Telangana High Court
M.Laxminarsimha Reddy, vs The State Of Telangana, on 1 September, 2023
Bench: Alok Aradhe, T.Vinod Kumar
THE HON'BLE THE CHIEF JUSTICE ALOK ARADHE
AND
THE HON'BLE SRI JUSTICE T.VINOD KUMAR
WRIT APPEAL No.622 of 2023
JUDGMENT: (Per the Hon'ble the Chief Justice Alok Aradhe)
Mr. Muddu Vijay, learned Senior Counsel
representing Mr. S.N.Veerender Singh, learned counsel for
the appellant.
Mr. Bandari Shankar, learned Assistant Government
Pleader for Agriculture and Co-operation Department for
respondents No.1, 3 and 4.
Mr. D.Goverdhanachary, learned counsel for
respondent No.2.
2. With the consent of the parties the matter is heard
finally.
3. In this intra court appeal, the appellant has assailed
the validity of the order dated 08.06.2023 passed by the
learned Single Judge by which the writ petition, namely
W.P.No.24514 of 2022, preferred by the appellant in which
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challenge was made to order dated 31.05.2022 issued by
the District Cooperative Officer, Yadadri Bhuvanagiri
District (hereinafter referred to as, "the DCO") under
Section 21-AA(1)(b) of the Telangana Cooperative Societies
Act, 1964 (briefly, "the Act" hereinafter), has been
dismissed.
4. Facts giving rise to filing of this writ appeal in
nutshell are that the appellant was elected as President of
the Primary Agricultural Cooperative Society, Chandupatla
Village, Bhuvanagiri Mandal, Yadadri Bhuvanagiri District.
A complaint was made against the appellant by the Vice
President and majority of the members of the Managing
Committee of the Society in which it was alleged that the
appellant has incurred lakhs of rupees without
approval/resolution of the Managing Committee of the
Society. On the basis of the aforesaid complaint, the DCO
issued a show cause notice dated 16.05.2022. Appellant
filed a reply to the said notice on 30.05.2022 in which it
was stated that he has neither misused any funds of the
Society nor has acquired any funds of the Society. The
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DCO by an order dated 31.05.2022 passed under Section
21-AA(1)(b) of the Act, held that the appellant shall cease to
hold office with effect from 31.05.2022.
5. The appellant has challenged the validity of the
aforesaid order dated 31.05.2022 in the writ petition. The
learned Single Judge by an order dated 08.06.2023
dismissed the writ petition. In the aforesaid factual
background, this writ appeal has been filed.
6. Learned Senior Counsel for the appellant while
inviting the attention of this Court to G.O.Ms.No.10, dated
30.01.2017, which has been issued in exercise of powers
under Section 3 of the Act, submitted that in respect of
Primary Agricultural Cooperative Societies, the power
under Section 116-C(1) of the Act alone, has been
delegated to the Deputy Registrar/DCO. It is, therefore,
submitted that initiation of proceedings against the
appellant by the Deputy Registrar/DCO under Section 21-
AA(1)(b) of the Act is per se without jurisdiction. It is
further submitted that the Registrar of Cooperative
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Societies alone is competent to take action against the
appellant under Section 21-AA(1)(b) of the Act.
7. On the other hand, learned counsel for the
respondents have invited the attention of this Court to
paragraph 3(3)(iii) of G.O.Ms.No.10, dated 30.01.2017, and
have submitted that all powers of the Registrar under the
Act, except the powers under Section 4(2), 17, 18, 19(2B) of
the Act so far as District and State Level Societies are
concerned, are conferred on the Deputy Registrars.
Sections 50, 51, 52, 76, 86, 115, 116, 116-A and 116-C of
the Act and powers of the Registrar under Rules 4, 12, 28,
29, 34(14), 39, 41, 45, 59 and 68 of the Telangana
Cooperative Societies Rules, 1964 (briefly, "the Rules"
hereinafter), had been delegated to the Deputy
Registrars/DCOs and therefore, initiation of proceedings
against the appellant by the Deputy Registrar/DCO is
justified.
8. We have considered the submissions made on both
sides and have perused the record.
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9. Admittedly, respondent No.2 is a Primary Agricultural
Cooperative Society. Section 3 of the Act deals with
appointment of Registrar and other persons for the
purpose of this Act. It reads as under:
3. Appointment of Registrar and other
persons for the purpose of this Act:- (1) There shall be
appointed a Registrar of Co-operative Societies for the
State and as many other persons as the Government
think fit for the purposes of this Act.
(2) Every other person appointed under sub-
section (1) shall exercise under the general
superintendence of the Registrar, such powers of the
Registrar under this Act as the Government may, from
time to time, confer on him.
10. As per Section 3(2) of the Act, every other person
appointed under sub-section (1) shall exercise under the
general superintendence of the Registrar, such powers of
the Registrar under the Act, as the Government may confer
on him.
11. The relevant extract of Section 21-AA of the Act which
deals with cessation of membership of the Committee reads
as under:
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21-AA. Cessation of Membership of
Committee:- (1) A member of the committee shall cease
to hold office forthwith as such, for the residue of his
term of office and he shall also be ineligible for being
chosen as or for being a member of the committee
through election or co-option for the subsequent two
terms, if -
(a) xxx
(b) on an enquiry under this Act he is found
guilty of misuse of the property of the
society for his personal gain;
...
12. Thus, it is evident that a member of the Committee
shall cease to hold office forthwith for the residue of his
term if he is found ineligible for being chosen as member or
being a member of the Committee through election or co-
option for the subsequent two terms if on an enquiry under
the Act he is found guilty of misusing the property of the
Society for his personal gain.
13. Rule 12-A of the Rules which defines the Societies for
the purpose of Section 19(2-A) of the Act reads as under:
12-A. Societies for purpose of sub-section
(2-A) of Section 19:- Any person duly qualified for admission
as a member under sub-section (2-A) of Section 19, may apply
for membership of any of the following societies in Form 'J'.
(i) Agricultural Co-operative Societies;
(ii) Multi-purpose Co-operative Societies;
(iii) Service Co-operative Societies;
(iv) Co-operative Rural Bank;
(v) Large-Sized Co-operative Societies;
(vi) [Omitted by G.O.Ms.No.229, dt. 4-5-1987];
(vii) Farmers Service Co-operative Societies;
(viii) Fishermen Co-operative Societies;
(ix) Industrial Co-operative Marketing Societies;
(x) Block Level Co-operative Societies;
(xi) Primary Weavers Co-operative Societies;
(xii) Rural Electric Co-operative Societies;
14. The issue which arises for consideration in this intra
court appeal is whether the Registrar of the Cooperative
Societies or the Deputy Registrar of the Cooperative
Societies/DCO is competent to initiate the proceedings
under Section 21-AA(1)(b) of the Act?
15. The answer to the aforesaid issue depends on
interpretation of G.O.Ms.No.10, dated 30.01.2017, which
has been issued by the State Government in exercise of
powers under Section 3 of the Act.
16. The relevant extract of the aforesaid notification reads
as under:
Sl. Authority Types of Cooperative Extent of Powers
No. Societies
2. Deputy Registrar of (i) District Cooperative All powers of the
Cooperative Central Banks and Registrar under the
Societies/Special District Cooperative Act, except those
Cadre Deputy Marketing Societies under Sections 4(2),
Registrars/Joint 17, 18, 32(7), 34, 50,
Registrar working as 60, 64(1), 77, 86, 115,
District Cooperative 116, 116-A and 116-C
Officers and the powers of the
Registrar under Rules
4, 12, 28, 29, 34(14),
39, 41, 45, 59, 68.
(ii) Other District level All powers of the
Societies and other Registrar under the
societies whose area Act, except those
of operation extends under Sections 4(2),
to more than one Sections 17, 18, 50,
district and whose 77, 83, 115, 116, 116-
head quarters is A and 116-C and the
situated in the district powers of the Registrar
and which is not an under Rules 4, 12, 28,
Apex Society and 29, 34(14), 39, 41, 45,
Primary Societies 59 and 68.
other than the
Societies under the
administrative control
of Functional
Registrars.
(iii) Primary Agricultural Powers of Registrar
Cooperative under sub-section (1)
Societies of 116-C of Act
subject to guidelines
issued by Registrar of
Cooperative
Societies.
(iv) Urban Banks regulated All powers of the
under the Banking Registrar under the
Regulation Act. Act, except those
under Sections 4(2),
Sections 17, 18, 32(7),
34, 50, 51, 52, 64(1),
77, 86, 115, 116, 116-
A and 116-C and the
powers of the Registrar
under Rules 4, 12, 28,
29, 34(14), 39, 41, 45,
59, 68.
3. Deputy (i) Apex Societies with Powers of the Registrar
Registrars/Special head quarters under Sections 6, 7
Cadre Deputy situated in district, except powers under
Registrars/Joint District Cooperative sections 16, 61, 62,
Registrars working Central Banks, 70, 71, 73 and 74 of
as District District Cooperative the Act.
Cooperative Officers Marketing Societies
and other district
level societies and
societies whose area
of operation extends
to more than one
district and whose
headquarters is
situated in the
district.
(ii) Urban Banks coming All powers of the
under the Banking Registrar under the
Regulation Act. Act except those under
Sections 4(2), 17, 18,
32(7), 34, 50, 64(1),
86, 115, 116, 116-A
and 116-C and the
powers of the Registrar
under Rules 4, 12, 28,
29, 34(14), 39, 41, 45,
59 and 68.
(iii) Societies specified in All powers of the
Rule 12-A of the Registrar under the
Andhra Pradesh Act except those
Cooperative under Sections 4(2),
Societies Rules, 17, 18, 19(2B), on so
1964 and all other far as District and
Primary Societies State level Societies
and Societies whose are concerned.
area of operation Sections 50, 51, 52,
extends beyond the 76, 86, 115, 116,
district and whose 116-A and 116-C and
headquarters is the powers of the
situated in the Registrar under
district except Rules 4, 12, 28, 29,
societies under the 34(14), 39, 41, 45, 59
administrative and 68.
control of
Functional
Registrars.
17. Thus, it is evident that under paragraph 3(2)(iii) of
G.O.Ms.No.10, dated 30.01.2017, the powers under
Section 116-C(1) of the Act which deals with staffing
pattern in respect of Primary Agricultural Cooperative
Societies have been delegated to the Deputy
Registrar/DCO.
18. Rule 12-A of the Rules does not include the Primary
Agricultural Cooperative Societies.
19. In order to attract the applicability of paragraph
3(3)(iii) of G.O.Ms.No.10, dated 30.01.2017, the following
conditions must coexist:
i) The Society must be a Society specified in Rule
12-A of the Rules;
ii) The Society's area of operation should extend
beyond the District; and
iii) The headquarters of the Society should be
situated in the District except the Societies
under the administrative control of Functional
Registrars.
20. It is trite law that an order or a provision should be
read as a whole and harmoniously. An attempt has to be
made to interpret in such a way that any provision is not
rendered otiose. In this case, on reading paragraph 3(2)(iii)
and paragraph 3(3)(iii) of G.O.Ms.No.10, dated 30.01.2017,
in conjunction, it is evident that the aforesaid paragraphs
apply in different fields.
21. Paragraph 3(2)(iii) of G.O.Ms.No.10, dated
30.01.2017, applies to a case of Primary Agricultural
Cooperative Societies who may not have the area of
operation beyond the District and may not fulfil other
conditions laid down in paragraph 3(3)(iii) of G.O.Ms.No.10,
dated 30.01.2017, namely that its headquarters may be
situated in the District except Societies under the
administrative control of Functional Registrars. Paragraph
3(3)(iii) of G.O.Ms.No.10, dated 30.01.2017, provides for
Societies which are not covered by paragraph 3(2)(iii) of
G.O.Ms.No.10, dated 30.01.2017.
22. In the instant case, respondent No.2 is admittedly a
Primary Agricultural Cooperative Society. It is also not in
dispute before us that the area of operation of respondent
No.2, namely Primary Agricultural Cooperative Society,
does not extend beyond the District. Therefore, in the case
of respondent No.2, paragraph 3(2)(iii) of G.O.Ms.No.10,
dated 30.01.2017, applies and not paragraph 3(3)(iii) of the
said Government Order.
23. In respect of Societies like respondent No.2, only
powers under Section 116-C of the Act have been conferred
on the Deputy Registrar. Therefore, the Deputy Registrar
is not competent to initiate the proceedings under Section
21-AA(1)(b) of the Act against the appellant. However, the
aforesaid aspect of the matter has not been appreciated by
the learned Single Judge.
24. Therefore, the impugned order dated 08.06.2023
passed by the learned Single Judge is set aside and the
order dated 31.05.2022 issued by the Deputy
Registrar/DCO is hereby quashed. However, needless to
state that the Registrar of the Cooperative Societies shall
be at liberty to initiate the proceedings against the
appellant under Section 21-AA(1)(b) of the Act.
25. Accordingly, the writ appeal is allowed.
Miscellaneous applications pending, if any, shall
stand closed. However, there shall be no order as to costs.
______________________________________
ALOK ARADHE, CJ
______________________________________
T.VINOD KUMAR, J
01.09.2023
vs
