ZILEY SINGH ARZMAND ALI SHIVANANDAN SHARMA Vs. REGISTRAR CANE CO OPERATIVE SOCIETIES:SARSAWA SAHAKARI GANNA SAMITI LTD:THE REGISTRAR CANE CO OPERATIVE SOCIETIES

JUDGEMENT

(1.) These three appeals are by special leave Civil Appeal No. 1533 (N) of 1971 is by special leave against the judgment dated 18 September, 1971 of the Arbitrator setting aside the election of the Management Committee of the Co-operative Cane Development Union, Shamli in an election petition filed under R. 229 (2) of the Co-operative Societies Rules, 1967 framed under the Uttar Pradesh Co-operative Societies Act, 1965. Civil Appeal No. 1797 of 1971 is by special leave against the order of the District Magistrate and Registrar, Co-operative Societies Sharanpur dismissing an appeal filed under Section 98 (i) (h) of the U. P. Co-operative Societies Act, 1965 against an order of the Arbitrator under Sections 70 and 71 of the U. P. Co-operative Societies Act, 1965 setting aside the election of the Sahkari Ganna Vikas Samiti Ltd., Iqbalpur, District, Saharanpur, Civil Appeal No. 1798 of 1971 is against the order and judgment dated 16 September, 1971 of the District Magistrate, Saharanpur dismissing an appeal under Section 98 (I) (h) of the U. P. Co-operative Societies Act, 1965 against the order of the Arbitrator under Sections 70 and 71 of the U. P. Co-operative Societies Act, 1965 setting aside the election of the Shakari Ganna Vikas Samiti Ltd., Lhaksar, District Saharanpur, Special Leave Petition (Civil) No,. 3254 of 1971 is for leave to appeal against the order of the Registrar, Co-operative Societies in appeal under Section 98 (I) (h) against the order of the Arbitrator under Sections 70 and 71 of the U. P. Co-operative Societies Act, 1965 setting aside the election of Sahkari Ganna Vikas Samiti, Sarsawa, Special Leave Petition (Civil) No. 3268 of 1971 is for leave to appeal against the order of the District Authority, Bulandshahr setting aside the election of the Committee of Management of the Co-operative Cane Development Union Ltd. on an application under Rule 229 of the U. P. Co-operative Societies Rules, 1968.

(2.) These matters raise a common question. These Co-operative Societies held their annual general meetings under the provisions of Section 32 of the Uttar Pradesh Co-operative Societies Act, 1965 (hereinafter called the Act). At the general meetings the members of the Committee of Management of the Society were elected by members of the Society. The Registrar of the U. P. Co-operative Societies issued a circular dated 5 November, 1969 interpreting Rule 409 of the U. P. Co-operative Societies Rule, 1968 (hereinafter called the Rules) and laid down the principle that "all the members of the general body" of the Co-operative Society would "exercise their right of vote in filling all the seats of elected Directors." The question in the present appeals is whether the Registrar had power to issue the circular interpreting Rule 409 and secondly whether that interpretation is correct in terms of the Act and the Rules.

(3.) The Act deals with Co-operative Societies and inter alia their members and their Committee of Management. The Committee of Management. The relevant sections for the purpose of the present appeals and special leave petitions are Sections 20, 20 and 32 of the Act. Section 20 of the Act speaks of vote of members. Under the sections, a member of Co-operative Society shall notwithstanding the quantum of his interest in the capital of the Society have one vote in the affairs of the Society. There are four provisos to Section 20. Proviso (a) deals with nominal or associate member who have no right of vote. Proviso (b) deals with a co-operative society, the State Warehousing Corporation or a body corporate being a member of such society in which case each delegate of such Co-operative society, State Warehousing Corporation or body corporate shall have one vote. Proviso (c) deals with the State Government or the Central Government being a member of such society in which case a nominee of the State Government or the Central Government shall have one vote. Proviso (d) deals with a group of members or any class of members partaking in the affairs of the society through a delegate or delegates each delegate having one vote.