Case Note & Summary
The petitioners, M.I.D.C. Prakalpgrast Majur Kamgar Sahakari Sanstha and Jai Bajrang Majur Kamgar Sahakari Sanstha, are cooperative societies registered under the Maharashtra Cooperative Societies Act, 1960, and classified as producer societies under Rule 10(1) of the Maharashtra Cooperative Societies Rules, 1961. They are affiliated to the respondent No.1, Amravati District Labour Cooperative Society's Union Ltd., a federal society. The respondent No.2, the District Cooperative Election Officer, passed an order dated 11.1.2016 disqualifying the petitioners from voting in the elections of the federal society, on the ground that they were not 'labour cooperative societies' as per the by-laws of the federal society. The petitioners challenged this order by way of writ petitions. The main legal issue was whether the Election Officer had jurisdiction to disqualify the petitioners based on the by-laws. The petitioners argued that they were producer societies and entitled to vote, and that the Election Officer had no authority to interpret the by-laws or disqualify them. The respondents contended that the by-laws of the federal society defined the membership and voting rights, and the petitioners did not fall within that definition. The court analyzed the provisions of the Act and Rules, and held that the Election Officer's order was without jurisdiction. The court observed that the dispute regarding disqualification of members is a dispute under Section 91 of the Act, which must be referred to the Cooperative Court. The court also held that the by-laws of the federal society cannot override the statutory classification of the petitioners as producer societies. The court allowed the writ petitions, quashed the order dated 11.1.2016, and directed the Election Officer to allow the petitioners to vote in the elections. The court also made the rule absolute and disposed of the petitions.
Headnote
A) Cooperative Law - Election Dispute - Jurisdiction of Election Officer - Disqualification of Members - The Election Officer exceeded his jurisdiction by disqualifying the petitioners from voting based on by-law interpretation, as such disputes are to be resolved under Section 91 of the Maharashtra Cooperative Societies Act, 1960 - Held that the Election Officer's order was without authority and liable to be set aside (Paras 10-15). B) Cooperative Law - By-laws - Interpretation - Classification of Societies - The petitioners, registered as producer societies under Rule 10(1) of the Maharashtra Cooperative Societies Rules, 1961, were entitled to be treated as producer societies for voting purposes, and the by-law of the Federal Society could not override the statutory classification - Held that the by-law must be read in conformity with the Act and Rules (Paras 16-20). C) Cooperative Law - Section 91 - Dispute Resolution - Any dispute regarding the constitution or management of a cooperative society, including disqualification of members, must be referred to the Cooperative Court under Section 91 of the Maharashtra Cooperative Societies Act, 1960 - Held that the Election Officer's order was a dispute under Section 91 and thus beyond his competence (Paras 21-25).
Issue of Consideration
Whether the District Cooperative Election Officer had the jurisdiction to disqualify the petitioner societies from voting in the elections of the respondent No.1 Federal Society based on the by-laws of the Federal Society.
Final Decision
The writ petitions are allowed. The order dated 11.1.2016 passed by the District Cooperative Election Officer is quashed and set aside. The Election Officer is directed to allow the petitioners to vote in the elections of the respondent No.1 society. Rule is made absolute in both petitions.
Law Points
- Jurisdiction of Election Officer
- Disqualification of members
- By-laws interpretation
- Section 91 MCS Act
- Cooperative societies election
- Producer society classification
