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TMI Blog2006 (12) TMI 569X X X X Extracts X X X X X X X X Extracts X X X X ..... n of mine. 4. Constitutional validity of the Chhattisgarh Co-operative Societies (Amendment) Act, 2004 (No. 22 of 2004) has been assailed in all these petitions. For brevity the amendment provided therein is reproduced below: Amendment of Section 49. In Section 49 of the Chhattisgarh Co-operative Societies Act, 1960 (No. 17 of 1961) (hereinafter referred to as the Principal Act): (1) Sub-section (7AA) and (7AAA) shall be omitted. (2) Sub-section (8)(i) and (ii) the following shall be substituted. (8) If the elections are not held before the expiry of the term specified in Sub-section (7A) or the extended term under deleted herein before Sub-section (7AA), all the members of the committee shall be deemed to have vacated their seats and the powers of the committee shall be deemed to have been vested in the Registrar and the Registrar shall hold elections as early as possible: Provided that the Registrar may authorize any officer to exercise the powers of the committee vested in him under this sub-section and the officer so authorized shall exercise such powers from the date of such authorization. History: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of any matter pertaining to the subjects specified in Clauses (a), (c), (d) and (e) of Sub-section (1). 9. To achieve democratic objectives the aforesaid provision was amended from time to time and its journey appears to go long way. Vide Amendment Act No. 8 of 1970: Amendment of Section 49.-- In Section 49 of the Principal Act (a) For Sub-section (1) the following subsection shall be substituted, namely: (1) Every society shall within a period of twelve months from the date of last annual general meeting call a general meeting of its members for the purpose of (a) approval of the programme of the activities of the society prepared by the committee for the ensuing year: (b) election, if fallen due in the prescribed manner of the members of the committee; Explanation :- Election of the committee shall be deemed to have fallen due, if the term of the committee according to its bye-laws comes to an end within a period of three months from the date of the annual general meeting or if an election has otherwise fallen due according to rules or bye-laws; (c) consideration of the audit report, if received an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the name of the members of the committee, their family members and near relations. Explanation.-- For the purpose of subsection (7), family members and near relations shall include wife, husband, father, mother, brother, sister, son, daughter, father's father,, father's brother, father's sister, mother's father, mother's brother or sister, father's brother's son or daughter, father's sister's, son or daughter, mother's brother's son or daughter, mother's sister's son or daughter, brother's son or daughter, son's wife, daughter's husband, son's son, daughter, daughter's son or daughter, wife's father or mother, wife's brother or sister, wife's sister's son or daughter, husband's brother, husband's brother's wife, husband's brother's son or daughter. (8) It shall be obligatory on the outgoing committee of a society to hold elections of the incoming committee prior to the period prescribed in its bye-laws. If the committee fails to conduct elections and has not handed over charge on the date prescribed in the bye-laws, all the members of the committee shall b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utgoing committee of society to hold elections of the incoming committee prior to the expiration of the term specified in Sub-section (7-A). If the committee fails to conduct elections and has not handed over charge on expiration of the term specified in Sub-section (7-A), all the members of the committee shall be deemed to have vacated their seats and the Registrar shall assume charge till the next elections are held and the new committee takes over charge. Vide Amendment Act No. 7 of 1979: Amendment of Section 49.-- In Sub-section (7-B) of Section 49 of the Madhya Pradesh Co-operative Societies Act, 1960 (No. 17 of 1961) for the words in any case within a period of one year from the date of the said order the words and figures in any case by the 31st December, 1979 shall be substituted. Vide Amendment Apt No. 5 of 1980: Amendment of Section 49.-- In Sub-section (7-B) of Section 49 of the Madhya Pradesh Co-operative Societies Act, 1960 (No. 17 of 1961), for the words and figures in any case by the 30th June, 1980 , the words and figures in any case by the 31st December, 1980 , shall be substituted and shall be deemed to have been substitut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1A) the election of members of the Committee and delegates, if any, for representing the society in any other society shall be conducted by the Returning Officer. (ii) in Sub-section (7-B) for the figures, letters and words '31st December, 1984', the figures, letters and words '30th June, 1985', shall be substituted. Vide Amendment Act No. 23 of 1986: Amendment of Section 49.- In Section 49 of the Principal Act, (a) in Sub-sections (2), (3) and (4) for the words 'Assistant Registrar', the words Deputy/Assistant Registrar', shall be substituted; (b) in Sub-section (7) for the existing explanation the following explanation shall be substituted, namely : Explanation.- For the purpose of subsection (7), family members and near relations shall include wife, husband, father, mother, brother, sister, son, daughter, son-in-law, wife's brother, sister's husband, wife's sister, brother's wife and daughter-in-law; (c) for Sub-section (8), the following subsection shall be substituted, namely : (8)(i) It shall be obligatory on the outgoing committee, of society to hold electio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he purpose of subsection (7) family members shall include wife, husband and dependent children; (v) for Sub-section (7-A), the following sub-section shall be substituted, namely: (7-A) (i) Unless otherwise provided hereinafter, the term of the Committee shall be five years from the date on which first meeting of the committee is held and shall continue in office till the expiry of the term specified; (ii) The term of the representative elected by the committee shall be co-terminus with the terms of the committee of the society in which such representative is elected: Provided that where a committee superseded or suspended under Section 53 is reinstated as a result of any order of the Court or appellate authority, the period during which the society remained under supersession or suspension, as the case may, shall be excluded in computing the period of one full term aforesaid'; (vi) in Sub-section (7-AA), for the words eighteen months', the words 'twenty four months', shall be substituted and shall be deemed to have been substituted with effect from the 7th May, 1988; (vii) after Sub-section (7-AA), the following ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use (i) of Sub-section (7-A) as it stood immediately before the 28th June, 1988; or (ii) for a period of five years under the said clause as it stood immediately before the 26th April, 1990. (ii) the term of the representative shall be co-terminus with the term of the committee of the society by which such representative is elected; (iii) Notwithstanding anything contained in this Act, with a view to constitute committees or general bodies so as to give effect to the provisions contained in Clause (f) of Section 19-A, Sub-sections (3), (4), (8-A), (7) and (8) of Section 48, Section 48-B, and Section 52-B in relation to any class of society, the State Government may by general order, direct that (a) the term of committee in office shall expire, or (b) the election of delegates irrespective of whether their term has commenced or not shall stand cancelled on the date specified in the order; (iv) On the issue of an order under Clause (iii), the Registrar shall appoint a person or persons to manage the affairs of the society till the new elections are held and the committee takes charge. The new elections shall be held (a) i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8) were annulled by High Court of Madhya Pradesh in the matter of Anurudh Prasad Shastri v. State of M.P. 1993 (2) MPJR 33. Vide Amendment Act No. 12 of 1994 ; Amendment of Section 49.- In Section 49 of the Principal Act, (i) in Sub-section (1), for Clause (b) the following clauses shall be substituted, namely; (b) Election, if fallen due, of the members of the Committee. Explanation.-- Election of the committee shall be deemed to have fallen due, if the term of the committee comes to an end within a period of three months from the date of the annual general meeting. (ii) for Sub-section (7-A), the following sub-section shall be substituted, namely: 7A(i) The term of the committee shall be five years from the date on which first meeting of the committee is held: Provided that where a committee superseded, suspended or removed under the Act is reinstated as a result of any order of any Court or authority, the period during which the committee remained under supersession, suspension out of office as the case may be, shall be excluded in computing the period of the term aforesaid. (ii) The term of the rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted. Vide Amendment Act No. 20 of 1999: Amendment of Section 49.- In Section 49 of the Principal Act,- (i) in Sub-section (1), for the words Every society shall within a period of twelve months, from the date of last annual general meeting call a general meeting of its members for the purpose of , the words Every Society shall within three months before the close of financial year call a general meeting of its members for the following purposes of shall be substituted; (ii) After first proviso of Sub-section (1), the following second proviso shall be inserted, namely: Provided further that in respect of a society where an order of liquidation has been issued under Section 69, annual general meeting shall not be necessary to be called. Vide Amendment Act No. 20 of 2003 (en-acted by the Chhattisgarh Legislature) Amendment of Section 49,- In Section 49 of the Principal Act, in Sub-section (7-AA), the word Twenty, four shall be substituted by the word Thirty six . 10. From the above history, it is evident that to maintain democratic value the provision was amended from time to time and even when the Amendment Act No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arh of any law made before the appointed day, the appropriate Government may, before the expiration of two years from that day, by order, make such adaptations and modifications of the law, whether by way of repeal or amendment, as may be necessary or expedient, and thereupon every such law shall have effect subject to the adaptations and modifications so made until altered, repealed or amended by a competent legislature of other competent authority. Explanation.- In this Section, the expression appropriate Government means as respects any law relating to a matter enumerated in the Union List, the Central Government, and as respects any other law in its application to a State, the State Government. 14. Petitioners placing reliance in judgments rendered by the Hon'ble Apex Court in the matters of I.N. Saksena v. State of Madhya Pradesh and Ujagar Prints and Ors. (II) v. Union of India and Ors. urged that the impugned amendment brought by the State of Chhattisgarh was brought without following curative measures or neutralizing effect of the decision of High Court of Madhya Pradesh in the matter of Anurudh Prasad Shastri (Supra). Therefore, the impugned amendm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gislate validating statute by removing or curing the vitiating factor noticed by the Court. Here in the instant case, the legislature of Madhya Pradesh enacted amendment Act No. 14 of 1990 and the amendment contained in Section 49(8) of the Act was annulled by High Court of Madhya Pradesh by its judgment in the matter of Anurudh Prasad Shastri (supra). If a validating statute was required to be enacted, for that validating statute only Madhya Pradesh Legislature was competent and by no stretch of imagination it can be said that a legislature of Chhattisgarh that came into existence on 1-11-2000, which never was a participant in legislation of amendment Act No. 14 of 1990 can be asked to enact validating statute by removing or curing the vitiating factors noticed in the case of Anurudh Prasad Shastri (supra). The State Legislature of Chhattisgarh is competent to legislate the impugned amendment law by virtue of their Legislative competence, as well the power conferred on them vide Section 79 of the Act, 2000. They were not required to dwell inside the decision of Anurudha Prasad Shastri (supra), even otherwise, the defect noticed by the Court was cured by statute enforced by State o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to snatch the right of any of the elected body, but is inclined to give the platform to elected personal and not to those who have completed their term and in the garb of extension or staying the legislation are still continuing in the field, more than 3 - 4 years even after expiry of their term. They further contended that neither the Government nor the Registrar is interested to carry on the powers of the committees by themselves, but they wish that the elected body alone should be permitted to sit over the platform and, therefore, they even curtailed their power which earlier was with the Government to extend the term. 21. In the case of Rajendra Prasad Yadav AIR 1997 SC 3723 (supra) judgment has been rendered by Hon'ble K. Ramaswamy D.P. Wadhwa, JJ. but both the Judges deferred on the question whether the liability of statutory vacation of offices is attracted on failure of Apex Bank to hold elections to the Board of Directors/Managing Committee within time. The same was the question involved in that judgment whereas in the instant case, that is not the question for consideration. 22. So far as Anurudh Prasad Shastri (supra) is concerned, the provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he other side of the coin has not been considered. The other side is that if Registrar is not allowed to take charge of the committee, the earlier committee which has completed its term which has no locus standi to remain in the field will work and to allow such a favour, the Government headed by a particular political party may control those societies without there being any difference whether those committees belong to their parties or not and they may enjoy fruits of it by back door. Therefore, if we want to travel within the criteria of misuse, both the sides are maligning, therefore, when the State of Chhattisgarh itself has robbed its power and is allowing free hand to elect body that cannot be questioned merely on the ground that Registrar who assumes charge to facilitate election will misuse his authority and destroy democratic value of the legislation. 25. The term of the committee is five years, that itself speaks of right of franchise. If after the term is over a group of persons who were earlier the elected persons was asked to hold the office that will clearly amount to disfranchise those who have valuable right to elect the members of the committee and to bri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts power to extend the period of committee in order to maintain the democratic value and its act certainly is worth appreciation, there-lore, by impugned amendment the decision of the State Government deleting provisions of (7-AA) and (7-AAA) of Section 49 of the Act, is not only constitutional, but it also commands the democratic value. 29. The Hon'ble Apex Court in the matter of Bhandara District Central Co-operative Bank Ltd. and Ors. v. State of Maharashtra and Anr. has held that Court cannot be called upon to embark on an enquiry into public policy or investigate into questions of political wisdom or even to pronounce upon motives of legislature in enacting law which is otherwise within its legislative competence. 30. Here in the instant case, it is as clear as crystal that following shall be the impact of the impugned amendment: After the term of five years, former members without being elected afresh, cannot hold the office again. Within five years the committee/society, by following law, rules and bye-laws should complete elections. The right of franchise available with the voters i.e. citizen of India shall remain intact and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Registrar to conduct elections within 90 days, as provided under the proviso to Section 8(i) of the Act and before the expiry of the period of 180 days during which an obligation was cost upon the Managing Committee of the societies to conduct elections by appointing a Returning officer, the respondent State promulgated an ordinance (No. 5 of 2004) called The Chhattisgarh Co-operative Societies (Sanshodhan) Ordinance, 2004 published in the Chhattisgarh Rajpatra (Asadharan) dated 1st October, 2004 amending Section 49 which provided the term of the officers and members of the Managing Committees of registered societies in case elections were not held before the expiry of the term under Section 7(A) or the extended term under Section 7-AA, by deleting Section 7 (AA) and Section 7(AAA) and substituting a new Sub-section (8) providing that if elections were not held before the expiry of the term specified in Sub-section 7(A) or the extended term under Section 7-AA, all the members of the Committee shall be deemed to have vacated their seats and the powers of the Committee shall be deemed to have been vested in the Registrar and the Registrar shall hold elections as early as possibl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommittee of the society to hold elections prior to the expiration of the term under Sub-section (7-A) or extended term under Sub-section (7-AA). The outgoing committee shall apply to the Registrar for holding election within a reasonable time which shall not be in any case less than ninety days before expiration of the term of the committee: Provided that if the outgoing committee has resolved and requested the Registrar to hold election at least ninety days in advance and the Registrar has failed to conduct elections on its request, the Registrar shall not assume charge of the committee and the members of the committee shall continue to hold the offices: Provided further, that if the Registrar fails to conduct elections of the committee within ninety days from the date of expiry of the term of the committee, the committee of the society shall appoint returning officer who shall conduct the election of the committee within 180 days from the date of the expiry of the term. (ii) If the committee fails to hold election and has not handed over the charge on expiration of the term, under Sub-section (7-A) or extended term under Sub-section (7-AA) to the Regist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard by a Division Bench of this High Court. On 14-2-2006, the following order was passed: In the course of arguments, both Shri Kanak Tiwari and Shri Manindra Shrivastava, learned Senior Counsel appearing for the petitioners submitted that the issue that arises for decision-making in this batch of the writ petitions is squarely covered by a judgment of the Division Bench of the Madhya Pradesh High Court in the case of Anurudh Prasad Shastri and Anr. v. State of Madhya Pradesh and Ors. 1993 (2) MPJR 33 and that judgment binds a coordinate Bench of this High Court, being a successor High Court. Leaving the above question raised by the learned Senior Counsel open to be decided in an appropriate case, we think it appropriate to place this batch of writ petitions before a Larger Bench to attain finality as regards this Court on the Constitutional question that arises for decision. We, therefore, direct the Registry to place these writ petitions before the Hon'ble the Chief Justice to constitute appropriate Larger Bench to hear and dispose of these writ petitions finally. The petitioners/respondents are granted a week's time to file 3rd Judge's set of papers. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ative Societies Act and the rules made thereunder and did not dispute that the appointment of returning officer under the second proviso to Section 49(8-i) was eventually to be done by the Registrar. The learned Advocate General also contended that the judgment rendered in Anurudh Prasad Shastri (supra) was per incuriam since the various rules and regulations and bye-laws governing the management of the society and the elections thereof were neither referred to nor brought to the notice of the High Court of Madhya Pradesh. On these premises, it was urged that the Legislature of the State of Chhattisgarh had the competence to amend Section 49 of the Act even though the amendment was verbatim to the amendment to Section 49 of the Act which had been struck down by the High Court of Madhya Pradesh in Anurudh Prasad Shastri (supra). 44. It was also contended that the elections to the Committee of the Petitioner-societies depended upon the elections of representative from various primary agriculture cooperative societies who are members of the petitioner-society. There were other representatives from other societies who were also members of the Committee of the petitioner-societ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s for and providing credit, goods or services as loan to Co-operative Societies affiliated to it for agriculture, industrial and other allied purposes. Section 2(d) defines committee to mean the Board of a management by whatever name called constituted under Section 48. Section 2(j) defines Farming Society to mean a society formed with the object of promoting development of land and better methods of cultivation, and includes a better farming society, tenant farming society, collective farming society, joint farming society, irrigation society and a crop protection society. Section 2(r) defines member to mean a person joining in the application for the registration of a society or a person admitted to membership alter registration in accordance with this Act, the rules and the bye-laws applicable to such society and includes the State Government when it subscribes to the share capital of a society. Section 2(t-i) defines Officer to mean a person elected or appointed by a society according to its bye-laws to any office of such society and includes a Chairman, Vice-Chairman, President, Vice-President, Managing Director, Manager, Secretary, Treasurer and Member of the committe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e shares held by it. 47. Section 22 gives right to vote. Subsection (1) says that every member of the society shall have one vote in the affairs of the society. The other details in Sub-sections (2) to (8) are not material for the purpose of this case, hence omitted. Section 23 prescribes the manner of exercising vote. Subsection (1) thereof postulates that every member of a society shall exercise his vote in person and no member shall be permitted to vote by proxy. Provided that subject to any rules made under this Act - (i) (a) a society which is a member of another society may appoint one of its members as a representative to vote on its behalf; and (b) not necessary for the purpose of this case. Section 23(ii) says that the State Government may nominate one of its officers as its representative, to vote or otherwise participate in its behalf in the affairs of the society of which such society or the State Government is a member. Other details are not necessary for the purpose of this case, hence omitted. Section 47-A prescribes the functions of Apex Society. Sub-section (1) thereof says that the Apex Society may, for servicing its constituents and in accordance with it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... first meeting of the committee is held. Sub-section (7-A)(ii) provides that the term of the representative elected by the committee of the society shall be conterminous with the term of the committee of the society for which the representative is elected. The other details are not material for the purpose of this case, hence omitted. 51. The survey of the aforesaid provisions of the Act provides for formation and registration of the Co-operative Society. The membership of the society, the general body, the committees to manage the affairs of the society, their tenure and qualifications have been provided for and the management of the society shall vest with the committee and the committee is empowered to elect the officers, namely, the President, two Vice-Presidents etc. etc. and the representatives to represent its membership in oilier societies. However, it is pertinent to note that the Co-operative set-up in the State of Chhattisgarh, is three-tier set-up i.e. Primary Society at the village level. Central Society at the district level and Apex Society at the Stale level. The representatives elected by the Primary Society from the electrol college for the Central Societi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The Registrar defined under Section 2(x) of the Act shall be the Registrar of Co-operative Societies and under Section 3, the Slate Government is empowered to appoint a person to be the Registrar and may appoint one or more officers of the enumerated categories to assist him, for the performance of all the functions and duties under the Act. Section 48 in Chapter V deals with management of the societies. It provides that the final authority in a society shall vest in the general body of the members. The management of every society by operation of Sub-section (2). shall vest in a committee constituted in accordance with the Act or rules made thereunder or bye-laws of the society. It shall exercise such powers and perform such duties as may be conferred or imposed respectively by the Act or rules made thereunder or by bye-laws of the society. Sub-section (1) of Section 48-B posits that every committee of society shall, at the time of election of Chairman or Vice-Chairman, also elect representative who shall represent it in other societies and the representative so elected shall not be withdrawn by the committee till the next election of the committee . (Emphasis supplied) Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... date) and ending on the date of publication of the Chhattisgarh Co-operative Societies (Amendment) Act, 2004 in the Gazette the period in respect of such committees shall be deemed to have been extended for a period of six months with effect from the said date as if the notification for the extension of the period were issued under Sub-section (7-AA), on the said date . Sub-section (8) has already been extracted and needs no repetition. 18. A conjoint reading of the above-referred provisions would manifest the legislative intention that it shall be obligatory on the outgoing committee of the society to hold elections prior to the expiry of the term under Sub-section (7-A) or before the expiry of the extended time under Sub-section (7-AA). The outgoing committee shall apply to the Registrar to hold elections within a reason-able time which shall not be in any case less than ninety days before the expiry of the term of the committee . (Emphasis supplied) Thus, it could be seen that it is the duty of the outgoing Managing Committee of the society to have Us elections held prior to the expiration of the term of the committee not less than ninety days before the exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the committee are deemed to have vacated their seats. Thereby, by statutory operation no Managing Committee remains in office. The Registrar, therefore, should assume charge of the society. On assumption thereof, while conducting the business of the society simultaneously he should hold elections as expeditiously as possible so that the Managing Committee elected on democratic principle immediately assumes office and conducts the business of the society in the manner laid down under the Act. Rules and the bye-laws of the society and achieves the object of the society and realises the collective aspiration of the members of the society . (Emphasis supplied). 53. The learned Counsel for the petitioners in all these petitions have placed explicit reliance on a judgment rendered by a Division Bench of the High Court of Madhya Pradesh in Anurudh Prasad Shastri (supra) and Rajendra Prasad Yadav AIR 1997 SC 3723 (supra) wherein the judgment in Anurudh Prasad (supra) was relied on. In Anurudh Prasad Shastri's case, where the constitutional validity of a verbatim similar amended Section 49 (8) of the Act, as is under challenge in these petitions, was under challenge, the Di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion for holding fresh election, it was considered to be a defaulter and Registrar then got jurisdiction under Sub-section (5) to take action against such a committee and members. There was, therefore, no possibility of any monopoly of management being created. It is however submitted that though an elected member may have a right to continue up to the expiry of his term, he cannot claim such a right after the expiry of the term. In other words, the submission of the respondent-State is that the elected members cannot claim to continue in the managing committee after the expiry of the terms of the committee. This Court finds no difficulty in accepting the submission that a committee cannot claim to continue for any period longer than its prescribed term. This, however, is not the question to be considered in the present case. If a committee by giving any indication of its intention to continue beyond its prescribed term, there might be justification for action against it. It is not the petitioners' claim even nor is there an allegation by the respondents that the petitioner societies had shown any tendency to continue after the expiry of their term. Indeed the factual situation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n before the expiry of term, the impugned amendment puts a premium on his defaults and gives him the right to take over the management of the society by committing default. The provision is prima-facie arbitrary. 12 Apparently, the object of the legislature is bound to be subverted by the present amendment. Possibility of its flagrant misuse in the context of current political situation is also real. The Registrar, being an officer working under the Government headed by a particular political party, the possibility of that political party controlling societies through the Registrar, cannot be ruled out. Apparently, therefore, the potency of the provision is more for creating mischief and subverting democratic process than for ensuring healthy democratic culture by holding elections. Such a provision must be held to be arbitrary and violative of Article 14 and it is accordingly held so. (Emphasis supplied) 54. In State of T.N. and Ors. v. Ananthi Ammal and Ors. , it was held as under by the Apex Court: 7. When a statute is impugned under Article 14 what the Court has to decide is whether the statute is so arbitrary or unreasonable that it must be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the committee would continue to hold office. But this was not to be in infinito. The second proviso obligated the Registrar to conduct the elections within 90 days from the date of expiry of the term of the committee. If this was not done, the Managing Committee again could not benefit by the default of the Registrar and continue to hold the office infinito. The mandate of the second proviso to Sub-section (8)(i) of the Act was that if the Registrar failed to conduct elections within a period of 90 days from the date of the expiry of the term of the committee, the committee of the society was under a legal obligation to appoint Returning Officer for conducting the election of the committee within 180 days from the date of the expiry of the term. Sub-clause (ii) of Sub-section (8) clearly mandated that if the committee failed to hold elections and to handover the charge on expiration of the term under subsection (7-A) i.e. five years or extended term under Sub-section (7-AA) i.e. 86 months, all the members of the committee shall be deemed to have vacated their seats and the Registrar would assume charge and hold elections thereafter as early as possible. In this manner, Sub-sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der an obligation to appoint Returning Officer to conduct election of the committee clearly goes to show that the impugned amendment puts a premium on the default of the Registrar or the Returning Officer appointed by him and throws the elected management committees out of their office even before the expiry of the period of 180 days during which they were obligated to conduct election of the committee. It gives unbridled power to the Registrar to sit in the saddle of Management Committee for a period not limited by the statute. Thus, there is no reasonable nexus between the impugned amendment and the object sought to be achieved by it. The object, as is clear from the statement of objects and reasons, is to promote democratic function of the society, which can only be done by holding fresh elections. Instead of ensuring the aforesaid object which may have required enacting a provision compelling the Registrar to act within a time frame and to hold elections before the expiry of the term, the impugned amendment puts a premium on the default by the Registrar and gives him the right to take over and be in the management of the society by committing default. The provision is thus prim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ground of lack of legislative competence or on the ground of violation of any of the fundamental rights guaranteed in Part-Ill of the Constitution of India or of ay other constitutional provision. The ground of invalidation also falls within the four corners of the aforesaid two grounds. 61. In I.N. Saksena v. State of Madhya Pradesh R.D. Doongaji v. State of Madhya Pradesh the distinction between legislative and judicial functions was succinctly described as below: 22. While, in view of this distinction between legislative and judicial functions, the legislature cannot by a bare declaration, without more, directly overrule, reverse or override a judicial decision, it may, at any time in exercise of the plenary powers conferred on it by Articles 245 and 246 of the Constitution render ajudicial decision ineffective by enacting a valid law on a topic with its legislative field fundamentally altering or changing with retrospective, curative or neutralizing effect the conditions on which such decision is based. As pointed out by Ray, C.J. in Indira Nehru Gandhi v. Raj Narain the rendering ineffective of judgments or orders of competent Courts and tribunals by chan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... judicial power, it is unnecessary to be overzealous and conjure up incursion into the judicial preserve invalidating the valid law competently made. In exercising legislative power, the legislature by mere declaration, without anything more, cannot directly overrule, revise or override a judicial decision. It can render judicial decision ineffective by enacting valid law on the topic within its legislative field fundamentally altering or changing its character retrospectively. The changed or altered conditions should be such that the previous decision would not have been rendered by the Court, if those conditions had existed at the time of declaring the law as invalid. 63. In Ujagar Prints and Ors. (II) v. Union of India and Ors. Kwality Silk Mills Co. and Anr. v. Union of India and Ors. , it was held by the Apex Court as under: A competent legislature can always validate a law which has been declared by Courts to be invalid, provided the infirmities and vitiating factors noticed in the declaratory judgment are removed or cured. Such a validating and curative exercise made by the legislature--granting legislative competence--the earlier judgment become ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... violates the law, if it violates the orders of the Court with what grace can it ask the citizens to have respect for law? The consequences of such violation may not be immediately apparent: the Governments may get away with such violations and may gain their short-term political objectives: but in the long term they debilitate and destroy the constitutional system, by enervating the rule of law. 66. In the result, all the above petitions succeed. The impugned amendment to Section 49 of the Chhattisgarh Co-operative Societies Act, 1960 is struck down as uliravires, arbitrary and subversive of the democratic structure of the co-operatives as contemplated under the Act. As a necessary consequence, provisions in Section 49 of the Act, as it stood immediately before the impunged amendment, would continue to hold the field. 67. In view of the opinion of the majority, we uphold the constitutional validity of the impugned Amendment Act No. 22 of 2004 and dismiss all the writ petitions, however, with no order as to costs. The Registrar of Co-operative Societies, State of Chhattisgarh, Raipur, is directed to hold election to the concerned Co-operative Societies within a pe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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