Case Note & Summary
The petitioners, Nashik Zilla Sarkari and Parishad Karmachari Sahakari Bank Ltd. (a salary earner's co-operative bank) and some of its retired employee members, challenged a communication dated 10 February 2023 issued by the State Co-operative Election Authority (SCEA). The impugned communication directed all District Co-operative Election Officers not to include names of retired employees while preparing provisional voters' lists for elections of salary earner's co-operative credit societies. The petitioners argued that the SCEA had no authority to issue such a directive, as the Maharashtra Co-operative Societies Act, 1960 does not disqualify retired employees from being members or voters. The bank's bye-laws permitted retired employees to continue as members and vote. The respondents, including the State of Maharashtra and the SCEA, defended the directive as being within the SCEA's powers to ensure fair elections. The court analyzed Section 27 of the Act, which deals with membership, and found no provision excluding retired employees. The court also examined Section 73CB, which defines the powers of the SCEA, and held that the SCEA cannot issue directives contrary to the Act or bye-laws. The court quashed the impugned communication, holding that it was ultra vires the powers of the SCEA and without authority of law. The petition was allowed, and the SCEA was directed to include retired employees in the voters' list in accordance with the bye-laws.
Headnote
A) Co-operative Law - Voter Eligibility - Retired Employees - Section 27, Maharashtra Co-operative Societies Act, 1960 - The court considered whether retired employees of a salary earner's co-operative credit society are entitled to vote in its elections. The SCEA had directed exclusion of retired employees from the provisional voters' list. The court held that Section 27 of the Act does not disqualify retired employees from being members or voters, and the bye-laws of the society permitted their membership. The directive was quashed as being without authority of law. (Paras 2-10) B) Co-operative Law - Powers of Election Authority - Section 73CB, Maharashtra Co-operative Societies Act, 1960 - The court examined the scope of powers of the State Co-operative Election Authority. It held that the SCEA cannot issue directives that are contrary to the Act or bye-laws of the society. The impugned communication was issued without any statutory backing and was ultra vires the powers of the SCEA. (Paras 11-15) C) Co-operative Law - Bye-laws - Right to Vote - The court emphasized that the bye-laws of the petitioner bank permitted retired employees to continue as members and vote. The SCEA's directive interfered with the contractual rights of members under the bye-laws. The court held that such interference is impermissible unless authorized by statute. (Paras 16-20)
Issue of Consideration
Whether the State Co-operative Election Authority (SCEA) has the power to issue a directive excluding retired employees from the provisional voters' list for elections of salary earner's co-operative credit societies, and whether such directive is valid under the Maharashtra Co-operative Societies Act, 1960.
Final Decision
The court allowed the writ petition, quashed the impugned communication dated 10 February 2023 issued by the SCEA, and directed that retired employees be included in the voters' list in accordance with the bye-laws of the society.
Law Points
- Interpretation of Section 27 of Maharashtra Co-operative Societies Act
- 1960
- Voter eligibility of retired employees in salary earner's co-operative credit societies
- Powers of State Co-operative Election Authority under Section 73CB of Maharashtra Co-operative Societies Act
- Right to vote under bye-laws of co-operative society
