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Sandip Vasantrao Lahare v. State Of Maharashtra And Others

Bombay High Court
Dec 23, 2004
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Structured Summary of the Opinion (V. G. Palshikar, J.)

Factual and Procedural Background

The petitioner filed a writ petition challenging the constitutional validity of Rule 56-B of the Maharashtra Co-operative Societies Rules, 1961 ("Rule 56-B") on the ground that its provisions are contrary to section 27(3-A) of the Maharashtra Co-operative Societies Act, 1960 ("section 27(3-A)"). The material facts (as stated in the opinion) are:

  • The respondent No. 3, Wakadi Vikas Karyakari Society Ltd. (the notified society), is a notified society under section 73IC of the Act.
  • The petitioner was enrolled as a member of that notified society on 27-3-2002.
  • The last general elections to the Managing Committee were held on 28-5-1999, so the five-year term ended on 27-5-2004 and elections were due after that date.
  • A provisional voters' list was prepared as required by Rule 56-B but did not include the petitioner’s name. The exclusion was made following a Government Circular dated 23-7-2003 which, according to the respondents' implementation, treated the two-year eligibility period mentioned in Rule 56-B(1) as requiring calculation in addition to the 120-day period mentioned in Rule 56-B(2).
  • Aggrieved by non-inclusion, the petitioner challenged the action and the validity of Rule 56-B; counsel for the petitioner also referred to an earlier Division Bench judgment (Writ Petition No. 3730 of 2003, decided 17-11-2003) that had held the 120 days in Rule 56-B(2) is to be added to the two-year period in section 27(3-A).

Procedurally, the Division Bench that initially heard the petition could not agree with an earlier Division Bench decision and placed the matter before the Chief Justice for referring to a Larger Bench. The Bench hearing the matter framed three specific questions for determination and proceeded to hear arguments, after which it answered those questions, quashed the Circular dated 23-7-2003, and allowed the writ petition.

Legal Issues Presented

  1. What is the date up to which a person/member is required to complete two years to be eligible for inclusion of his name in the voters' list prepared under Rule 56-B of the Rules?
  2. How is the period of "two years" mentioned in section 27(3-A) to be counted?
  3. Whether the period of 120 days mentioned in Rule 56-B is liable to be calculated in addition to the period of "two years" mentioned in section 27(3-A) of the Act?

Arguments of the Parties

Petitioner's Arguments

  • The petitioner contended that the provisions of Rule 56-B are ultra vires (contrary to) section 27(3-A) of the Act and therefore liable to be quashed.
  • Counsel for the petitioner relied on a Division Bench judgment in Writ Petition No. 3730 of 2003 (decided 17-11-2003) which held that the 120 days in Rule 56-B(2) is to be calculated in addition to the two-year period in section 27(3-A).

The opinion does not contain a detailed account of the respondents' legal arguments; it records the presence of counsel for the respondents and that the factual aspects were not disputed.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Writ Petition No. 3730 of 2003 (Division Bench), decided 17-11-2003 Held that the period of 120 days mentioned in Rule 56-B(2) is to be calculated in addition to the period of two years mentioned in section 27(3-A) of the Act. The court disagreed with that conclusion, holding that the 120 days is a minimum prior notice period for submission to the Registrar and is not to be added to the two-year eligibility period. The court stated the observations in that earlier judgment do not lay down the correct proposition of law.

Court's Reasoning and Analysis

The court's analysis proceeded in a stepwise manner, focusing on the text and operation of section 27(3) and section 27(3-A) of the Act and Rule 56-B of the Rules:

  1. Statutory framework:
    • Section 27(3) addresses voting rights where a society has invested in a federal society and provides that a member-society may appoint one of its members to vote; the proviso makes such a right operative after three years from the date of investment in the federal society.
    • Section 27(3-A) provides that an individual member of a society shall not be eligible to vote for a period of two years from the date of his enrolment.
  2. Scope and object of the two provisions:
    • The court explained that subsections (3) and (3-A) deal with voting rights in the context of societies that invest in federal societies and that section 27(3-A) governs when an individual member of a notified society becomes eligible to vote in that society's affairs—namely, after two years from enrolment.
    • It noted that a member of a notified society may also be nominated to vote in a federal society if the member-society has completed the three-year investment period; but that is a separate eligibility condition under subsection (3).
  3. Construction of Rule 56-B in context:
    • Rule 56-B(1) requires every notified society to prepare a provisional voters' list in the year when elections are due, and to include persons who have completed the minimum two years as members from the date of their enrolment. The court observed that this provision directly reflects section 27(3-A).
    • Rule 56-B(2) requires the Chief Executive to deliver authenticated provisional lists to the Registrar 120 days before the expiry of the Committee's term; the court treated this 120-day requirement as a procedural minimum period to allow the Registrar to take further action.
  4. Rejection of the Circular's interpretation:
    • The Government Circular dated 23-7-2003 had read the two-year eligibility period in Rule 56-B(1) as requiring calculation in addition to the 120-day period in Rule 56-B(2). The court found that interpretation incorrect.
    • The court reasoned that the two-year eligibility period pertains to substantive eligibility to vote (measured up to the date elections become due), whereas the 120 days is a procedural minimum for submission of the provisional list to the Registrar. The two operate independently and are not cumulative periods for determining voter eligibility.
  5. Application to the petitioner's case:
    • Applying the above construction to the facts, the court concluded that every person who has completed two years from the date of enrolment as a member of the notified society is eligible to be included in the provisional voters' list prepared for elections due on completion of the Managing Committee's term.
    • Consequently, the circular that required an additional 120-day accumulation before a member could qualify was inconsistent with the statutory and rule provisions and was therefore illegal; the court held that Rule 56-B(1) itself is consistent with section 27(3-A).
  6. Answers to the three framed questions (as the court articulated them):
    • The two-year period must be completed by the date on which the elections become due on completion of the term of the Managing Committee.
    • The two-year period is to be counted from the date of enrolment to the date when elections to the Managing Committee become due.
    • The 120 days mentioned in Rule 56-B(2) is not to be calculated in addition to the two-year period in section 27(3-A).

Holding and Implications

Holding:

Writ petition allowed; the Government Circular dated 23-7-2003 is quashed; the petitioner is declared entitled to be enrolled as a voter under Rule 56-B(1) in accordance with the court's interpretation of section 27(3-A) and Rule 56-B.

Direct implications (as stated in the opinion):

  • The petitioner is entitled to a declaration that he is a voter (given his enrolment date of 27-3-2002 and elections being due after the Managing Committee's term expired on 27-5-2004, he met the two-year eligibility requirement by the date elections became due).
  • Rule 56-B(1) of the Rules stands as being in conformity with section 27(3-A) of the Act; what was struck down was the Circular dated 23-7-2003 that had created an additional procedural hurdle inconsistent with the statute and rule.
  • There shall be no order as to costs.

Broader precedent: The court expressly stated that observations in some other judgments, including the Division Bench decision noted above, do not lay down the correct proposition of law; the court answered the specific questions and applied them to dispose of the petition. The opinion does not explicitly state any ancillary directions beyond quashing the Circular and declaring the petitioner entitled to be enrolled.

Disposition: Petition allowed.

Show all summary ...

V.G Palshikar, J.:— By this petition, the petitioner has challenged the constitutional validity of Rule 56-B of the Maharashtra Co-operative, Societies Rules, 1961, (hereinafter referred to as the “Rules” for the purpose of brevity) on the ground that the provisions of that rule are contrary to the provisions of section 27(3-A) of the Maharashtra Co-operative Societies Act, 1960, (hereinafter referred to as the “Act” for the purpose of brevity).

2. The facts necessary for adjudication of the questions raised in this petition stated in brief are:

3. The respondent No. 3 Wakadi Vikas Karyakari Society Limited, Wakadi, Taluka Rahata District Ahmednagar is a notified society as contemplated by section 73IC of the Act. It will be called as a notified society for the purpose of clarity and brevity. The petitioner became a Member of the notified society on 27-3-2002 and since then he is the member of the notified society.

4. The last general elections to the Managing Committee of the notified society were held on 28-5-1999. Consequently, the term of five years of the said Managing Committee came to an end on 27-5-2004. As required by Rule 56-B of the Rules, a list of voters was liable to be prepared and was accordingly prepared but it did not show the name of the petitioner as one of the voters. Queries revealed that the petitioner was not so shown because of the Government Circular dated 23-7-2003, according to which, the petitioner did not complete the prescribed period as mentioned in Rule 56-B of the Rules. Being aggrieved by the action of non-inclusion of his name in the voters' list which has defeated his statutory right, the above writ petition was filed by the petitioner. The validity of Rule 56-B of the Rules was challenged as it is contrary to the provisions of section 27(3-A) of the Act.

5. When this petition came up for hearing the learned Counsel appearing on behalf of the petitioner submitted that the provisions of Rule 56-B are liable to be quashed as they are ultra vires or contrary to the provisions of section 27(3-A) of the Act. He was also fair enough in pointing out that there is a Division Bench judgment in Writ Petition No. 3730 of 2003 decided on 17-11-2003 in which it is held that the period of 120 days mentioned in Rule 56-B(2) of the Rules is liable to be calculated in addition to the period of two years mentioned in section 27(3-a) of the Act.

6. A Division Bench of this Court, which heard this petition, was enable to agree with the view taken by the earlier Division Bench with the result that the matter was placed before My Lord, the Honourable the Chief Justice for appropriate orders for referring the matter to a Larger Bench.

7. We have heard Shri. P.M Shah, learned Senior Advocate appearing on behalf of the petitioner along with his instructing Advocates, the learned Assistant Government Pleader for the respondents No. 1 and 2 and also the learned Counsel for the respondent No. 3. The factual aspect in this case as narrated above is not disputed. However, the Division Bench while making this reference did not frame any question for being answered by a Larger Bench. In our opinion, it would be better if the specific questions are framed which should be answered by this Bench so as to lay down correct interpretation of the provisions of section 27(3-A) and Rule 56-B of the Rules. In our opinion, the following questions would meet the challenges levelled against the provisions as mentioned above.

(i) What is the date upto which a person/member is required to complete two years to be eligible for inclusion of his name in the voters' list prepared under Rule 56-B of the Rules?

(ii) How the period of ‘two years’ mentioned in section 27(3-a) as the period of eligibility is to be counted?

(iii) Whether the period of 120 days mentioned in Rule 56-B is liable to be calculated in addition to the period of ‘two years’ as mentioned in section 27(3-a) of the Act?

8. We will proceed to analyse the provisions of the section and the rule in order to arrive at correct answers to the above-framed questions.

9. Section 27 provides for voting powers of members of various societies mentioned in that section. It includes powers of voting available to a member of notified society. This was brought about by the amendment to section 27 by Maharashtra Act No. XXXXI of 2000 whereby sub-sections (3) and (3-A) were substituted. We are concerned with the provisions of sub-sections (3) and (3-A) of section 27 of the Act in the present case. The petitioner, as we have noted above, was enrolled as a member of the respondent No. 3 notified society on 27-3-2002. The elections of the society were due from 28-5-2004. The provisional list of voters as contemplated by Rule 56-B was, therefore, liable to be prepared from 27-11-2003. The contention of the petitioner is that he had completed ‘two years’ as contemplated by section 27(3-a) for elections to the Managing Committee of the notified society to be held after 28-5-2004 and was, therefore, liable to be included in the provisional voters list and the preparation of such a list should have been commenced on 27-11-2003.

10. It will be necessary, in our opinion, to consider the provisions of sub-sections (3) and (3-A) of section 27 of the Act in extenso. They are reproduced as under:

“27. (1)…..

(2)…..

(3) A society, which has invested any part in the shares of any federal society may appoint one of its members to vote on its behalf in the affairs of that federal society; and accordingly such member shall have the right to vote on behalf of the society;

Provided that, any new member of a federal society shall be eligible to vote in the affairs of the federal society only after the completion of the period of three years from the date of its investing any part of its fund in the shares of such federal society;

Provided further, that, where the election is to a reserved seat under section 73-B, no person shall have more than one vote.

(3A) An individual member of a society shall not be eligible for voting in the affairs of the society for a period of two years from the date of his enrolment as a member of such society.”

11. We are concerned in this petition with the voting powers of members of the notified society as contemplated by section 27(3-a) of the Act as quoted above. We have to consider whether the petitioner, on interpretation of these provisions, is entitled to vote under section 27 of the Act for elections to the Managing Committee of respondent No. 3 notified society.

12. We should, therefore, note the operation of section 27 of the Act in the matter of voting powers of members of notified society. Sub-section (3) talks of a society which has invested in a federal society and provides for appointment of one of its members to vote on its behalf in the elections to the Managing Committee of the federal society. The proviso to sub-section (3) of section 27 of the Act makes such a right operative after three years from the date of investment in the federal society. It will be thus seen from the provisions of sub-section (3) of section 27 that a member-society of a federal society acquires a right to vote in the elections to the Managing Committee of Federal Society only after it completes a period of three years from the date of its investment in the federal society and the voting right is to be exercised by the investing society by nominating one of its members as its nominee for the purpose of elections of the Managing Committee of the federal society.

13. It is then sub-section (3-A) provides as to the manner in which such member of the investing society becomes eligible to vote and it provides that he would be so eligible only after completion of two years from the date of his enrolment in the investing society. The provisions of sub-sections (3) and (3-A) of section 27 of the Act, therefore, deal with the voting powers of a member of a society which has invested any part of its funds in the shares of a federal society and provides for the voting rights of its members. The voting rights considered by these two sub-sections are voting rights of the members of a society investing some funds in the federal society. Such a society is a notified society and the provisions talk of a right to vote of any new member society of a federal society. An individual member of a society contemplated by sub-section (3-A) is, therefore, a member of a society as described in sub-section (3) of section 27 of the Act. An individual member of a notified society, therefore, may, in a given situation, be eligible for voting in the affairs of that society namely; notified society and also eligible to be a voter in the elections to the Managing Committee of a federal society mentioned in sub-section (3) of section 27 of the Act. This is because the list of voters of a federal society contemplated by sub-section (3) of section 27 will include the names of members who are nominated or appointed for the purpose of exercising right to vote under sub-section (3) of section 27 of the Act. There would also be a list of voters prepared for the purpose of elections to the Managing Committee of the society mentioned in sub-section (3-A). To put it explicitly, a member of a notified society will be eligible to vote in the affairs of that society after a period of two years from the date of his enrolment is completed by him. Such a member can be nominated or appointed by such notified society as its representative to vote on its behalf in the affairs of federal society, provided always that member society of a federal society has completed three years after its investing any part of its funds in the shares of such federal society.

14. In the present case, we are concerned with the elections to the notified society. Chapter VA of the Rules introduced by the amendment deals with the elections of the notified society. rule 56-a gives the manner of holding elections to the notified society. Rule 56-B provides for making of a provisional voters' list which is finalised under subsequent sub-rules. The petitioner is alleging infringement of his right to vote to the respondent No. 3 which is a notified society. This infringement has occurred, according to the petitioner, due to misreading of the provisions of Rules 56-B of the Rules and it the rule is correct, then Rule 56-B, according to the petitioner, it ultra vires the provisions of section 27(3-A) of the Act. The provisions of Sub-rule (1) of Rule 56-B of the Rules reads as under:

“56-B. Provisional list of voters. — (1) A provisional list of voters shall be prepared by every notified society in the year in which the election of such society is due to be held. The persons who have completed minimum two years as members from the date of their enrolment, shall be included in the provisional list. If different constituencies are provided in the bye-laws, the names of voters shall be arranged constituency-wise as laid down in the bye-laws.”

15. Sub-rules (2), (3) and (4) of Rule 56-B then provide the manner in which the lists are to be prepared, objections to be taken to such list and finalisation of the voters' list. In this case, we are concerned with the above-quoted provisions of Sub-rule (1) of Rule 56-B of the Rules. From the perusal of said sub-rule, as quoted above, it will be seen that a provisional voters' list is to be prepared by every notified society in the year in which the election of such a society is due to be held. Sub-rule (1) itself provides that persons who have completed minimum two years as members from the date of their enrolment shall be included in the provisional list of voters. So the provisions of section 27(3-A) of the Act were directly reflected in this sub-rule. What has been done by the Circular dated 23-7-2003 is that this provision of two years mentioned in Sub-rule (1) of Rule 56-B is read as in addition to the period of 120 days mentioned in sub-rule (2) of Rule 56-B. The provisions of sub-rule (2) of Rule 56-B requires Chief Executive of notified society to deliver four copies of the authenticated provisional lists of voters to the Registrar, 120 days before the date of expiry of the term of the Committee. In the instant case, therefore, the Chief Executive of the notified society was required to supply the authenticated provisional list of voters as contemplated by sub-rule (2) of Rule 56-B to the Registrar by 27-11-2003 since the term of the Managing Committee of the notified society was to expire on 28-5-2004. It must be noted that Rule 56-B nowhere provides that the provisional list of voters to be delivered under sub-rule (2) of Rule 56-B cannot be given before four months from the date of expiry of the terms of the Committee. In any given situation, it may be well within law for Chief Executive of a notified society to submit the provisional list of voters within six months prior to the date of expiry of term of the Committee. The period of 120 days mentioned in subrule (2) of Rule 56-B of the Rules is, therefore, the minimum period which must be made available to the Registrar for taking further actions as contemplated by the Rules. The period of eligibility mentioned in Sub-rule (1) of Rule 56-B of the Rules namely; two years has, therefore, nothing to do with the period of 120 days as prescribed in sub-rule (2) for delivery of authenticated provisional list of voters by the Chief Executive of the Society to the Registrar as contemplated by said sub-rule.

16. In our opinion, the provisional list under Sub-rule (1) of Rule 56-B of the Rules is to be prepared in the manner indicated therein. As we are concerned in this case with the elections to the Managing Committee of respondent No. 3 notified society, the provisional list of voters will have to be prepared by the Chief Executive of the persons who are the members of society for a period of two years and more as voters for the said elections. He has to submit that list to the Registrar at least 120 days before the date of expiry of term of the Managing Committee. Inclusion or non-inclusion of name of a member of the society as a voter would, therefore, depend only on sub-section (3-A) of section 27 of the Act and Rule 56-B(1) of the Rules. The period of two years is mentioned both in sub-section (3-A) and Sub-rule (1) and on its completion that the person becomes eligible to vote. Therefore, every person who has completed two years from the date of his enrolment as member of the notified society is eligible to vote both according to section 27(3-A) and Rule 56-B(1) of the Rules. The period of 120 days mentioned as minimum for submission of the provisional list so prepared has nothing to do with the period of two years mentioned both in the sub-section and sub-rule as referred to above. The circular which so requires is obviously contrary to the intent of both sub-section (3-A) of section 27 and Sub-rule (1) of Rule 56-B of the Rules and it is, therefore, illegal and not the provisions of subrule (1) of Rule 56-B as contended before us. In our opinion, the provisions of rule 56 B(1) are not contrary to section 27(3-a) but are in conformity with the said provisions. There is, therefore, no reason to quash Sub-rule (1) of Rule 56-B of the Rules for any inconsistency. What is liable to be quashed and set-aside is the Circular dated 23-7-2003.

17. In our opinion, this being the correct position in law, the observations in some other judgment including one mentioned above to the contrary do not lay down correct proposition of law. We answer the questions framed above as under:

Questions Answers (i) What is the date upto which a person/member is required to complete two years to be eligible for inclusion of his name in the voter's list prepared under Rule 56-B of the Rules? The date by which the period of two years mentioned in section 27(3-a) of the Act, should be completed has to be the date on which the elections become due on completion of the term of the Managing Committee. (ii) How the period of ‘two years’ mentioned in section 27(3-a) as the period of eligibility is to be counted? The period of two years mentioned in section 27(3-a) is to be counted from the date of enrolment to the date when elections to the Managing Committee of the notified society become due. (iii) Whether the period of 120 days mentioned in Rule 56-B is liable to be calculated in addition to the period of two years as mentioned in section 27(3-a) of the Act? The period of 120 days mentioned in Rule 56-B(1) is not liable to be calculated in addition to the period of two years mentioned in section 27 (3-A).

18. As a result of our answering the questions raised in this petition in the manner mentioned above, the question that arises is whether the petition should be kept pending for adjudication in accordance with the propositions of law laid down by us before appropriate Division Bench for decision. In the circumstances of the case, the petition can be disposed of by us. In our opinion, what is sought by the petitioner basically is a declaration that he is entitled to be a voter. In view of the findings given by us, it is obvious that the petitioner is entitled to such a declaration. It is also obvious that the circular dated 23-7-2003 is not in keeping with the law laid down by us and consequently it is liable to be struck down.

19. In the result, the writ petition succeeds and is allowed. The Circular dated 23-7-2003 is quashed. It is hereby declared that the petitioner is entitled to be enrolled as voter as per Rule 56-B(1) of the Rules as per the propositions of law laid down by us. There shall be no order as to costs.

Petition allowed.