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2015 (5) TMI 91 - HC - Companies LawCooperative Societies registered under the provisions of the Gujarat Cooperative Societies Act, 1961 - Exclusion of names of the members of the Managing Committee of the petitioner Societies from the Voters list of Agriculturist Constituency for the election of Agricultural Produce Market Committee - Only interim order of Liquidation / Winding up passed - Held that - On conjoint reading of Sections 107, 108 and 20 of the Cooperative Societies Act, after the interim winding up/liquidation order passed under Section 107(1) of the Cooperative Societies Act and before the final order of winding up is passed under Section 107(3) of the Cooperative Societies Act, the Officers shall continue to hold their offices and even the registration of the Society continues. Under the circumstances, when the registration of the Society continues, the members of the Managing Committee of such society dispensing with agricultural credit shall have a right to exercise their powers as officer bearers of the society i.e. to have their names included in the voters list of Agriculturist Constituency of the APMC, Siddhpur, considering Rule 5 of the Agricultural Produce Market Committee Rules. As such the aforesaid issue is now not res integra in view of the decision of the learned Single Judge of this Court in the case of Mansangbhai Dalsang Chaudhary. It is required to be noted that in the present case as observed herein above as such specific prayers were made by the respondent No.5 in aforesaid Special Civil Application No.190/2015 and other allied matters for directing the Authorized Officers not to include the names of the members of the Managing Committee of the petitioner Societies, however no such relief has been granted by the Division Bench while deciding and disposing of the aforesaid Special Civil Applications. Be that as it may, for the reasons stated herein above, we are of the view that the Authorized Officer has materially erred in excluding the names of the members of the Managing Committee of the petitioner Societies from the voters list of Agriculturist Constituency of the APMC, Siddhpur on the ground that interim orders of winding up/liquidation have been passed, the members of the Managing Committee of such societies have no right to include their names in the voters list. - Decided in favour of appellants.
Issues Involved:
1. Legality of the Authorized Officer's decision to exclude the names of the members of the Managing Committee of the petitioner Cooperative Societies from the voters' list of Agriculturist Constituency for the election of Agricultural Produce Market Committee, Siddhpur (APMC, Siddhpur). Detailed Analysis: Common Facts: - The petitions challenge the decision of the Authorized Officer to exclude the names of the members of the Managing Committee of the petitioner Cooperative Societies from the voters' list of Agriculturist Constituency for the election of APMC, Siddhpur. - Various petitioner Cooperative Societies had been subjected to interim orders of winding up/liquidation under Section 107(1) of the Gujarat Cooperative Societies Act, 1961. - These interim orders were subsequently set aside by higher authorities, but the Division Bench of the High Court quashed those orders and directed the Additional Registrar (Appeals) to re-examine the cases. Issue 1: Legality of the Authorized Officer's Decision - Petitioners' Argument: The Authorized Officer's decision to exclude the names is illegal, arbitrary, and contrary to the Cooperative Societies Act and Rules. The registration of the societies continues, and no final order of winding up/liquidation has been passed, so the members of the Managing Committee should retain their rights, including being on the voters' list. - Respondents' Argument: The exclusion is justified as the interim orders of winding up/liquidation are still in effect following the Division Bench's decision. During the winding-up process, the Liquidator manages the society, and the Managing Committee members have no right to be on the voters' list. Issue 2: Interpretation of Sections 107, 108, and 20 of the Cooperative Societies Act - Petitioners' Argument: Under Sections 107 and 108, the office bearers continue to hold their offices until a final order confirming the interim order of winding up/liquidation is passed. The registration of the society continues unless explicitly canceled, so the Managing Committee members should be included in the voters' list. - Respondents' Argument: Once an interim order of winding up is passed, the Liquidator takes over the management, and the Managing Committee members lose their rights to be included in the voters' list. Court's Analysis: - The court emphasized that until a final order confirming the interim order of winding up/liquidation is passed, the office bearers continue to hold their offices, and the registration of the society continues. - The court referenced the decision in "Mansangbhai Dalsang Chaudhary vs. Shri Vaghela, Collector, Mehsana," which held that interim orders of winding up do not cancel the registration of the society, and the members of the Managing Committee retain their rights. - The court found that the Authorized Officer had materially erred in excluding the names of the members of the Managing Committee from the voters' list based on the interim orders of winding up/liquidation. Judgment: - The court quashed and set aside the impugned orders of the Authorized Officer. - The Authorized Officer was directed to include the names of the members of the Managing Committee of the petitioner societies in the final list of voters of the Agriculturist Constituency and permit them to participate in the ensuing election of APMC, Siddhpur, scheduled for 23.04.2015. Further Order: - The request to stay the judgment for three weeks to enable the respondent to challenge the order before the Supreme Court was rejected, considering the upcoming election date. Conclusion: The judgment underscores the importance of distinguishing between interim and final orders of winding up/liquidation under the Cooperative Societies Act. The court ruled that interim orders do not negate the rights of the Managing Committee members to be included in the voters' list, thereby ensuring their participation in the electoral process of APMC, Siddhpur.
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