DHARAM VIR Vs. LT GOVERNOR OF DELHI

JUDGEMENT

(1.) This writ petition challenges the order dated 16th April, 1993 passed by the Lt-Governor of Delhi in exercise of his powers under Section 31(7) of the Delhi cooperative societies Act, 1972 (hereinafter referred to as the Act).

(2.) The Delhi State Cooperative Bank Limited is a 'financing bank' within the meaning of Section 2( 1) of the Act and is duly registered as a society with the Registrar of cooperative societies, Delhi. It is thus a co-operative society. In a co-operative society the general body of members is supreme and it has the final authority in all matters. However, the day to day functioning of the society is entrusted to delegates of members of the society chosen in accordance with the bye-laws of the society and the law. This smaller body generally known as managing committee or committee exercises the powers of the general body. This concept is statutorily recognised in Section 28 of the Act. The elections of the members of the committee are normally held in the Annual General Body meeting of the cooperative society as provided in Section 29 of the Act.

(3.) The Delhi State Cooperative Bank Limited falls in a distinct class of cooperative societies. Rule 58A of the Delhi Cooperative-Societies Rules,1973 contains the classification of cooperative societies for the purpose of Section 31of the Act and the Bank falls in that class being a financing bank. Section 31 of the Act contains provisions regarding election and nomination of members of committees of this class of cooperative societies. The following provisions of Section 31 of the Act are relevant for purpose of controversy involved in the present writ petition: