Tax Management India. Com
                        Law and Practice: A Digital eBook ...

Category of Documents

TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms Manuals SMS News Articles
Highlights
D. Forum
What's New

Share:      

        Home        
 

TMI Blog

Home List
← Previous Next →

2012 (7) TMI 1092

ose Christo and P. Gopal For the Respondents : K.N. Rajani, SC, P. Gopal, V.G. Arun and D. Somasundaram, GP JUDGMENT C.N. Ramachandran Nair, J. 1. These two writ appeals are filed by a person elected as a member of the Managing committee of the Sreekandamangalam Service Co-operative Bank Ltd. No. 974 (hereinafter called 'Society') against common judgment of the learned single Judge in two writ petitions declaring the election notification earmarking one seat of the Managing Committee to the depositors constituency under Section 28(1C) of the Kerala Co-operative Societies Act (hereinafter called the 'Act') and appellant's election in the said constituency as invalid and against the bye-law of the Society. Based on the resolution passed by the Managing Committee of the Society for holding the election to Managing committee in terms of Rule 34A(1) of the Kerala Co-operative Societies Rules (hereinafter called the 'Rules'). The Co-operative Election Commission notified the election for all the 11 members of the Managing committee representing different constituencies. The bye-law of the Society as on the date of declaration of election provided for election .....

X X X X X X X

Full Text of the Document

X X X X X X X

ify election to the Managing committee of the society in deviation with the constitution of the Board as contemplated under the bye-law of the Society and also in violation of the resolution passed by the Managing committee to hold the election in terms of Rule 35A(1) of the Rules. Learned single Judge accepted the contention by holding that the Society is a Primary Agricultural Credit Society as defined under Section 2(oa) of the Act and not a Primary Credit Society as defined under Section 2(ob) which only is required to have a representative from among depositors in the Managing committee of the Society. Learned single Judge also agreed with contention of the writ petitioners that the Election Commission has to notify the election to the Managing Committee in terms of the bye-laws of the society and the resolution passed by the Managing committee of the Society. Consequent upon the findings in favour of the writ petitioners the learned single Judge declared the appellant's election as invalid and ordered fresh election to one seat in the general quota. It is against this judgment separate writ appeals are filed by the appellant, for one and same relief i.e., to declare the s .....

X X X X X X X

Full Text of the Document

X X X X X X X

or a Municipality: Provided . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Provided further that if the above principal object is not fulfilled such societies shall lose all characteristics of a Primary Agricultural Credit Society as specified in the Act Rules and Bye-laws except the existing staff strength. S. 2(ob) - 'Primary Credit Society' means a Society other than an apex or central society which has its principal object the raising of funds to be lent to its members. S. 28(1C) - Notwithstanding anything contained in the bye-laws of a Primary Credit Society or an Urban Co-operative Bank, one seat in the committee of each such society shall be reserved for the members having a deposit of ten thousand rupees and above. R. 34A Procedure regarding conduct of election to the Representative General Body. (1) The election of the members to the Representative General Body of the Societies shall be conducted by the State Co-operative E .....

X X X X X X X

Full Text of the Document

X X X X X X X

istant Registrar of Co-operative Societies as follows.- Deposit 22,22,47,697.54 Loans 20,41,01,375.66 Kisan Credit Card (Agricultural) 15,47,346.00 Short Term (Agricultural) 8,325.00 3. It may be noted from the above figures that the society in this case has given very insignificant amounts towards agricultural loan under two categories amounting to only ₹ 15.5 lakhs and odd whereas it's other advances runs above 20.4 crores. Most of the loans are funded through public deposits taken by the Society which is above ₹ 22.22 crores as seen from the above figures declared by the Society to the Assistant Registrar of Co-operative Societies as on 31-03-2012. Going by the definition clause of "Primary Agricultural Credit Society" in order to constitute the Society in that category, the principal activity should be to undertake agricultural credit activities and provide loans and advances for agricultural purposes. It is further stated in the second proviso to the said definition clause that if the society does not achieve it's objective i.e., to function like an Agricultural credit society it will loose it's identity by virtue of the operation of the said .....

X X X X X X X

Full Text of the Document

X X X X X X X

ould deny the factual position stated above in as much as the Society though registered as Primary Agricultural Credit Society has ceased to be so and it is in fact a Primary Credit Society. 4. Going by the factual position as stated above, it was the duty of the Registrar to order alteration of classification of Society in terms of powers conferred on him under Note (ii) of Rule 15 of the Rules which is not so far done. Probably the Registrar of Societies never bothered to find out the operations of the Society to justify retention of the identity and that is why the Society continues to retain the registration originally obtained. In any case what we notice from second proviso to Section 2(oa) is that as and when the society ceases to be a Primary Agricultural Credit Society it shall loose that identity irrespective of whether the Registrar has made changes or not. As noted by us above, the procedure to be followed is for the Registrar on information whether obtained by himself or through any other source about the operation of the Society disentitling it to continue to retain it's registration in the category obtained by it should change it and issue fresh certificate of reg .....

X X X X X X X

Full Text of the Document

X X X X X X X

the change of identity of the Society from Primary Agricultural Credit Society to a Primary Credit Society, we feel this argument is also available to the Appellant at this stage. We therefore hold that by virtue of operation of second proviso to Section 2(oa) the Society has become a Primary Credit Society. Even though counsel for the respondents cited the decision of the Supreme Court in Promoters and Builders Association of Pune v. Pune Municipal Corporation and others, (2007) 6 SCC 143 : 2005 ICO 7010 for the proposition that the court should not do violence to literal meaning of the legislation if it is not capable of any doubt, we do not think the decision has any application to the facts of this case because we find that the operations of second proviso to Sections 2(oa) and 2(ob) and also Section 28(1C) of the Act obliged the Election Commission to reserve one seat to depositor's constituency. In our view, irrespective of whether there is compliance with the statutory provisions and the Rules by the Registrar in declassifying the society the character of the Society changes by operation of the second proviso to Section 2(oa) from Agricultural Credit Society to a Primar .....

X X X X X X X

Full Text of the Document

X X X X X X X

 

 

← Previous Next →

 

 

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Blog || Site Map - Recent || Site Map ||