IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA CWP No.: 640 of 2006 Date of decision: 18.9.2008 The Hamirpur Cooperative House Building Society Ltd. ...Petitioners. Versus State of H.P. and others. …Respondents Coram The Hon’ble Mr.Justice Deepak Gupta, J. The Hon’ble Mr. Justice V.K.Ahuja, J. Whether approved for reporting?1 No. For the petitioner: Mr. J.S.Bagga, Advocate. For the respondents: Mr. Rajesh Mandhotra, Dy. A.G. Per Deepak Gupta, J. (oral) This writ petition has been filed by the Hamirpur Cooperative House Building Society. The petitioner-society has challenged the show cause notice issued to it by the Assistant Registrar, Cooperative Societies, whereby the society was called upon to submit its reply to the notice. The grounds for issuance of this notice were that some of the members of the said society have embezzled the funds of the society and therefore were defaulters and could not have been elected as members of the society. It would be pertinent to mention that the Registrar Cooperative Societies had also passed an order on 1st April, 2006 that the elections to the New Managing Committee were in contravention of the Elections Rules and therefore an Administrator was appointed for a period of six months or till elections are held. The period of six months is over. Elections to the societies cannot be postponed indefinitely. The Cooperative Societies Act provides that the Managing Committee of the 1 Whether the reporters of the local papers may be allowed to see the Judgment? Yes. 2 Society shall be elected by elections from amongst the members. This is the democratic process, which normally must be followed. The power to appoint an arbitrator is an emergency power to be exercised when the society is superseded or for other reasons as provided under the H.P.Cooperative Societies Act. In the present case more than two and half years have elapsed since the Administrator was appointed. We, therefore, feel that interest of justice will be served and the writ petition can be disposed of if we direct that the elections to the Society be held in accordance with law. In fact, the Principal Secretary to the Government of Himachal Pradesh had also directed that the elections be held positively by 31st July, 2006. These elections could not be held due to lack of quorum. Thereafter, we had called upon the State to file an affidavit in respect of the bye-laws of the society. The bye-laws of the societies has been placed on record. The quorum required for the first meeting called to Managing Committee of the Society is 1/5th of the total number of members of the society. As per the amended rules place on record, the quorum for adjourned the meeting is also 1/5th the strength of the society. Shri Bagga, learned counsel for the petitioner, has urged that the Administrator is not interested in conducting the elections and therefore, notices are not being sent to all the members. This fear of the petitioner can be easily allayed. In view of the fact that the society has been running under an Administrator for more than two and a half years and despite clear cut orders of the appellate authority the elections have not been held till date, we dispose of this writ petition with the following directions: 1. That the Registrar Cooperative Societies shall ensure that elections to the society are held under the supervision of an official not below the rank of Assistant Registrar, Cooperative Societies. 2. The general body meeting shall be fixed in the second week of November, 2008. 3 3. The Registrar, within one week from today shall nominate an Officer, who shall conduct the elections. On or before 3rd October, 2008 the Officer so appointed shall affix on the notice board of the Society a list of members of the Society eligible to vote and objections to the inclusion/exclusion of the name of any member shall be invited by him. These objections must be filed on or before 7th October, 2008. The Officer shall decide the objections latest by 14th October, 2008. 4. Thereafter, the Officer in-charge of the elections shall issue notice by registered post to all the eligible members of the society informing them the date and agenda of the meeting. The meeting to elect the Managing Committee, as already directed above, shall be held in the second week of November, 2008. In case, the requisite quorum is not available in the first meeting the adjourned meeting shall be held in 1st week of December, 2008. Notices for the adjourned meeting, if required, shall also be sent by registered post. In case, the quorum is not available on either of the two meetings, then obviously there is no other option and the Administrator shall continue to manage the affairs of the society. Petition is disposed of accordingly. ( Deepak Gupta ), J. September 18, 2008 ( V.K Ahuja ), J. ™