Case: Vineshkumar Mavjibhai Parmar Vs. Dethali Gopalak Vividh Karyakari Sahakari Mandali Ltd.

(in the context of the present case, even the byelaws of the society). The existence or lack of such rights and functions depend upon the scheme and tenor of the SOCIETIES ACT and the subordinate legislation made thereunder. Such rights and functions are put an end to only by the operation of law i.e., the SOCIETIES ACT.23. Apart from that, nothing prevents the legislature from conferring by another law additional rights or functions on a person holding an office created under the SOCIETIES ACT.24. The legislature of Gujarat by Section 11(1) of the MARKETS ACT conferred on the OFFICERS of a class of CREDIT SOCIETIES an additional function of electing members of the market committees. Such function is neither conferred on the OFFICERS of all the societies functioning under the SOCIETIES ACT nor such function includes the right to elect every member of the concerned market committee. Such a function obviously creates a right in the officers of the societies. Such a statutory right could not be taken away in the absence of any express authority of law.25. The Gujarat legislature expressly provided under the SOCIETIES ACT for the curtailment of certain rights of the officers of societies facing liquidation proceedings. It must be remembered that at the same time it also declared that such OFFICERS cease to be the officers of the Society only when a final order of winding up is passed. In a given case if the Registrar after an appropriate enquiry following the interim order of winding decides not to finally wind up the society, the OFFICERS of the society would once again be entitled to exercise all the rights associated with it and perform all the functions attached to the office. Therefore, merely because the officers of CREDIT SOCIETY facing liquidation are disabled from enforcing certain rights attached to the office or perform certain obligations appended to the office, it does not necessarily follow that they are disabled from performing every function entrusted by law to such office.26. We now deal with the submission that the society ceased to be a CREDIT SOCIETY in view of the pendency of the winding up proceedings.27. We are of the opinion that the phrase "co-operative societies dispensing agricultural credit in the market area" in Section 11(1)(i) of the MARKETS ACT is only descriptive of the purpose for which the societies are established. Section 11(1)(i) cannot be construed as imposing an incessant obligation of "dispensing agricultural credit" in order to enable the members of the managing committee of CREDIT SOCIETIES to participate in the election to the market committee. The obligation, if any, to "dispense agricultural credit" arises under the bye-laws of the society subject of course to the availability of funds and various other factors. We are of the opinion that the above quoted words are only descriptive of the class of society the members of whose managing committees are entitled to participate in the election of the market committee. It is obvious from the language of the sub-section that there can exist more than one class of co-operative societies functioning under the Act. The very fact that the legislature took care to expressly exclude members of the managing committees of two classes of societies i.e. "Co-operative Marketing Societies" and "Milk Produce Co-operative Societies", definitely indicates that there can exist more than one class of societies - apart from the common knowledge.28. Section 4 (Section 4. Societies which may be registered.- A society, which has as its object the promotion of the economic interests or general welfare of its members or of the public, in accordance with co-operative principles, or as society established with the object of facilitating the operations of any such society, may be registered under this Act.]) of the SOCIETIES ACT contemplates that societies could be registered for different purposes. They are - "the promotion of the economic interests of its members or general welfare of its members or economic interest of the general welfare of the public".29. Since Section 11(1)(i) of the MARKETS ACT is establishing an electoral college for the election of a certain class (agriculturists) of members of the market committees, the legislature thought it fit that only the members of the managing committees of those co-operative societies which have a nexus to agricultural activity should be members of the electoral college.30. The submission of the appellant that Section 11(1)(i) imposes a legal obligation that the members of the managing committees of only those co-operative societies which are currently dispensing agricultural credit in the market area are entitled to participate in the electoral process of the concerned market committee (in other words, the phrase "co-operative societies dispensing agricultural credit" is indicative of the current activity of the societies but not the purpose for which the society is established), would lead to various difficult questions:(i) What is the period to which the currency of such activity would relate to? Whether the activity should be current when the voters list is prepared or the activity should continue even on the date of voting?(ii) Whether credit societies which do not dispense agricultural credit for a certain period of time because of either paucity of funds or borrowers are debarred from "dispensing agricultural credit" because of some legal prohibition or any other reason operating temporarily cease to be societies whose objective is to provide agricultural credit?31. Credit Societies against which there is an `interim order of winding up are temporarily debarred from dispensing agricultural credit, by virtue of the operation of law. The embargo imposed by such interim order may or may not fructify into a final order of winding up. (We have already discussed this aspect of the matter at para 21 supra). On the face of such possibility of the society resuming its activity of "dispensing agricultural credit" - to debar its managing committee members from discharging their statutory obligation under the MARKETS ACT would be productive of public mischief. Such an interpretation of the statute must be avoided.32. For the above reasons, we

Decision (1 = appeal accepted, 0 = rejected): 0

Explanation:
0[ds]24. The legislature of Gujarat by Section 11(1) of the MARKETS ACT conferred on the OFFICERS of a class of CREDIT SOCIETIES an additional function of electing members of the market committees. Such function is neither conferred on the OFFICERS of all the societies functioning under the SOCIETIES ACT nor such function includes the right to elect every member of the concerned market committee. Such a function obviously creates a right in the officers of the societies. Such a statutory right could not be taken away in the absence of any express authority of law.25. The Gujarat legislature expressly provided under the SOCIETIES ACT for the curtailment of certain rights of the officers of societies facing liquidation proceedings. It must be remembered that at the same time it also declared that such OFFICERS cease to be the officers of the Society only when a final order of winding up is passed. In a given case if the Registrar after an appropriate enquiry following the interim order of winding decides not to finally wind up the society, the OFFICERS of the society would once again be entitled to exercise all the rights associated with it and perform all the functions attached to the office. Therefore, merely because the officers of CREDIT SOCIETY facing liquidation are disabled from enforcing certain rights attached to the office or perform certain obligations appended to the office, it does not necessarily follow that they are disabled from performing every function entrusted by law to such office.We are of the opinion that the phrase "co-operative societies dispensing agricultural credit in the market area" in Section 11(1)(i) of the MARKETS ACT is only descriptive of the purpose for which the societies are established. Section 11(1)(i) cannot be construed as imposing an incessant obligation of "dispensing agricultural credit" in order to enable the members of the managing committee of CREDIT SOCIETIES to participate in the election to the market committee. The obligation, if any, to "dispense agricultural credit" arises under the bye-laws of the society subject of course to the availability of funds and various other factors. We are of the opinion that the above quoted words are only descriptive of the class of society the members of whose managing committees are entitled to participate in the election of the market committee. It is obvious from the language of the sub-section that there can exist more than one class of co-operative societies functioning under the Act. The very fact that the legislature took care to expressly exclude members of the managing committees of two classes of societies i.e. "Co-operative Marketing Societies" and "Milk Produce Co-operative Societies", definitely indicates that there can exist more than one class of societies - apart from the common knowledge.Credit Societies against which there is an `interim order of winding up are temporarily debarred from dispensing agricultural credit, by virtue of the operation of law. The embargo imposed by such interim order may or may not fructify into a final order of winding up. (We have already discussed this aspect of the matter at para 21 supra). On the face of such possibility of the society resuming its activity of "dispensing agricultural credit" - to debar its managing committee members from discharging their statutory obligation under the MARKETS ACT would be productive of public mischief. Such an interpretation of the statute must be avoided.