Allowed

Pendam Kailasam, v. The Asst. Director

Telangana HC14 Jul 2011WP/8757/2003

Case brief

AI extract

What is this about?

This writ petition challenged the disqualification of the petitioner from a Cooperative Society committee by an Assistant Director. The Court held the Assistant Director lacked jurisdiction as disqualification requires a recommendation by the Managing Committee and resolution by the general body.

What did the court decide?

The Writ Petition is allowed setting aside the impugned proceedings dated 25.04.2003 passed by the Assistant Director of Handlooms and Textiles, Nalgonda.

Pendam Kailasam, Vs The Asst. Director — Cooperative Societies | Telangana HC (2011)

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THE HON’BLE SRI JUSTICE SANJAY KUMAR

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WRIT PETITION NO.8757 OF 2003

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DATED JULY, 2011

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BETWEEN Pendam Kailasam And The Assistant Director, Handlooms and Textiles, Nalgonda and another.

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…Petitioner

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…Respondents

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THE HON’BLE SRI JUSTICE SANJAY KUMAR

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WRIT PETITION NO.8757 OF 2003

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ORDER:

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The Assistant Director of Handlooms and Textiles, Nalgonda, initiated proceedings against the petitioner under Show Cause Notice dated 04.04.2003 for disqualifying him from the membership of the Managing Committee of Handloom Weavers Co-operative Society, Pochampalli, under Section 21-A(1-A) of the Andhra Pradesh Cooperative Societies Act, 1964 (for brevity, ‘the Act of 1964’) on the ground that the petitioner had more than two children in violation of the prescribed norm.

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Upon considering the petitioner’s explanation dated 19.04.2003, the Assistant Director of Handlooms and Textiles, Nalgonda, passed orders on 25.04.2003 holding that the petitioner had incurred disqualification under Section 21-A(1-A) of the Act of 1964 and was accordingly disqualified to be a member of the Managing Committee of the subject society. Challenging the said proceedings dated 25.04.2003, the petitioner is before this Court.

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By order dated 02.05.2003, the impugned proceedings were suspended by this Court and the same was made absolute thereafter on 16.07.2003.

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The issue that arises for consideration is whether the Assistant Director of Handlooms and Textiles, Nalgonda, had the jurisdiction to pass the impugned proceedings.

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Section 21-A of the Act of 1964 speaks of disqualification from membership of the Committee. Under Section 21-A(1-A) of the Act of

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1964 a person having more than two children shall be disqualified for election or to continue as a member of the committee, subject to the provisos thereunder. Section 30 of the Act of 1964 vests the ultimate authority of a society in its general body. Under Section 30(2)(i), the removal of members of the committee and members of the society has to be dealt with by the general body in the manner prescribed. The powers and functions of the Managing Committee constituted under Section 31 are delineated in Section 31-A. Under Section 31-A(4), the committee of the society is empowered to recommend to the general body, the removal of any of the committee members disqualified under Section 21-A.

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In the light of the aforestated statutory position, it is clear that the Assistant Director of Handlooms and Textiles, Nalgonda, had no role to play in effecting the disqualification of a member of the Managing Committee under Section 21-A(1-A) of the Act of 1964.

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I n GADDAMPALLI JAGPAL REDDY v. DISTRICT COLLECTOR, NALGONDA^[1] this Court, while dealing with disqualification under Section 21-A(1-B) of the Act of 1964, held that such disqualification is not automatic and has to be effected in accordance with the procedure prescribed, i.e., through a recommendation of the Managing Committee of the Society and a resolution thereafter by the general body under Section 31-A(4) of the Act of 1964. To the same effect are the observations of a learned Division Bench of this Court in VANCHA VEERA REDDY v. DISTRICT CO-OPERATIVE OFFICER, NALGONDA^[2] , wherein it was affirmed that cessation of membership under Section 21-A of the Act of 1964 is not automatic but would be subject to the decision of the general body of the society on the recommendation of the Managing Committee, though such resolution of the general body in favour of cessation would take effect from the date of disqualification.

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In this legal environment, the action of the Assistant Director of Handlooms and Textiles, Nalgonda, in effecting disqualification of the

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petitioner from the membership of the Managing Committee of Handloom Weavers Co-operative Society, Pochampalli, under Section 21-A(1-A) of the Act of 1964 without the involvement of the Managing Committee and the general body of the said society cannot be countenanced.

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The Writ Petition is accordingly allowed setting aside the impugned proceedings dated 25.04.2003 passed by the Assistant Director of Handlooms and Textiles, Nalgonda. In the circumstances, there shall be no order as to costs.

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____________________ SANJAY KUMAR, J. _______ JULY, 2011. VGSR

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[1] 2008 (2) ALD 616 [2] 2010 (3) ALD 526 (DB)

Pendam Kailasam, v. The Asst. Director

Case brief

What is this about?

What did the court decide?

Pendam Kailasam, v. The Asst. Director

Case brief

What is this about?

What did the court decide?

What the court decided

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