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2024 DIGILAW 861 (AP)

Sk. Khaja Masthan v. State Of Andhra Pradesh

2024-07-29

TARLADA RAJASEKHAR RAO

body2024
ORDER : Tarlada Rajasekhar Rao, J. The present Writ Petition is filed under Article 226 of the Constitution of India for the following relief/s: "…to issue a Writ, Order or Direction more particularly one in the nature of Writ of Mandamus declaring the action of the Respondents 3 and 4 in issuing the proc.No.60/FCS/2022, Dt.17.02.2022 issued by the 4th respondent and the earlier Notice vide Rc.No.10096/B/2020-140, Dt.28.01.2022 issued by the 3rd respondent to the 72nd Petitioner and removing the petitioners from the membership of the 5th respondent Society as illegal, arbitrary and contrary to Section 21 of the A.P. Co-operative Societies Act and also violative of Article 14 of the Constitution of India and consequently set aside the pros.No.60/FCS/2022, Dt.17.02.2022 issued by the 4th respondent with respect to the petitioners herein and to pass…." 2. The 4th respondent vide order dated 17.02.2022, whereby and whereunder, by exercising the powers delegated under Section 21 of the Andhra Pradesh Co-operative Societies Act, 1964 (for short, ‘APCS Act’), has deleted the names of 172 ineligible admitted members from the Somavarappadu Fishermen Cooperative Society Limited, Somavarappadu village, Jaladangi Mandal, Nellore District. 3. The said order is assailed in the present Writ Petition. The learned counsel for the petitioners has mainly emphasized his arguments that the 4th respondent is not vested with jurisdiction to delete the names of 172 members from the said society vested under the APCS Act, which is contrary to Section 21(3) of the APCS Act, as the general body is standalone has the power to remove the members of the society. It is useful to extract the relevant portion of the section. Sub-section (3) of Section 21 of the APCS Act reads thus: "Where any person, who is not eligible for being admitted as member has been admitted as member or where the member who is disqualified to continue as such under subsection (1) is continued as member, he shall be removed by the General body on its own motion or on a representation made to it by any member of a society or its federal society or its financing bank: Provided that no member shall be removed under this subsection unless he had an opportunity of making a representation against the proposed action. A copy of the resolution removing the member shall be communicated to such person and on such communication, he shall be deemed to have ceased to be a member of the society. [Substituted by Act No. 22 of 2001, dated 25.4.2001." 4. Learned counsel for the petitioners argues that where any person, who is not eligible for being admitted as a member, has been admitted as a member or that the member of the society to continue as a member, who shall be removed by the general body on its own motion or on a representation made to it by any member of the society or its financing bank and the same shall communicate to the said persons and, on communication, they said ceased to be the members of the society. And also raised that no notice was issued prior to the deletion of the names from the society membership or a copy of the resolution was communicated to the petitioners, by an order in writing, to declare that they shall cease to be members of the society from the date of such disqualification by the general body and no suo moto power is vested with 4th respondent-Assistant Director of Fisheries to remove the members of the society by exercising the jurisdiction that no member shall be removed under sub-section (3) of Section 21 of the APCS Act, by the authorities. 5. In this regard, the respondents have filed their counter and denied all the contentions raised by the petitioners in the Writ Petition and, inter alia, contended that certain members of the 5th respondent society has filed complaint before the institution of Lokayuktha for the State of Andhra Pradesh, vide complaint No.1725/2021/B1/LOK/13544/2021 against the Fisheries Development Officer, Kavali, Nellore District, alleging that illegal admissions of members were allowed by the Department and no action was taken on the misappropriation of funds in the 5th respondent-society and as per the orders of the Lokayuktha, they have conducted a detailed enquiry and recorded enrolment of ineligible members into the 5th respondentsociety by the then members of Managing Committee for not following the norms as contemplated under G.O.Ms.No.98, Revenue Department dated 22.01.1964 and G.O.Ms.No.74 dated 21.10.2011 and submitted a detailed report to the institution of Lokayukta of Andhra Pradesh at Hyderabad. 6. 6. In the said regard, a direction got issued to the Managing Committee of 5th respondent-society to conduct general body for removal of ineligible (172) members for admitting member, contrary to G.O.Ms.No.98 dated 22.01.1964 and G.O.Ms.No.74 dated 21.10.2011 and return the share capital to the ineligible members concern immediately and accordingly, the 5th respondent society conducted general body meeting and resolved resolution for deletion of (172) members including petitioners by an order dated 15.05.2022 and also returned the individual share capital amount by money order through postal department and therefore, denied that no enquiry was conducted and the impugned proceedings for removal of the petitioners from the 5th respondent society is baseless and absolutely not correct. 7. It is further asserted in the counter that as per the directions issued by the 3rd respondent, vide Lr.No.1086/B/2021 dated 16.02.2022, the 4th respondent/Ex-Officio Deputy Registrar of Cooperative Societies, Kavali, passed orders for deletion of membership who admitted illegally and whose occupation is not fishing from the said society including petitioners in accordance with Section 21 of the APCS Act, 1964, vide proceedings No.60/FCS/2022 dated 17.02.2022 with directions to the Managing Committee members to conduct general body for removal of ineligible (172). As directed by 4th respondent, the 5th respondent-society conducted a general body meeting and a resolution was passed by the general body to delete 172 members. Counsel appearing for the respondents would contend that the 4th respondent is having jurisdiction to exercise power vested under Section 21 of the APCS Act, as the ‘Registrar’ means and includes any other person on whom all or any of the powers of the Registrar under this Act are conferred under Section 2(n) of the APCS Act. Therefore, the 4th respondent is vested with the power to delete the names of 172 members of the society, both the grounds raised by the petitioners are untenable, hence, prayed to dismiss the Writ Petition. 8. Therefore, the 4th respondent is vested with the power to delete the names of 172 members of the society, both the grounds raised by the petitioners are untenable, hence, prayed to dismiss the Writ Petition. 8. Rule 20 of the APCS Rules, 1964, which postulates that: A member of a society can be removed under disqualification, (1) if any person, who is admitted as a member of a society becomes disqualified under Section 21 of the APCS Act to continue as such, the Registrar may, on his own motion or on a representation made to him by any member of the society or its financing bank by an order in writing, declare that he shall cease to be a member of the society from the date of such disqualification, (2) before passing an order under sub-rule (1), the Registrar shall give such person an opportunity to state his objection, if any, for the proposed action and if the person wishes to be heard, he shall be given opportunity to be heard and the Registrar’s decision shall be final and binding on the society, it shall not be questioned in any Court. 9. As seen from the rule 20 of Andhra Pradesh Co-operative Societies Rules, the Registrar is vested with power to remove the member of the society. The 3rd respondent-the Joint Director of Fisheries issued notice to all the petitioners, vide Rc.No.1096/B/2021 dated 28.01.2022, in the following manner: “why action should not be initiated against the writ petitioners calling for an explanation within 15 days from the date of said notice. Only five members have submitted their explanation vide representation dated 14.02.2022 without submitting proper documentation. Therefore, the contention that the 4th respondent has not issued any notice is untenable. 10. It is very well settled principle of law when the Government makes statutory rules, they form part of the main statute. Those rules have to be read along with the provision in the main statute. In this regard, this Court is fortified with the judgments in S.Varalakshmi v. District Co-operative Office and others 2008 (6) ALD 516 and in The Prudential Cooperative Bank v. The A.P.Co-operative Tribunal at M.J.Market W.P.No.20044 of 2006 dated 22.12.2016. Under Rule 20 of the Co-operative Societies Rules, which permits/empowers the Registrar to disqualify the member admitted by the society under Section 21 of the APCS Act on his own motion or on representation. Under Rule 20 of the Co-operative Societies Rules, which permits/empowers the Registrar to disqualify the member admitted by the society under Section 21 of the APCS Act on his own motion or on representation. Ergo the contention of the learned counsel for the petitioners that the 4th respondent has got power vested with, to delete the member under Section 21 of the APCS Act, has no legs to stand. 11. In the case on hand, as directed by the respondents, the society has conducted a general body meeting and resolved to delete the names of the members, who are un-authorizedly admitted in the society and under Rule 21 of the A.P.Co-operative Society Rules, the Registrar is vested with the power to delete the names, who are un-authorizedly admitted either suo moto or on representation. on both the Counts, the Writ Petition fails and, accordingly, stands dismissed. 12. Accordingly, the present Writ Petition is dismissed. There shall be no order as to costs. As a sequel, interlocutory applications pending, if any, in this Writ Petition, shall stand closed.