BHASKAR KESHAV DESHPANDE Vs. ANIL RATI SHAH

JUDGEMENT

(1.) THESE two revision petitions are filed against the orders passed by the learned Judge of the Co-operative Court No. 1 at Sangli in two disputes filed before him, challenging the election of the members of the Board of Directors and decided the issue of limitation in favour of the disputants thereby holding that the dispute was within time. The relevant facts for this purpose are that, the disputes were filed on 16-2-1987 challenging the election, which according to them, was declared in the general body meeting dated 20-12-1986. The objections were raised in the disputes by the other side that the Directors were declared elected on 23-11-1986 when the election was completed or at the most on 26-11-1986 and the law requires that a: y dispute challenging the election of such body should be filed within 2 months from the date of the declaration of the results of the election under Section 92 (1) (d) of the M. C. S. Act, 1960. Therefore, it is said that since the disputes were filed beyond the prescribed period of limitation, the same should have been rejected in limine. The learned trial Judge disagreed with the submissions and hence the revision petitions. After the objections were filed before me on 5th of this month, i granted ad interim stay till 15-2-1988 to the hearing of the election dispute before the trial Court and today the question of continuance or otherwise of the stay is considered after hearing both the sides i. e. for disposal of the revision applications which are based on that aspect of the ordef only.

(2.) MR. Page submitted before me that the election results were declared by the committee appointed for that purpose and it is a requirement under law, namely Section 92 (1) (d) of the Act, referred to above, that it shall be declared only by the general body in its meeting as considered by the trial Court. Therefore, it is said that when the Society makes it's election rules and adopts certain Bye-laws for the purpose of carrying out the election of it's body such as Board of Directors, it is to be carried out according to those adopted Rules and the Bye-laws and the interpretation put up by the trial Court which is an interpretation accepted by him, as submitted by the other side and which is reiterated before me also, is not a correct interpretation of law on the subject. It is read out that the relevant law on the subject is as submitted by the other side under Rule 60 of the m. C. S. Rules of 1961. Rule 60 comes under a Chapter of 'management of the Societies'. It starts from Rule 57. It lays down the attributes for being a member of the Committees, disqualifications thereof and then makes a provision for first general meeting i. e. after formation of the society by the members of the proposed Society. Rule 60, then, is a general rale for general meetings of the Societies registered under the Act. All subsequent meetings of such a Society are required to be convened by the secretary or other officer authorised by and under the Bye-laws to convene such meetings.

(3.) THE President of the Society or in his absence the Vice-President or in the absence of both, a member elected, to preside over the meeting would be the President for the meeting. Quoram is also laid down for that meeting. The notice convening the meeting which is along with the agenda for the meeting is then read o ut and the subjects on the agenda are taken up for consideration in order as they are, unless they agreed to change the order. Then the resolutions are passed on the subjects by majority of the members present for passing of the resolutions. The President of the meeting will have a casting vote. Sub-rule (4) further provides in this regard only that, when the members are divided on any resolution, any member may demand a poll. When a poll is demanded, the President shall put the resolution for vote. Then sub-rule (5) makes a provision for voting either by a show of hand or by ballot, as may be decided by the members present unless otherwise specified in the Bye-laws. Sub-rule (6), then, is regarding counting of votes by ballot and then the result of such voting is to be declared under sub-rule (7) by announcement by the President. So if we read this Rule and if we refer in this context, the election rules separately adopted by the Society in question, as empowered under it's Bye-laws, which i shall refer to shortly, cannot be considered as the Rule applicable for declaration of election results in that general body meeting, otherwise, it would be creating an anomalous position, if we read it plainly, when the election is held of the members of the Board of Directors under the Election Rules adopted by the Society, which contemplates by provisions that a Committee appointed for that purpose should take the election by election programme, then voting, counting, calculating the votes, then giving a recounting then declaring the result of the recounting of the votes, if equal votes are secured by more than one candidate, the system or method of the draw is also provided under the Election Rule No. 37 and then the result of this election by the election Committee is forwarded to the Manager or Chief Executive Officer for announcement in the Annual General Meeting. Election Rule 37 uses a very particular word to make it clear, the seme and the purpose of this provisions, in Marathi language as 'sapurtkhatir' as we know Marathi language the word 'sapurtkhatir, means entrustment or handing over. What was required to be handed over is the result of the election. When the election takes place, the votes are counted by the methods adopted for the eventualities which may appear or occur for conclusion of the voting. Then to have the voting again in the general meeting is provided under rule 60 of the M. C. S Rules 1961 by ballot or show of hands if to be connected with regards to the acceptance of the election result or not, would be totally devoid of sense can be considered to have no logical inference for connecting the two provisions for the same elections by making repeatation of voting, counting, casting of votes and then declaration of the result of that election by President. Therefore, if we read this Rule 60 along with the Rules for the election adopted by the Committee, though the words are used in a loose language as we find in sub-rule (1) which is rightly stressed by Mr. Shah for the benefit of his client, as one may be led to take advantage of the loose wording of the Bye-laws adopted by the Society as such. It appears that the election result would be required to be declared in the annual general body but that would be reading of the Rules by over simplification and creating anomalies as I have pointed out on the basis of interpretation of Rule 60 of the M. C. S, Rules, 1960 with reference to the election rules. There js as purpose of declaration of the election result which is already done and declared by the Election Committee by counting and the result arrived at thereafter and then to say to get it declared again in the general body meeting and the general body meeting as we have read in Rule 60, also refers to and requires the voting either by ballot or by show of hands, counting and then all the formalities us the occasion may arise, then to make a declaration if to be connected with this Rule of election. It is certain that the Rule 60 is not meant for declaration of the election results which are to be carried through by the Election Committee under the Election Rules. It has only a purpose, as it appears eventually ex facie that, it is for the benefit of all the members of the General Body meeting and as a matter of formality for making known to all of them by announcement by President, as it is handed over to the President for the said purpose by the Election Committee appointed under the Rules. It cannot have any other purpose and, therefore, though Rule, 1 as well as Rule 37 has gat the reference that for announcement in the annual general meeting the result of the election so held by the Election Committee should be handed over and then the President of the said General Body Meeting would announce it, it does not mean that it is pre-requisite condition or a mandatory provision to qualify the election as held as a valid election not otherwise,