NALIN CHANDRA HAZARIKA Vs. STATE OF ASSAM

JUDGEMENT

(1.) This writ petition relates to Sibsagar District Central Co-operative Bank Ltd. Jorhat and has come up before us on a reference made by one of us (Manisana, J ). We have heard both sides. This institution is referred to as "Society" in the judgment.

(2.) For the last 18 years the society did not have an elected administrative council or office bearers. It was managed by successive administrative council nominated by the Registrar of Co-operative Societies. Petitioner was the Chairman of the last such nominated administrative council with mandate to hold annual general meeting for the purpose of election within a period prescribed in the order. The council consists of 21 members out of which 18 posts are elected by the share-holders of the Bank and one third among them retire every year and the share-holders are required to elect l/3rd elected Directors each year. Since no (lection had been conducted for the last 18 years, the AGM was held on 21-7-1991 where 18 new members of administrative council were to be elected. The petitioner was elected to the administrative council on 21-7-91 and was elected as Chairman by the Directors. The Registrar dissolved the council by an order dated 13th November, 1992 and that order was challenged in this court in Civil Rule No. 4642/1991 and by an order of stay passed by this court the council elected on 21-7-91 was directed to continue to function. That writ petition has since been disposed of as infructuous. This petition relates to co-operative year 1991-92 and the AGM was required to be held in the year 1991. Of the 18 members who in turn elected the petitioner as Chairman, l/3rd were to retire and their places were to be filed up by election scheduled to be held on 28-5-92. The Government by issuing notification under Section 92 of the Assam Co-operative Societies Act, 1949 exempted all the co-operative societies from the operation of Section 32 (1) and 32 (2) of the Assam Co-operative societies Act, 1949 (for short 'the Act') until 31-7-92. The period was however extended till 31-10-92. The society convened the AGM on 27-10-92 by taking necessary steps The meeting was held on that date but business could not be transacted in the absence of quorum and it was announced that the adjourned meeting will be held on 6-11-92, as per Rule 24 (iii) of the Assam Co-operative Societies Rules, 1953, for short "the Rules". The adjourned AGM was held on 6-11-92. Five new Directors were elected as against six vacancies and the proceedings were submitted before the Registrar for approval. By an order dated 13th November, 1992 the Registrar declared the administrative Council to be dissolved under Section 32 (4) of the Act and appointed an officer to manage the affairs of the society till the new body is elected or formed. This order is challenged in this writ petition.

(3.) Section 32 (1) of the Act requires that the AGM of the society shall be held at least once in every co-operative year for the purpose of electing members to the administrative council and other offices indicated therein. Section 2 (f) states that "Co-operative Year" means the period beginning and ending on such dates as may be fixed by the Registrar for the purpose of drawing up the balance sheets of the society. It is agreed that Registrar has fixed 1st April of one calender year as the beginning and 31st March of the next calender as the ending of the Co-operative year. Section 32 (1) of the Act requires holding of election on or before 31st March of every year.