JT. REGISTRAR OF COOPERATIVE SOCIETIES, KERALA versus T.A. KUTTAPPAN AND ORS. ETC.
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A B IT. REGISTRAR OF COOPERATIVE SOCIETIES, KERALA v. T.A. KUITAPPAN AND ORS. ETC. MAY9, 2000 [S. RAJENDRABABU AND Y.K. SABHARWAL, JI.] Kerala Cooperative Societies Act, 1969-Section 32-Administrator appointed Superseding Managing Committee who sought to enroll new members-Writ Petition filed before High Court to restrain Administrator- C High Court allowed writ petition holding that there was no power to enrol new members-On appeal Held, Administrator perfonns all powers and functions of the managing committee in the interest of society and should conduct elections with the members on rolls, but cannot enrol new members- Enrolment of new members alters composition of society and such power D should be exercised by an elected committee-Duty of an Administrator is to set right the default or negligence, if any, on part of the society and to enable it to carry its functions as enjoined by law. An administrator was appointed under Section 32 of the Kerala ~ooperative Societies Act, 1969 superseding the Committee of Manage- E ment of a Society. The administrator sought to enrol new members. Writ Petitions were filed before the High Court in order to restrain the adminis- trator from enrolling new members. High Court allowed the writ petitions holding that the admission of a member is not mere ''function'' of the ยท Committee, but is a power, which cannot be taken over by an Administra- F tor. Hence these appeals. G H Dismissing the appeals, the Court HELD : 1. The Administrator, subject to control of Registrar of Cooperative Societies exercises all or any of the functions of the society, and the Special Officer subject to control of the State Government and the Registrar exercises and performs all the powers and functions of the committee of the society and in the interest of the society can take such . action as is necessary for proper functioning of the society as per law. He should conduct elections as is enjoined thereunder, that is, he is to conduct election with the members as on the rolls and by necessary implication, he - 1204 JT. REGISTRAR OF CO-OPER. SOCIETIES v. T.A. KUTTAPPAN 1205 is not vested with power to enrol new members of the society. (1207-E-F] A KL Shantharaj & Am: v. M.L Nagaraja & Ors., [1997] 6 SCC 37, relied on. George v. Joint Registrar, (1985) KLT 836 and Clze1tlzala Agricultural Rural Development Bank & Ors. v. Joint Registrar & Ors., (2000) 1 KLT 291 B FB, referred to. 2. The Administrator or a Committee appointed while the Commit- tee of Management of the Society is under supersession cannot have the power to enrol new members and such a question ought not to be decided merely by indulging in an exercise on semantics in ascertaining the mean- c ing of the expression ''power to exercise all or any of the functions". Whether an authority is discharging a function or exercising a power will have to be ascertained with reference to the nature of the function or the power discharged or exercised in the background of the enactment. The functions are discharged or powers exercised or vice versa depending upon D the conte:Xt of the duty or power enjoined under the law if the two expres- sions are inter-changeable. What is necessary to bear in mind is that nature of function or power exercised and not the manner in which it is done. [1209-F-G] 3. A Cooperative Society is expected to function in a democratic matter through an elected Committee of Management and that Committee of Management is empowered to enrol new members. Enrolment of new members would involve alteration of tJte composition of the society itself and such a power should be exercised by an elected Committee rather than by an administrator or a Committee appointed by the Registrar while the Committee of Management is under supersession. When the Committee of Management of the Cooperative Society commits any default or is negli- gent in the performance of the duties imposed under the Acts, rules and the bye-laws. which is prejudicial to the interest of the society, the same is superseded and an administrator or a Committee is imposed thereon. The duty of such a Committee or an administrator is to set right the default, if any, and to enable the society to carry on its functions as enjoined by law. (1210-C-D; F-G] KL Shantharaj & Am: v. M.L Nagaraja & Ors., [199_7] 6 SCC 37, relied on. E F G H 1206 SUPREME COURT REPORTS [2000] 3 S.C.R. A CIVIL APPELLATE JURIS
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