B SUBBAYA RAI Vs. K KARUNAKARAN NAMBIAR

JUDGEMENT

(1.) The issue to be decided in this case is the power of State Government in nominating Directors in the Board of Multi State Cooperative Societies under S.48 of the Multi State Cooperative Societies Act, 2002 (Act 39 of 2002) (hereinafter referred to as 'the 2002 Act'), vis a vis the power of nomination by the Central and State Governments as per the bye laws. The Central Areacanut and Coco Marketing and Processing Cooperative Ltd., properly known as CAMPCO Ltd. is a Multi State Cooperative Society. The bye laws of the society were framed in conformity with the provisions of the Multi State Cooperative Societies Act, 1984 (Act 51 of 1984) (hereinafter referred to as 'the 1984 Act'). The State Governments of Kerala and Karnataka have subscribed to the share capital of the second respondent society. Cl.16 of bye laws of the society provides the constitution of the Board of Directors of the society. The total members of the Board is 19. As per Cl.16(1)(c) of the bye laws, Kerala and Karnataka Governments are entitled to nominate two members each on the Board. Two Directors are to be nominated by the All India Term Loan Lending Institutions. The remaining 13 Directors are to be elected in the manner prescribed by the bye laws.

(2.) Clause 16(1)(c) of the bye laws reads as follows:

(3.) The provision for nomination of Government nominees under S.41 of the 1984 Act reads as follows: