DINESH PRASAD YADA V versus STATE OF BIHAR AND ORS.

Citation: [1995] 1 S.C.R. 220 · Decided: 13-01-1995 · Supreme Court of India · Bench: KULDIP SINGH · Disposal: Appeal(s) allowed

Judgment (excerpt)

A 
DINESH PRASAD YADA V 
v. 
..,.\ ...,.·--
STATE OF BIHAR AND ORS. 
JANUARY 13, 1995 
B 
[KULDIP SINGH AND B.L. HANSARIA, JJ.] 
Bihar Co-operative Societies Act, 1935-Section 14(10}--Bihar Co-
+ .. 
operative Societies Rules, 1959-Expression 'the co-operative year in which 
c 
elections are held'-Means not only elections by way of ballot, but also 
nominations under the Act-Te1m of Managing Committee to commence 
from beginning of co-operative year in which nominations by State Govern-
ment are completed and Managing Committee constituted-Expression 
'election' as defined under Rules-To be interpreted in the context of Rules. 
D 
The appellant was a member of the Managing Committee of a 
Co-operative Bank alongwith respondents. They were elected as such by 
"JI:--
votes on January 20, 1991 under Rule 21 A of the Bihar Cooperative 
Societies Rules. The State Government made the nominations to the 
Managing Committee of the Bank of March 2, 1993. The Managing Com-
E 
mittee was not permitted to function till March 2, 1993 on the ground that 
it got constituted under Rule 22 only after the nomination were made by 
the State Government. 
By an order dated March 5, 1993, the State Government informed 
the Committee that its term was to expire on March 31, 1993. It was stated 
F 
that the elections having been held on January 20, 1991, the term of office 
y-· 
of the Managing Committee under the first proviso to Section 14 (10) of 
the Bihar Cooperative Societies Act, would be deemed to have commenced 
from April 1, 1990 (beginning of the co-operative year) and would come to 
an end on March 31, 1993 (end of the third co-operative year). 
G 
The appellant and respondents challenged the order of the State 
Government. The High Court dismissed the writ petition holding that due 
to inaction and laches of the executive, the mandate of legislature, fixing 
. .;.. 
a tenure of three co-operative years, commencing from the beginning of 
the co-operative year, in which election was held, could not be extended. 
H This appeal was filed against the impugned order of the High Court. 
220 
-· 
D.P. YADAVv. STATE 
221 
The appellant contended that the Managing Committee constituted A 
under the Act and the Rules had three year term iJ,l office and the same 
could not be reduced by giving !m isolated meaning to the first proviso to 
Section 14(10), thereby rendering the provisions of Rule 22(2) of the Rules 
as otiose. It was alleged that the provisions of the Act which permitted the 
State Government to reduce the office term of the Managing Committee 
were arbitrary and not-legally sustainable. 
The question raised for consideration was whether the three-year 
term of the Managing Committee was to be counted from the beginning of 
the 'co-operative year' in which the elections by ballot were held or from 
B 
the 'co-operative year' when the nominations were made by the State C 
Government? 
Allowing the appeal, this Court 
HELD 1.1. Rule 22(2) read with Section 14(2) of the Bihar Co-opera-
tive Societies Act makes it abundantly clear that constitution of the D 
Managing Committee is to be treated as complete only when the elections 
by ballot as well as the nominations are finalised. Even otherwise, to fulfil 
the avowed object of the Act and to encourage and promote the co-opera-
tive movement in the State. It is necessary that the Managing Committee 
as constituted under Rule 22(2) of the Bihar Co-operative Societies Rules 
should be given its full tenure of three cooperative years. Having provided 
for three years term in office to the Managing Committee of a Society, it 
could not be the intention of the legislature to leave it to the State 
Government to reduce the same to as short a period as three weeks, which 
would be a mockery. In the first proviso to Section 14(10) the expression 
E 
'the co-operative year in which elections are held' means not only the F 
elections by way of ballot. but also the nominations under the Act. The 
term of the Managing Committee under the Act and the Rules is to 
commence from the beginning of the co-operative year in which the 
nominations by the State Government are completed and the Managing 
Committee is constitutedin terms of Rule 22(2) of Rules. (228-H, 229-A-C] G 
1.2. Although the expression 'election' has been defined under the 
Rules, the said definition has been specifically confined to the election in 
accordance with the Rules. The election under Rules 21B-21X is only by 
way of 

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