Tumsar Sahakari Shetki Kharedi … vs Collector And Anr. on 23 February, 2006

0
99
Bombay High Court
Tumsar Sahakari Shetki Kharedi … vs Collector And Anr. on 23 February, 2006
Equivalent citations: 2006 (5) BomCR 346, 2006 (3) MhLj 659
Author: D Sinha
Bench: D Sinha


JUDGMENT

D.D. Sinha, J.

1. Rule.

Rule made returnable forthwith by consent of the parties.

2. Heard Mr. S. Paliwal, learned Counsel for the petitioner and Mr. Dhote, learned AGP, for respondent Nos. 1 and 2.

3. In the present writ petition, direction is sought against the Collector to render the account of expenses of the election of Managing Committee held in the month of February, 2004, and the result was declared on 6th February, 2004, as per the scheme of Section 144-D(3) of Chapter XI-A of Maharashtra Co-operative Societies Act, 1960. The another direction is sought against the respondent No. 1 Collector for performance of statutory duty stipulated under Section 144-Y(2) of the Act.

4. Mr. Paliwal, the learned Counsel for the petitioner, has submitted that the election of the Managing Committee of the petitioner-Society was held in the month of February, 2004 and the result was declared on 6-2-2004. However, in spite of lapse of six months from the date of election, the Collector failed to render the account of expenses incurred in connection with the election to the Society, which is the requirement of Clause (3) of Section 144-B of the Act and therefore, appropriate direction in this regard may be given. Learned Counsel for the petitioner further contended that respondent No. 1 though requested by the petitioner-Society to give date for holding the election meeting of office bearer/officers of the Society, since the meeting is required to be presided over by respondent No. 1 – Collector as per provisions of Section 144-Y of the Act, however, the Collector is not responding to the request made by the petitioner and therefore, appropriate direction in this regard may also be given.

5. Mr. Dhote, learned AGP, for respondent Nos. 1 and 2, has submitted that the respondent No. 1 issued communication dated 28-12-2004 to the petitioner-Society and showed his willingness to render the account of election expenses as required under the provisions of Section 144-D(3) of the Act within a period of six months from the date of compliance of the demand made by the respondent No. 1 under Section 144-D(2) of the Act. It is contended that the election in question which was held in the month of February, 2004, the total expenditure incurred comes to Rs. 74,964/-. The petitioner had deposited only Rs. 25,000/- with the respondent No. 1 towards the election expenses. Since there is a short-fall of Rs. 49,964/-, the demand is made by respondent No. 1 to the petitioner-society to make payment of the said balance amount to the respondent No. 1 forthwith. However, the petitioner-society failed to make the payment and therefore, the grievance made by the petitioner-society in this regard is unjustified. Mr. Dhote further contended that since the petitioner society has not paid the abovereferred balance amount, the respondent No. 1 has not taken any step as per provisions of Section 144-Y(2) of the Act.

6. I have considered the contention canvassed by the respective counsel. Perused the relevant provisions of Co-operative Societies Act. So far as Section 144-D(3) is concerned, it contemplates that the Collector shall maintain an account of the expenses incurred in connection with the election and within six months from the declaration of results of the election, render the same to the society concerned, and shall refund to the society the balance, if any, remaining unspent. The section further contemplates that, if the expenditure exceeds the amount of deposit, the Collector shall call upon the society to pay the excess amount as specified by him within eight days from the receipt of the direction from him, and the society shall comply with such direction.

7. The plain reading of the above referred section makes it evident that after the election is held and result is declared, there is a statutory duty cast upon the Collector to give the account of expenses incurred in connection with the election to the concerned co-operative society, and if the expenses exceed the amount of deposit, the Collector is entitled to call upon the Society to pay the excess amount within eight days and in such situation, the society is also under statutory obligation to comply with the said demand made by the Collector within the period specified for that purpose under the Act.

8. In the instant case, the result of the election of the Managing Committee of the petitioner society is declared on 6th February, 2004 and as per scheme of Section 144-D(3) of the Act, the Collector ought to have rendered the account of expenses incurred in the said election within six months from the date of declaration of the result of the election. However, before rendering the account of expenditure to the society, the Collector has made a demand of Rs. 49,664/-, since the total expenditure incurred in the said election was Rs. 79,964/- and the petitioner-society has only deposited Rs. 25,000/- towards the election expenses. It is no doubt true that under the provisions of Section 144-D(2) of the Act, the Collector is legally entitled to make the said demand from the society if the election expenses exceeds the amount of deposit by the concerned society with the Collector. However, this demand is required to be made by the Collector only after rendering the account in respect of the expenditure incurred for the election to the society. It is, therefore, evident that the procedure adopted by respondent No. 1-Collector in this regard is not consistent with the scheme of provisions of Section 144-D(3) of the Act.

9. Similarly, provisions of Section 144-Y of the Act are distinct and independent and as per Clause (2) of the said provisions, after the election of members of the Committee, the election of the office bearers or officers of such society shall be held as provided in its bye-laws. However, meeting of the Committee for this purpose is required to be presided over by the Collector or Officer nominated by him in this behalf. The provisions of Section 144-Y(2) makes it evident that it is the statutory duty of the Collector to preside over such meeting and the Collector cannot refuse to do so on the ground that the society did not pay the amount of Rs. 49,964/- as demanded by respondent No. 1 towards the election expenses, particularly when the respondent No. 1 himself failed to comply with the provisions of Section 144-D(3) of the Act.

10. For the reasons stated hereinabove, the respondent No. 1 is directed to render the account of expenses incurred in connection with the election of Managing Committee held in the month of February, 2004 to the petitioner-Society within four weeks from today and it is only thereafter further time of three weeks is granted to the said society to go through the said account and after verification, if the balance amount is required to be deposited by the Society comes to Rs. 49,964/-, the respondent No. 1 is entitled to issue notice of demand to the society to deposit the said amount towards the election expenses forthwith . If such demand is made, the society shall comply with the same by depositing the said amount, within eight days from the date of receipt of such demand.

Rule is made absolute in above term. No order as to cost.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

* Copy This Password *

* Type Or Paste Password Here *