Case Note & Summary
This special leave petition arose from an order of the Division Bench of the Andhra Pradesh High Court dated December 13, 1996 in Writ Appeal No. 1437/96, which confirmed a learned single Judge's judgment dated December 4, 1996 in Writ Petition No. 11385/96. The dispute concerned the Srikalahsthi Toddy Tappers Co-operative Society, whose object is to ameliorate the economic conditions of toddy tappers by allotting palmera trees for tapping toddy. A complaint was made that non-tappers had been admitted as members at the behest of a member. Pursuant to an interim direction by the High Court, a tapping test was conducted by competent officers. The authorities concluded that the petitioners did not fulfil the tapping experience requirement and therefore were not tappers; they were removed from membership. The High Court upheld the removal in the writ petition and the writ appeal. Before the Supreme Court, the petitioners, through counsel Shri L.N. Rao, contended that while power under Section 19 of the Andhra Pradesh Co-operative Societies Act, 1964 in relation to admission of members was delegated to the Superintendent of Excise, power under Section 21 regarding disqualification for being a member was not delegated. Thus, the Superintendent lacked jurisdiction to remove them. The Supreme Court rejected this contention. It noted that admission of members is governed by Section 19, and Section 21 prescribes disqualification for being a member. Clause (aa) was introduced in 1988, adding that a person not eligible for membership under Section 19 is disqualified for being admitted as and for being a member. Since the power of non-admission under Section 19 had been engrafted into Section 21 and delegated for removal from membership as envisaged in Rule 20 of the Rules, the Superintendent of Excise had power under Rule 20 to consider ineligibility for removal under Section 19. The court held that the subsequent disqualification for being a member becomes available under Rule 20 as a disqualification if the member ceases to be a tapper, and no express separate conferment of power under Section 21 was necessary. Accordingly, the Supreme Court found no error of law warranting interference and dismissed the special leave petition.
Headnote
A) Co-operative Societies - Admission and Disqualification - Sections 19 and 21(1)(aa) of the Andhra Pradesh Co-operative Societies Act, 1964 read with Rule 20 of the Rules - A person not eligible for membership under Section 19 becomes disqualified for being admitted as and for being a member under clause (aa) of Section 21(1) - The Superintendent of Excise, to whom power of non-admission under Section 19 was delegated, has consequential power under Rule 20 to remove members who cease to be tappers or are ineligible under Section 19, without need for express separate conferment of power under Section 21 - Held that the High Court's view confirming removal of non-tapper members was not vitiated by any error of law warranting interference (Paras 1-2) B) Delegation of Powers - Superintendent of Excise as Registrar under Andhra Pradesh Co-operative Societies Act, 1964 - Once power under Section 19 was delegated and engrafted in Section 21, the Superintendent of Excise is competent to consider disqualification under Rule 20 - The court reasoned that the inescapable consequence of delegating Section 19 power is that subsequent disqualification for being a member becomes available under Rule 20 as a ground for removal if the member ceases to be a tapper, and thus no separate delegation under Section 21 is required - Held that the special leave petition was dismissed (Paras 1-2)
Issue of Consideration
Whether the Superintendent of Excise, who is also Registrar for certain purposes under the Andhra Pradesh Co-operative Societies Act, 1964, has the power to disqualify an existing member of the Srikalahsthi Toddy Tappers Co-operative Society absent express delegation of power under Section 21 of the Act
Final Decision
The Supreme Court dismissed the special leave petition, holding that the Superintendent of Excise had power under Rule 20 of the Rules read with Sections 19 and 21 of the Andhra Pradesh Co-operative Societies Act, 1964 to disqualify and remove members who were not eligible under Section 19, without the need for express separate conferment of power under Section 21.
Law Points
- Power of non-admission under Section 19 of the Andhra Pradesh Co-operative Societies Act
- 1964 engraved into Section 21 by clause (aa) introduced in 1988
- delegation of power under Section 19 and Rule 20 of the Rules to Superintendent of Excise includes consequential power to remove ineligible members under Section 19
- no separate express conferment of power under Section 21 necessary
