Bombay High Court Dismisses Petition Challenging Election Programme of Cooperative Society — Circular Not Applicable to Salary Earners' Society. Court held that the circular dated 01.09.2007 issued by Commissioner & Registrar for Cooperation applies only to Urban Credit Cooperative Societies and not to Salary Earners' Societies, and therefore no amendment of byelaws or deposit of amount was required.

High Court: Bombay High Court Bench: NAGPUR
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Case Note & Summary

The petitioner, Mukesh Paserkar, filed a writ petition under Articles 226 and 227 of the Constitution of India challenging the order dated 03.02.2010 passed by Respondent No. 2, the Election Returning Officer, rejecting his objection to the election programme of Respondent No. 3 Society published on 02.01.2010. The petitioner contended that the elections could not be permitted unless all contesting candidates deposited the necessary amount as per the circular dated 01.09.2007 issued by the Commissioner & Registrar for Cooperation, and that the byelaws of the society needed to be amended accordingly. The court had earlier permitted the elections to proceed subject to further orders. The main legal issue was whether the circular applied to Respondent No. 3 Society. The petitioner argued that the society was an Urban Credit Cooperative Society and thus the circular was fully applicable. The respondents contended that the society was a Salary Earners' Society and not an Urban Credit Cooperative Society, and therefore the circular did not apply. The court examined the circular and the nature of the society. It held that the circular specifically applied to Urban Credit Cooperative Societies, and since Respondent No. 3 was a Salary Earners' Society, the circular was not applicable. Consequently, there was no requirement to amend the byelaws or to ensure deposit of the amount as per the circular. The court dismissed the writ petition, upholding the order of the Returning Officer and allowing the elections to proceed without compliance with the circular.

Headnote

A) Cooperative Law - Applicability of Circular - Circular dated 01.09.2007 - The circular issued by Commissioner & Registrar for Cooperation applies only to Urban Credit Cooperative Societies and not to Salary Earners' Societies. The court held that Respondent No. 3 Society, being a Salary Earners' Society, was not required to amend its byelaws or ensure deposit of amount as per the circular before holding elections. (Paras 3-5)

B) Cooperative Law - Election Programme - Challenge to Election Programme - The petitioner's objection to the election programme on the ground of non-compliance with the circular was rejected by the Returning Officer. The court upheld the rejection, finding that the circular was not applicable to the society. (Paras 2-5)

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Issue of Consideration

Whether the circular dated 01.09.2007 issued by Commissioner & Registrar for Cooperation is applicable to Respondent No. 3 Society, and whether the election programme could be challenged on the ground that the byelaws were not amended in compliance with the circular.

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Final Decision

Writ petition dismissed. The order of the Returning Officer dated 03.02.2010 is upheld. The elections of Respondent No. 3 Society are not required to comply with the circular dated 01.09.2007.

Law Points

  • Circular applicability
  • Cooperative societies
  • Byelaws amendment
  • Election programme
  • Urban Credit Cooperative Society
  • Salary Earners' Society
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Case Details

2010 LawText (BOM) (06) 147

Writ Petition No. 795 of 2010

2010-06-16

B.P. Dharmadhikari

N.A. Vyawahare for petitioner, A.S. Sonare for respondent No. 1, V.N. Morande for respondent No. 2, K.V. & S.V. Deshmukh for respondents No. 3 & 4

Mukesh s/o Zanaka Paserkar

State of Maharashtra, The Election Returning Officer, Nagpur Mehtar Vividh Udhesia Sahakari Sanstha Maryadit, Sanju s/o Murli Khare

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Nature of Litigation

Writ petition challenging order of Election Returning Officer rejecting objection to election programme of a cooperative society.

Remedy Sought

Petitioner sought to quash the order dated 03.02.2010 and to direct that elections be held only after compliance with circular dated 01.09.2007.

Filing Reason

Petitioner objected to election programme on ground that candidates had not deposited amount as per circular and byelaws were not amended.

Previous Decisions

Returning Officer rejected objection on 03.02.2010; court on 04.03.2010 permitted elections to proceed subject to further orders; petition admitted on 23.03.2010.

Issues

Whether the circular dated 01.09.2007 applies to Respondent No. 3 Society? Whether the election programme can be challenged for non-compliance with the circular?

Submissions/Arguments

Petitioner argued that Respondent No. 3 is an Urban Credit Cooperative Society and circular is fully applicable; failure to amend byelaws and deposit amount invalidates election programme. Respondents contended that the society is a Salary Earners' Society, not an Urban Credit Cooperative Society, and thus the circular does not apply.

Ratio Decidendi

The circular dated 01.09.2007 issued by Commissioner & Registrar for Cooperation applies only to Urban Credit Cooperative Societies. Respondent No. 3 Society, being a Salary Earners' Society, is not covered by the circular. Therefore, there is no requirement to amend byelaws or ensure deposit of amount as per the circular before holding elections.

Judgment Excerpts

The Circular dated 01.09.2007 is not in dispute. Respondent No. 3 – society is a Urban Credit Cooperative Society and hence the circular is applicable to it fully. defence that the society is not Urban Credit Cooperative Society, but a Salary Earners' Society and, therefore, circular is not applicable to it, is artificial and unsustainable.

Procedural History

Petitioner filed objection to election programme on 02.01.2010; Returning Officer rejected it on 03.02.2010; petitioner filed writ petition on 16.02.2010; court on 04.03.2010 permitted elections to proceed subject to further orders; petition admitted on 23.03.2010; finally heard and dismissed on 16.06.2010.

Acts & Sections

  • Constitution of India: Articles 226, 227
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