Recently, a Division Bench of the Allahabad High Court comprising Hon’ble justice Surya Prakash Keserwani and Hon’ble Justice Dr Yogendra Kumar Srivastava has held that dispute relating to the election of a cooperative society cannot be called into question under writ jurisdiction of High Court in light of UP Cooperative Societies Rule, 1968 and UP Cooperative Societies Act.
In the instant petition, the petitioner had sought a direction to decide his claim(petitioners’) concerning election proceedings of Matsya Jivi Sahkari Ltd.( a cooperative society).
Learned Counsel for the State submitted that as per Section 70 of Uttar Pradesh Co-operative Societies Act and under Rule 444-C (2) of the Uttar Pradesh Co-operative Societies Rules, once the election of a cooperative society has concluded, the aggrieved party can take the case to the Registrar.
The Bench observed that manner of settlement of disputes is provided under Chapter IX of Act of 1965.
Hon’ble Court observed that disputes covered under Section 70 could be referred to arbitration. In contrast, disputes specified under sub-section (1) should be referred to the Registrar while the Courts will not have the jurisdiction to entertain such suits.
The Bench clarified that under Sub-rule (1) of Rule 444-C election of a cooperative society cannot be called into question except under clause a and b of ‘sub-rule 1.
In this particular case, the cooperative society’s elections were already held, and the results were displayed.
Hon’ble Allahabad High Court held that disputes or complaints related to a cooperative society’s election proceedings could be called into question only on grounds specified under sub-rule (1) of Rule 444-C after making an application under Section 70 of the Act.
The Court further held that since the whole mechanism for settling the disputes is already provided, there was no need for the Court to use their jurisdiction under Article 226 of the Constitution. Accordingly, the petition was dismissed.
Title: Matsya Jivi Sahkari vs State of U.P
Date of Order:16/12/2020
Coram: Hon’ble justice Surya Prakash Kesarwani and Hon’ble Justice Dr Yogendra Kumar Srivastava