PETITIONER:
K.SHANTHARAJ & ANR.
Vs.
RESPONDENT:
M.L. NAGARAJ & ORS.
DATE OF JUDGMENT: 09/05/1997
BENCH:
K. RAMASWAMY, D.P. WADHWA.
ACT
HEADNOTE
JUDGMENT
ORDER
Leave granted.
We have heard learned counsel on both sides.
There appeals by special leave arise from the judgment of the Division Bench of the Karnataka High Court, made on March 17, 1997 in Writ Appeal Nos.1464-66/94.
The indisputable facts are that the committee was superseded by the Administrator who has been appointed by the Government to manage the affairs of the Society, pending further action. During the period of the administration, the Administrator had enrolled new members and given schedule of programme for conducting the elections to the Committee. The respondents challenged the order of appointment of the Administrator. The learned single Judge, while setting aside the order of appointment, held that the Administrator has no power to enroll new members; but he could conduct elections to the Committee of the Society as per the schedule of the programme. That was confirmed by the Division Bench. The material provisions in that behalf are contained in Sections 30 and 30-A of the Karnataka Cooperative Societies Act, 1959 (for short, the ‘Act’). They read as under:
"30. Supersession of Committee:
(1) If, in the opinion of the
Registrar -
(a) the committee of a co-operative
society persistently makes default
or is negligent in the performance
of the duties imposed on it by this
Act or the rules or the bye-laws or
commits any Act which is
prejudicial to the interest of the
society or its members or is
otherwise not functioning properly;
or
(b) a co-operative society is not
functioning in accordance with the
provisions of this Act, the rules
or bye-laws or any order or
direction issued by the State
Government or the Registrar, the
Registrar may, after giving the
committee an opportunity to state
its objections, if any, order in
writing remove the said committee,
and appoint an administrator to
manage the affairs of the society
for such period, not exceeding one
year, as may be specified by the
Registrar.
(2) The administrator so appointed
shall subject to the control of the
Registrar and such instructions as
he may give from time to time,
exercise all or any of any officer
of the co-operative society and
take such action as he may consider
necessary in the interest of the
society.
(3) The administrator shall, before
the expiry of his term of office
arrange for the constitution of a
new committee after holding the
election in accordance with this
Act, the rules and the bye laws of
the co-operative society;
Provided that in such an election
on member of the Committee removed
under sub-section (1) shall,
notwithstanding anything contained
in this Act, the rules or the bye-
laws, be eligible for being elected
as a member of the committee, for a
period of four years from the date
of supersession of the committee
under the said sub-section.
Provided that in such an election
no member of the Committee elected
in accordance with this sub-section
is also superseded within a period
of one year from the date of its
election, such supersession may
extend to a period not exceeding
three years.
30A Appointment of Special officer:
(1) Where the State Government on a
report made to it by the Registrar
or otherwise, is satisfied that any
cooperative society is not
functioning in accordance with the
provisions of this Act or the rules
made thereunder or its bye-laws or
any order, direction circular
issued by the State Government or
the Registrar it may,
notwithstanding anything in this
Act, by order, appoint a Special
Officer for such co-operative
society for such period not
exceeding two years:
Provided that the State Government
may, if it considers it necessary
extend the said period of two years
by such further period not
exceeding one year.
(3) The Special Officer subject to
the control of the State Government
and the Registrar, exercise and
perform all the powers and
functions of the committee of the
co-operative society and take all
such actions as may be required in
the interest of the co-operative
society."
It would be clear from the language of these provisions that the Administrator or special officer, subject to control of any of the functions of the society as per law. He should conduct elections as is enjoned thereunder. In other words, he is to conduct election with the members as on the roles and by necessary implication, he is not vested with power to enrol new members of the Society.
The learned single Judge in his judgment has held thus:
The new members enrolled by the
Administrator is without authority
of law and in utter disregard to
the Bye-laws of the society and
they have no right to participate
in the election. Since the order of
supersession is declared invalid,
the election has to be conducted
from the stage it was intercepted
from the stage it was intercepted
at the earliest opportunity. The
members who are enrolled during the
pendency of the writ petition hall
not participate in the election and
the Administrator shall notify the
election with fresh calender of
events and hold the election with
the members who were then in
existence when W.P. No. 16378/92
was filed, The General Body or the
Board of Directors elected by the
General Body shall consider the
application of the new members
enrolled by the Administrator
keeping in view the criteria or the
eligibility contemplated under Bye-
law 15 and dispose of their law
after due consideration.
The Division Bench after elaborate consideration has agreed with the above conclusion reached by the learned single Judge and held thus:
"Accordingly, he is not entitled to
enroll new members. But it has to
be noted that the wording of
Section 33(2) of the Kerala Co-
operative Societies Act is slightly
different from the wording of
Section 30 of the Act. In the
Kerala Act, the Administrator of
the functions of the committee.
Moreover, as stated earlier, the
difference in the authority vested
in an Administrator and a Special
Officer, as is made in Karnataka
Act is not considered in the Kerala
decision. the difference in the
authority vested in an
Administrator and a Special officer
in the Karnataka Act, is very
significant which is absent in the
Kerala Act. In that view of the
matter, the dictum laid down by the
Division bench of Kerala High
Court, cannot have any application
while determining the comparative
authority of an administrator and
Special officer appointed under
Section 30 and 30A of the Karnataka
Act respectively.
In view of what is stated above, we
confirm the decision of the learned
single Judge and dismiss these
appeals. the direction regarding
election given by the earned single
judge shall be carried out by the
concerned respondent within two
months from the date of receipt of
a copy of this Judgement."
Shri Santosh Hedge, learned senior counsel, contends that since the Administrator has power to conduct elections, by necessary implication, he has power to update the electoral lists by either enrolling the new members or substituting the legal representatives of the members in accordance with the bye-laws; therefore, he has power to enroll the members. We find that there is no force in the contention. The power of Administration given under the statute to conduct elections should be confined within the parameters set under the relevant provisions of the Act, Rules and Bye-laws. The division Bench has minutely and carefully gone into all the questions and agreed with the learned single judge that the Administrator has no power to enroll new members; but he has the powers to organise election process in accordance with the provisions of the Act, the rules and the bye-laws of the society. In that view of the matter, we think that the High Court has not committed any error of law warranting interference.
The appeal is accordingly dismissed. However, we confirm the direction issued by the learned single Judge for enrollment of new members by the board or the Board of Directors, as the case may be, in accordance with the byelaw No.15 and dispose them of No costs.