Excelsior Correspondent
JAMMU, Apr 11: High Court of Jammu & Kashmir and Ladakh has directed respondents to hold election of J&K State Cooperative Bank Ltd Srinagar in accordance with the directions of the Writ Court by next date of hearing failing which rule shall be framed against them for having violated the judgment of the writ court.
This significant order has been passed in a petition filed by Kashmir Valley Cooperative Society challenging Order No.04-JK(Coop) of 2023 dated 21.01.2023 whereby sanction has been accorded to the re-constitution of the Board of Directors of the J&K State Cooperative Bank Ltd Srinagar for a period of two weeks in terms of Sub-Section (3) of Section 30-A of the Jammu and Kashmir Cooperative Societies Act, 1989.
In an earlier round of litigation in the shape of WP(C)No.2775/2021, judgment dated 15.07.2022 came to be passed by the court wherein it was directed that nominated Board of Directors of the Cooperative Bank is entitled to remain in position and legitimately run the affairs and management of the Bank till 04.10.2022.
It was also held that it is incumbent upon the Government or the Registrar to reconstitute the Board of Directors of the Bank on or before 04.10.2022 by holding elections in accordance with the Jammu and Kashmir Cooperative Societies Act, the Rules and the byelaws of the Bank.
After hearing both the sides, Justice Sanjay Dhar observed, “if we have a look at the various provisions of the Act, the rules made thereunder as well as the byelaws, it becomes clear that the Cooperative Societies registered under the Act are democratic institutions whose affairs are to be run by the duly elected Board of Directors”.
“Chapter IV of the Act provides the mechanism for management of Cooperative Societies. A perusal of the provisions contained in the Chapter clearly shows that the Cooperative Societies are autonomous institutions run by General Body of members”, High Court said, adding “Section 30-A of the Act has been incorporated as a transitional provision in the Act to take care of certain emergencies”.
“Similarly, Section 30 of the Act governs a situation where the elected Board is persistently making a default or is negligent in the performance of duties imposed on it by the Act, the Rules or the byelaws. So, role of the Government in running the affairs of the Cooperative Societies comes into play only upon the happening of certain exigencies. Otherwise, the affairs of the Cooperative Societies are to be run by the democratically elected Board of Directors as also its members”, High Court said.
“Continuation of a nominated Board in perpetuity is, therefore, anti-thesis to the object of the Act. The provisions of Section 30-A of the Act are, therefore, required to be interpreted in a manner to advance the object of the Act and not to defeat the same”, Justice Dhar said, adding “the contention of the respondents that while Sub-Section (3) of Section 30-A of the Act extends the life of a nominated Board for a period of two years beyond the date of commencement of Third Order, the proviso thereto can give fresh lease of life to such Board by further two years and even beyond, is without any merit and cannot be accepted”.
Accordingly, the writ petition was allowed and the impugned order bearing No.04-JK(Coop) of 2023 dated 21.01.2023 was quashed. “The respondents are, therefore, directed to hold elections in accordance with the directions of the writ court by next date of hearing failing which rule shall be framed against them for having violated the judgment of the writ court”, read the judgment of Justice Dhar.
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