1997 (7) TMI 700 - SC - Indian Laws

Supreme Court dismisses appeal on Registrar's control over Bank Board, stresses election duties

Rajendra Prasad Yadav and Ors. Versus State of M.P. and Ors.

The Supreme Court dismissed the appeal, emphasizing that the Registrar was unjustified in assuming charge of the Apex Bank's Board of Directors and ... - Issues Involved:1. Interpretation of the Madhya Pradesh Co-operative Societies Act, 1960 and its amendments.2. Obligations and powers of the Registrar regarding the conduct of elections.3. Validity and continuity of the Managing Committee and Board of Directors of the Apex Bank.4. Impact of legislative amendments on the tenure of office bearers.5. Role and duties of the Apex Bank in ensuring elections of member societies.Issue-Wise Detailed Analysis:1. Interpretation of the Madhya Pradesh Co-operative Societies Act, 1960 and its amendments:The judgment extensively discusses the definitions and provisions under the Madhya Pradesh Co-operative Societies Act, 1960. Sections 2(a-i), 2(c-i), 2(c-ii), 2(d), and others define various types of societies and their governance structures. Section 4 mandates the registration of societies, while Section 9 and Section 10 classify societies into categories. Section 19 outlines the right to membership, and Section 22 gives the right to vote. Section 23 prescribes the manner of exercising votes, and Section 47-A prescribes the functions of the Apex society. The judgment elaborates on these provisions to clarify the legislative intent and operational framework of co-operative societies in Madhya Pradesh.2. Obligations and powers of the Registrar regarding the conduct of elections:The judgment highlights the Registrar's role in conducting elections as per Section 49(8) of the Act. It states, 'It shall be obligatory on the outgoing committee of the Society to hold elections prior to the expiration of the term.' If the Registrar fails to conduct elections within the stipulated period, the committee can appoint a returning officer to conduct elections within 180 days. The Registrar's failure to act within this framework can result in the committee continuing in office, as per the legislative injunction.3. Validity and continuity of the Managing Committee and Board of Directors of the Apex Bank:The judgment examines the continuity of the Managing Committee and Board of Directors of the Apex Bank. It states, 'The term of the representatives of the Central Bank (Board of Directors) and of their office bearers was co-terminus with the term of the Managing Committee of the Central Bank.' The term was later extended to five years. The judgment also notes that the Managing Committee and Board of Directors of the Apex Bank should continue to function until their successors assume office, as per the bye-laws.4. Impact of legislative amendments on the tenure of office bearers:The judgment discusses the amendments brought by Act No. 14 of 1990 and Act No. 12 of 1994, which impacted the tenure of office bearers. The amendments extended the term of societies and mandated the Registrar to take over management if elections were not conducted. The High Court had earlier declared these amendments as ultra vires, stating, 'the officers of the earlier Managing Committee of the petitioners Societies will continue to function, till elections are held, in accordance with law.'5. Role and duties of the Apex Bank in ensuring elections of member societies:The Apex Bank's role in ensuring timely elections of member societies is emphasized. The judgment states, 'The Apex society for servicing its constituents and in accordance with its byelaws, can perform various functions mentioned therein and one of such functions is to ensure timely conduct of elections in member societies.' However, the Apex Bank is not responsible for conducting elections of primary societies, which are not its members. The judgment clarifies that the duty to conduct elections lies with the Registrar, not the Apex Bank.Conclusion:The Supreme Court dismissed the appeal, stating that the Registrar was unjustified in assuming charge of the Apex Bank's Board of Directors and Managing Committee. The judgment clarifies that the Managing Committee and Board of Directors should continue in office until their successors assume charge, as mandated by the Act and bye-laws. The judgment also emphasizes the Registrar's duty to conduct timely elections and the Apex Bank's role in ensuring elections of member societies. The appeal was dismissed with no order as to costs.