Rajkot Distt Cooperative Bank Ltd vs State Of Gujarat And Ors

4. The State of Gujarat enacted and put on the statute book, Gujarat Cooperative Societies Act of 1961 (in short "the Act") in order to consolidate and amend the laws relating to the cooperative societies in the State of Gujarat. Thereafter, the Act was amended by the Act of 1982. Initially, as per the Act of 1961, the Managing Committee of the Co- operative Society was to be constituted in accordance with the Act, Rules and bye-laws. By the Act of 1982, the proviso was inserted by way of an amendment to the effect that so far as the committee of a society falling in the category of Section 74C(1) of the Act is concerned, the rotation for retirement, if provided by the bye-laws of a particular number of members of the Managing Committee shall cease to remain in force.

(emphasis laid by this Court) In view of the law laid down by this Court in the aforesaid cases, we have to hold that the sub rules (8) & (9) of Rule 3-A are applicable to the appellant society/Societies as the area of operation is more than one village and therefore the orders passed by the Collector for the delimitation of the constituency/constituencies cannot be said to be illegal. Further, we hold that there will be no proper representation of the voters to their respective specified societies for electing representatives of their area which would materially affect the result of the election and the impugned provisions and Rules are legally justifiable.

For the reasons stated supra, no relief can be granted in favour of the appellant-societies by setting aside the election notification and the prayer for setting aside the impugned judgement and orders. Hence, they deserve to be dismissed. The respondents are directed to hold the election to the specified societies as per sub rule (8) and (9) of Rule 3-A of the Rules as are applicable to them under the Gujarat Co-operative Societies Act after the delimitation of the constituency/constituencies of such societies are made by the Collector as stated under sub-rule (9) of Rule 3- A of the Rules.

23. For the reasons stated supra, we do not find any reasons whatsoever to interfere with the impugned judgment and orders of the High Court. It is needless to make observation that the State government and its officers could not give effect to the provisions of the Co-operative Societies Act and Rules for some time on account of which some of the societies have challenged the impugned provisions and Rules before the High Court, even after litigation was concluded by the Division Bench at one stage, the State and its officers have not implemented the impugned provisions and Rules without any valid reasons. The members of the specified societies in the State have a right to elect their true representatives to represent them as Managing Committee or Board members of the District Co-operative Societies and other allied societies after de-limitation of the constituency/ constituencies and therefore, we direct them to see that the impugned provisions and Rules must be implemented forthwith without further delay and submit compliance report within 8 weeks from the date of report of the copy of this order.

24. The appeals are dismissed. No Costs.

.....................................................................J. [V. GOPALA GOWDA] .....................................................................J. [ADARSH KUMAR GOEL] New Delhi, November 19, 2014 ITEM NO.1A-For Judgment COURT NO.11 SECTION IX S U P R E M E C O U R T O F I N D I A RECORD OF PROCEEDINGS C.A.NO............/2014 ARISING FROM SLP(C) No(s). 26017/2013 RAJKOT DISTT COOPERATIVE BANK LTD Petitioner(s) VERSUS STATE OF GUJARAT AND ORS Respondent(s) WITH C.A.NO............/2014 ARISING FROM SLP(C) No. 13201-13202/2012 C.A.NO............/2014 ARISING FROM SLP(C) No. 12219-12222/2012 C.A.NO............/2014 ARISING FROM SLP(C) No. 29726/2013 C.A.NO............/2014 ARISING FROM SLP(C) No. 27573/2013 C.A.NO............/2014 ARISING FROM SLP(C) No. 29727/2013 C.A.NO............/2014 ARISING FROM SLP(C) No. 29728/2013 Date : 19/11/2014 These appeals was called on for JUDGMENT today.

For Petitioner(s) Mr. Mohit D. Ram,Adv.

M/s. Khaitan & Co.

Mr. Devendra Singh,Adv.

Mr. Aniruddha P. Mayee,Adv.

Mr. Subramonium Prasad,Adv.

Hon'ble Mr. Justice V.Gopala Gowda pronounced the judgment of the Bench comprising His Lordship and Hon'ble Mr. Justice Adarsh Kumar Goel.

Leave granted.

The appeals are dismissed in terms of the signed judgment.