SAHAKARI MANDALI LTD. AND ORS. versus DETHALI GOPALAK VIVIDH KARYAKARI

Citation: [2016] 9 S.C.R. 866 · Decided: 16-11-2016 · Supreme Court of India · Bench: JASTI CHELAMESWAR · Disposal: Dismissed

Judgment (excerpt)

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(2016] 9 S.C.R. 866 
VINESHKUMAR MAVJIBHAI PARMAR 
v. 
DETHALI GOPALAk VIVIDH KARYAKARI 
SAHAKARI MANDALI LTD. AND ORS. 
(Civil Appeal No. 3888of2015) 
NOVEMBER 16, 2016 
[J. CH_ELAMESWAR AND PRAFULLA C. PANT, JJ.] 
Agricultural Produce Market Committees: 
Gujarat Agricultural Produce Markets Act, 1963 (the Markets 
Act) - ss.9,10 and 11 - Gujarat Co-operative Societies Act, 1961 
(the Societies Act) - ss.107,108(3)(b) and 110 -
Plea of appellant 
that members of the Managing Committees of co-operative societies 
(Officers of the Society) cannot participate in the election process 
of Agricultural Produce Marketing Committee constituted under the 
Markets Act, when liquidation proceedings uls. l 07 of the Societies 
Act are pending against them - Held: The legislature of Gujarat by 
s.11 (1) of the Markets Act conferred on officers of a class of Credit 
Societies (dispensing agriculture credit) to have an additional 
function of electing melnbers of the market committees - Further, 
E Legislature expressly provided under the Societies Act for the 
curtailment of certain rights of the officers of societies facing 
liquidation proceeding~ - However, at the same time it also declared 
that such officers cease to be officers of the Society only when a 
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final order of winding up is passed - Therefore, merely because the 
officers of Credit Society facing liquidation are disabled from 
enforcing certain rights attached to the office, it.does not necessarily 
follow that they are disabled from perforn1_il}g every function 
entrusted by law - Debarring managing committee members from 
discharging their statutory obligation under the Markets Act would 
G be productive of public mischief - Such an interpretation of the 
statute must be avoided - Agriculture Produce Market Rules,] 965 
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r. 7 - Co-operative Societies. 
Dis,missing the appeals, the Court 
HELD: 1. The. powers of the liquidator are specified under 
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Sectio~ VO of the Gujarat Co-operative Societies Act, 1961 
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VINESHKUMAR MAVJIBHAI PARMAR v. DETHALI GOPALAK VIVIDH 867 
KARYAKARJ SAHAKARI MANDALI LTD. 
(Societies Act), the liquidator virtually becomes the caretaker 
manager of the society whose winding up is impending. At the 
same time, Sec. 108(3)(b) of the Societies Act ~tipulates that the 
officers of the cooperative society vacate their offices only on 
the passage of the final order of winding up. Obviously, they 
continue to be the office bearers but are disabled from enjoying 
certain rights attached to the office and performing certain 
functions to be performed by the holders of the office. [Para 
21 ][875-E-F; 876-A] 
2. The rights and functions of the OFFICERS' of a co-
operative society are many. Some of them are crel!_ted by the 
statute under which the office is created. Others could be the 
creation of subordinate legislation (in the context of the present 
case, even the bye laws of the society). The existence or tack of 
such rights and functions depend upon the scheme and tenor of 
the SOCIETIES ACT and the subordinate legislation made 
thereunder. Such rights and functions are put an end to only by 
the operation of law i.e., the SOCIETIES ACT. [Para 22)[876-B-
C] 
3. Apart from that, nothing prevents the legislature from 
conferring by another law ailditional rights or functions on a person 
holding an office created under the SOCIETIES ACT. The 
legislature of Gujarat by Section 11(1) of the Gujarat Agriculture 
Produce Markets Act, 1963 (Markets Act) conferred0 on the 
OFFICERS of a class of CREDIT SOCIETIES (dispensing 
agriculture credit) an additional function of electing members of 
the market committees. Such function is neither conferred on 
the OFFICERS of all the societies functioning under the 
SOCIETIES ACT nor such function includes the right to elect 
eveq.JUember of the concerned market committee. Such a 
function obviously _creates a right in the officers of the societies. 
Such a statutory right could not be taken away in the absence of 
any express authority of law. [Paras 23, 24][876-C-E] 
4. The Gujarat legislature expressly provided under the 
SOCIETIES ACT for the curtailment of certain rights of the. 
officers of societies facing liquidation proceedings. At the same 
time it also declared that such OFFICERS cease to be the officers 
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of the Society only when a final order of winding up is passed. In 
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SUPREME COURT REPORTS 
[2016] 9 S.C.R. 
a given case

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