NDLI: Beed District Central Co-op. Bank Ltd. and Anr. Vs. Jagannath S. Shahane and Ors.

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	maharashtra cooperative societies
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Act(s) Referred	Maharashtra Co-operative Societies Act, 1960 (24 of 1961)
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Allowed
Headnote	Maharashtra Co-operative Societies Act, 1960 : Section 73 (2) (As inserted by Maharashtra Amendment Act XX of 1986). Specified Society-Co-operative Bank-Board of Directors-Election-Provision requiring Registrar to prescribe the maximum number of members on the Society held directory- Purpose of Section 73 (2) Explained. Section 27 (3)- Proviso-Deletion of Proviso-Effect of. Elections to the Board of Directors of the appellant Bank, a specified co-operative Society under the Maharashtra Co-operative Societies Act, 1960, were to be held as provided under Section 73 (G) of the Act read with Maharashtra Specified Co-operative Societies (Elections to Committees) Rules, 1971. By the Maharashtra Act No. XLV of 1983 the Maharashtra Co-operative Societies Act was amended and a proviso was added to sub-section (3) of Section 27. This amendment was challenged and the High Court declared the proviso to sub-section (3) of Section 27 as void and inoperative. Thereafter respondents No. 1 and 2 filed a writ petition in the High Court which was allowed by directing that all steps taken by the appellant bank for holding elections and all the steps taken on the basis of proviso to section 27 (3) were null and void. The parties aggrieved against the aforesaid decision filed appeals before this Court. During the pendency of the appeals Section 73 of the Maharashtra Co-operative Societies Act was amended and sub-section (2) was added to it. Further by Act No. X of 1988 1st proviso to Section 27(3) was deleted. After the aforesaid changes in the 1960 Act, this Court, by its order dated March 13, 1989, disposed of the appeals directing that elections to the Co-operative Societies may be held in accordance with the amended law. Thereafter the Collector declared the election programme of the appellant bank under which last date for filing nominations was 23.10.1991 last date for scrutiny was 25.10.1991, last date for withdrawal was 11.11.1991 and the date of polling was fixed on 27.11.1991. By a notification dated 27th December,1991 the State of Maharashtra postponed elections upto 15th April, 1992.Respondents No. 1 and 2 filed a writ petition in the Bombay High Court challenging the election programme. By its judgment dated November 19, 1991 the High Court allowed the petition holding that (i) in view of the mandatory provision of section 73(2) it was incumbent on the Registrar of Co-operative Societies to prescribe the maximum number of members on the Committee of the appellant bank by publishing an order in the official gazette; (ii) since no such order was published, the election process fixed by the Collector was illegal and invalid; and (iii) the election process was in violation of this Court's order dated March 15, 1989. Against the decision of the High Court the Co-operative Bank filed an appeal in this Court. On behalf of the appellant bank it was contended that (i) with the deletion of proviso to section 27(3), section 73(2) has become redundant; (ii) that the word 'may' in section 73(2) clearly meant that it was an enabling provision and the said sub-section does not cast any duty on the Registrar to exercise the power of prescribing maximum number in every case but only confers upon him the discretion to make such an order if the circumstances enumerated in the said provision necessitated the exercise of such power; and (iii) since bye-law No. 28 of the Bank already prescribed the maximum number of members in the Committee to 21 members and as such there was no question of passing any order under section 73(2). For the respondents it was contended that unless the Registrar applied his mind in the light of Section 73(2) no elections could have been declared by the Collector. It was necessary for the Registrar to apply his mind as to whether the maximum number prescribed in the bye-laws of a society was justified or not and thereafter issue an order and to publish the same in the official gazette.
Judge	Hon'ble Mr. Justice N.M. Kasliwal
Neutral Citation	1992 INSC 84
Petitioner	Beed District Central Co-op. Bank Ltd. And Anr.
Respondent	Jagannath S. Shahane And Ors.
SCR	[1992] 2 S.C.R. 296
Judgement Date	1992-03-13
Case Number	1111

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Beed District Central Co-op. Bank Ltd. and Anr. Vs. Jagannath S. Shahane and Ors.

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