LAWS(ORI)-1974-3-19

LARAMBHA SERVICE CO-OPERATIVE SOCIETY LIMITED Vs. THE SAMBALPUR DISTRICT CO-OPERATIVE CENTRAL BANK LIMITED AND ORS.

Decided On March 05, 1974
Larambha Service Co -operative Society Limited Appellant
V/S
The Sambalpur District Co -operative Central Bank Limited and Ors. Respondents

JUDGEMENT

(1.) THIS is an application of an affiliating Service Co -operative Society challenging the election held on the 7th of February, 1972, to the Committee of Management of the Sambalpur District Co -operative Central Bank Limited (Opposite party No. 1) (hereinafter referred to as the "Bank") and for a declaration that the election of opposite parties 3 to 12 to the Committee of Management is contrary to law.

(2.) THE Bank is a Co -operative Society registered and incorporated under the Orissa Co -operative Societies Act, 1962 (hereafter referred to as the "Act"). Accordingly it is governed by the Act arid the Orissa Co -operative Societies Rules (hereafter referred to as the "Rules") made, thereunder. It has also a set of Bye -laws, a copy whereof is Annexure -1 to the writ application. Under Section 28 of the Act, the management of the Bank vests in a Committee to be constituted in accordance with the Rules and its Bye -laws. Section 27 of the Act vests final authority of a Society in the General Body of members. Section 29(b) of the Act provides that a general meeting of the Society shall be held once in a year for the purpose of inter alia, election, if any, in the prescribed manner of the members of the Committee other than nominated members. Election to the Committee of Management of the Bank was held on 7th of February, 1972, and the opposite parties 3 to 12 were elected. There is no dispute that the election was held in terms of the relevant Bye -law. But it is contended that the Bye -law is contrary to the relevant statutory provisions and, therefore, the election is vitiated.

(3.) IN the writ application various contentions were raised. During hearing, however, Mr. Rath for the Petitioner emphasises upon one contention pointedly Bye -law 30 is contrary to the scheme for election to the Committee contained in the Act and the Rules and, therefore, the election is vitiated. We have already referred to the provisions in the Act. We shall now extract the relevant Rule and the Bye -law for convenience. Rule 30 -A, which was brought by way of amendment in 1970 provides: