Bombay High Court Allows Change of Delegate in Cooperative Bank Election Despite Delay - Rule 10(4) of Maharashtra Cooperative Societies Election to Committee Rules, 2013 Held Directory, Not Mandatory. The court quashed the election officer's order refusing to accept the change of delegate, holding that the time limit under Rule 10(4) is directory and substantial compliance is sufficient.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
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Case Note & Summary

The petitioner, Sangli Urban Cooperative Bank Ltd., challenged an order dated 6/6/2015 passed by the District Cooperative Election Officer and Divisional Joint Registrar, Cooperative Societies, Mumbai, which refused to accept the change of delegate sought by the petitioner for participating in elections to the Board of Directors of Respondent No.3, Maharashtra Urban Cooperative Bank Federation Ltd. The election programme was issued on 8/5/2015, with nomination forms available and to be filed between 8/5/2015 and 12/5/2015, scrutiny on 13/5/2015, withdrawal on 14/5/2015, publication of valid candidates on 29/5/2015, and elections on 12/6/2015. The petitioner sought to change its delegate after the stipulated period but before the election. The respondent No.2 rejected the request citing Rule 10(4) of the Maharashtra Cooperative Societies Election to Committee Rules, 2013, which requires changes to be made within the time stipulated in the election programme. The petitioner argued that the rule is directory and that the change was sought before the election, causing no prejudice. The court agreed, holding that Rule 10(4) is directory, not mandatory, as it does not specify consequences for non-compliance and the election programme had not concluded. The court allowed the petition, quashed the impugned order, and directed respondent No.2 to accept the change of delegate and permit the petitioner's chairman to participate in the election. The court also directed that the election for the Kolhapur, Sangli, and Satara constituency, which had been stayed, be held within four weeks.

Headnote

A) Cooperative Law - Election to Committee - Change of Delegate - Rule 10(4) of Maharashtra Cooperative Societies Election to Committee Rules, 2013 - The court considered whether the time limit for change of delegate under Rule 10(4) is mandatory or directory. The petitioner bank sought to change its delegate after the stipulated period but before the election. The court held that the rule is directory, as the election programme had not yet concluded and no prejudice was caused to any party. The court directed the election officer to accept the change of delegate. (Paras 1-10)

B) Cooperative Law - Interpretation of Rules - Directory vs Mandatory - The court distinguished between mandatory and directory provisions, holding that Rule 10(4) is directory because it does not prescribe consequences for non-compliance and the purpose of the rule is to facilitate elections, not to defeat them. The court relied on the principle that procedural rules should be construed liberally to advance the cause of justice. (Paras 7-9)

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Issue of Consideration

Whether Rule 10(4) of the Maharashtra Cooperative Societies Election to Committee Rules, 2013 is mandatory or directory, and whether the change of delegate sought by the petitioner after the stipulated time can be accepted.

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Final Decision

The court allowed the petition, quashed the impugned order dated 6/6/2015, and directed respondent No.2 to accept the change of delegate and permit the petitioner's chairman to participate in the election. The court also directed that the election for the Kolhapur, Sangli, and Satara constituency be held within four weeks.

Law Points

  • Rule 10(4) of the Maharashtra Cooperative Societies Election to Committee Rules
  • 2013 is directory
  • not mandatory
  • substantial compliance with election programme is sufficient
  • change of delegate can be allowed if no prejudice caused
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Case Details

2015 LawText (BOM) (07) 73

WRIT PETITION STAMP NO.14990 OF 2015

2015-07-07

R. M. SAVANT, J.

Mr. A M Kulkarni with Mr. S S Diwan for the Petitioner, Mrs. V S Nimbalkar AGP for the Respondent No.1, Mr. N P Deshpande for the Respondent No.4

Sangli Urban Cooperative Bank Ltd.

The State of Maharashtra, The District Cooperative Election Officer and Divisional Joint Registrar, Cooperative Societies, Mumbai, Maharashtra Urban Cooperative Bank Federation Ltd. Mumbai, Shri Bapurao Bhaurao Pujari

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Nature of Litigation

Writ petition challenging order refusing change of delegate for election to board of directors of a cooperative federation.

Remedy Sought

Quashing of order dated 6/6/2015 and direction to accept nomination of petitioner's chairman as delegate.

Filing Reason

Respondent No.2 refused to accept change of delegate citing time limit under Rule 10(4) of the Maharashtra Cooperative Societies Election to Committee Rules, 2013.

Previous Decisions

Election programme issued on 8/5/2015; nominations filed between 8/5/2015 and 12/5/2015; scrutiny on 13/5/2015; withdrawal on 14/5/2015; list of valid candidates published on 29/5/2015; elections scheduled for 12/6/2015. This Court on 11/6/2015 stayed elections for Kolhapur, Sangli and Satara constituency.

Issues

Whether Rule 10(4) of the Maharashtra Cooperative Societies Election to Committee Rules, 2013 is mandatory or directory. Whether the change of delegate sought by the petitioner after the stipulated time can be accepted.

Submissions/Arguments

Petitioner argued that Rule 10(4) is directory and the change was sought before the election, causing no prejudice. Respondent No.2 argued that the change was not sought within the time stipulated in the election programme as per Rule 10(4).

Ratio Decidendi

Rule 10(4) of the Maharashtra Cooperative Societies Election to Committee Rules, 2013 is directory, not mandatory. The time limit for change of delegate is not absolute and can be relaxed if no prejudice is caused and the election programme has not concluded.

Judgment Excerpts

The writ jurisdiction of this Court is invoked against the order dated 6/6/2015... by which order the Petitioner Bank has been communicated that the change of delegate sought by it cannot be acceded to as the change has not been sought within the time stipulated in rule 10(4) of the Maharashtra Cooperative Societies Election to Committee Rules, 2013. The controversy in the above Petition is therefore as regards the nomination of the delegate of the Petitioner Bank to participate in the elections to the Board of Directors of the Respondent No.3 herein which is a federation of the Urban Cooperative Banks. The question that arises for consideration is whether the said Rule 10(4) is mandatory or directory. In my view, the said Rule 10(4) is directory and not mandatory. The impugned order dated 6/6/2015 is quashed and set aside. The Respondent No.2 is directed to accept the change of delegate sought by the Petitioner and permit the Chairman of the Petitioner Bank to participate in the election.

Procedural History

Election programme issued on 8/5/2015. Petitioner sought change of delegate after stipulated period. Respondent No.2 rejected request on 6/6/2015. Petitioner filed writ petition on 11/6/2015, and this Court stayed elections for Kolhapur, Sangli and Satara constituency. Petition heard and disposed on 7/7/2015.

Acts & Sections

  • Maharashtra Cooperative Societies Election to Committee Rules, 2013: Rule 10(4)
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