Research › Search › Judgment

Gauhati High Court · body

2018 DIGILAW 1241 (GAU)

Minara Begum Barbhuiya D/o Lt Khoir Uddin Laskar v. State of Assam

2018-08-21

UJJAL BHUYAN

body2018
ORDER : 1. Heard Mr. S. K. Talukdar, learned counsel for the petitioner and Mr. R. C. Borpatrogohain, learned Advocate General, Assam assisted by Dr. B. Ahmed, learned Standing Counsel, Cooperation Department and Ms. P. Agarwal, learned counsel. 2. By filing this petition under Article 226 of the Constitution of India, petitioner seeks quashing of order dated 18.04.2018 issued by the Assistant Registrar of Co-operative Societies, Silchar and further seeks a direction to the respondents to extend the tenure of the Board of Directors of Rongpur Co-operative Society Ltd. in the district of Cachar by counting the period of 5 years from the date of its first meeting. 3. Before re-adverting to the prayer made by the petitioner, the relevant facts may be briefly noted to put the issue in proper perspective. Petitioner was a member of the Board of Directors and also Chairman of Rongpur Co-operative Society Ltd. (Society), which is a cooperative society registered under the provisions of the Assam Co-operative Societies Act, 1949 and now governed by the provisions of the Assam Co-operative Societies Act, 2007. 4. Annual General Meeting (AGM) and Election of the Society for the year 2013-2014 was held on 18.08.2013. In that election petitioner got elected as a Member of the Board of Directors. However, Assistant Registrar of Co-operative Societies, Silchar took considerable time to approve the proceedings of the aforesaid AGM and Election. Ultimately, approval was granted on 25.04.2014. Thereafter, the first meeting of the Board of Directors was held on 10.05.2014 in which petitioner was elected as the Chairman. 5. According to the petitioner, the tenure of the Board of Directors is 5 years and since the first meeting was held on 10.05.2014, the term of 5 years would expire only on 09.05.2019 before which fresh election is required to be held. 6. However, Assistant Registrar of Co-operative Societies, Silchar had issued the impugned order dated 18.04.2018 informing the petitioner that it appeared from the record that the term of the Board of Directors of the Society would expire on 18.08.2018. Therefore, petitioner was requested to hold AGM and Election. 7. Assailing the legality and correctness of the aforesaid order, present writ petition has been filed seeking the two reliefs as indicated above. 8. On 11.06.2018, this Court had issued notice. 9. Therefore, petitioner was requested to hold AGM and Election. 7. Assailing the legality and correctness of the aforesaid order, present writ petition has been filed seeking the two reliefs as indicated above. 8. On 11.06.2018, this Court had issued notice. 9. On 23.07.2018, the following question was framed for consideration:- “Question for consideration in this writ petition is whether the term of 5 years of the elected Board of Directors as per Section 35 of the Assam Cooperative Societies Act, 2007 should be counted from the date of Annual General Meeting (AGM) in which the Board of Directors was elected or from the first meeting of the elected Board of Directors after approval is granted by the jurisdictional Assistant Registrar of Cooperative Societies?” 10. Court requested learned Advocate General to assist the Court in answering the above question so framed. 11. In the hearing today, Mr. Talukdar, learned counsel for the petitioner fairly submitted that the issue raised in the writ petition as well as the question so framed is no longer res integra as the issue has been answered by the Supreme Court in Abdur Razzaque Vs Monir Uddin Ahmed, Civil Appeal Nos. 10051-10052 of 2014, decided on 07.11.2014. In the said decision Supreme Court had clarified the position that the tenure of office of the Members of the Board of Directors shall be 5 years from the date of election. He however submits that the writ petition was filed on 30.05.2018 when the tenure of 5 years had not yet expired and therefore the present Board of Directors should be allowed to hold the AGM and Election for the year 2018-19 which will prevent automatic disqualification of the petitioner and other Members of the Board of Directors from future election. 12. Mr. Borpatragohain, learned Advocate General, Assam submits that as per Article 243 ZJ (2) of the Constitution of India, the term of office of elected Members of the Board shall be 5 years from the date of election and the term of office bearers shall be coterminous with the term of the Board. He therefore submits that the Constitution itself has made it clear that the term of office of the Board of Directors is for 5 years and the period of 5 years would be counted from the date of election. He therefore submits that the Constitution itself has made it clear that the term of office of the Board of Directors is for 5 years and the period of 5 years would be counted from the date of election. Referring to the case in hand, he submits that elections were held on 18.08.2013 and the period of 5 years had expired on 18.08.2018. Since the petitioner as well as the Board of Directors had failed to hold AGM and Election while they were in office, law will take its own course and the departmental authorities would now have to hold AGM and Election as per Section 39 of the Assam Cooperative Societies Act, 2007 (2007 Act). 13. In addition to the submissions of learned Advocate General, Assam, Dr. B. Ahmed, learned Standing Counsel submits that the question as to whether petitioner would suffer automatic disqualification for future election should be construed as the consequential subject matter of the present writ petition and adjudicated upon. 14. Submissions made by learned counsel for the parties have been considered. 15. On due consideration, Court is of the view that the present writ petition be confined to the contention of the petitioner that her term of 5 years should be counted from the date of first meeting of the Board. Therefore, issues which are not before the Court are not required to be adjudicated upon at this stage. 16. Facts of the case as recorded above are not in dispute. 17. AGM and Election of the Society were held on 18.08.2013 and the first meeting of the Board of Directors was held on 10.05.2014 after approval was granted by the Assistant Registrar of Cooperative Societies on 25.04.2014. If the period of 5 years is counted from 18.08.2013, the term had already expired on 18.08.2018. On the other hand, if the term of 5 years is counted from 10.05.2014, it would continue till 10.05.2019. 18. By the Constitution (97th Amendment) Act, 2011, Part IX-B was inserted in the Constitution of India dealing with cooperative societies. Article 243 ZJ provides for the number and term of Members of Board of Directors of a co-operative society. As per Clause (1), Board of Directors shall consist of such number of Directors as may be provided by the Legislature of a State by law. Article 243 ZJ provides for the number and term of Members of Board of Directors of a co-operative society. As per Clause (1), Board of Directors shall consist of such number of Directors as may be provided by the Legislature of a State by law. But as per the first proviso the maximum number of Directors of a co-operative society shall not exceed 21. The second proviso deals with reservation of one seat each for the Scheduled Castes and Scheduled Tribes and two seats for women in the Board of Directors of every cooperative society. As per Clause (2), the term of office of the elected Members of the Board of Directors and its office bearers shall be 5 years from the date of election and the term of the office bearers shall be coterminous with the term of the Board of Directors. 19. Thus as per Article 243 ZJ (2), the term of office of elected Members of the Board of Directors shall be 5 years from the date of election and that the term of office bearers shall be coterminous with the term of the Board of Directors. Therefore, the Constitution itself has removed any ambiguity by clearly stating that the term of office of the elected Members of the Board of Directors shall be 5 years from the date of election. The 2007 Act has been enacted repealing the Assam Cooperative Societies Act, 1949. Section 35 of the 2007 Act provides that there shall be a Board of Directors to manage the affairs of the cooperative societies. Members of the Board of Directors shall be elected in accordance with the provisions of the bye-laws. Sub-section (2) of Section 35 says that Board of Directors shall consist of 15 numbers of Directors with reservation for Scheduled Castes, Scheduled Tribes and women. 20. Section 31 says that the term of the Board shall be 5 cooperative years. As per Section 36 (1), there shall be a President and a Vice President in a cooperative society to be elected by the Board of Directors from amongst its Members and the term of the President and the Vice President so elected shall be coterminous with the term of the Board. Section 42 (1) says that the tenure of office of elected members of the Board of Directors and its office bearers shall be 5 years from the date of election. Section 42 (1) says that the tenure of office of elected members of the Board of Directors and its office bearers shall be 5 years from the date of election. As per the proviso, the tenure of office bearers shall be coterminous with the tenure of the Board of Directors. 21. Before referring to the other relevant provisions of the 2007 Act and pausing here for a moment, we find that it is both the constitutional as well as the statutory requirement that the term of the elected members of the Board of Directors as well as the term of the Board of Directors, which are coterminous is for 5 years and the period of 5 years is to be counted from the date of election. There is no ambiguity in this regard. 22. This position has been made abundantly clear by the Supreme Court judgment in Abdur Razzaque(supra). That was also a case from this High Court. In that case, the Board of Directors had successfully challenged before this Court that they were entitled to a full term of 5 years and therefore any loss of period in the inter regnum should be compensated to ensure a full term of 5 years. Supreme Court reversed the finding of this Court. Referring to Section 42 of the 2007 Act, Supreme Court observed that it was apparent that the tenure of the office of the members of the Board of Directors is 5 years from the date of election. In that case as the term of 5 years was upto 24.10.2014 which period had expired, Supreme Court directed the competent authority to take steps for holding immediate election of members comprising the Board of Directors. In so far the present case is concerned, there is no hesitation to come to the conclusion that the period of 5 years of the Board of Directors of the Society was over on 18.08.2018. Therefore, the prayer made in the writ petition for extension of the term of the Board is constitutionally and legally not tenable and cannot be granted by the Court. 23. However, in view of the submissions made by learned counsel for the petitioner, a reference to Sections 39 and 40 of the 2007 Act would be in order. Therefore, the prayer made in the writ petition for extension of the term of the Board is constitutionally and legally not tenable and cannot be granted by the Court. 23. However, in view of the submissions made by learned counsel for the petitioner, a reference to Sections 39 and 40 of the 2007 Act would be in order. Section 39 says that a general meeting to be termed as Annual General Meeting (AGM) of a registered co-operative society shall be held at least once in every cooperative year within a period of 6 months of close of the financial year to transact the business of the cooperative society as provided in the 2007 Act. This is the first part of Section 39. The second part of Section 39 says that the Board of Directors shall automatically stand dissolved for not holding AGM in accordance with the provisions of the 2007 Act and bye-laws within 6 months from the expiry of every financial year. 23.1. An analysis of the first part of Section 39 would reveal that AGM of a registered cooperative society is required to be held at least once in every cooperative year. This AGM can be held within a period of 6 months of close of the financial year. Financial year ends on 31st of March and the period of 6 months from the close of the financial year would be upto 30th of September. Therefore, AGM of a cooperative society for a particular cooperative year must be held before 30th of September of the succeeding cooperative year. As per the second part, failure to hold such AGM within 30th of September of the succeeding cooperative year would lead to automatic dissolution of the Board of Directors. 24. Section 40 deals with eligibility for being a Director in a cooperative society. It would appear that inability of a Member of the Board of Directors who ceases to be a Member of the Board of Directors for not conducting or for wrongly conducting AGM during the tenure of 5 years would act as an eligibility bar for becoming a Director. But as pointed out earlier in this judgment, this is not an issue arising out of the pleadings calling for adjudication in this proceeding. The issue which has fallen for consideration in this case was summarized in the order dated 23.07.2018 as extracted above. 25. But as pointed out earlier in this judgment, this is not an issue arising out of the pleadings calling for adjudication in this proceeding. The issue which has fallen for consideration in this case was summarized in the order dated 23.07.2018 as extracted above. 25. That being the position and in the light of the discussions made above, contention of the petitioner that the period of 5 years of the elected Board of Directors should be counted from the date of the first meeting of the Board of Directors is legally unsustainable and is accordingly rejected. 26. Since the term of the Board of Directors has expired, Assistant Registrar of Cooperative Societies, Silchar shall take steps to hold AGM and Election of the Society for the year 2018-19 before September 30th, 2018. 27. Writ petition is accordingly disposed of.