1987 (2) TMI 510 - SC - Indian Laws

Summary

Issues involved: Interpretation of Section 36 of the Gujarat Cooperative Societies Act, 1961 regarding the expulsion of a member by a society and the Registrar's role in approving or disapproving such resolutions within a specified time frame.

Summary:
1. The appeal questioned whether the Registrar's failure to communicate disapproval of a resolution expelling a member within three months renders the Registrar functus officio.

2. The society expelled a member through a resolution, forwarded it to the Registrar, and after no response for three months, assumed the resolution was effective. The Registrar later expressed disagreement, leading to a series of appeals and petitions.

3. Despite various appeals and petitions, the High Court upheld the Registrar's decision. The society then appealed to the Supreme Court.

4. The Supreme Court analyzed Section 36 of the Act, emphasizing the importance of both provisos in the expulsion process and the Registrar's role in approving or disapproving resolutions.

5. The Court concluded that the Registrar must communicate approval or disapproval within three months, and if not, the resolution becomes effective. The District Registrar exceeded jurisdiction by setting aside the resolution after the specified period.

6. The appeal was allowed, setting aside the High Court's decision. The impugned order was quashed, leaving the resolution's validity to be determined by the appropriate authority under Section 36 of the Act. No costs were awarded.