Bombay High Court Dismisses Petition Challenging Use of Section 69B of Maharashtra Cooperative Societies Act, 1960 After Deletion of Section 69A. Court holds that Section 69B is an independent provision and its survival does not depend on Section 69A.

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

The petitioner, The Akola District Central Cooperative Bank Limited, filed a writ petition under Article 226 of the Constitution of India challenging the use of Section 69B of the Maharashtra Cooperative Societies Act, 1960 by the respondents. The petitioner argued that Section 69A, which was the substantive provision, had been deleted by the Maharashtra Cooperative Societies Amendment Act of 2013, and therefore Section 69B, being merely a machinery provision, could not survive independently. The Court noted that this was the second writ petition filed by the petitioner. Earlier, Writ Petition No.3012/2014 filed by the petitioner was decided along with Writ Petition No.596/2014 filed by Vinod Bhujangrao Hingankar (respondent no.5). In those petitions, the controversy was whether the Chairman of the petitioner bank could be an ex officio President of the District Level Committee formed under a Government Resolution dated 01-12-2008. The Minister of State for Cooperation had passed an order on 15-12-2012, which was challenged. The Court had directed the parties to file submissions before the Minister, who was to take a fresh decision within six weeks. That decision was taken on 24-07-2015. In the present petition, the Court considered the sole issue of whether Section 69B could survive after the deletion of Section 69A. The Court held that Section 69B is an independent provision and its survival does not depend on Section 69A. The petition was dismissed with no order as to costs.

Headnote

A) Cooperative Law - Interpretation of Statutes - Survival of Section 69B after deletion of Section 69A - Maharashtra Cooperative Societies Act, 1960, Sections 69A, 69B - The petitioner bank challenged the use of Section 69B by respondents, arguing that since Section 69A was deleted by the 2013 Amendment Act, Section 69B cannot survive as it is merely machinery. The Court held that Section 69B is an independent provision and its existence does not depend on Section 69A. The petition was dismissed. (Paras 1-4)

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Issue of Consideration

Whether Section 69B of the Maharashtra Cooperative Societies Act, 1960 can survive after the deletion of Section 69A by the Maharashtra Cooperative Societies Amendment Act of 2013.

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Final Decision

The petition is dismissed. No order as to costs.

Law Points

  • Section 69B of Maharashtra Cooperative Societies Act
  • 1960 is independent of Section 69A
  • deletion of Section 69A does not affect Section 69B
  • interpretation of statutes
  • cooperative societies
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Case Details

2016 LawText (BOM) (08) 173

Writ Petition No. 4951 of 2015

2016-05-08

B. P. Dharmadhikari, Kum. Indira Jain

Shri A. A. Naik for petitioner, Shri N. R. Patil (AGP) for respondent nos. 1 to 4, Shri N. B. Jawade for respondent no. 5

The Akola District Central Cooperative Bank Limited

The State of Maharashtra through its Secretary, Department of Cooperation and Textile, Mumbai; The Commissioner and Registrar of Cooperative Societies, Maharashtra State, Pune; District Deputy Registrar, Cooperative Societies, Akola; Divisional Joint Registrar, Cooperative Societies, Amravati; Shri Vinod Bhujangrao Hingankar

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India challenging the use of Section 69B of the Maharashtra Cooperative Societies Act, 1960.

Remedy Sought

The petitioner sought to quash the use of Section 69B by the respondents on the ground that it cannot survive after deletion of Section 69A.

Filing Reason

The petitioner bank argued that Section 69B, being a machinery provision, cannot survive independently after the deletion of Section 69A by the 2013 Amendment Act.

Previous Decisions

Earlier Writ Petition No.3012/2014 filed by the petitioner was decided along with Writ Petition No.596/2014 filed by Vinod Bhujangrao Hingankar. The Court had directed the Minister to take a fresh decision within six weeks, which was taken on 24-07-2015.

Issues

Whether Section 69B of the Maharashtra Cooperative Societies Act, 1960 can survive after the deletion of Section 69A by the Maharashtra Cooperative Societies Amendment Act of 2013.

Submissions/Arguments

The petitioner submitted that Section 69A is the soul and Section 69B is the machinery; therefore, after deletion of Section 69A, Section 69B cannot survive. The respondents argued that Section 69B is an independent provision and its existence does not depend on Section 69A.

Ratio Decidendi

Section 69B of the Maharashtra Cooperative Societies Act, 1960 is an independent provision and its survival does not depend on Section 69A. The deletion of Section 69A does not affect the validity or applicability of Section 69B.

Judgment Excerpts

In the petition filed under Article 226 of the Constitution of India, the petitioner-District Central Cooperative Bank questions use of section 69B of the Maharashtra Cooperative Societies Act, 1960 by respondents with submission that as Section 69A has been deleted by the Maharashtra Cooperative Societies Amendment Act of 2013, Section 69B cannot survive. The submission is, Section 69A is soul, while Section 69B contains machinery surrounding it.

Procedural History

The petitioner filed Writ Petition No.4951/2015 under Article 226 of the Constitution of India. Earlier, Writ Petition No.3012/2014 filed by the petitioner was decided along with Writ Petition No.596/2014 filed by Vinod Bhujangrao Hingankar. In those petitions, the controversy was whether the Chairman of the petitioner bank could be an ex officio President of the District Level Committee. The Court directed the Minister to take a fresh decision within six weeks, which was taken on 24-07-2015. The present petition challenges the use of Section 69B after deletion of Section 69A.

Acts & Sections

  • Maharashtra Cooperative Societies Act, 1960: 69A, 69B
  • Constitution of India: 226
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