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Thaneshwar Shyam Bihari Mishra v. Jila Sahakari Kendriya Bank Mary Adit Mandla And Others

Madhya Pradesh High Court
Oct 8, 1984
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Concise Analytical Summary of the Opinion

Factual and Procedural Background

The petitioner, Thaneshwar Mishra, claims to be a voter in Category C (Varga-Ga) of respondent Zila Sahakari Kendriya Bank Maryadit, Mandla and alleges his name appears in the final voter list at serial No. 123. The Bank's election became due in 1984. On 20-4-1984 the Registrar requested Collectors to nominate Deputy Collectors as Returning Officers; the Collector, Mandla, by order dated 28-4-1984 nominated respondent No. 4 as Returning Officer. The Returning Officer issued an election programme on 19-5-1984 and notified a special general meeting for 5-6-1984.

The petitioner filed his nomination on 26-5-1984 which was rejected on 28-5-1984 on the ground that he had contributed only Rs. 50 towards share capital whereas, with effect from 8-1-1980, membership required subscription of Rs. 100. The petitioner filed the present writ petition under Article 226 on 30-5-1984 seeking quashing of the rejection order and the election programme. By order dated 4-6-1984 election proceedings were stayed; the stay was later modified on 6-7-1984 to preserve certain limited aspects (e.g., elections from Class-C members remained stayed, elections to certain representative positions remained stayed, and the election of the Chairman was stayed).

Legal Issues Presented

  1. Whether the petition is maintainable before the High Court in view of the remedy under Section 64 of the M.P. Co-operative Societies Act, 1961 (i.e., whether an efficacious alternative remedy exists and should preclude exercise of writ jurisdiction).
  2. Whether Rule 41(26) of the M.P. Co-operative Societies Rules, 1962 required the Registrar personally to appoint a Returning Officer (by general or special order), and whether that requirement is mandatory.
  3. Whether the Circular dated 1-2-1980 (delegating appointment-related functions to Collectors) and the Collector's subsequent nomination of respondent No. 4 as Returning Officer amounted to unlawful delegation and therefore invalidated the appointment and consequent election programme.
  4. Whether Section 51 of the Act could validate or cure the alleged illegality in the appointment and the election process.

Arguments of the Parties

Petitioner's Arguments

  • The petitioner asserted his entitlement as a voter and challenged the rejection of his nomination (rejection based on alleged insufficient share capital subscription of Rs. 50 whereas Rs. 100 was required from 8-1-1980).
  • The petitioner challenged the appointment of respondent No. 4 as Returning Officer on the ground that Rule 41(26) required appointment by the Registrar (by general or special order) and that the Registrar had not personally appointed respondent No. 4; instead the Collector, Mandla, had nominated respondent No. 4 pursuant to a Circular. Therefore the appointment (and consequent election programme and acts) were illegal and should be quashed.
  • The petitioner also challenged the Circular dated 1-2-1980 (Annexure P-6) under which the Registrar purported to delegate or effect appointments through the Collector.

Respondents' Arguments

  • Respondents (including the Government Advocate for respondent No. 5 and counsel for respondent No. 1) raised a preliminary objection that an efficacious alternative remedy under Section 64 of the Act was available after the elections, and therefore the writ petition was not tenable (reliance placed on the Full Bench decision in Malam Singh v. Collector, Sehore).
  • Respondent No. 1 contended there was no bar to the Collector's nomination and that the Registrar had maintained sufficient control over the appointment process such that Rule 41(26) was substantially complied with.
  • Respondents relied on the Supreme Court decision in Union of India v. P.K. Roy to support the contention that taking aid/assistance or informal delegation in appointment matters may not amount to unlawful delegation in some contexts.
  • Respondents invoked Section 51 of the Act in support of validating the impugned appointment or curing any procedural defect.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Malam Singh v. Collector, Sehore (1971 MPLJ 531 : AIR 1971 Madh Pra 195) That election disputes are generally to be resolved by the prescribed election petition machinery and writ jurisdiction should ordinarily not be exercised where an efficacious alternative remedy exists. The court acknowledged this Full Bench decision as authority for the general rule but recognized exceptions; it refused to accept the preliminary objection based solely on this authority because exceptions applied in the present case.
Sheo Dayal v. K.P. Rawat (1975 MPLJ 243) The High Court can, in exceptional circumstances, entertain writ petitions to protect a person's civil right of contesting an election when that right has been denied on wrong premises. The court relied on this Division Bench authority to justify interference by writ where the petitioner’s right to contest an election was said to be denied on improper grounds.
Bhupendra Kumar v. Y.S. Dharmadhikari (1976 MPLJ 223 : AIR 1976 Madh Pra 110) Supports the principle that writ relief may be granted in exceptional cases despite availability of an election petition remedy. The court noted this case as following the exceptional-intervention approach and applied that approach in declining to dispose of the writ petition on the ground of alternative remedy.
Brij Bihari Gupta v. L.L. Khare (AIR 1976 Madh Pra 156) That once a writ petition has been admitted and stay granted, it is not proper to dismiss it on the ground of alternative remedy after declaration of results. The court cited this authority to support the proposition that alternative-remedy rules are not absolute and that pending admitted writ proceedings with an incumbent stay may proceed.
Union of India v. P.K. Roy (AIR 1968 SC 850) Considered when central authorities took aid/assistance of subordinate authorities; Supreme Court held taking aid did not necessarily amount to impermissible delegation in that factual context. The court reviewed this Supreme Court decision and concluded it did not support respondents' submission because the facts and mode of delegation in the present case were materially different; thus P.K. Roy did not validate the impugned delegation.
Vijay Kumar v. Sunderlal (1983 MPU 762 : AIR 1984 Madh Pra 40) Held that where the Registrar authorized others to exercise a power under the Act (appointment of a managing committee under Section 53), such unauthorized delegation could be illegal. The court found this Single Bench decision analogous and applied the same principles to conclude that delegation by the Registrar (in effect) was improper and rendered the appointment invalid.

Court's Reasoning and Analysis

The court's analysis proceeded in two main strands: (A) admissibility of the writ petition despite the availability of an alternative remedy; and (B) substantive legality of the appointment of the Returning Officer and consequent election acts.

A. Admissibility / Alternative Remedy

The court examined the respondents' preliminary objection based on Section 64 of the Act and relevant authorities (such as Malam Singh). It acknowledged the general rule that where an efficacious alternative remedy (e.g., an election petition under the Act) exists, writ jurisdiction should ordinarily not be exercised. However, the court identified established exceptions permitting writ relief in cases where justice requires it — for example, to protect a candidate's civil right to contest an election when that right has been denied on erroneous grounds (citing Sheo Dayal and related authorities).

The court also observed that the petitioner was not being asked to seek redress from the same Registrar whose order (the delegation/circular) was challenged — invoking principles of natural justice (no one should be judge of his own cause). For these reasons the court rejected the preliminary objection and held the petition maintainable.

B. Substantive Legality — Interpretation and Application of Rule 41(26)

The court construed Rule 41(26) literally: it requires that "the Returning Officer means an Officer appointed by the Registrar by general or special order for performing the duties of a Returning Officer." The court concluded the language leaves no doubt that the act of appointing a Returning Officer must be carried out by the Registrar, and that the Registrar must appoint an officer who will perform the duties of Returning Officer.

From this textual reading the court inferred a legislative intention that the Registrar's appointment is an important safeguard to ensure the Returning Officer is capable and that the Registrar must apply his mind to the appointment. The court therefore held the provision to be mandatory. It reasoned that permitting the Registrar to delegate this appointment without express rule-authorisation would frustrate the purpose of ensuring the Registrar's conscious consideration of the officer's fitness to perform election duties.

Applying the Rule to the facts, the court found that the Registrar's Circular dated 1-2-1980 appointed the Collector (or an officer nominated by him) as Returning Officer for District Cooperative Bank elections, and the Collector, Mandla, nominated respondent No. 4. The court concluded that by nominating respondent No. 4, the Collector had effectively exercised the Registrar's exclusive power under Rule 41(26), which could not permissibly be delegated because there was no rule authorising such delegation.

The court examined respondents' reliance on Union of India v. P.K. Roy and found it inapposite: in P.K. Roy the factual matrix and the presence of an underlying framework retained central control; here the Registrar neither framed principles nor retained meaningful control, and the Registrar did not consciously consider the appointment of respondent No. 4. The court further relied on Vijay Kumar v. Sunderlal as an analogous authority where a Registrar's delegation was held illegal.

Finally, the court considered but rejected respondents' reliance on Section 51 (which protects acts from being invalidated solely for defects in procedure or constitution). The court held Section 51 does not validate an election conducted by a person who was not lawfully appointed as Returning Officer nor does it validate the Registrar's action in the circumstances.

Holding and Implications

Holding: The petition succeeds. The court held that respondent No. 4 was not the legally appointed Returning Officer and therefore could not hold the election. Consequently, the election programmes notified by respondent No. 4 (Annexures P-2 and P-3) and all subsequent acts done by him are quashed.

Direct consequences ordered by the court (as stated in the opinion):

  • The election programmes issued by respondent No. 4 (Annexures P-2 and P-3) are quashed.
  • Respondent No. 4's appointment as Returning Officer is declared illegal/invalid.
  • No order as to costs was made.
  • The outstanding amount of security deposit, if any, shall be refunded to the petitioner.

Implications beyond the parties: The opinion does not elaborate broader legal or doctrinal consequences beyond the direct effect on the parties. It applies existing authorities to reaffirm that Rule 41(26) must be complied with and that unauthorized delegation of the Registrar's appointment power undermines the election process. No new precedent beyond the court's application of established principles is expressly proclaimed in the text.

Note: This summary is strictly limited to the information contained in the provided opinion and does not supplement it with external facts or presumed context.

Show all summary ...

1. Petitioner Thaneshwar Mishra, claiming to be a voter in the election of respondent Zila Sahakari Kendriya Bank Maryadit, Mandla, feels aggrieved by the order of rejection of his nomination paper (Annexure-P-5) by the respondent No. 4 and seeks a writ of certiorari for quashing the said order, together with the election programme (Annexure P-3), by filing this petition under Article 226 of the Constitution of India.

2. The petitioner claims to be a voter in category C (Varga-Ga) and his name appears in the final voter list (Annexure-P.1) at serial No. 123. It appears that the election of the respondent Bank became due in the year 1984. On 20-4-1984, respondent-Registrar requested all Collectors in the State of Madhya Pradesh to nominate Deputy Collectors by name as Returning Officers for holding the said election. On receipt of the aforesaid letter, Collector, Mandla, by his order dated 28-4-1984, nominated the respondent No. 4 as Returning Officer for holding the election of the respondent-Bank. The respondent No. 4, acting on the aforesaid authorization, issued the election programme on 19-5-1984 (Annexure P-3). He also notified that a special general meeting of the members of the respondent-Bank shall be held on 5-6-1984 to hold election of the Directors of the Bank and also of the representatives of the respondent-Bank to represent it in other institutions. The petitioner filed his nomination on 26-5-1984 (Annexure P-4), which was rejected on 28-5-1984 by the impugned order on the ground that the petitioner was a member having contributed Rs. 50/- only to the share capital. It appears that with effect from 8-1-1980, a person to become member of the respondent-Bank, was required to subscribe Rs. 100/- as share capital Following the aforesaid rejection, the petitioner approached this court by filing the present petition on 30-5-1984. By an order dated 4-6-1984, election proceedings were stayed. The said order was, however, modified on 6-7-1984 by directing that election shall not be held for a Director from Class-C members and further election for electing representatives to M.P. Rajya Sahakari Bank Maryadit, Bhopal and M.P. Sahakari Sangh Maryadit. Bhopal. shall remain stayed. Election of Chairman of the Board of Directors of respondent No. 1 was also stayed.

3. The learned Government Advocate appearing for the respondent No. 5 and the learned Advocate appearing for respondent No. 1, have raised a preliminary objection to the tenability of the present petition on the ground that efficacious alternative remedy under Section 64 of the M.P. Co-operative Societies Act, 1961 (hereinafter referred to as the 'Act'), will be available to the petitioner after the elections have been held. Reliance has been placed on a Full Bench decision of this court in Malam Singh v. Collector, Sehore 1971 MPLJ 531 : (AIR 1971 Madh Pra 195). It is true that Section 64(2)(v) of the Act provides that "any dispute arising in connection with the election of any officer of the society or representative of the society or of composite society," can be referred to the Registrar by any of the parties to the dispute and the decision of the Registrar on the said dispute shall be final and not liable to be called in question in any court. Proviso to the aforesaid sub-clause, however, prohibits the Registrar to entertain any dispute "during the period commencing from the announcement of the election programme till the declaration of result." Apparently, therefore, the petitioner could challenge the validity of these elections by filing a dispute under the aforesaid clause after elections have been held. In Malam Singh's case (supra), the Full Bench of this court was considering the provisions of Section 357( 1) of M.P. Gram Panchayats Act, 1962, which provided that "no election under the Act can be called into question except by a petition presented to the prescribed authority." The Full Bench held that though there is no constitutional bar to the exercise of writ jurisdiction in respect of elections, it is desirable to resolve election disputes speedily through the machinery of election petitions, and the Court should not exercise its discretion in the matter. After Malam Singh's case (supra), the matter came to be considered on several occasions by this court and the view taken always was that wherever efficacious alternative remedy of election petition is available, the writ jurisdiction of this court shall not be exercised. The court, however, carved out certain exceptions to this general rule with a view to do justice between the parties. In Sheo Dayal v. K.P. Rawat 1975 MPLJ 243, a Division Bench of this court held that though generally this court will direct the party to take resort to election petition, it can interfere and decide a writ petition in exceptional cases "in order to enable the petitioner to exercise his valuable civil right of contesting an election, which right was denied to him on altogether wrong premises. "This view appears to have been followed in subsequent cases in Bhupendra Kumar v. Y.S. Dharmadhikari 1976 MPLJ 223 : (AIR 1976 Madh Pra 110) and Brij Bihari Gupta v. L.L. Khare (AIR 1976 Madh Pra 156). In Brij Bihari Gupta's case (supra), the Division Bench considered the provisions of Section 64 of the Act and held that once a writ petition has been admitted for hearing and stay granted, it will not be proper to throw the same out on the ground of alternative remedy after the declaration of election results. It is, therefore, clear that the rule of alternative remedy does not create an absolute bar to the exercise of power under Article 226 of the Constitution. It is merely a circumstance enabling the High Court to refuse exercise of this extraordinary and discretionary power, if the facts of the case so require. Considering facts of the case, we do not think it proper to accept the preliminary objection and reject the petition on that score.

4. There is yet another reason why we do not consider it proper to uphold the preliminary objection. The petitioner is challenging the order of the Registrar dated 1-2-1980 (Annexure-P-6) delegating his powers under Rule 41(26) of M.P. Co-operative Societies Rules, 1962 (hereinafter referred to as the 'Rules') to the Collector, Mandla, and the consequential appointment of respondent No. 4 by the said Collector, and, hence, it will not be proper to direct him to approach the same Registrar for deciding the legality or otherwise of his own order, as such an approach is contrary to the settled principles of natural justice that "no one should be the judge of his own cause". Then, the illegality alleged by the petitioner has, according to him, the effect of invalidating the entire election process which cannot be the subject-matter of dispute under Section 64 of the Act. The preliminary objection is, consequently, rejected.

5. The main submission of the learned counsel for the petitioner is that respondent No. 4 has not been appointed Returning Officer by the respondent-registrar, as required by Rule 41(26) of the Rules and, hence, election programme declared by him and all consequential steps are illegal. Rule 41 of the Rules prescribes procedure for election of members of the committee. Admittedly, the present election is being held under this Rule. It is the responsibility of the Returning Officer to hold the election as would be clear from various sub-clauses of the aforesaid Rule. Rule 41(26), which is relevant for our purpose, provides for appointment of a Returning Officer and reads as under : --

"(26) For the purposes of this rule the Returning Officer means an Officer appointed by the Registrar by general or special order for performing the duties of a Returning Officer."

A plain reading of this Rule requires the Registrar to appoint an Officer as Returning Officer by general or special order to perform the duties of a Returning Officer. Use of the words "appointed by the Registrar" leaves no doubt that the act of appointing a Returning Officer has to be done by the Registrar. Subsequent words "for performing the duties of a Returning Officer" clarify that the Officer appointed by the Registrar will perform the duties of a Returning Officer. It is, therefore, clear that a person appointed by the Registrar to perform the duties of a Returning Officer, as envisaged under the Rules, is to be treated as "Regurning Officer" under this Rule. In the instant case, by issuing a general order on 1-2-1980 (Annexure P-6), the respondent-Registrar has appointed various Officers by their designation as Returning Officers for holding election of various categories of co-operative societies. Clause 16 of the aforesaid circular is relevant for our purpose. Under this clause, the respondent-Registrar has appointed District Collector or an Officer nominated by him, who should not be below the rank of the Deputy Collector, to be the Returning Officer for holding the election of the District Cooperative Bank. It is common ground that acting on this authorization, the Collector, Mandla, has nominated the respondent No. 4 as the Returning Officer. The objection of the petitioner is that this order does not satisfy the mandatory requirement of Rule 41(26) of the Rules and clothes the respondent No. 4 with no authority whatsoever to act as the Returning Officer. This order, in so far as it appoints the Collector, Mandla, as Returning Officer, is not being challenged in any manner. However, that part of the order which authorises the Collector to nominate a Deputy Collector to act as Returning Officer is under challenge on the ground that it is in breach of mandatory requirement of Rule 41(26) of the Rules. It is also submitted that the Rules permit the Registrar to appoint any one as a Returning Officer, which obligation has been performed by the respondent Registrar by appointing the Collector, Mandla, by this circular. The Collector, Mandla, being an appointee of the Registrar under the aforesaid Rule, would not be entitled to appoint someone else in the absence of any specific provision in the Rules in this behalf. The action of the respondent-Registrar and consequent appointment of respondent No. 4 is, however, supported by the respondent No. I on the ground that there is no bar to such appointment. It is also submitted that the respondent Registrar had maintained his control over the process of appointment of respondent No. 4 and, hence, Rule 41(26), would be deemed to have been substantially complied with.

6. Importance of appointment of a Returning Officer cannot be denied. It also cannot be denied that the Regurning Officer appointed by the Registrar, who is charged with the responsibility of holding elections, should be a person capable of undertaking the responsibility and, thus, ensure purity of the process of election. The fact that the Registrar has been made responsible for holding elections, only shows the anxiety of the legislature to maintain purity of election process and the importance attached to it. It is. therefore, obvious that appointment of Returning Officer is of utmost importance and has to be done by the Registrar under the Rules. The aforesaid intention would make the provision mandatory. Even otherwise, whenever a statute requires a particular act to be done in a particular manner by a particular agency, the said act has to be done in the manner provided by the statute alone. We have, therefore, no hesitation in holding that provisions contained in Rule 41(26), are mandatory in nature and have to be complied with, with a view to achieve the purpose aforesaid. It must, consequently, be held that a breach of the Rule would invalidale the appointment and all other consequential actions taken by the respondent No. 4.

7. There is yet another reason why we are inclined to hold that the Rule is mandatory in nature. The last part of the Rule "for performing the duties of a Returning Officer" has to be given full meaning in the context of appointment of an officer as Returning Officer and indicates that the Registrar, while considering appointment of an officer, has to take into consideration the Officer's capacity and ability to perform the duties of a Returning Officer. It, consequently, implies conscious application of mind by the Registrar while making the appointment. This purpose would be defeated if the Registrar does not consider the matter himself, but passes on this responsibility to be performed by his nominee. Absence of any rule authorising delegation of this power by the Registrar to anyone else, becomes meaningful in this context. Under the circumstances, we entertain no doubt about the mandatory character of the Rule and hold that breach of this Rule would invalidate the appointment and consequential actions taken by the appointee.

8. The validity of the Circular dated 1-2-1980 and the consequential appointment of respondent No. 4, when considered in the light the aforesaid law, remains doubtful. The Collector, Mandla, while nominating the respondent No. 4 as the Returning Officer, has really exercised powers of the Registrar under Rule 41 (26) of the Rules, which could only be exercised by the Registrar. There is nothing in the Act or the Rules permitting delegation of authority by the Registrar in favour of the Collector. The delegation has, however, been supported by the respondents on general principles said to be contained in the decision of the Supreme Court in Union of India v. P.K. Roy AIR 1968 SC 850. We have gone through the said judgment and find nothing that may support any such submission. The Supreme Court, in the said case, was considering the ambit and scope of Sections 115 and 117 of the States Reorganisation Act, 1956, which authorised the Central Government alone to effect integration of services. The Central Government had fixed principles governing the integration and on the basis of the said principles, the State Government has prepared and published a provisional seniority list. Objections to this provisional list were considered by the Central Government. The final gradation list was prepared and published by the State Government on the basis of those decisions. It was in the context of these facts that the Supreme Court held that there was no delgation of power by the Central Government and taking aid and assistance of the State Government did not violate the principle of "delegatus non potest delegare". The facts of the instant case do not justify application of this principle, as the Registrar has neither framed any principle, nor has retained control over the process of appointment. Indeed, the Registrar has nominated the Collector to do the job in the same manner as the law required him to do it. Under the circumstances, the Rule stands clearly violated in the instant case. It is, however, submitted that since the order of the Collector, appointing the respondent No. 4 as the Returning Officer, was also endorsed to the respondent Registrar and since the respondent-Registrar did not object to the said appointment, the Registrar should be deemed to have consented to the said appointment. Even if the submission was to be accepted, it cannot be overlooked that the respondent-Registrar, at no point of time, consciously considered the appointment of respondent No. 4 as required of him by the Rule. The application of mind by the Registrar, in the context of duties of the Returning Officer under the Rules, remained conspicuously absent. Mere silence on the part of the Registrar cannot be accepted as a good substitute for conscious consideration of facts by him. Indeed, in somewhat similar circumstances, a Single Bench of this Court in Vijay Kumar v. Sunderlal 1983 MPU 762 : (AIR 1984 Madh Pra 40) held that the Registrar has failed to carry on his obligation under the Act. That was a case under Section 53 of the Act, authorising the Registrar to appoint a committee to manage the affairs of the society. The Registrar, instead of exercising this power himself, authorised persons to appoint persons to took after the affairs of the society. This was taken to be delegation of the authority by the Registrar and was held to be illegal in the absence of any provision authorising such delegation. The principles followed in this case fully apply to the facts of the present case and, hence, it must be held that since the appointment of respondent No. 4 as Returning Officer was not made by the respondent-Registrar as required by the Rules, but was made by the Collector, Mandla, to whom the authority could not be delegated the said appointment is illegal. It must, consequently, be held that the election programme notified by the respondent No. 4 vide Annexures P2 and P-3, and all subsequent acts done by him. are illegal.

9. Section 51 of the Act was relied upon by the respondents to cure the aforesaid illegality. This section does not apply to the facts and circumstances of the case. The purpose of this section is to protect an act of a society or of any committee or of any officer of the society from being declared invalid by reason only of a defect in the procedure or in the constitution of the society or of the committee or in the appointment or election of the officer. This section cannot validate an election held by a person not appointed as Election Officer, nor can it be summoned to validate the action of the respondent-Registrar.

10. As a result of discussion aforesaid, the petition succeeds and is allowed by holding that respondent No. 4 was not the legally appointed Returning Officer and, hence, could not hold the election. Election programmes notified by the said respondent vide Annexures-P-2 and P-3 are, therefore, quashed. No order as to costs. The outstanding amount of security deposit, if any, shall be refunded to the petitioner.