K’nataka: HC’s important ruling on co-op law

I C Naik

Karnataka State Cooperative Department appears to be quite swift in plunging into action, something the State Cooperative Department in Maharashtra its neighbour may be well advised to learn.

Some time back www.indiancooperative.com took on record its appreciation of performance of cooperative department of Karnataka State. We have come across another instant of swift action in the High Court f Karnataka where its full bench was clarifying an important doubt of the Department as to whether the following amendment made under The Karnataka Co-operative Societies (Amendment) Act, 2012 had a retrospective effect.

Amended Section 28 (4) after substituting the words [five co-operative years] by “five years from the date of election” read as under:

QUOTE: Subject to the provisions of sections 29A and 39A, the term of office of the members of the Committee shall be “five years from the date of election” and they shall be deemed to have vacated office as such members of the Committee on the date of completion of the said term:

Courtesy Meghavat another active member of www.indiancooperative.com I had the benefit of latest full bench judgment of Hon. Karnataka High Court led by the the Hon’ble Mr.D.H.Waghela, Chief Justice delivered ten days back on 30. 4. 2014.

It’s a swiftly decided matter by a full bench with in less than two months. The full bench set aside the order of the single Judge dated 6th March 2014 and held that substitution of a provision under which, term of the board of cooperative societies which was of five cooperative years has been substituted by “five years from the date of election” had retrospective effect and existing boards are to serve five years from the date of election.

The full bench provided a very important rule of law QUOTE: It is well settled that the process of substitution consists of two steps, first, the old Rule is made to cease to exist and, next, new rule is brought into existence in its place.

QUOTE: That substitution by the amending Act No.3 of 2013, had the effect of just deleting the old provisions and making the new provisions operative as if the same were in existence from inception. UNQUOTE