (3) All appointments, rules, or orders made, all notifications and notices issued and all suits and other proceedings instituted under any of the Acts referred to in Sub-sec.(1) shall, in so far as they are not inconsistent with the provisions of this Act, be deemed to have been respectively made, issued and instituted under this Act, save that an order made canceling the registration of a Multi-State Co-operative Society shall be deemed, unless the Society has already shall be deemed, unless the Society has already been finally liquidated, to be an order made under Sec.86 for its being wound up. [Italics for Emphasis] (4) The provisions of this Act shall apply to: (a) any application for registration of a Multi-State Co-operative Society; (b) any application for registration of amendment of bye-laws of a Multi-State Co-operative Society, pending at the commencement of this Act and to the proceedings consequent thereon and to any registration granted in pursuance thereof. [Italics for Emphasis] (4) The provisions of this Act shall apply to: (a) any application for registration of a Multi-State Co-operative Society; (b) any application for registration of amendment of bye-laws of a Multi-State Co-operative Society, pending at the commencement of this Act and to the proceedings consequent thereon and to any registration granted in pursuance thereof. (5) Save as otherwise provided in this Act, any legal proceeding pending in any Court or before the Central Registrar or any other authority at the commencement of this Act shall be continued to be in that Court or before the Central Registrar or that authority as if this Act had not been passed" 4.1 It is not in dispute that the Joint Registrar of Co-operative Societies, Central Registrar, Chennai Region by an order dated 29.8.2002 have chosen to exercise the powers conferred under Sec.48(1) of the Multi State Co-operative Societies Act, 1984. It is apparent on the face of the record that as on 29.8.2002, since the new Act, which got the assent of the President of India on 3.7.2002 and came into force from 19.8.2002, the provisions of the old Act, viz., Multi State Co-operative Societies Act, 1984, was not applicable, as the same got repealed by virtue of Sec.126 of the Act. 4.2. The only provision which is applicable for the supersession of the Board is Sec.123 of the new Act, viz., Multi State Co-operative Societies Act, 2002, which also cannot be applied to the Government Telecom Employees Co-operative Society Limited (first respondent in W.P.No.1070 of 2005 and fourth respondent in W.P.Nos.2322 and 9440 of 2005) for want of compliance of conditions contemplated in the explanation to Sec.123 of the Act. 4.3. That apart, Sec.126(4) of the Act only saves appointments, rules, or orders made, all notifications and notices issued and all suits and other proceedings instituted under any of the Acts, in so far as they are not inconsistent with the provisions of this Act, be deemed to have been respectively made, issued and instituted under the new Act, viz., Multi State Co-operative Societies Act,2002. 4.4. It is therefore apparent on the face of the record that the very order of supersession passed by the Joint Registrar of Co-operative Societies, Central Registrar, Chennai Region dated 29.8.2002 and the consequential order of appointing the fourth respondent Society as Administrator are illegal and arbitrary. 4.4. It is therefore apparent on the face of the record that the very order of supersession passed by the Joint Registrar of Co-operative Societies, Central Registrar, Chennai Region dated 29.8.2002 and the consequential order of appointing the fourth respondent Society as Administrator are illegal and arbitrary. If that be so, the orders/proceedings appointing Secretary and Assistant Secretary, including one which is challenged in W.P.No.1070 of 2005, as well as the transfer orders challenged by the petitioners in W.P.Nos.2322 and 9440 of 2005 are also illegal and arbitrary. Hence, all the above writ petitions are allowed as prayed for. No costs. Consequently, connected miscellaneous petitions are closed.