DINESH PRASAD YADAV Vs. STATE OF BIHAR

JUDGEMENT

(1.) The term of office of the members of the Managing Committee of a society registered under the Bihar co-operative Societies Act, 1935 (the 'act') and the Bihar co-operative Societies Rules, 1959 (the Rules) is three "co-operative years". The State government, under the Act, has a right to nominate - depending upon its share in the share capital of the society - certain number of members to the Managing Committee of a society. The question for consideration is whether the three-year term of the Managing Committee is to be counted from the beginning of the "co-operative year" in which the elections by ballot are held or from the "co-operative year" when the nominations are made by the State government

(2.) 2. Before stating the necessary facts, it would be useful to examine the relevant provisions of the Act and the Rules. These are Sections 2 (bb) , 2 (e) , 14 (2) , 14 (4) , 14 (9) and the first proviso to Section 14 (10) reading as under: "2. (bb) 'cooperative year' means a year beginning with the 1 st April and ending on the 31st March. 2. (e) 'managing Committee' means the committee of management or other body to whom the management of the affairs of a registered society is entrusted. 14. (2) The management of registered society shall be vested in a managing committee constituted in accordance with the rules: * * * 14. (4) Notwithstanding anything contained in any provision of this Act, the rules framed thereunder or the bye-laws of any registered society where the State Government has (a) subscribed directly to the share capital of a registered society; or (b) assisted indirectly in the formation or augmentation of the share capital of a registered society; or (c) given loans or made advances to a registered society or guaranteed the repayment of principal and payment of interest on debentures issued by a registered society for or guaranteed the repayment of principal and payment of interest on loans or advances to a registered society; in that case the State Government shall have the right to nominate on the Managing Committee of such registered society not more than two persons one of whom shall be a government servant, but the said government/ servant shall have no right to vote in the election of the office-bearers of the registered society: provided that notwithstanding the foregoing provisions contained in sub-sections 4 (a) , (b) and (c)

(3.) Dinesh Prasad Yadav, the appellant, was a member of the Managing Committee of the Katihar District central perative Bank (the 'bank') along with Respondents 5 to 12. They were elected as such by votes on 20/1/1991 under Rule 21-A of the Rules. The State government being a major shareholder in the share capital of the Bank it has the right to nominate up to one-third of the total members of the Managing Committee of the Bank, including the Chairman. Though the elections by way of ballot were held on 20/1/1991, the State government made the nominations to the Managing Committee of the Bank as late as 2/3/1993. It is not disputed that the Managing Committee was not permitted to function till 2/3/1993 on the ground that it got constituted under Rule 22 of the Rules only after the nominations were made by the State government.