{"id":268241,"date":"1995-01-13T00:00:00","date_gmt":"1995-01-12T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/dinesh-prasad-yadav-vs-the-state-of-bihar-ors-on-13-january-1995"},"modified":"2018-06-08T15:44:39","modified_gmt":"2018-06-08T10:14:39","slug":"dinesh-prasad-yadav-vs-the-state-of-bihar-ors-on-13-january-1995","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/dinesh-prasad-yadav-vs-the-state-of-bihar-ors-on-13-january-1995","title":{"rendered":"Dinesh Prasad Yadav vs The State Of Bihar & Ors on 13 January, 1995"},"content":{"rendered":"
Supreme Court of India<\/div>\n
Dinesh Prasad Yadav vs The State Of Bihar & Ors on 13 January, 1995<\/div>\n
Equivalent citations: 1995 SCC, Supl. (1) 340 JT 1995 (2)\t 45<\/div>\n
Author: K Singh<\/div>\n
Bench: Kuldip Singh (J)<\/div>\n
           PETITIONER:\nDINESH PRASAD YADAV\n\n\tVs.\n\nRESPONDENT:\nTHE STATE OF BIHAR & ORS.\n\nDATE OF JUDGMENT13\/01\/1995\n\nBENCH:\nKULDIP SINGH (J)\nBENCH:\nKULDIP SINGH (J)\nHANSARIA B.L. (J)\n\nCITATION:\n 1995 SCC  Supl.  (1) 340 JT 1995 (2)\t 45\n 1995 SCALE  (1)153\n\n\nACT:\n\n\n\nHEADNOTE:\n\n\n\nJUDGMENT:\n<\/pre>\n
1.   The  term\tof office of the members  ,of  the  Managing
\nCommittee  of  a  society registered  under  the  Bihar\t Co-
\noperative Societies Act<\/a>, 1935 (the ‘Act’) and the Bihar\t Co-
\noperative  Societies Rules, 1959 (the Rules) is\t three\t“co-
\noperative years”.  The State Government, under the Act,\t has
\na right to nominate – depending upon its share in the share-
\ncapital\t of  the society certain number of  members  to\t the
\nManaging   Committee   of  a  society.\tThe   question\t for
\nconsideration is whether the three-year term of the Managing
\nCommittee  is to be counted from the beginning of the  coop-
\nerative\t year’ in which the elections by ballot are held  or
\nfrom  the ‘co-operative year’ when the nominations are\tmade
\nby the State Government?\n<\/p>\n
2. Before stating    the necessary facts, it would be useful
\nto examine the relevant provisions of the Act and the Rules.
\nThese are Sections 2(bb)<\/a>, 2(e)<\/a>, 14(2)<\/a>, 14(4)<\/a>, 14(9)<\/a> and\t the
\nfirst proviso to Section 14(10)<\/a> reading as under:-\n<\/p>\n
\t      “2(bb)   “Cooperative  year’  means   a\tyear
\n\t      beginning with the 1st April and ending on the
\n\t      3 1st March\/
\n\t      2(1) ‘Managing Committee’ means the  committee
\n\t      of  management  or  other\t body  to  whom\t the
\n\t      management  of  the affairs  of  a  registered
\n\t      society is entrusted.\n<\/p><\/blockquote>\n
\t      14(2)  The  management of\t registered  society
\n\t      shall  be\t vested\t in  a\tmanaging   committee
\n\t      constituted in accordance with the rules:
\n\t      14(4)  Notwithstanding anything  contained  in
\n\t      any  provision of this Act, the  rules  framed
\n\t      thereunder  or the bye-laws of any  registered
\n\t      society where the State Government has —\n<\/p><\/blockquote>\n
\t      (a)   subscribed directly to the share capital
\n\t      of a registered,.society; or\n<\/p><\/blockquote>\n
\t      (b)   assisted indirectly in the formation  or
\n\t      augmentation   of\t the  share  capital  of   a
\n\t      registered society; or\n<\/p><\/blockquote>\n
\t      (c)   given  loans  or  made  advances  to   a
\n\t      registered society or guaranteed the repayment
\n\t      of  principal  and  payment  of  interest\t  on
\n\t      debentures issued by a registered society\t for
\n\t      or  guaranteed the repayment of principal\t and
\n\t      payment  of interest on loan or advances to  a
\n\t      registered society;\n<\/p><\/blockquote>\n
\t      in  that case the State Government shall\thave
\n\t      the   right  to  nominate\t on   the   Managing
\n\t      Committee of such registered society not\tmore
\n\t      than  two\t persons  one of  whom\tshall  be  a
\n\t      Government  servant, but the  said  Government
\n\t      servant  shall  have no right to vote  in\t the
\n\t      election\t of  the  office  bearers   of\t the
\n\t      registered society;\n<\/p><\/blockquote>\n
\t      Provided that notwithstanding the
\n\t      47<\/span>
\n\t      foregoing provisions contained in Sub-sections
\n\t      4(a)<\/a>,(b) and (c)\n<\/p><\/blockquote>\n
\t      (i) Where the share of the State Government in
\n\t      the  share capital of such registered  society
\n\t      exceeds  thirty per cent but does\t not  exceed
\n\t      fifty  per  cent, the State  Government  shall
\n\t      have  the right to nominate upto one third  of
\n\t      the  total  number  of  the  members  of\t the
\n\t      Managing Committee including the Chairman; and
\n\t      such  right once accrued shall continue  until
\n\t      the share of the State Government in the share
\n\t      capital of the registered society goes down to
\n\t      less than twenty five per cent;\n<\/p><\/blockquote>\n
\t      ii)   Where the share of the State  Government
\n\t      in  the  share  capital  of  such\t  registered
\n\t      society  exceeds fifty per cent, but does\t not
\n\t      exceed  sixty  per  cent of  the\ttotal  share
\n\t      capital  of the registered society, the  State
\n\t      Government  shall have the right\tto  nominate
\n\t      such   number  of\t members  of  the   Managing
\n\t      Committee\t  including  the  Chairman,  as\t  is
\n\t      nearest  upto one-half of the total, and\tsuch
\n\t      right  once accrued shall continue  until\t the
\n\t      share  of\t the State Government in  the  share
\n\t      capital of the registered society goes down to
\n\t      less than forty five per cent;\n<\/p><\/blockquote>\n
\t      iii)Where the share of the State Government in
\n\t      the  share capital of such registered  society
\n\t      exceeds  sixty per cent, the State  Government
\n\t      shall  have the right. to nominate  upto\ttwo-
\n\t      thirds  of  total\t number of  members  of\t the
\n\t      Managing Committee including the Chairman, and
\n\t      such  right once accrued shall continue  until
\n\t      the share of the State Government in the share
\n\t      capital of the registered society goes down to
\n\t      less than fifty five per cent;\n<\/p><\/blockquote>\n
\t      Provided\t  that\t notwithstanding    anything
\n\t      contained\t in proviso (i), (ii) and  (iii)  of
\n\t      sub-section  (4), the State  Government  shall
\n\t      not nominate Chairman and other members of the
\n\t      Managing\t Committee  if\tthe  share   capital
\n\t      subscribed  to  by the State Government  in  a
\n\t      registered society is less than fifteen  lakhs
\n\t      of rupees;\n<\/p><\/blockquote>\n
\t      Provided further that where the bye-laws of  a
\n\t      registered   society  so\tprovide\t the   State
\n\t      Government  or the Registrar, as the case\t may
\n\t      be,  may nominate more than two third  members
\n\t      including\t office\t bearers  of  the   Managing
\n\t      Committee on such terms and conditions as\t may
\n\t      be prescribed in the bye-laws;\n<\/p><\/blockquote>\n
\t      14(9)  Notwithstanding anything  contained  in
\n\t      the rules or bye-laws of a registered society,
\n\t      the term of the members and the office-bearers
\n\t      of  the  Managing Committee  of  a  registered
\n\t      society shall be three co-operative years, and
\n\t      they  shall  continue  to\t hold  office  after
\n\t      expiry  of their term till the  elections\t are
\n\t      held or for nine months from the close of\t the
\n\t      co-operative year, whichever is earlier;
\n\t      14(10)……………..\n<\/p><\/blockquote>\n
\t      Provided\tthat irrespective of the  date\twhen
\n\t      the  election  is\t so held  the  term  of\t the
\n\t      members and the office-bearers of the Managing
\n\t      Committee\t shall be deemed to  have  commenced
\n\t      from the beginning of the co-operative year in
\n\t      which the elections are held:\n<\/p><\/blockquote>\n
\t      …………………………………………….\n<\/p><\/blockquote>\n
Rules  2(xvi), 21A, 22(1) and 22(2) of the Rules  which\t are
\nrelevant are reproduced hereunder:\n<\/p>\n
“2(xvi) ‘Election’ means election, in accordance with  these
\nCo-operative Society;\n<\/p>\n
\t       21  -A Notwithstanding any rule and bye\tlaws
\n\t\t\t    of any society the election of the members\tof
\n\t      the Managing Committee,
\n\t\t\t\t    48<\/span>
\n\t      office-bearers  thereof and the  delegates  of
\n\t      the society shall be held in a Special General
\n\t      Meeting according to rule 20(2)(a) to (c).\n<\/p><\/blockquote>\n
\t      22.   Managing Committee —\n<\/p><\/blockquote>\n
\t      (1)   Subject  to\t nominations  by  the  State
\n\t      Government and\/or the Registrar of such number
\n\t      of  members  to  the  Managing  Committee\t  as
\n\t      prescribed in the Act, Rules and bye-laws of a
\n\t      registered society, the Managing Committee  of
\n\t      the society shall be constituted:
\n\t      Provided\tthat the election of the members  of
\n\t      the  Managing  Committee\tand   office-bearers
\n\t      thereof  shall be held in accordance with\t the
\n\t      procedure laid down in Rule 21 -B to 21 -X.
\n\t      (2)   The\t members of the\t Managing  Committee
\n\t      and the Office-bearers shall be deemed to have
\n\t      taken   over  charge  immediately\t after\t the
\n\t      constitution of the Managing Committee:
\n\t      Provided that the constitution of the Managing
\n\t      Committee\t shall\tnot be treated\tas  complete
\n\t      unless and until the members thereof have been
\n\t      duty elected and\/or nominated by the authority
\n\t      empowered\t to do so under the Act,  Rules\t and
\n\t      the Byelaws of the Society.\n<\/p><\/blockquote>\n
\t      48<\/span><\/p>\n
\t      3.    Dinesh Prasad Yadav, the appellant,\t    was
\n\t      a member of the Managing Committee  of\t the
\n\t      Kaithar  District\t Central  Co-operative\tbank
\n\t      (the  ‘Bank’) along with respondents 5 to\t 12.
\n\t      They were elected as such by votes on  January
\n\t      20,  1991\t under Rule 21A of the\tRules.\t The
\n\t      State Government being a major shareholder  in
\n\t      the share capital of the Bank it has the right
\n\t      to nominate upto one-third of the total member
\n\t      of   the\tManaging  Committee  of\t the   Bank,
\n\t      including the Chairman.  Though the  elections
\n\t      by  way  of ballot were held  on\tJanuary\t 20,
\n\t      1991,   the   State   Government\t made\t the
\n\t      nominations  to the Managing Committee of\t the
\n\t      Bank  as\tlate as March 2, 1993.\t It  is\t not
\n\t      disputed\tthat the Managing Committee was\t not
\n\t      permitted\t to function till March 2,  1993  on
\n\t      the ground that it got constituted under\tRule
\n\t      22  of  the Rules only after  the\t nominations
\n\t      were made by the State Government.\n<\/p><\/blockquote>\n
\t      4.\tThe Managing Committee of  the\tBank
\n\t      had  hardly  started functioning when  by\t the
\n\t      Order   dated   March  5,\t 1993,\t the   State
\n\t\t\t    Government informed the Committee that itsterm
\n\t      was  to expire on March 31, 1993.\t  The  State
\n\t      Government,  on  the  basis  of  the   opinion
\n\t      obtained\tfrom  the  law\tdepartment  and\t the
\n\t      Advocate\tGeneral\t of the State, came  to\t the
\n\t      conclusion that the elections having been held
\n\t      on January 20, 1991, the term of office of the
\n\t      Managing Committee under the first proviso  to
\n\t      Section  14(10)<\/a> of the Act would be deemed  to
\n\t      have  commenced from April 1, 1990  (beginning
\n\t      of the co-operative year) and would come to an
\n\t      end  on March 31, 1993 (end of the  third\t co-
\n\t      operative year).\n<\/p><\/blockquote>\n
\t      5.      The appellant and respondents 5 to  12
\n\t      challenged  the order of the State  Government
\n\t      dated March 5, 1993 by way of a writ  petition
\n\t      before the Patna High Court.  A Division Bench
\n\t      of  the  High  Court  following  its   earlier
\n\t      judgment in Bihar State Handloon Weavers Union
\n\t      & Ors. v. State of Bihar & Ors., CWJC No. 6543
\n\t      of  1993\tand  connected\tmatters\t decided  on
\n\t      February 10, 1994, dismissed the writ petition
\n\t      by the impugned order dated March 2, 1994.  In
\n\t      Bihar  State  Handloom Weavers case  the\tHigh
\n\t      Court proceeded on the following reasoning:-
\n\t      “No doubt, in some of the cases, due to
\n\t      49<\/span>
\n\t      laches and inaction of the executive,  certain
\n\t      members  who  are so nominated  by  the  State
\n\t      Government under the provisions of  subsection
\n\t      (4) of Section 14<\/a> are deprived to hold  office
\n\t      for full term or three co-operative years, but
\n\t      due  to  such  inaction  and  laches  of\t the
\n\t      executive, the mandate of legislature,  fixing
\n\t      a\t  tenure   of\tthree\tcooperative   years,
\n\t      commencing   from\t  the\tbeginning   of\t the
\n\t      cooperative year, in which election was  held,
\n\t      cannot be extended.  On the other hand,  there
\n\t      is  no  provision under the Act and  Rules  to
\n\t      show that the term of the elected members\t and
\n\t      office  bearers, which is\t three\tco-operative
\n\t      years,  can be extended, except in the  member
\n\t      prescribed  under subsections (9) and (10)  of
\n\t      Section 14<\/a>.”\n<\/p><\/blockquote>\n
This  appeal,  by  way\tof special  leave,  is\tagainst\t the
\nimpugned  order of the High Court.  The appellant  has\talso
\nchallenged  the\t correctness of the High Court\tjudgment  in
\nBihar State Handloom Weavers case.\n<\/p>\n
6.   Sri  Sunil\t Gupta, learned counsel\t appearing  for\t the
\nappellant,  has\t vehemently  contended\tthat  the   Managing
\nCommittee constituted under the Act and the Rules has three-
\nyear term in office and the same cannot be reduced by giving
\nan  isolated meaning to the first proviso to Section  14(10)<\/a>
\nof the Act thereby rendering the provisions of Rule 22(2) of
\nthe  Rules  as otiose.\tHe further  contended  that  various
\nprovisions  of the Act and the Rules are to be\tharmoniously
\ninterpreted   to  give\tpurposeful  meaning  to\t  the\tsaid
\nprovisions.   In  the alternative the learned  counsel\tcon-
\ntended that the provisions of the Act which permit the State
\nGovernment  to\treduce\tthe  office  term  of  the  Managing
\nCommittee from three years to three weeks, as happened here,
\nare wholly arbitrary and cannot be sustained in the eyes  of
\nlaw.\n<\/p>\n
7.   The provisions of the Act and the Rules, quoted  above,
\nclearly\t indicate  that\t the scheme of the  Act\t gives\twide
\npowers to the State Government to control those societies in
\nwhich  it  has considerably contributed\t towards  the  share
\ncapital.   The State Government can nominate even upto\ttwo-
\nthird  of  the\ttotal  members\tof  the\t Managing  Committee
\nincluding  the\tChairman.  It would, therefore, be  in\ttune
\nwith  the  scheme  of  the Act to  hold\t that  the  Managing
\nCommittee cannot assume office till the time the nominations
\nare made by the State Government.  Proviso to Rule 22(2)  of
\nthe Rules rightly provides that the Managing Committee shall
\nnot  be treated as complete unless the members thereof\thave
\nbeen   duly  elected  and\/or  nominated\t by  the   authority
\nempowered to do so under the Act, Rules and bye-laws of\t the
\nSociety.\n<\/p>\n
8.   The expression ‘election’ has not been  defined   under
\nthe Act.  In the absence of    any   definition\t   by\t the
\nlegislature we have to follow the ordinary meaning given  to
\nthe  said  expression.\tCollins English\t Dictionary  defines
\n‘election’ as under:\n<\/p>\n
\t      “The selection by vote of a person or  persons
\n\t      from  among candidates for a position, esp.  a
\n\t      political\t office.  The act or an instance  of
\n\t      choosing.\n<\/p><\/blockquote>\n
Webester Comprehensive Dictionary, International Edn., gives
\nthe following meaning to the expression ‘election’:\n<\/p>\n
\t      “The  selection  of a person  or\tpersons\t for
\n\t      office  as  by ballot.  A choice,\t as  between
\n\t      alternatives, choice in general.”\n<\/p><\/blockquote>\n
9.   The expression ‘election’, therefore, means selection
\nof  a person by\t vote or even otherwise.  When a  person  is
\nnomi-\n<\/p>\n
50<\/span><\/p>\n
nated  by way of selection on the basis of a given  criteria
\nfrom  amongst several persons, then in the broader sense  he
\nis  elected  to\t the office.  We are of the  view  that\t the
\nexpression  ‘elections’,  in the first\tproviso\t to  Section
\n14(10)<\/a>\tof the Act, has been used in the broader sense.\t  It
\nincludes election by ballot as well as the choice by nomina-
\ntion.\tThis  interpretation would make Rule  22(2)  of\t the
\nRules  workable.   Section  14(2)<\/a>  of  the  Act\t vests\t the
\nmanagement  of a registered society in a Managing  Committee
\nconstituted  in\t accordance with the Rules.   Section  14(4)<\/a>
\nfurther\t provides  that even upto two-third members  of\t the
\nManaging  Committee  can be nominated.\tSub-section  (8)  of
\nSection\t 14<\/a>  further  imposes  bar on  the  members  of\t the
\nManaging Committee for re-election after they have held\t two
\nconsecutive  terms.  Rule 22(2) read with Section  14(2)<\/a>  of
\nthe  Act makes it abundantly clear that constitution of\t the
\nManaging  Committee is to be treated as complete  only\twhen
\nthe  elections\tby  ballot as well as  the  nominations\t are
\nfinalised.  Even otherwise, to fulfill the avowed object  of
\nthe  Act  and  to encourage  and  promote  the\tco-operative
\nmovement  in  the State, it is necessary that  the  Managing
\nCommittee  as  constituted  under Rule 22(2)  of  the  Rules
\nshould be given its full tenure of three co-operative years.
\nHaving-provided\t for  three  years’ term in  office  to\t the
\nManaging  Committee  of\t a  Society, it\t could\tnot  be\t the
\nintention  of  the  legislature to leave  it  to  the  State
\nGovernment to reduce the same to as short a period as  three
\nweeks,\twhich would be a mockery.  We, therefore, hold\tthat
\nin  the first proviso to Section 14(10)<\/a> the expression\t‘the
\nco-operative  year  in which elections are held’  means\t not
\nonly   the  elections  by  way\tof  ballot,  but  also\t the
\nnominations under the Act.  The net result is that the\tterm
\nof the Managing Committee under the Act and the Rules is  to
\ncommence  from\tthe beginning of the  co-operative  year  in
\nwhich the nominations by the State Government are  completed
\nand the Managing Committee is constituted in terms of  Rules
\n22(2) of the Rules.\n<\/p>\n
10.  Although  the  expression ‘election’ has  been  defined
\nunder\tthe  Rules,  but  the  said  definition\t  has\tbeen
\nspecifically confined to the election in accordance with the
\nRules.\t The election under Rules 21B21X is only by  way  of
\nballot.\t  There\t is no provision for nominations  under\t the
\nRules.\t therefore, the definition of ‘election’ under\tRule
\n2(xvi) read with Rules 21B to 21X only means the election as
\nprovided  under the Rules by way of ballot.  The  expression
\n‘election’ as defined under the Rules has to be\t interpreted
\nin  the\t context of the Rules and would not,  therefore,  go
\ncontrary  to  the  interpretation given by us  to  the\tsaid
\nexpression in the context of the provisions of the Act.\n<\/p>\n
11.  Ordinarily,  in view of the interpretation given by  us
\nto  the\t relevant provisions of the Act and  the  Rules,  we
\nshould have directed that the Managing Committee of the Bank
\nwhose  election was completed in March, 1993 be put back  in
\noffice\tand given a three year term from April 1, 1992,\t but
\non  the\t facts and circumstances of this case,\twe  are\t not
\ninclined  to  do so.  After the impugned order of  the\tHigh
\nCourt, fresh elections to the Managing Committee of the Bank
\nhave  taken place on July 5, 1994.  The General Body of\t the
\nBank having elected fresh members to the Managing  Committee
\nof  the Bank, it would not be in the interest of justice  to
\nset  aside  the\t same.\t Even  if  we  give  relief  to\t the
\nappellant, the old Committee gets tenure
\n51<\/span>
\nonly  upto  March 31, 1995.  We do not wish to\treverse\t the
\nprocess\t to give benefit to the appellant only for  a  short
\nperiod.\n<\/p>\n
12.  We\t allow the appeal in the above terms and  set  aside
\nthe impugned order of the High Court.  We further hold\tthat
\nthe  judgment  of the Patna High Court in CWJC No.  2297  of
\n1993  (R) does not lay down the correct law.  The  appellant
\nshall be entitled to costs which we quantify as Rs. 15,000\/-
\nto be paid by the State Government.\n<\/p>\n
52<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"
Supreme Court of India Dinesh Prasad Yadav vs The State Of Bihar & Ors on 13 January, 1995 Equivalent citations: 1995 SCC, Supl. (1) 340 JT 1995 (2) 45 Author: K Singh Bench: Kuldip Singh (J) PETITIONER: DINESH PRASAD YADAV Vs. RESPONDENT: THE STATE OF BIHAR & ORS. DATE OF JUDGMENT13\/01\/1995 BENCH: KULDIP SINGH (J) […]<\/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-268241","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"\nDinesh Prasad Yadav vs The State Of Bihar & Ors on 13 January, 1995 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/dinesh-prasad-yadav-vs-the-state-of-bihar-ors-on-13-january-1995\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Dinesh Prasad Yadav vs The State Of Bihar & Ors on 13 January, 1995 - 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