VEERPAL SINGH versus DEPUTY REGISTRAR, CO-OPERATIVE SOCIETIES, MEERUT & ORS.

Citation: [1973] 3 S.C.R. 430 · Decided: 23-01-1973 · Supreme Court of India · Bench: S.M. SIKRI · Disposal: Case Allowed

Judgment (excerpt)

·. 
VEERPAL SINGH 
v. 
DEPUTY REGISTRAR, CO-OPERATIVE SOCIETIES, 
MEERUT & ORS. 
January 23, 1973 
[S. M. S!KRI, C. J., A. N. RAY, D. G. PALEKAR, M. H. BEG AND 
S. N. DWIVEDI, JJ.) 
Ulli<r Pradesh Co-operative Societies Act, 1965, Ss. 38 and 
128-
Deputy Registrar passing orders for removal of members of Boc.V-d of 
Directr2rS of Dist. 
Cooperative Societies Federation Buk:ndshahr on the 
ground that the Unions represented by them were in default within the 
meaning of bye-law No. 1 (Ta) of the Federation-Deputy 
Registrar 
further ordering annulment of resolutions Committee 
of management 
en the ground that the proceedings were not in compliance with bye-law! 
No. !O(cha) and No. II-Legality of Deputy Registrar's orders. 
The petitioner was a delegate from the Oo-operative Federation of 
Unchagaon to the Bulandshahr Dis!¢tl Cooperative! 
Federation. In 
the pres~t writ petition under Art. 32 of the Constitution he challenged 
the orders of the Deputy Registrar Cooperative Societies (i) removing 
him and two other delegates from the membership of the 
Board of 
Directors of the Federation i.n exercise of powers under s. 38 of the 
U.P. Cooperatives Societies Act 1965 on the ground that their Unions 
were defaulters in respect of their dues to the Federation thus attracting 
bye-law No. I (Ta) of the Fed.,ation; (ii) annulling 
in 
exercise 
of 
powers u.nder s. 128 of thl! Act. The resolutions of 
the 
Committee 
of Management dated 15th. March 1972 ;,,, favour of the petitioner end 
the other two other delegates on the g'round tbat the minutes of the 
meeting in which the resolutions were passed were not -recorded by the 
Secretary and the proceedings were thus in violation of bye-laws No. 10 
(cha) and No. 11. 
Allowi;ng the petition, 
HEW: (I) The Deputy Regis!rar could not rely on bye-law No. 1 (Ta) 
to justify the removal of the petitioner and the two othtj- delegates from 
the membership of the Board of Directors. The Federation was 
not 
a credit society. The Federation did not have any 
loan 
transaction 
with the co-operative unions. 
The co-operative unions did not 
have 
any loan !ransactions wilh the petitioner. The dues of the co-operative 
unions were in respect of supplies of goods by the Federation to the 
C0-opt:rative unions. These were commercial transactions. 
These were 
commercial debts. 
Price of goods supplied if outstanding 
does 
not 
constitute Joan within the meaning of the 
bye-law. The 
impugned 
9fder \Vas eintirely on an illegal basis and wrong interpretation of the 
bye-law. The order was bad. [435F-H; 436A-B] 
(2) The meeting of the Federation on 
15th 
March, 
1971 
w., 
properly conducted. The Chairman rightly appointed an ~lected Direc-
tor to record the minutes of the meeting 'in view of the wilful absence 
of the Secretary. Section 188 of the Act also protects the proceedings 
of the meeting. The Deputy Registrar acted illegally in annulling the 
..,_.olutions of the Federation held on 15th March 1971. [436G-lll 
A 
B 
c 
D 
E 
F 
G 
H 
B 
D 
E 
F 
H 
VEERPAL V, DY. REGIS. CU-OP, SOCIETIES (Ray, J,) 
431 
ORIGINAL JURISDICTION : Writ Petition No. 214 of 1972. 
(Petition under Article 32 of the -Constitution of India for the 
enforcement of fundamental rights). 
A. P. Singh Chauhan and N. N. Sharma, for the petitioner. 
A. K. Sen and 0. P. Rana, for the respondent. 
The Judgment of the Court was delivered by 
RAY, J. 
The petitioner in this writ petition under Article 32 
of the Constitution asks for quashing of orders of the respondent 
Deputy Registrar, Co-operative Societies, Meerut dated 2 May, 
1972. 
By the said order dated 2 May, 1972 the respondent Deputy 
Registrar removed Rajendra Singh, Yograj Singh and the peti-
tioner V eerpal Singh from the Board of Directors of the District 
Co-operative Federation, Bulandshahr referred to as the Buland-
shahr Federation and declared them to be disqualified to the office 
of the Directors of the Bulandshahr Federation for a period of 
three years from the date of the order. 
Rajendra Singh, Yograj Singh and the petitioner Veerpal 
Singh were delegates from the Co-operative Unions of Jarcha, 
Raura and Unchagaon respectively to the Bulandshahr Federa-
tion. 
The circumstances under which the aforesaid order came t'O 
be passed are these according to the Deputy Registrar. There was 
an inspection in the month of February, 1971 by the Deputy 
Registrar, Co-operative Societies, Uttar Pradesh aboun the consti-
tution, working and finan

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