RAJKOT DISTT COOPERATIVE BANK LTD. versus STATE OF GUJARAT & ORS.

Citation: [2014] 14 S.C.R. 833 · Decided: 19-11-2014 · Supreme Court of India · Bench: V. GOPALA GOWDA · Disposal: Dismissed
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Judgment (excerpt)

[2014] 14S.C.R. 833 
RAJK OT DISTT COOPERATIVE BANK LTD. 
A 
v. 
STATE OF GUJARAT & ORS. 
(CivilAppeal No. 10392 of2014) 
NOVEMBER 19, 2014 
[V. GOPALA QOWDAAND ADARSH KUMAR GOEL, JJ.] 
B 
Gujarat Specified Co-operative Societies Election to 
Committee Rules 1982- r.3-A (8) and (9) - De/imitation of 
constituency/constituencies - For election of Managing C 
Committee/Board of the Co-operative Societies specified 
u/s. 7 4C(1) of Co-operative Societies Act - Permissibility-
Held: Where the area of operation is more than one village, 
even if the bye-laws of the Societies provide for single 
constituency, for each seat provided by the bye-laws a D 
separate constituency is required to be delimited under sub-
rule (8) - If the Society fails to do so, the Collector in exercise 
of its power under sub-rule (9) would delimit the constituency 
- It is duty of the Society to bring its registered bye-Jaws in 
conformity with the provisions of the Rules - The bye-laws E 
would not prevail over the statutory rules - In the present 
case, delimitation of the appellant society was justified as 
sub-rules (8) and (9) are applicable in the facts of the case-
Gujarat Cooperative Societies Act, 1961 - s. 7 4C(1 ). 
Cooperative Societies - Bye-laws of Co-operative F 
Societies - Held: The bye-laws of Co-operative Societies in 
order to achieve the constitutional object enshrined u!Art. 
243ZK must be brought at par with the laws and statutory 
provisions of the Societies Act - Constitution of India, 1950 
-Art. 243ZK. 
Dismis"sing the appeals, the Court 
HELD : 1. Sub-rule (8) is read along with sub-rule 
(9) of Rule 3-A Gujarat Specified Co-operative Societies 
Election to Committee Rules, 1982 shows that where 
G 
the society has. the area of operation exceeding one H 
. 
833 
834 
SUPREME COURT REPORTS 
[2014] 14 S.C.R. 
A . village, even if the bye-laws provide for single 
constituency, the seats provided by the bye laws has to 
be equal to the number of constituency/constituencies 
and therefore, for each seat, a separate constituency 
would be required to be delimited and if not so deli.mited 
B by the society, of its own, it would be required for the 
Collector to exercise his power under sub rule (9) of 
Rule 3-A for the delimitation of the constituency in 
accordance with the mandate of sub rule (8) of Rule 3-A. 
[Para 18][844-C-E] : 
C 
2. It is obligatory on the part of any specified society 
to bring about the amendment in its registered bye-laws 
in conformity with.the provisions of the Rules and more 
particularly Rule 3-A (8) and (9). But if the society/ 
societies have not amend ea their bye laws, the same has 
D to be in conformity with the said Rules by getting suitably 
amended; the effect of the Rule would not stand nullified 
or inoperable. The bye laws of any specified society 
under the provisions of the Co-operative Societies 
Act cannot be permitted to prevail over the statutory 
E Rule 3~A (8) and (9) of the Rules. [Paras 20, 21][845-8-C; 
845-F-H] · 
3. Under Article 13 (2) of the Constitution of India, 
Rules are also regarded as laws. However, the Rules and 
laws framed by the State· Legislatures and the 
F appropriate Government cannot run parallel with the 
principles of the Constitution and the statutory objects 
of the Co-operative Societies Act cannot be disregard 
as it would defeat the purpose of Section 243ZK of the --
Constitution of India, which provides for election of the _ 
G members of the Managing Committee or Board. Thus, 
the bye laws of a Co-operative Society, "in order to 
achieve the constitutional object, must be brought at par 
with the laws and statutory provisions of the Societies 
Act. They cannot override the provisions of State or 
H Central laws. [Para 22][846-8-F] 
RAJ KOT DISTT COOPERATIVE BANK LTD. v. STATE OF 
835 
GUJARAT & ORS. 
4. The sub rules (8) & (9) of Rule 3-A are applicable A 
to the appellant society/Societies as the area of operation 
is more than one village and therefore the orders passed 
by the Collector for the delimitation of the constituency/ 
constituencies cannot be said to be illegal. The 
respondents are directed to hold the election to the B 
specified societies as per sub rule (8) and (9) of Rule 3-A 
as are applicable to them under the Gujarat Co-operative 
Societies Act after the delimitation of the constituency/ 
constituencies of such societies are made by the 
Collector as stated under sub-rule (9) of Rule 3-A. c 
[Para 22][851-E-F; 851-H; 852-A
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