Re- Election of Managing Committee of the Saraswatikunj Cooperative House building Society, Gurgaon
1.The Joint Registrar, Cooperative Society, on 07.10. 2019 in petition no 41/2016 set aside election of the society held on 12.06.2016 and order that fresh election of the society be conducted as per election rules at the earliest.
The office of Registrar, Cooperative Society, Haryana vide memo no Gen/GA-3/2019/15173 dated 18.10. 2019 has appointed Board of Administrators for a period of six months or till the Committee is constituted, whichever is earlier.
2.The State as well as Board of administrators were under legal obligation to conduct election of the society as per election rules but it didn’t take any step as envisaged in Part III of the Haryana Cooperative Societies Rules, 1989 deals with the procedure for election to the committees of the Primary Cooperative Societies; Rule 34,35 & 36. It failed in getting conducted election of the Managing Committee of the society as per section 28 of the Act.
Section (25)-3 (g) of the Act– conduct of election of the managing committee, when due was also violated by Board of Administrators.
3.It simply ignored section 34 of the Act which states that the committee of any such co-operative society shall not be superseded or kept under suspension where there is no government shareholding or loan or financial assistance or any guarantee by the Government.
In our society there is no Government shareholding or financial stake.
The important features of the 97th amendment to constitution of India
4.The Section 43 B-The State shall endeavour to promote voluntary formation, autonomous functioning, democratic control and professional management of co-operative societies.
5—243ZL (1) Notwithstanding anything contained in any law for the time being in force, no board shall be superseded or kept under suspension for a period exceeding six months:
6—-(2) In case of supersession of a board, the administrator appointed to manage the affairs of such co-operative society shall arrange for conduct of elections within the period specified in clause (1) and handover the management to the elected board.
. THE SUPREME COURT OF INDIA in CIVIL APPEAL NO. 3047, 3048 & 3049 OF 2015 has observed:-
Thus, one has to see the constitutional aspirations on the concept of cooperative societies after the 97th Amendment in the Constitution of India which came into effect on 12.01.2012.
“STATEMENT OF OBJECTS AND REASONS:- There have been instances where elections have been postponed indefinitely and nominated office bearers or administrators remaining in- charge of these institutions for a long time. This reduces the accountability of the management of co-operative societies to their members. Inadequate professionalism in management in many of the co- operative institutions has led to poor services and low productivity. Co- operatives need to run on well established democratic principles and elections held on time and in a free and fair manner.
The respected official respondents simply ignored Hon,ble Supreme Court judgment and their constitutional obligation.
10.The Deputy Registrar, Cooperative Society Gurgaon on my grievance no CM / 144846/2019 in the Action Taken Report dated 11.02.2020 informed that election of the Managing Committee of the society are conducted by the board of administrators and petitioner grievance will be presented before them.
- Section-122.Power to exempt Not withstanding anything contained in this Act, the Government may by general or special order, after recording its reasons and subject to such conditions, if any, as it may impose, exempt any society or class of societies from any of the provisions of this Act.”
12.The Haryana Government vide its order dated 1833-C-6-2020/2572 17.04.2020 has extended the Board of Administrators for a period of one year from 18.04.20 to 17.04.2021 under section 122 of the Act.
In the Civil Miscellaneous Application 6693 in CWP 8655/2020 filed before Punjab High Court by Registrar, Cooperative Society, Haryana dated 10.07.20 para no 5
“That due to spread of Covid-19,elections could not be got conducted and in these compelling circumstances, the term of Board of administrators has been extended for one year ie from 18.04.2020 to 17.04.2021.”
13.–28.04.2021 That instead of the conducting the election respondent no. 1 passed the order vide which one year term of the Board of Administration was extended from 18.04.2021 to 17.04.2022. which is against the affidavit and undertaking by the respondent in CM No. of 6693 of 2020 in CWP No. 8655 of 2020.
14.But here State exercised power to extend tenure of Board of Administrators to implement of Sharma Commission Report that too on the recommendation of the Manager of the Society . Manager action was in violation of assurance given by Deputy Registrar to put my grievance before Board of Administrators. As per Haryana Cooperative Society Act, Manager does not vest any power to recommend to extend tenure of Board of Administrators. Manager of the society acted as extra constitutional authority who without taking concurrence from Board of Administrators made recommendation.
Collective Farming Society vs State of MP,AIR 1974 AIR 1951SC 332
17–“91. Power to exempt societies from conditions as to registration and provisions of Act. — Notwithstanding anything contained in this Act, the State Government may, by a general or special order in each case and subject to such conditions, if any, as it may impose, exempt any society or class of societies from any of the provisions of this Act, or may direct that such provisions shall apply to such society or class of societies with such modifications as may foe specified in the order.”
18—(11) Section 91 of the M.P. Co-operative Societies Act, 1961, confers a delegated power on the State Government. Prima facie the power appears to be uncontrolled as no standards for its exercise are stated in the section. But the preamble and the provisions of the Act sufficiently indicate the policy, principles and standards for the guidance of the delegate. The State Government must be guided by them while exercising the delegated power. Section 91 does not suffer from the vice of excessive delegation.
19—-(12) In the context of the scheme and object of the legislation and the provisions of the Act as a whole the wide expression employed in Section 91 cannot be construed in a subjective sense. The opinion of the Government as to the necessity or expediency of making the order must be reached objectively, having regard to the relevant considerations and it must be reasonably tenable in a Court of law.
20.The Registrar Of Co-Operative Trivandrum and Anr. VS. K. Kunjabmu And Ors. on 27 November, 1979 AIR 1980 SC 350, (1980) 1 SCC 340, 1980 2 SCR 260, 1980 (12) UJ 272 S.
The power given to the Government under Section 122 of the act is to be exercised so as to advance the policy and objects of the Act, according to the guidelines as may be gleaned from the preamble and other provisions.
- Preamble to the Haryana Co-operative Societies Act,
“to consolidate and amend the law relating to co-operative societies and to facilitate the voluntary formation, autonomous functioning, democratic control and professional management of cooperative societies in the State of Haryana and for matters connected therewith and incidental thereto.”
22.The conjoint of above two judgments of Hon’ble Supreme Court reveals that State can issue order under section 122 of the Act inconsonance to Preamble of the Act, policy and objects of Act not for implementation of Sharma Commission report.
Government has not shown due respect to pertinent judgment of Hon,ble Supreme Court.
- It is settled law that a constitutional authority cannot do something indirectly which it is not permitted to do directly and if there is a constitutional provision inhibiting the constitutional authority from doing an act, such provision cannot be allowed to be defeated by adopting a subterfuge.
- No doubt the State government is empowered to exempt the society from certain provisions of the Act,but that will not mean that the State possesses such power for postponing the election which has become due according to law and is being held by the society. There is mandatory duty cast on the society under the Act to hold election and such duty has to be performed by the society. The State government cannot prevent the society from performing its mandatory duty regarding elections.
- Authors
Purnima Sadhana 9871003866
Neelam K C Gupta 9463445616
Madhusudan Sharma 9810578200
Yogesh Bajaj 9811771931
Editor
N K Bhutani 7982928766