Arepalli Satyanarayana vs Deputy Registrar of Co-operative Societies and Another

T.N.C. Rangarajan, J.—This writ petition is directed against the Order In Rc. No. 1262/9S-B dated 9-1-1996 made by the Deputy Registrar of Co-operative Societies stating that the petitioner is disqualified for being continued as member of the Committee of the Vissakoderu Primary Agrl. Co-op. Society from the date of issue of that order.

According to this communication, the petitioner had taken loan on 15-6-1994 which he repaid on 25-9-1995, beyond the period stipulated. He refers to Section 21-A (b) of the A.F. Co-op Societies Act, that no person shall be eligible for being chosen as, and for being a member of the Committee, if he is in default In the payment of any amount due in cash or kind to the society. According to the impugned order, since there was default, in as much as the amount of loan was not repaid within three months, the disqualification u/s 21-A (b) of the Act had been effected. The reply of the petitioner was that since the amount has been repaid by the time the impugned order was made, he was no longer disqualified and could continue to be a member of the committee. The can, at present, is a matter of construction of Section 21-A (b) of the Act. The said section provides not only for disqualification in default, but also for continuing him as a member of the Committee. A proper reading of this Section would indicate that if a person is in default, he cannot be elected as a member, but if person once elected falls into arrears, then he can be disqualified to continue as a member. On the date of disqualification, if some proceedings has been taken to disqualify him and expel him from the Committee, during the period when he was in default, It would have been perfectly Justified. But when he had repaid all the amounts on 25-9-1995 and an order is passed on 9-1-1996, 1-7-1995, still if he has paid the money on 25-9-1995 and elected to the committee thereafter, he could be a valid member as on 9-1-1996 when the impugned order was made. It appears, the loan was taken in June, 1994 and the amount, according to the counter, was due as on 1-7-1995. According to the learned counsel for the petitioner there was three months grace period for payment and when he got a reminder on 19-9-1995, he immediately paid the money on 25-9-1995. Once the amount is paid, the disqualification which existed till then got wiped out. I am, therefore, of the considered opinion that under the provisions of Section 21-A (b) of the Act, a member who could be validly elected after the debt is discharged cannot be disqualified from continuing as a member for a default which occurred earlier.

I, therefore quash the impugned order. Since the meeting which was stated to be held on 2-2-1996 for co-opting a Director in the place of the petitioner has been stayed, it is open to the society to hold a fresh meeting without regard to the item of disqualification of the petitioner and to attend other items on the agenda of that meeting also.

This writ petition is accordingly allowed. No Costs.