LexTHE GOA STATE CO-OPERATIVE BANK LTD. versus PEDNE TALUKA PRATHAMIK SHIKSHAK PAT SAUNSTHA LTD AND ORS.
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
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THE GOA STATE CO-OPERATIVE BANK LTD.
v.
PEDNE TALUKA PRATHAMIK SHIKSHAK
PAT SAUNSTHA LTD AND ORS.
NOVEMBER l, 1996
[K. RAMASWAMY AND G.B. PATTANAIK, JJ.]
Multi State Co-operative Societies (Registration, Membership,
Direction and Amendment, Settlement of Disputes, Appeal and Revision)
Rules, 1985:
Rule 104 and Schedule JI-Election to Society-Applicability of the
Rules with reference to which election is to be conducted-Respondent-
Registrar directed to conduct the elections in accordance with the relevant
rules applicable to the Society, Bank and bye-laws of the Society, the Act
D as also the Rules applicable as on the date of conducting elections.
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 14783 of
1996.
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From the Judgment and Order dated 26.4.96 of the Bombay High
Court in W.P. No. 145of1996.
Anil B. Divan, Ms. Sunita Sharma and P.H. Parekh for the Appellant.
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A.M. Khanwilkar and Mukul Mudgal for the Respodents.
The following Order of the Court was delivered :
Leave granted.
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We have heard the counsel on both sides.
This appeal by special leave arises from the judgment and order of
the Bombay High Court, Panaji Bench, dated April 26, 1996 made in W.P.
No. 145 of 1996. It is not necessary to dilate upon the entire controversy
H that has arisen between the parties. Suffice it to state that on September
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GOA STATE CO OP. BANK LTD. v. PENDETALUKA PRATHAMIK SHIKSHAKPATSAUNSTHALTD. 35 3
20, 1996, this Court, after hearing all the counsel, passed the following as: A
"It is now an admitted position that the appellant Bank is
neither National Co-operative Society, nor statewide notified
Co-op. Society falling under Section 35 of Multi-State Co-
op. Socities Act, 1984. In that perspective the only procedure
for conducting the election to other Societies is as per B
Paragraph 8 of the Schedule which envisages conducting of
elections in accordance with the procedure prescribed therein.
It is not in dispute that the General Body of the Society
resolved to adopt paragraphs 2 to 7 of the Schedule for
conducting elections to the society and resolution to that effect
was passed and also the Bye-laws were amended. The area C
of controversy is whether the amended Bye-laws have been
approved by the Registrar. The High Court has proceeded on
the premise that the Registrar must have approved the Bye-
laws and on that premise directed the respondent to conduct
the election. Unless the Bye-laws are approved by the
Registrar, they do not become effective. Resultantly any D
election conducted in transgression of the statutory rules would
admittedly become invalid. Shri Mukul Mudgal, the learned
counsel for the Registrar, is directed to file an affidavit
whether the Bye-laws have been approved by the Registrar,
or not."
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Pursuant thereto, the Registrar, Cooperative Societies, Sambhaj i
Dattajirao Desai has filed his affidavit in which he stated that an amendment
to bye-law No. 36 was approved by the Central Registrar of the Cooperative
Societies on September 6, 1994. The amended bye-law was appended as
Annexure R-1 which would show that:
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"The Board of Directors shall consist of 13 Directors of which
3 Directors or 1/3 of the number of Directors whichever is
less shall be nominated by the Government or any authority
specified by it, in this behalf, ifthe Government has purchased G
share of the Bank. The Managing Director shall be the Ex-
Office member of the Board of Directors. The other members
of the Board of Directors shall be elected as per the Multi
State Cooperative Societies Act 1984 and Rules as prescribed
under para 2 of the Schedule to the Multi State Cooperative
Societites Rules 1985. The Constituency and the Units of the H
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SUPREME COURT REPORTS [1996] SUPP. 8 S.C.R.
affiliated Societies to the Bank shall be as under.
The voters in respective constituencies and units shall elect
their own Directors. The representative of service and other
Societies affiliated to the Bank shall be qualified to contest
election through the respective units and constituency."
It is not in dispute that it was further amended and the bye-law, as
amended for the second time, was certified by the Registrar on February
8, 1996 which reads as under:-
"In pursuance of the provisions of the Multi-state Cooperative
Societies Act, 1984, the amendments to bye-law No.l{a) of
the Goa State Cooperative Bank. Ltd., Panaji, Goa is hereby
registered unExcerpt shown. Read the full judgment & AI analysis in Lexace.