VIPULBHAI M. CHAUDHARY versus GUJARAT COOPERATIVE MILK MARKETING FEDERATION LIMITED AND OTHERS

Citation: [2015] 3 S.C.R. 997 · Decided: 19-03-2015 · Supreme Court of India · Bench: ANIL R. DAVE · Disposal: Dismissed
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Judgment (excerpt)

[2015) 3 S.C.R. 997 
VIPULBHAI M. CHAUDHARY 
v. 
GUJARAT COOPERATIVE MILK MARKETING 
FEDERATION LIMITED AND OTHERS 
(Civil Appeal No. 3047 of 2015 etc.) 
MARCH 19, 2015 
[ANIL R. DAVE AND KURIAN JOSEPH, JJ.] 
Cooperative Society: 
Removal of Chairperson/elected office bearer by a 
motion of no-confidence in the absence of a specific 
provision on removal by no confidence in the Act, Rules 
A 
B 
c 
or even Bye-laws of a Co-operative Society - Held: Office D 
bearer is liable to be removed in the event of Joss of 
confidence by following the same procedure by which he 
was elected to office - Gujarat Cooperative Societies Act, 
1961 - s. 73, proviso -
Constitution of India, 1950 -
Arts.243ZT, 243ZH(b). 
E 
No confidence motion - Held: There is no uniformity 
with regard to the procedure and process regarding motion 
of no confidence in local self governments - Having regard 
to the set up in local self-governments preva1Jing in many F 
of the States as such, in the case of cooperative societies 
registered under any Central or State law, a motion of no 
confidence against an office bearer should be moved only 
after two.years of his assumption of office -
Jn case the 
motion of no confidence is once defeated, a fresh motion G 
shall not be introduced within another one year. 
Laws relating to Cooperative Societies - Historical 
background and the legislation - Discussed. 
997 
H 
998 
SUPREME COURT REPORTS 
[2015] 3 S.C.R. 
· A 
Interpretation of statutes: Held: If the statute is silent 
or imprecise on the requirements under the Constitution, 
it is for the court to read the constitutional mandate into 
the provisions concerned and declare it accordingly 
B 
Dismissing the appeals, the Court 
HELD: 1. If a person has been selected to an 
office through democratic process, and when that 
person looses the confidence of the representatives 
c who selected him, those representatives should 
necessarily have a democratic right to remove such an 
office bearer in whom they do not have confidence, in 
case those institutions are viewed under the 
Constitution/statues as democratic institutions. Once 
o the cooperative society is conferred a constitutional 
status, it should rise to the constitutional aspirations 
as a democratic institution. So, it is for the respective 
legislative bodies to ensure that there is democratic 
functioning. When the Constitution is eloquent, the 
E laws made thereunder cannot be silent. If the statute 
· is silent or imprecise on the requirements under the 
Constitution, it is for the court to read the 
constitutional mandate into the provisions concerned 
and declare it accordingly. Article 243ZT has given a 
F period of one year to frame/reframe the statutes in 
consonance with Part IXB and thereafter, i.e., with 
effect from 12.01.2013, those provisions which are 
inconsistent with Part IXB, cease to operate. [Paras 21, 
G 25) [1017-C-D; 1019-C-E] 
H 
Bhanumati and Ors. v. State of Uttar Pradesh through 
its Principal Secretary and Ors. (2010) 12 SCC 1: 2010 
(11) SCR240; Pratap Chandra Mehta v. State Bar Council 
of Madhya Pradesh and Ors. (2011) 9 SCC 573: 2011 (11) 
VIPULBHAI M. CHAUDHARY v. GUJARAT COOP. 
999 
MILK MARKETING FED. LTD. 
SCR965; Usha Bharti v. State of Uttar Pradesh and Ors. A 
(2014) 7 SCC 663: 2014 (4) SCR1076 - distinguished. 
Thompson (Pauper) v. Gold and Co. [1910) A.C. 409 
- referred to. 
2. The entire administration, management and B 
control of the respondent-Federation are vested in the 
Board of Directors as per the Bye-law in terms of 
proviso to Section 73 of the Gujarat Cooperative 
Societies Act, 1961. The Chairperson of the first c 
respondent is elected by the Board for a term of three 
years and after the 97th Amendment to the Constitution, 
the term is five years. When the post of Chairperson 
falls vacant, the Board is bound to elect a new 
Chairperson for the remaining term. The post of o 
Chairperson may fall vacant on account of variety of 
reasons like resignation, death or cessation of 
membership in the Board, operation of Section 76B of 
the Act, i.e., removal by the Registrar on account of 
persistent default or misconduct. The removal by no E 
confidence is not expressly provided in the Bye-laws. 
Neither is there any such provision in the Act or Rules. 
The only enabling provision is Bye-law 18.2 which 
mandates that in case the office of the Chairperson of 
the Federation falls vacant before the expiry of his F 
term for any reason, the Boa
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