Case Note & Summary
The petitioners, ten individuals claiming to be duly elected directors of the Maharashtra State Handloom Cooperative Federation Limited (MAHATEX), filed a writ petition under Article 226 of the Constitution of India. They were elected on 31st March 2011. The first meeting of the newly elected board was held on 16th January 2012 to elect the Chairman and Vice Chairman. The petitioners argued that their five-year term should commence from 16th January 2012, not from the election date, and thus they were entitled to serve until 16th January 2017. They challenged a letter dated 31st March 2015 calling for elections in 2016. The respondents, including the State of Maharashtra and MAHATEX, opposed the petition. The court examined the relevant provisions of the Maharashtra Cooperative Societies Act, 1960 (Section 73CB) and the Maharashtra Cooperative Societies Rules, 1961 (Rule 58). The court noted that the term of office of elected directors is five years from the date of election, as per the statutory scheme. The first meeting after election is only for the purpose of electing office bearers and does not affect the commencement of the directors' term. The court found no merit in the petitioners' claim and dismissed the petition, holding that the term runs from the date of election, i.e., 31st March 2011, and therefore the elections called for 2016 were valid.
Headnote
A) Cooperative Law - Election of Directors - Commencement of Term - Section 73CB of Maharashtra Cooperative Societies Act, 1960 and Rule 58 of Maharashtra Cooperative Societies Rules, 1961 - The petitioners, elected directors of MAHATEX, contended that their five-year term should run from the date of the first board meeting (16th January 2012) rather than the election date (31st March 2011). The court held that the term commences from the date of election as per the statutory scheme, and the first meeting is only for electing office bearers, not for starting the term. The petition was dismissed. (Paras 1-16)
Issue of Consideration
Whether the five-year term of elected directors of a cooperative society commences from the date of election or from the date of the first meeting of the board of directors held after the election.
Final Decision
The petition is dismissed. The court held that the term of elected directors runs from the date of election, i.e., 31st March 2011, and not from the date of the first board meeting. The elections called for 2016 are valid.
Law Points
- Term of elected directors of a cooperative society runs from date of election
- not from date of first meeting of board
- Section 73CB of Maharashtra Cooperative Societies Act
- 1960
- Rule 58 of Maharashtra Cooperative Societies Rules
- 1961
Case Details
2016 LawText (BOM) (01) 30
Writ Petition No. 8839 of 2015
S.C. Dharmadhikari, G.S. Patel
Dr. Ramdas P. Sabban with Mr. Subhash Gutte for petitioners; Mr. A.B. Vagyani, G.P. with Mr. C.P. Yadav for respondents 1 & 2
Ramkrishna Govindrao Dandi and others
The State of Maharashtra and others
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Nature of Litigation
Writ petition under Article 226 of the Constitution of India challenging the calling of elections for directors of a cooperative society.
Remedy Sought
The petitioners sought a declaration that their five-year term as directors commenced from 16th January 2012 (date of first board meeting) and not from 31st March 2011 (date of election), and to quash the letter dated 31st March 2015 calling for elections in 2016.
Filing Reason
The petitioners claimed that their term as directors should be counted from the first board meeting after election, and that elections called in 2016 were premature.
Issues
Whether the five-year term of elected directors of a cooperative society commences from the date of election or from the date of the first meeting of the board of directors held after the election.
Submissions/Arguments
Petitioners argued that their term should run from 16th January 2012, the date of the first board meeting, and not from 31st March 2011, the election date.
Respondents contended that the term commences from the date of election as per the statutory provisions.
Ratio Decidendi
Under Section 73CB of the Maharashtra Cooperative Societies Act, 1960 and Rule 58 of the Maharashtra Cooperative Societies Rules, 1961, the term of office of elected directors of a cooperative society commences from the date of election, not from the date of the first meeting of the board of directors held after the election. The first meeting is only for electing office bearers and does not affect the commencement of the directors' term.
Judgment Excerpts
The Petitioners claim that they were elected as Directors at an election held on 31st March 2011 for a statutorily mandated five year term.
The term of office of elected directors is five years from the date of election, as per the statutory scheme.
The first meeting after election is only for the purpose of electing office bearers and does not affect the commencement of the directors' term.
Procedural History
The petitioners filed a writ petition under Article 226 of the Constitution of India in the High Court of Judicature at Bombay. The petition was heard by a Division Bench comprising S.C. Dharmadhikari and G.S. Patel, JJ. Judgment was reserved on 20th January 2016 and pronounced on 29th January 2016.
Acts & Sections
- Maharashtra Cooperative Societies Act, 1960: 73CB
- Maharashtra Cooperative Societies Rules, 1961: 58
