Supreme Court of India (Division Bench (DB)- Two Judge)

Appeal (Civil), 10392 of 2014, Judgment Date: Nov 19, 2014

                                                                     REPORTABLE


                        IN THE SUPREME COURT OF INDIA

                        CIVIL APPELLATE JURISDICTION


                        CIVIL APPEAL NO.10392 OF 2014

                  (Arising out of SLP(C) No. 26017 Of 2013)



RAJKOT DISTT COOPERATIVE BANK LTD.                           .........APPELLANT


                                     Vs.


   STATE OF GUJARAT & ORS.                                .........RESPONDENTS


                                    WITH

                     CIVIL APPEAL NOS.10393-10394 OF 2014

              (Arising out of SLP (C)Nos. 13201-13202 Of 2012),

                     CIVIL APPEAL NOS.10395-10398 OF 2014

               (Arising out of SLP (C)Nos.12219-12222 Of 2012),

                        CIVIL APPEAL NO.10399 OF 2014

                 (Arising out of SLP (C) No. 29726 Of 2013),

                        CIVIL APPEAL NO.10400 OF 2014

 (Arising out of SLP (C) No. 27573 Of 2013),

                        CIVIL APPEAL NO.10401 OF 2014

 (Arising out of SLP (C) No. 29727 Of 2013)

                                     And

                       CIVIL APPEAL NO. 10402 OF 2014

                  (Arising out of SLP (C) No. 29728 Of 2013


                               J U D G M E N T


V.GOPALA GOWDA, J.


    The applications for impleadment filed  in  the  SLP(C)  Nos.  29726  of

2013, 29727 of 2013 and 29728 of 2013 are allowed. Leave granted in all  the

special leave petitions.

2.    The appellants before this Court have filed these appeals  questioning

the correctness of the impugned orders dated 15.11.2011,  30.1.2012  (passed

by the Division Bench) and  common impugned order dated  04.07.2013  (passed

by the full Bench) of the High Court of Gujarat at Ahmedabad.

3.    Since all the appeals are identical in nature, we would refer  to  the

facts of the case arising out of Civil Appeal @ SLP(C)  NO.  26017  of  2013

for the sake of convenience and brevity and for examining  the  rival  legal

contentions urged in these appeals.

4.    The State of Gujarat enacted and put  on  the  statute  book,  Gujarat

Cooperative Societies  Act  of  1961  (in  short  "the  Act")  in  order  to

consolidate and amend the laws relating to the cooperative societies in  the

State of Gujarat. Thereafter, the Act  was  amended  by  the  Act  of  1982.

Initially, as per the Act  of  1961,  the  Managing  Committee  of  the  Co-

operative Society was to be constituted in accordance with  the  Act,  Rules

and bye-laws. By the Act of 1982, the proviso was  inserted  by  way  of  an

amendment to the effect that so far as the committee of  a  society  falling

in the category of Section 74C(1) of the Act is concerned, the rotation  for

retirement, if provided by the bye-laws of a particular  number  of  members

of the Managing Committee shall cease to remain in force.

5.    Further, as per the Act of 1982, Section 74C together with  the  other

provisions of the amending Act  was  brought  on  the  statute  book,  which

provided that the election of the members of the   Managing  Committee/Board

and the office bearers on the committees of such specified  societies  shall

be conducted in the manner laid down by or under Chapter XI-A  of  the  Act,

which was also simultaneously inserted by way of amendment Act of 1982,  for

conducting elections  to  the  committees  and  office  bearers  of  certain

societies which are so specified under Section 74C(1) of  the  Act.  As  per

the scheme of the said chapter, the election of such specified societies  is

required to be held on such date or dates as the  Collector  may  fix  under

his  control.   Prior  to  the  amendment,  the  election  of  the  managing

committee was to be conducted by the society itself as  per  its  registered

bye-laws. So far as the societies  included  as  specified  societies  under

Section 74C(1)  of the Act are concerned,  a  separate  mode  of  conducting

election was provided and the power of conducting such  election  was  given

to the Collector notwithstanding anything contained in the bye-laws of  such

societies.  The said aspect was made clear under the provisions  of  Section

74(C) (2) and (3) of the Act which were inserted by way of amending  Act  of

1982.  Chapter XI-A of the Act provides for separate mode for  deciding  the

election dispute by Election Tribunal. Section 145(U) of  the  Act  provided

the State Government with rule making power and to regulate all  or  any  of

the other matters relating to the  various  stages  of  elections  including

preparation of the list of voters.

6.    In exercise of the powers conferred upon the  State  Government  under

Section 168  read  with  Sections  145(A),  145(U)  and  145(Y),  the  State

Government of Gujarat framed the Gujarat  Specified  Co-operative  Societies

Election to Committee Rules of 1982 (in  short  "the  Rules").  These  Rules

provide for various stages of election from the preparation  of  the  voters

list till the result is declared  and  further  consequential  steps  to  be

taken in the process.  In the year 1987, Rules 3-A and 3-B were inserted  in

the Rules of 1982 by  the  Rule  Making      Authority  which  provided  for

delimitation of the constituencies in the respective society/societies,  for

the purpose of conducting election of the Managing Committee Members  and  a

separate procedure was provided for election of  members  reserved  in  sub-

section (1) of Section 74B of the Act.

7.    The constitutional validity of the amended provisions of  the  Act  of

1982 was challenged before the High Court in the case of Amreli District Co-

operative Sale and Purchase Union Ltd. v. State of Gujarat[1]. The  Division

Bench of the High Court declared Sections 17(A), 24, 51(2), 69 and also  the

proviso to  Section  74  as  ultra  vires  the  Constitution.  However,  the

provisions of Sections 74A, 74B, 74C, 74D, 76A, 76B, 80(A)  and  80(2)  were

upheld. The said matters were carried before this  Court,  but  subsequently

came to be withdrawn.  Therefore, the decision of the Gujarat High Court  in

the aforesaid case became final and has been operating since.

8.    Subsequently, certain provisions were  deleted  but  Section  74C  and

other provisions in relation to the conduct of election,  including  Chapter

XI A and  the  Rules,  remained  in  the  statute  book.   Therefore,  legal

position remained as per the original Act even after the  Amendment  Act  of

1982. The election of the Managing Committee  members  of  a  society  other

than the specified societies was required to be held as per the bye laws  of

such societies. Whereas, so  far  as  the  specified  societies  covered  by

Section 74C(1) of the Act are concerned, the election  was  required  to  be

held as per Chapter XI A read with the Rules of 1982.

9.    A legal question for interpretation to  Rule  3-A  (8)  and  also  the

validity of bye-laws clause  No.  35(1)(A)  of  Sabarkantha  Milk  Producers

Union Ltd. arose before the  High  Court  in  the  case  of  Antakampa  Milk

Producers Co-operative Society Limited v. Sabarkantha Milk  Producers  Union

Ltd.[2]. The learned Single Judge of the High Court in the  said  case  held

that Section 74C sub Section (3) of the Act, has  an  overriding  effect  on

any other bye-laws of such society. It was also found that as per  Rule  3-A

(8), the number of constituencies have to be equal to the  total  number  of

seats excluding two reserved seats as provided  under  Section  74B  of  the

Act. The learned Single Judge in the said case found that the  bye  law  No.

35(1)(A), provided seats for more than one person for each constituency  and

therefore, the bye laws were not in conformity with  Rule  3-A  (8)  of  the

Rules  and  found  that  the  bye-laws  can  operate  to  the  extent  of  7

representatives to be elected from 7 separate constituencies of a  Specified

Cooperative Society and therefore, the High Court has held the  Rule  3-A(8)

of the Rules as valid to that extent only.

10.   In the meanwhile, the Division Bench of the Gujarat High Court in  the

case of Shri  Sadwadar  Seva  Sahkari  Mandali  Ltd.  &  Ors.  v.  State  of

Gujarat[3], went into the case once again with regard to the holding of  the

election to the Managing Committee of the Bank in accordance with  Rule  3-A

(8) of the Rules.  The Division Bench found that when Rule 3-A (8) and  Rule

43  are  examined  in  juxtaposition,  it  has  held  that  the  object  and

intendment of the said Rules and the field of the operation of the said  two

provisions are different inasmuch as the former deals with  "constituencies"

bifurcated  on  the  "territorial/zone  basis".   The  Division  Bench   did

consider the view taken by the learned Single Judge of  Gujarat  High  Court

in the  case  of  Antakampa  Milk  Producers  Co-operative  Society  Limited

(supra) and found that in the said case, the constituencies were  bifurcated

zone or territory wise.

11.   Again the question for consideration of the  provisions  of  Rule  3-A

(8) read with Section 74C of the Act arose in  the  case  of  Khanodar  Milk

Producers Co-operative Societies Ltd. and Others  v.  State  of  Gujarat[4].

The second Division  Bench  of  the  High  Court  found  that  the  bye  law

providing more than one representative  to  be  elected  in  more  than  one

constituency would be in contravention of Rule 3-A (8) and it is held  that,

in the case of Sadvadar Sahkari (supra), the members  of  the  society  were

comprised of various classes of societies, whereas in the case of  Antakampa

Milk  Producers  Cooperative   Society   Ltd.,   the   members   constituted

homogeneous group and  not  heterogeneous  group.  Therefore,  adopting  the

decision of the case Antakampa Milk Producers Cooperative Society Ltd.,  the

Division Bench set aside the bye laws clause No. 35 (1) of the said  Society

which provides for voting right for more than one seat in one constituency.

12.   Further, the constitutional validity of Rule 3-A (8) of the Rules  was

again  challenged  before  the  High  Court  of  Gujarat,  in  the  case  of

Banaskantha District Cooperative Milk  Producers  Union  Ltd.  v.  State  of

Gujarat[5], wherein the Division Bench of the High Court held  that  if  any

of the Rules are lawfully  framed  under  the  provisions  of  the  Act  and

restrictions were imposed in relation to the subject matter of  any  of  the

clauses of the registered bye laws of the Society,  such  restrictions  must

be adhered to by it and  any  such  clause  in  the  bye-laws  which  is  in

violation of the restriction imposed by the Rules should be deleted. It  was

further  held  that  the  State  Government  while  framing   the   impugned

provisions of the Rules has  not  deviated  from  the  principles  mentioned

under Section 74C (3) of the Act, but it has  only  created  a  position  by

making provisions of the election of members  from  the  General  Body.  The

Division Bench of the High Court held that Rule 3-A  (8)  of  the  Rules  is

neither in conflict with any of the provisions of the Act nor  was  it  held

to be bad in law  for  want  of  Authority  of  the  delegated  legislation.

Therefore, Rule 3-A(8) of the Rules was held to be legal and  valid  by  the

High Court by giving its reasons.

13.   Similar questions regarding the legality and validity of  Rule  3-A(8)

of the Rules arose when the present group of appeals were listed before  the

High Court. The Division Bench of the High Court  formulated  the  following

legal issues and referred the same to the full Bench:

Whether Rule 3-A of the Rules introduced by the amendment  dated  10.08.1987

could be applied to the  societies  bye-laws  which  provide  for  a  single

constituency?


Whether the scheme of the Rules permit  the  specified  societies  having  a

single constituency, more than one seat for  one  constituency  and  whether

members of such society can legally be permitted to vote for more  than  one

seat?


Whether Collector has jurisdiction to make an order for delimitation of  the

constituencies, in absence of any proceeding undertaken in  accordance  with

Section 14 of the Act?


Whether delimitation of the constituencies under Rule 3-A of the  Rules  can

only be territory-wise and/or whether  delimitation  of  the  constituencies

can be based upon objects and activities of the member societies or  classes

of individual members?


After hearing the learned counsel for both sides,  the  full  Bench  of  the

High Court answered the legal questions against the  appellant-societies  by

passing the impugned judgment and  orders  which  are  challenged  in  these

appeals before this Court urging various legal grounds.

14. We have heard the learned counsel on both the sides. It is contended  by

the learned Senior Counsel for the appellants that the findings and  reasons

recorded in the impugned judgment while answering the questions  of  law  on

the points referred to the Full  Bench  are  not  only  erroneous  but  also

suffers from error in law. Reliance was placed by them upon the judgment  of

this Court  in  the  case  of  Ziley  Singh  v. Registrar  Cane  Cooperative

Societies Lucknow[6]. It is contented that the Rule 3-A (8) of the Rules  is

contrary to the  bye-laws  of  the  appellant-Societies  and  the  statutory

provisions of the Act. The Act provides  for  amendments  of  the  bye  laws

without allowing the societies to get their bye  laws  amended  as  per  the

procedure laid under the provisions of  the  Act  and  without  laying  down

certain guidelines in the Rules for the amendment of  the  relevant  clauses

of the registered bye-laws of the appellant-Societies. Rule  3-A  (8)  takes

away the vested rights conferred  upon  the  members  of  the  society.  The

conferment of power upon the Collector for carving out  delimitations  of  a

Specified Co-operative Society/Societies is contrary to  the  provisions  of

the Act and Rules and asking the Chief  Executive  Officer  to  prepare  the

draft constituencies by dividing the area of societies  into  constituencies

would amount to taking away the right of its members to exercise their  vote

in favour of  all  the  candidates  who  contest  from  the  constituencies.

Therefore, the interpretation given to Section 3-A  (8)  of  the  Rules  and

upholding the constitutional validity in  conferring  such  power  upon  the

Collector to demark the constituencies of appellant societies infringes  the

rights of the members of the societies. Hence,  it  is  contended  that  the

impugned judgment is liable to be set aside.

15. The State Government has filed  its  counter  affidavit  justifying  the

impugned judgment contending that the findings and reasons recorded  by  the

full Bench of the Gujarat High Court by answering the questions referred  to

it are in accordance with law and the same are on proper  interpretation  of

the relevant Rules 3-A (8) and (9) and Rule 43 of the  Rules  which  are  in

conformity with Chapter XI-A of the Act.

16.   On a careful examination of Rule 3-A (8) of the Rules  by  us,  it  is

made clear that the said provision is aimed at geographical  i.e.  territory

or zone wise bifurcation or division.  A salient feature of the Rule 3-A  is

the  delimitation  of  the  constituencies  which  includes  all   specified

cooperative societies. Once the area of operation of  any  society  is  more

than one village, Sub rule (8) would come into play and the  requirement  of

the number of constituencies would be equal to the total  number  of  seats,

excluding two seats reserved for the categories as  provided  under  section

74 B of the Act.

17.   Further, the language of sub rule (9) of  Rule  3-A,  makes  it  clear

that the Rule Making Authority has graced the Collector with  the  power  to

delimit the constituency/constituencies prior  to  the  publication  of  the

voters list. The delimitation of the constituency/constituencies  should  be

prior  to  the  preparation  of  the  voters'  list  and/or  in   any   case

simultaneous with the preparation of voters' list but the  voters  list  has

to be as per the delimitation of the constituencies.  The same is  the  case

when the delimitation of the constituency is required  to  be  made  by  the

Collector prior to the publication of the list of voters.

18.   Thus, when sub-rule (8) is read along with sub-rule (9) of  Rule  3-A,

where the society has the area of operation exceeding one village,  even  if

the bye laws provide for single constituency, the seats provided by the  bye

laws has to be  equal  to  the  number  of  constituency/constituencies  and

therefore, for each seat, a separate constituency would be  required  to  be

delimited and if not so delimited by the society, of its own,  it  would  be

required for the Collector to exercise his power under sub rule (9) of  Rule

3-A of the Rules for the delimitation  of  the  constituency  in  accordance

with the mandate of sub rule (8) of Rule 3-A  and  thereafter,  the  process

for publication of the voters' list is to be given effect to.

19.   The power conferred with the Collector for  the  delimitation  of  the

constituency under sub  rule  (9)  is  independent  and  separate  and  only

applicable in the case when the election of the members  of  any  Management

Committee of  specified  society  is  scheduled  to  be  held.  Further,  as

specified in the sub rule (9) of Rule 3-A, such powers are to  be  exercised

by the Collector, notwithstanding anything contained  in  the  bye  laws  of

such society. The Collector has to exercise the power  for  delimitation  of

the constituencies prior to the publication of the list of voters.  Further,

as rightly stated by the High Court in the impugned  judgment  that  when  a

specific power is  conferred  in  a  specific  contingency  to  a  different

authority, such power has to be read in addition to the  general  power  for

the amendment in the bye-laws. Thus, the bye laws of any society have to  be

in conformity with the provisions of the Act and the Rules.

20.   It is obligatory on the part of any specified society to  bring  about

the amendment in its  registered  bye-laws  in  conformity  with         the

provisions of the Rules and more        particularly Rule 3-A (8)  and  (9).

But if the society/societies have not amended their bye laws, the  same  has

to be in conformity with the said Rules by  getting  suitably  amended;  the

effect of the Rule  would  not  stand  nullified  or  inoperable.  For  this

purpose sub rule (9) gives  the  power  to  the  Collector  to  delimit  the

constituency/constituencies of a society. Thus, once the area  of  operation

of any society exceeds more than one  village  as  per  sub  rule  (8),  the

number of constituencies is required to be bifurcated by  the  Collector  in

exercise of his power, so as to make it equal to the total number  of  seats

to see that effective representation is given to the members of the  society

for  giving  fair  representation  to  its  members  to  elect  their   true

representatives to participate in the affairs of the Society as part of  the

Managing Committee Members, as  the  society  must  be  represented  by  its

elected representatives in a democratic process to effectively represent  in

the  Managing  Committee  which  is  an  indispensible  parameter  for   the

democratic institutions to  achieve  the  laudable  object  of  Co-operative

movement  in  the  country,  which  is  the  constitutional  philosophy   as

enshrined in Chapter XI A of the Constitution, which has been  inserted   by

way of constitutional amendment.

21.   Thus, the bye laws of any specified society under  the  provisions  of

the Co-operative Societies Act cannot  be  permitted  to  prevail  over  the

statutory Rule 3-A (8) & (9) of the Rules. The moment the area of  operation

of any specified society exceeds one village, sub rule (8) would  come  into

play, irrespective  of  the  fact  that  whether  members  of  such  society

constitute homogenous group or heterogeneous group.

22.   Further, the elections to either the Managing Committee or Board  must

be held democratically by giving  representation  to  all  its  members,  as

stated in the preamble of our Constitution, which is held to  be  the  basic

feature of the Constitution by the constitutional Bench  of  this  Court  in

the cases of Kesavananda Bharati Sripadagalvaru v. State  of  Kerala[7]  and

Kuldip Nayar v. Union of India[8]. Under Article 13 (2) of the  Constitution

of India, Rules are also regarded as  laws.  However,  the  Rules  and  laws

framed by the State Legislatures and the appropriate government  cannot  run

parallel with the principles of the Constitution and the  statutory  objects

of the Co-operative Societies Act cannot be disregard  as  it  would  defeat

the purpose of Section 243ZK of the Constitution  of  India  (Ninety-Seventh

Amendment) Act 2011, inserted as  per  the  97th  Constitutional  Amendment,

which provides for election of the members  of  the  Managing  Committee  or

Board. If the rules provide

that not more than 7 representatives can be elected  from  a  specified  Co-

operative Society to the Board or Management Committee, then it is the  duty

of the societies to adhere to it and not exceed the specified number.  Thus,

the  bye  laws  of  a  Co-operative  Society,  in  order  to   achieve   the

constitutional object, must be brought at par with the  laws  and  statutory

provisions of the Societies Act. They  cannot  override  the  provisions  of

State or Central laws. In Kuldip Nayar's  case  (supra),  this  Court  after

referring to various Constitutional Bench judgments and other  judgments  of

this Court for the purpose of interpretation made by this Court in  relation

to phrases used in the  Preamble  of  the  Constitution  of  India  such  as

"sovereign democratic republic" and "Parliamentary democracy" as  the  basic

feature of the Constitution of India, held as under:-

"101. In the same case (Indira Nehru Gandhi case, reported in 1975 Supp  SCC

1), Chandrachud, J. in para 691 of his separate  judgment  ruled  as  under:

(SCC pp. 261-62)


"Ordinary laws have to answer two tests for  their  validity:  (1)  The  law

must be within the legislative competence of the legislature as defined  and

specified in Chapter I, Part XI of the Constitution, and  (2)  it  must  not

offend  against  the  provisions  of  Articles  13(1)   and   (2)   of   the

Constitution. 'Basic structure', by the majority judgment, is not a part  of

the fundamental rights nor indeed  a  provision  of  the  Constitution.  The

theory  of  basic  structure  is  woven  out  of  the  conspectus   of   the

Constitution and the amending power is subjected  to  it  because  it  is  a

constituent power. 'The power to amend  the  fundamental  instrument  cannot

carry with it the power to destroy its essential features'-this,  in  brief,

is the arch of the theory of basic structure. It is wholly out of  place  in

matters  relating  to  the  validity  of  ordinary  laws  made   under   the

Constitution."


   XXX           XXX              XXX


142. Article 80(4) prescribes the manner  of  voting  and  election  of  the

representatives of States for the Council of States in the following terms:

"80. (4) The representatives of each State in the Council  of  States  shall

be elected by the elected Members of the Legislative Assembly of  the  State

in accordance with the system of proportional  representation  by  means  of

the single transferable vote."


XXX         XXX             XXX


336. In the words of Jaganmohan Reddy, J.(Kesavananda Bharati case  reported

in (1973) 4 SCC 225) in his separate judgment, the 1"elements of  the  basic

structure are indicated in  the  Preamble  and  translated  in  the  various

provisions of the Constitution" and the  "edifice  of  our  Constitution  is

built upon and stands on several props" which, if removed  would  result  in

the Constitution collapsing and which include the principles  of  "sovereign

democratic republic"  and  "parliamentary  democracy",  a  polity  which  is

"based on a representative system in which people holding opposing  view  to

one another can be candidates and invite the electorate to  vote  for  them"

(SCC p. 638, para 1159).


341. Some of the important  holdings  were  set  down  in  para  92  of  the

aforementioned (Mohinder Singh Gill v. Chief  Election  Commr.  reported  in

(1978)  1  SCC  405)  judgment  "for  convenience"  and  to  "synopsise  the

formulations". The holdings included the following: (SCC p. 452)


[pic]"92. (2)(a) The Constitution contemplates  a   free  and  fair


election  and  vests  comprehensive  responsibilities  of   superintendence,

direction  and  control  of  the  conduct  of  elections  in  the   Election

Commission. This responsibility may cover powers, duties  and  functions  of

many sorts, administrative or other, depending on the circumstances.

(b) Two limitations at least are  laid  on  its  plenary  character  in  the

exercise thereof. Firstly, when Parliament  or  any  State  Legislature  has

made valid law relating to or in connection with elections, the  Commission,

shall act in conformity with, not  in  violation  of,  such  provisions  but

where such law is silent Article 324 is a reservoir of power to act for  the

avowed purpose of, not divorced  from,  pushing  forward  a  free  and  fair

election with expedition. Secondly, the Commission shall be  responsible  to

the rule of law, act bona fide and be  amenable  to  the  norms  of  natural

justice  insofar  as  conformance  to  such  canons   can   reasonably   and

realistically be required of it as fairplay-in-action in  a  most  important

area of the constitutional order viz. elections.  Fairness  does  import  an

obligation to see that no wrongdoer candidate benefits by his own wrong.  To

put the matter beyond doubt, natural justice enlivens  and  applies  to  the

specific case of order for total re-poll, although not in full  panoply  but

in flexible practicability. Whether it has been complied with is  left  open

for the Tribunal's adjudication."


343. The case Kihoto Hollohan v. Zachillhu (reported in (1992 Supp  (2)  SCC

651) also resulted in similar views being reiterated by this  Court  in  the

following words: (SCC p. 741, para 179)


"179. Democracy is a part of the basic structure of  our  Constitution;  and

rule of law, and free and fair elections are basic  features  of  democracy.

One  of  the  postulates  of  free  and  fair  elections  is  provision  for

resolution of election disputes as also adjudication  of  disputes  relating

to subsequent disqualifications by an independent authority."

                           (emphasis laid by this Court)

In Rameshwar Prasad (VI) v. Union  of  India[9],  this  Court  has  held  as

under:-

"229. Lord Greene said in 1948 in the famous Wednesbury  case  (reported  in

(1948) 1 KB 223) that when a statute gave discretion to an administrator  to

take a decision, the scope of judicial review would remain limited. He  said

that interference was not  permissible  unless  one  or  the  other  of  the

following conditions was satisfied, namely the order was  contrary  to  law,

or  relevant  factors  were  not  considered,  or  irrelevant  factors  were

considered; or the decision was one which no reasonable  person  could  have

taken.......

257. Therefore, the well-recognised position in law is that  purity  in  the

electoral process and the conduct of the elected representatives  cannot  be

isolated from the constitutional requirements.  "Democracy"  and  "free  and

fair election"  are  inseparable  twins.  There  is  almost  an  inseverable

umbilical cord joining  them.  In  a  democracy  the  little  man-voter  has

overwhelming [pic]importance and cannot be hijacked from the course of  free

and fair elections......".

                           (emphasis laid by this Court)

In Mohinder Singh Gill v. Chief Election Commr.[10], this Court has held  as

under:-

"2. Every significant case has an unwritten  legend  and  indelible  lesson.

This appeal is no exception, whatever its formal result. The message, as  we

will see at the end of the decision, relates to the pervasive philosophy  of

democratic elections which Sir  Winston  Churchill  vivified  in  matchless,

words:


"At the bottom of all tributes paid to democracy is the little man,  walking

into a little booth, with a little  pencil,  making  a  little  cross  on  a

little bit of paper - no amount of rhetoric  or  voluminous  discussion  can

possibly diminish the overwhelming importance of the point."


23. Democracy is government by the people. It is a  continual  participative

operation, not a cataclysmic, periodic exercise.  The  little  man,  in  his

multitude, marking his  vote  at  the  poll  does  a  social  audit  of  his

Parliament plus political choice of this proxy. Although the full flower  of

participative Government rarely blossoms, the minimum credential of  popular

Government is appeal to the  people  after  every  term  for  a  renewal  of

confidence.  So  we  have  adult  franchise   and   general   elections   as

constitutional compulsions. "The right of election is the  very  essence  of

the constitution" (Junius). It needs little argument to hold that the  heart

of the Parliamentary system is free and fair  elections  periodically  held,

based on adult franchise, although social and economic democracy may  demand

much more.

46. It is an interesting sidelight that in America it has been  held  to  be

but fundamental fairness that the right  to  an  administrative  hearing  is

given. Natural justice is being given access to the United  Nations.  It  is

notable that Mathew, J. observed in Indira Gandhi (p. 513, see p. 128,  para

303)(reported in 1975 Supp SCC 1):


"If the amending body  really  exercised  judicial  power,  that  power  was

exercised in violation of the principles of natural justice of audi  alteram

partem. Even if a power is given to  a  body  without  specifying  that  the

rules of natural justice should be observed in exercising it, the nature  of

the power would call for its observance............"


                           (emphasis laid by this Court)


In view of the law laid down by this Court in the aforesaid cases,  we  have

to hold that the sub rules (8) & (9) of  Rule  3-A  are  applicable  to  the

appellant society/Societies as the  area  of  operation  is  more  than  one

village  and  therefore  the  orders  passed  by  the  Collector   for   the

delimitation  of  the  constituency/constituencies  cannot  be  said  to  be

illegal. Further, we hold that there will be  no  proper  representation  of

the  voters  to  their   respective   specified   societies   for   electing

representatives of their area which would materially affect  the  result  of

the election and the impugned provisions and Rules are legally justifiable.


      For the reasons stated supra, no relief can be granted  in  favour  of

the appellant-societies by setting aside the election notification  and  the

prayer for setting aside the impugned judgement  and  orders.   Hence,  they

deserve to be dismissed. The respondents are directed to hold  the  election

to the specified societies as per sub rule (8) and (9) of Rule  3-A  of  the

Rules as are applicable to them under  the  Gujarat  Co-operative  Societies

Act after  the  delimitation  of  the  constituency/constituencies  of  such

societies are made by the Collector as stated under sub-rule (9) of Rule  3-

A of the Rules.

23.   For the reasons stated supra, we do not find  any  reasons  whatsoever

to interfere with the impugned judgment and orders of the High Court. It  is

needless to make observation that the  State  government  and  its  officers

could not give effect to the provisions of the  Co-operative  Societies  Act

and Rules for some time on account of  which  some  of  the  societies  have

challenged the impugned provisions and Rules before  the  High  Court,  even

after litigation was concluded by the  Division  Bench  at  one  stage,  the

State and its officers have not  implemented  the  impugned  provisions  and

Rules without any valid reasons. The members of the specified  societies  in

the State have a right to elect  their  true  representatives  to  represent

them as Managing Committee or Board members  of  the  District  Co-operative

Societies  and  other  allied   societies   after   de-limitation   of   the

constituency/ constituencies and therefore, we direct them to see  that  the

impugned provisions and Rules must be implemented forthwith without  further

delay and submit compliance report within 8 weeks from the  date  of  report

of the copy of this order.

24. The appeals are dismissed. No Costs.




     .....................................................................J.


                                                [V. GOPALA GOWDA]

.....................................................................J.

                                              [ADARSH KUMAR GOEL]




New Delhi,

November 19, 2014



ITEM NO.1A-For Judgment      COURT NO.11               SECTION IX


               S U P R E M E  C O U R T  O F  I N D I A

                       RECORD OF PROCEEDINGS


C.A.NO............/2014 ARISING FROM SLP(C) No(s).  26017/2013


RAJKOT DISTT COOPERATIVE BANK LTD                  Petitioner(s)


                                VERSUS


STATE OF GUJARAT AND ORS                           Respondent(s)

WITH

C.A.NO............/2014 ARISING FROM SLP(C) No. 13201-13202/2012

C.A.NO............/2014 ARISING FROM SLP(C) No. 12219-12222/2012

C.A.NO............/2014 ARISING FROM SLP(C) No. 29726/2013

C.A.NO............/2014 ARISING FROM SLP(C) No. 27573/2013

C.A.NO............/2014 ARISING FROM SLP(C) No. 29727/2013

C.A.NO............/2014 ARISING FROM SLP(C) No. 29728/2013


Date : 19/11/2014 These appeals was called on for JUDGMENT today.


For Petitioner(s)

                     Mr. Mohit D. Ram,Adv.


                     M/s. Khaitan & Co.


                     Mr. Devendra Singh,Adv.

                     Mr. Aniruddha P. Mayee,Adv.

                     Mr. Subramonium Prasad,Adv.


For Respondent(s)       Ms. Hemantika Wahi,Adv.

                     Ms. Pratibha Jain,Adv.


                     Mr. A. Venayagam Balan,Adv.

                     Mr. Vikash Singh,Adv.


            Hon'ble Mr. Justice V.Gopala Gowda pronounced  the  judgment  of

the Bench comprising His Lordship  and  Hon'ble  Mr.  Justice  Adarsh  Kumar

Goel.

            Leave granted.

            The appeals are dismissed in terms of the signed judgment.


    (VINOD KUMAR)                               (MALA KUMARI SHARMA)

      COURT MASTER                                COURT MASTER

            (Signed Reportable judgment is placed on the file)

-----------------------

[1]    (1984) 2 GLR 1244

[2]    (2004)1 GLR 310

[3]    (2010) 3 GLR 2154

[4]    (2012)1 GLH 245

[5]    (2012) 2 GLR 1522

[6]    (1972) 1 SCC 719

[7]     (1973) 4 SCC 225

[8]    (2006)7 SCC 1

[9]    (2006) 2 SCC 1


[10]   (1978) 1 SCC 405