K. SHANTHARAJ AND ANR versus M.L. NAGARAJA AND ORS.

Citation: [1997] SUPP. 1 S.C.R. 389 · Decided: 09-05-1997 · Supreme Court of India · Bench: K. RAMASWAMY, D.P. WADHWA · Disposal: Dismissed
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Judgment (excerpt)

I 
, 
J_ 
K. SHANTHARAJ AND ANR. 
A 
v. 
M.L. NAGARAJA AND ORS. 
MAY 9, 1997 
[K. RAMASWAMY AND D.P. WADHWA, JJ.] 
B 
Kamataka Co-operative Societies Act, 1959. 
Ss. 30 and 30-A-Committee of Co-operative Society-Super-
seded-Administrator-Enrolling new members and giving schedule of C 
programme for conducting elections to the Committee-Held, Single Judge of 
High Court was right in holding that the Administrator has no power to enrol 
new members: but he has power to organise election process in accordance 
with provisions of Ac~ the Rules and bye-laws of the Society-Directions 
issued by Single Judge for enrollment of new members by the Board or the 
Board of Directors, as the case may be, in accordance with bye-law No. 115 D 
con finned. 
CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 4271-73 
of 1997. 
From the Judgment and Order dated 17.3.97 of the Karnataka High E 
Court in W.A. No. 1464-66 of 1994. 
N. Santosh Hegde, Dayan Krishnan, Nikhil Nair and B. Sunita Rao 
for the Appellants. 
F 
Salman Khursheed, Vivek Reddy and E.C. Vidya Sagar for the 
Respondents. 
The following Order of the Court was delivered : 
Leave granted. 
We have heard learned counsel on both sides. 
These appeals by special leave arise from the judgment of the 
Division Bench of the Karnataka High Court, made on March 17, 1997 in 
G 
Writ Appeal Nos. 1464-66/94. 
H 
389 
390 
SUPREME COURT REPORTS [1997] SUPP. lS.C.R .. 
A 
The indisputable facts are that the Committee was superseded by the 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 
B 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 enrol 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 
C 30-A of the Karnataka Cooperative Societies Act, 1959 (for short, the 
'Act'). They read as under : 
D 
E 
F 
G 
H 
"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 m(l.y 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 the functions of the Committee or 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 
--t 
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J 
K. SHANTHARAJ v. M.L. NAGARATA 
391 
arrange for the constittit!on of a new committee after holding the A 
election in accordance with this Act, the rules and the bye-laws of 
the co-operative society; 
Provided that in such an election no member of the Committee 
removed under sub-section (1) shall, not~thstanding 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 further that if 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 ot
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