Supreme Court Disposes Special Leave Petition in Cooperative Society Dispute — Interim Order Clarified. The Court directed the High Court to expedite the hearing of the writ petition regarding union representation on the Board of Directors.

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Case Note & Summary

The dispute arose from a writ petition filed by the Rashtriya Sakhar Kamgar Union before the High Court of Bombay, which led to an interim order regarding the representation of union members on the Board of Directors of a cooperative society. The Amrutnagar Sahakari S.K. Union, aggrieved by this order, filed a Letters Patent Appeal before the Division Bench of the High Court, which stayed part of the interim order while allowing two nominees from the union to remain on the Board until the writ petition was resolved. The Amrutnagar Sahakari S.K. Union subsequently filed a special leave petition before the Supreme Court challenging the High Court's order. The Supreme Court, upon hearing the parties, noted that according to the relevant provisions of the Act, the representatives of the recognized union were entitled to attend Board meetings and function on the Board of Directors. The Court deemed it appropriate to request the Bombay High Court to expedite the decision on the writ petition within four months. The special leave petitions were disposed of without further directions.

Headnote

A) Cooperative Law - Interim Orders - Clarification of Interim Order - Not applicable - The Supreme Court clarified the interim order of the High Court regarding the representation of union members on the Board of Directors, allowing them to function pending the final decision of the writ petition. The Court directed the High Court to expedite the hearing of the writ petition within four months. Held that the representation of union members is essential until the final decision (Paras 1-4).

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Issue of Consideration

Whether the interim order passed by the High Court should be stayed and the representation of union members on the Board of Directors upheld.

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Final Decision

The Supreme Court disposed of the special leave petitions and directed the Bombay High Court to expedite the hearing of the writ petition within four months.

Law Points

  • Interim orders
  • Writ petitions
  • Board of Directors
  • Cooperative Societies Act
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Case Details

2007 LawText (SC) (12) 200

Special Leave Petition (civil) 15265-15266 of 2007

2007-11-02

Tarun Chatterjee, Dalveer Bhandari

Amrutnagar Sahakari S.K. Union

Rashtriya Sakhar Kamgar Union & Ors

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Nature of Litigation

Special Leave Petition against an interim order of the High Court.

Remedy Sought

Amrutnagar Sahakari S.K. Union sought to challenge the interim order regarding union representation.

Filing Reason

Aggrieved by the interim order of the High Court.

Previous Decisions

The High Court had passed an interim order allowing two nominees from the union to remain on the Board.

Issues

Validity of interim order Representation of union members on the Board

Submissions/Arguments

The petitioner argued against the interim order allowing union representation. The respondent maintained that the interim order was justified under the Act.

Ratio Decidendi

The Court emphasized the importance of union representation on the Board of Directors pending the final decision of the writ petition.

Judgment Excerpts

The order directing Respondent No.5 to accept two nominees namely Kisan Nivruti Chatter and Laxman Baburao Warpe on the Board of Directors of the Karkhana till the disposal of the writ petition is not stayed. We deem it appropriate to request the Bombay High Court, Aurangabad Bench to dispose of the writ petition filed by the respondent as expeditiously as possible.

Procedural History

The respondent filed a writ petition in the High Court, which led to an interim order. The petitioner appealed this order in the High Court, resulting in a stay of part of the interim order. The petitioner then filed a special leave petition in the Supreme Court.

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