{"id":118141,"date":"1997-05-09T00:00:00","date_gmt":"1997-05-08T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/k-shantharaj-anr-vs-m-l-nagaraj-ors-on-9-may-1997"},"modified":"2017-03-16T18:23:18","modified_gmt":"2017-03-16T12:53:18","slug":"k-shantharaj-anr-vs-m-l-nagaraj-ors-on-9-may-1997","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/k-shantharaj-anr-vs-m-l-nagaraj-ors-on-9-may-1997","title":{"rendered":"K.Shantharaj &amp; Anr vs M.L. Nagaraj &amp; Ors on 9 May, 1997"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">K.Shantharaj &amp; Anr vs M.L. Nagaraj &amp; Ors on 9 May, 1997<\/div>\n<div class=\"doc_bench\">Bench: K. Ramaswamy, D.P. Wadhwa.<\/div>\n<pre>           PETITIONER:\nK.SHANTHARAJ &amp; ANR.\n\n\tVs.\n\nRESPONDENT:\nM.L. NAGARAJ &amp; ORS.\n\nDATE OF JUDGMENT:\t09\/05\/1997\n\nBENCH:\nK. RAMASWAMY, D.P. WADHWA.\n\n\n\n\nACT:\n\n\n\nHEADNOTE:\n\n\n\nJUDGMENT:\n<\/pre>\n<p>\t\t\t O R D E R<br \/>\n     Leave granted.\n<\/p>\n<p>     We have heard learned counsel on both sides.<br \/>\n     There appeals  by special leave arise from the judgment<br \/>\nof the\tDivision Bench\tof the Karnataka High Court, made on<br \/>\nMarch 17, 1997 in Writ Appeal Nos.1464-66\/94.\n<\/p>\n<p>     The indisputable  facts  are  that\t the  committee\t was<br \/>\nsuperseded by  the Administrator  who has  been appointed by<br \/>\nthe Government to manage the affairs of the Society, pending<br \/>\nfurther action. During the period of the administration, the<br \/>\nAdministrator had enrolled new members and given schedule of<br \/>\nprogramme for conducting the elections to the Committee. The<br \/>\nrespondents challenged\tthe  order  of\tappointment  of\t the<br \/>\nAdministrator. The learned single Judge, while setting aside<br \/>\nthe order of appointment, held that the Administrator has no<br \/>\npower to  enroll new members; but he could conduct elections<br \/>\nto the\tCommittee of  the Society as per the schedule of the<br \/>\nprogramme. That\t was confirmed\tby the\tDivision Bench.\t The<br \/>\nmaterial provisions in that behalf are contained in Sections<br \/>\n30 and 30-A of the Karnataka Cooperative Societies Act, 1959<br \/>\n(for short, the `Act&#8217;). They read as under:\n<\/p>\n<blockquote><p>     &#8220;30. Supersession of Committee:<br \/>\n     (1)  If,  in  the\topinion\t of  the<br \/>\n     Registrar &#8211;\n<\/p><\/blockquote>\n<blockquote><p>     (a) the committee of a co-operative<br \/>\n     society persistently  makes default<br \/>\n     or is  negligent in the performance<br \/>\n     of the duties imposed on it by this<br \/>\n     Act or the rules or the bye-laws or<br \/>\n     commits   any    Act    which    is<br \/>\n     prejudicial to  the interest of the<br \/>\n     society  or   its\tmembers\t  or  is<br \/>\n     otherwise not functioning properly;<br \/>\n     or\n<\/p><\/blockquote>\n<blockquote><p>     (b) a  co-operative society  is not<br \/>\n     functioning in  accordance with the<br \/>\n     provisions of  this Act,  the rules<br \/>\n     or\t bye-laws   or\tany   order   or<br \/>\n     direction\tissued\t by  the   State<br \/>\n     Government or  the\t Registrar,  the<br \/>\n     Registrar\tmay,  after  giving  the<br \/>\n     committee an  opportunity to  state<br \/>\n     its objections,  if any,  order  in<br \/>\n     writing remove  the said committee,<br \/>\n     and  appoint  an  administrator  to<br \/>\n     manage the\t affairs of  the society<br \/>\n     for such  period, not exceeding one<br \/>\n     year, as  may be  specified by  the<br \/>\n     Registrar.\n<\/p><\/blockquote>\n<blockquote><p>     (2) The  administrator so appointed<br \/>\n     shall subject to the control of the<br \/>\n     Registrar and  such instructions as<br \/>\n     he may  give  from\t time  to  time,<br \/>\n     exercise all  or any of any officer<br \/>\n     of\t the  co-operative  society  and<br \/>\n     take such action as he may consider<br \/>\n     necessary in  the interest\t of  the<br \/>\n     society.\n<\/p><\/blockquote>\n<blockquote><p>     (3) The administrator shall, before<br \/>\n     the expiry\t of his\t term of  office<br \/>\n     arrange for  the constitution  of a<br \/>\n     new  committee  after  holding  the<br \/>\n     election in  accordance  with  this<br \/>\n     Act, the  rules and the bye laws of<br \/>\n     the co-operative society;<br \/>\n     Provided that  in such  an election<br \/>\n     on member\tof the Committee removed<br \/>\n     under   sub-section    (1)\t  shall,<br \/>\n     notwithstanding anything  contained<br \/>\n     in this  Act, the rules or the bye-<br \/>\n     laws, be eligible for being elected<br \/>\n     as a member of the committee, for a<br \/>\n     period of\tfour years from the date<br \/>\n     of supersession  of  the  committee<br \/>\n     under the said sub-section.<br \/>\n     Provided that  in such  an election<br \/>\n     no member\tof the Committee elected<br \/>\n     in accordance with this sub-section<br \/>\n     is also  superseded within a period<br \/>\n     of one  year from\tthe date  of its<br \/>\n     election,\tsuch   supersession  may<br \/>\n     extend to\ta period  not  exceeding<br \/>\n     three years.\n<\/p><\/blockquote>\n<blockquote><p>     30A Appointment of Special officer:<br \/>\n     (1) Where the State Government on a<br \/>\n     report made  to it by the Registrar<br \/>\n     or otherwise, is satisfied that any<br \/>\n     cooperative    society    is    not<br \/>\n     functioning in  accordance with the<br \/>\n     provisions of this Act or the rules<br \/>\n     made thereunder  or its bye-laws or<br \/>\n     any   order,   direction\tcircular<br \/>\n     issued by\tthe State  Government or<br \/>\n     the     Registrar\t    it\t    may,<br \/>\n     notwithstanding  anything\tin  this<br \/>\n     Act, by  order, appoint  a\t Special<br \/>\n     Officer   for   such   co-operative<br \/>\n     society   for   such   period   not<br \/>\n     exceeding two years:\n<\/p><\/blockquote>\n<blockquote><p>     Provided that  the State Government<br \/>\n     may, if  it considers  it necessary<br \/>\n     extend the said period of two years<br \/>\n     by\t  such\t  further   period   not<br \/>\n     exceeding one year.\n<\/p><\/blockquote>\n<blockquote><p>     (3) The  Special Officer subject to<br \/>\n     the control of the State Government<br \/>\n     and  the  Registrar,  exercise  and<br \/>\n     perform   all    the   powers   and<br \/>\n     functions of  the committee  of the<br \/>\n     co-operative society  and take  all<br \/>\n     such actions  as may be required in<br \/>\n     the interest  of  the  co-operative<br \/>\n     society.&#8221;<\/p><\/blockquote>\n<p>     It would be clear from the language of these provisions<br \/>\nthat  the  Administrator  or  special  officer,\t subject  to<br \/>\ncontrol of  any of  the functions of the society as per law.<br \/>\nHe should  conduct elections  as is  enjoned thereunder.  In<br \/>\nother words,  he is  to conduct election with the members as<br \/>\non the\troles and by necessary implication, he is not vested<br \/>\nwith power to enrol new members of the Society.\n<\/p>\n<p>     The learned single Judge in his judgment has held thus:<br \/>\n     The new  members  enrolled\t by  the<br \/>\n     Administrator is  without authority<br \/>\n     of law  and in  utter disregard  to<br \/>\n     the Bye-laws  of  the  society  and<br \/>\n     they have\tno right  to participate<br \/>\n     in the election. Since the order of<br \/>\n     supersession is  declared\tinvalid,<br \/>\n     the election  has to  be  conducted<br \/>\n     from the  stage it\t was intercepted<br \/>\n     from the  stage it\t was intercepted<br \/>\n     at the  earliest  opportunity.  The<br \/>\n     members who are enrolled during the<br \/>\n     pendency of  the writ petition hall<br \/>\n     not participate in the election and<br \/>\n     the Administrator\tshall notify the<br \/>\n     election  with  fresh  calender  of<br \/>\n     events and\t hold the  election with<br \/>\n     the  members   who\t were\tthen  in<br \/>\n     existence when  W.P.  No.\t16378\/92<br \/>\n     was filed,\t The General Body or the<br \/>\n     Board of  Directors elected  by the<br \/>\n     General  Body  shall  consider  the<br \/>\n     application  of   the  new\t members<br \/>\n     enrolled\tby   the   Administrator<br \/>\n     keeping in view the criteria or the<br \/>\n     eligibility contemplated under Bye-<br \/>\n     law 15  and dispose  of  their  law<br \/>\n     after due consideration.\n<\/p>\n<p>     The Division  Bench after\telaborate consideration\t has<br \/>\nagreed with  the above\tconclusion reached  by\tthe  learned<br \/>\nsingle Judge and held thus:\n<\/p>\n<blockquote><p>     &#8220;Accordingly, he is not entitled to<br \/>\n     enroll new\t members. But  it has to<br \/>\n     be\t noted\t that  the   wording  of<br \/>\n     Section 33(2)  of\tthe  Kerala  Co-<br \/>\n     operative Societies Act is slightly<br \/>\n     different\tfrom   the  wording   of<br \/>\n     Section  30  of  the  Act.\t In  the<br \/>\n     Kerala Act,  the  Administrator  of<br \/>\n     the  functions  of\t the  committee.<br \/>\n     Moreover, as  stated  earlier,  the<br \/>\n     difference in  the authority vested<br \/>\n     in an  Administrator and  a Special<br \/>\n     Officer, as  is made  in  Karnataka<br \/>\n     Act is not considered in the Kerala<br \/>\n     decision.\tthe  difference\t in  the<br \/>\n     authority\t   vested      in     an<br \/>\n     Administrator and a Special officer<br \/>\n     in\t the   Karnataka  Act,\tis  very<br \/>\n     significant which\tis absent in the<br \/>\n     Kerala Act.  In that  view\t of  the<br \/>\n     matter, the dictum laid down by the<br \/>\n     Division  bench   of  Kerala   High<br \/>\n     Court, cannot  have any application<br \/>\n     while determining\tthe  comparative<br \/>\n     authority of  an administrator  and<br \/>\n     Special  officer\tappointed  under<br \/>\n     Section 30 and 30A of the Karnataka<br \/>\n     Act respectively.\n<\/p><\/blockquote>\n<blockquote><p>     In view of what is stated above, we<br \/>\n     confirm the decision of the learned<br \/>\n     single  Judge   and  dismiss  these<br \/>\n     appeals.  the  direction  regarding<br \/>\n     election given by the earned single<br \/>\n     judge shall  be carried  out by the<br \/>\n     concerned\trespondent   within  two<br \/>\n     months from  the date of receipt of<br \/>\n     a copy of this Judgement.&#8221;<\/p><\/blockquote>\n<p>     Shri Santosh  Hedge, learned  senior counsel,  contends<br \/>\nthat since the Administrator has power to conduct elections,<br \/>\nby  necessary  implication,  he\t has  power  to\t update\t the<br \/>\nelectoral lists\t by either  enrolling  the  new\t members  or<br \/>\nsubstituting the  legal representatives\t of the\t members  in<br \/>\naccordance with\t the bye-laws;\ttherefore, he  has power  to<br \/>\nenroll the  members. We\t find that  there is no force in the<br \/>\ncontention. The\t power of  Administration  given  under\t the<br \/>\nstatute to  conduct elections  should be confined within the<br \/>\nparameters set\tunder the  relevant provisions\tof the\tAct,<br \/>\nRules and  Bye-laws.   The division  Bench has\tminutely and<br \/>\ncarefully gone\tinto all  the questions\t and agreed with the<br \/>\nlearned single\tjudge that the Administrator has no power to<br \/>\nenroll new  members; but  he  has  the\tpowers\tto  organise<br \/>\nelection process  in accordance\t with the  provisions of the<br \/>\nAct, the rules and the bye-laws of the society. In that view<br \/>\nof the\tmatter,\t we  think  that  the  High  Court  has\t not<br \/>\ncommitted any error of law warranting interference.\n<\/p>\n<p>     The  appeal   is  accordingly  dismissed.\tHowever,  we<br \/>\nconfirm the direction issued by the learned single Judge for<br \/>\nenrollment of  new members  by the  board or  the  Board  of<br \/>\nDirectors, as  the case\t may be, in accordance with the bye-<br \/>\nlaw No.15 and dispose them of No costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India K.Shantharaj &amp; Anr vs M.L. Nagaraj &amp; Ors on 9 May, 1997 Bench: K. Ramaswamy, D.P. Wadhwa. PETITIONER: K.SHANTHARAJ &amp; ANR. Vs. RESPONDENT: M.L. NAGARAJ &amp; ORS. DATE OF JUDGMENT: 09\/05\/1997 BENCH: K. RAMASWAMY, D.P. WADHWA. ACT: HEADNOTE: JUDGMENT: O R D E R Leave granted. We have heard learned counsel [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-118141","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>K.Shantharaj &amp; Anr vs M.L. 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