Bhagyanagar Fisherman Fish Marketing Cooperative Society v. State of A. P.
2008-11-27
L.NARASIMHA REDDY
body2008
DigiLaw.ai
JUDGMENT : Petitioners are the co-operative societies constituted by Fishermen or Women, in different parts of the State. The 3rd respondent is the A.P. State Fishermen Cooperative Societies Federation Limited (for short 'the Federation') registered in the year 1978. The fishermen cooperative societies of different categories functioning in the State are members of the Federation. It was under the management of the elected committee till 03.03.1995. Thereafter, persons-in-charge were appointed from time to time and the term of such persons-in-charge also expired on 24.01.2007. Two previous Presidents of the District Fishermen Cooperative Society approached this Court by filing W.P.No.17512 of 2007 with a prayer to direct the respondents therein to conduct election to the Federation. The writ petition was disposed of with a direction that steps be taken to conduct election. The petitioner contends that in the name of implementing the directions of this Court in W.P.No.17512 of 2007, respondents 2 and 3 have prepared a voters' list, on the basis of an amendment caused to Bye-laws on 27.01.2007 and thereby, excluded a large number of societies from the voters' list. This writ petition is filed for a direction to the respondents, to conduct election to the Federation as per the voters' list that was in existence prior to 27.01.2007 and to declare that the amendment to bye-laws of the Federation on 27.01.2007 is contrary to Section 16 of the A.P. Co-operative Societies Act (for short 'the Act'). The petitioner contends that it is totally incompetent for the persons-in-charge of the Federation to cause amendment of bye-laws, that too, which has the effect of eliminating large number of societies from the voters' list. On behalf of respondents 1 and 2, a counter affidavit is filed stating that the bye-laws were amended on 27.01.2007, on the basis of a resolution, dated 16.03.1995, passed by the general body, when the Federation was under the management of an elected body. It is stated that the amendment was caused in the light of the observations made by the National Cooperative Development Corporation (NCDC) and that necessary steps have been taken to conduct the elections in accordance with the directions issued by this Court.
It is stated that the amendment was caused in the light of the observations made by the National Cooperative Development Corporation (NCDC) and that necessary steps have been taken to conduct the elections in accordance with the directions issued by this Court. Sri A. Rama Lingeswra Rao, learned counsel for the petitioner submits that bye-law No.4 of the Bye-laws of the Federation stipulated three categories of members viz., District Level Fishermen Co-operative Societies, State Government and Primary Agencies, and Primary Fishermen Co-operative Societies, who have taken loan from the Federation and that all the members are conferred with voting rights. He contends that through the amendment effected, when the society was under the management of the persons-in charge, right to vote was restricted to District Fishermen Co-operative Societies alone and the same is contrary to Section 16 of the Act. Learned Government Pleader for Fisheries and Ms. Vidyavathi, learned counsel for the 3rd respondent-Federation, on the other hand, submit that the amendment was effected, in pursuance of a resolution of the general body, when the Federation was under the management of the elected committee, and it was only a ministerial act that has taken place in the year 2007. They contend that once the election process has commenced with the publication of voters' list, it cannot be interfered with. Reliance is placed upon the judgments of the Supreme Court in Sant Sadguru Janardan Swami (Moingiri Maharaj) Sahakari Dugdha Utpadak Sanstha vs. State of Maharashtra (2001 (8) SUPREME COURT CASES 509) and Ahmednagar Zilla S.D.V. & P.Sangh Ltd. vs. State of Maharashtra (2004 (1) SUPREME COURT CASES 133). The principal grievance of the petitioner is about the amendment to the Bye-laws of the Federation. Ancillary to this is the very objection to the voters' list prepared on the basis of the amendment. The Federation is a statewide umbrella organization, and every category of fishermen cooperative society in the State was brought under its purview. Bye-laws 4 and 5 dealt with the categories and eligibility of membership respectively. Bye-laws 4 and 5 before and after amendment read as under: Before Amendment: 4. MEMBERSHIP: (a) There shall be 4 Classes of membership as under: (i) 'A' Class open to Primary Fishermen Co.operatives/Primary Fishermen Co.op. Marketing Societies.
Bye-laws 4 and 5 dealt with the categories and eligibility of membership respectively. Bye-laws 4 and 5 before and after amendment read as under: Before Amendment: 4. MEMBERSHIP: (a) There shall be 4 Classes of membership as under: (i) 'A' Class open to Primary Fishermen Co.operatives/Primary Fishermen Co.op. Marketing Societies. (ii) 'B' Class open to such Co.op Societies covered under specific projects not falling in any other above category of membership but covered under project approved by the State Government for implementation by the Federation. (iii) 'C' Class open to District-level Fishermen Co.op.Societies, Fishermen's Central Co.op. Societies. (iv) 'D' Class open to the State Government. Every 'A' Class member shall pay Rs.500/- 'B' Class member Rs.1000/- and 'C' Class member Rs.2,000/- (B) Every member shall hold at least one share. (C) Any Society subject to byelaws No.3(a) shall by a resolution of its Managing Committee sends its President/Chairman as delegate to the Federation. 5. ELIGIBILITY FOR MEMBERSHIP:- All the primary Fishermen Co.op.Societies/ Fishermen Co.op.Marketing Societies and other Fishermen Coop.Societies registered for the development of fishery wealth and promotion of economic condition of fishermen are eligible to become members of the Federation subject to the provisions of bylaws No.3 of the registered byelaws of the Federation and provisions of the Act and Rules. Provide that he/she shall agree to deliver the entire fish catches to the federation at the prevailing market prices. After Amendment: 4. MEMBERSHIP: (a) There shall be 3 Classes of membership as under:- (i) 'A' Class open to District-level Fishermen Coop.Societies. (ii) 'B' class open to the State Government and Primary agencies. (iii) The existing Primary Fishermen Cooperative Societies who have taken loan from the Federation will continue as nominal member without voting rights to A.P.C.O.F. (b) Every member shall hold at least one share. (c) The D.F.Cs. shall by a resolution of its Managing Committee sends its President/Chairman as delegate to the Federation. 5. ELIGIBILITY FOR MEMBERSHIP: All the District Fishermen Coop. Societies in the State registered for the development of fishery wealth and promotion of economic condition of fishermen are eligible to become members of the Federation subject to the provisions of bylaws No.3 of the Registered byelaws of the Federation and provisions of the Act and Rules provided that it shall agree to deliver the entire fish catches to the Federation at the prevailing market prices for marketing.
On a comparison of the said provisions, it becomes clear that the classes of membership was reduced to three. Primary fishermen cooperative societies were denied the voting rights and the effective membership was restricted to District Fishermen Cooperative Societies alone. Any society registered under the Act has the freedom to frame or amend bye-laws in accordance with the procedure prescribed under the Act. The freedom is absolute, as long as the bye-laws accord with the provisions of the Act and the Rules made thereunder and are intended to promote the objects, for which the society was registered. Section 16 of the Act prescribes the procedure for amendment of bye-laws. An amendment can be effected, only through a resolution by majority of the total members of the general body, and it would come into effect, after it is registered under the Act. The procedure for registration of the amendment is also prescribed. The Registrar of the Societies is conferred with the power even to refuse the registration of bye-laws, if it is found that they do not accord with the provisions of the Act and the Rules. It has already been pointed out that the Federation was under the management of the elected committee till March 1995. Thereafter, the persons-in-charge, of one category or the other, are being appointed. Though it is pleaded by the respondents that a resolution was passed by the general body on 16.03.1995, proposing to amend byelaws 4 and 5, the record does not substantiate the same. It is only through the proceedings, dated 27.01.2007, that the amended bye-laws were published for the first time. Obviously on 27.01.2007, no meeting of the general body was held. The record is also silent as to the registration of the amendment. Though the person-in-charge can be equated to the managing committee, they cannot be a substitute for the general body. The Act consciously vested a power to amend the bye-laws only on the general body and in the absence of the resolution of the general body of the Federation, the amendment published for the first time through proceedings dated 27.01.2007 cannot be sustained in law. That apart, the petitioners categorically stated that they were never put on notice of the proposed amendment of bye-laws. An important amendment, which had the effect of slashing down the effective membership almost to one-tenth, cannot be effected, without notice to the existing members.
That apart, the petitioners categorically stated that they were never put on notice of the proposed amendment of bye-laws. An important amendment, which had the effect of slashing down the effective membership almost to one-tenth, cannot be effected, without notice to the existing members. The 2nd respondent published the election programme, including the date of appointment of election officer, date of issuance of notification, receipt of nominations etc. 09.06.2008 was stipulated as the date of appointment of the election officer and 13.06.2008 as the date of issuance of notification. The entire election process commencing with the receipt of nominations to the declaration of results was to take place on 29.06.2008. This writ petition was filed on 09.06.2008 and interim order was granted on 12.06.2008. Thereby, the election notification could not be published on 13.06.2008 as proposed. The Supreme Court sounded a note of caution to the High Courts in the matter of interfering with the election process. There are also authorities to the effect that if any serious irregularity is noticed, the Courts cannot overlook the same. In the instant case, the election notification, as such, was not published and the petitioners approached this Court in the right earnest. Secondly, the amendment, which is found to be illegal, has the effect of denying the voting right to vast majority of the existing members. It is also stated that in substantial number of District Level Co-operative Societies, which alone are conferred with the right to vote, elections were not held and they cannot participate in the election. The Federation was without elected committee for more than a decade. Even now, the election process can be carried out within a very short time. Hence, the writ petition is allowed and the amendment to bye-laws 4 and 5 of the 3rd respondent-Federation published on 27.01.2007 is set aside. The respondents are directed to conduct elections to the Federation as early as possible, by preparing voters' list, on the basis of the unamended bye-laws. There shall be no order as to costs.