Member of the board of a co-operative society has remitted defaulting loan amount only after the issue of notice U/Sec. 29-C (1) (a) of Karnataka Co-operative Societies Act 1959, and submitted reply to the competent authority to drop the proceedings under the said provision. Whether the competent authority is empowered legally to drop the proceedings in view of the remittance of overdue amount or else he is disqualified, the same may kindly be clarified in the light of the provisions of Sec. 29-C (1) (a) of Karnataka Co-operative Societies Act 1959.
I C Naik
Sharanappa Roja has raised extremely good question.
Statutory provision is attracted instantaneously when it is contingent upon happening of any event, and happening of that event comes to light. In case of defaulter member of the Committee, the Registrar has initiated proceedings in view of what is provided under Sub-Section 8 of this Section 29C. It is provided that if any member of a committee of a co-operative society during the term of his office becomes subject to any disqualifications, the Registrar by order may remove such member, and may disqualify him from holding any office in the co-operative society for such period not exceeding five years, as may be specified in such order: It is also provided that no order shall be made under this sub-section unless a reasonable opportunity of being heard, is given to the person against whom the order is to be made.
The Registrar has a discretion to make two orders. One is to remove a person from the Committee as its member and another of disqualifying to be the member again for a duration up to 5 years.
In law the defaulter has ceased to be a member of the Committee as the law is forthright when it says “No person shall be eligible for being x x x x x continued as a member of the committee of any co-operative society, if he is in default to that society or any other co-operative society in respect of any dues from him as borrower” So the Registrar has no discretion. As for disqualifying for future the law does not give any specific direction and gives discretion to the Registrar. He may or may not disqualify and a person may contest again after paying of dues if not so disqualified.
