Kiran Raj

The Gauhati High Court has set aside an order issued by the Registrar of Cooperative Societies, Assam, that reinstated the secretary of a cooperative society after the Board of Directors terminated his employment. The court determined that the Registrar had no authority under the Assam Cooperative Societies Act, 2007, to interfere with the Board’s decision, which holds the exclusive power over the appointment and removal of its Chief Executive or Secretary.

The case was adjudicated by Justice Manish Choudhury, who issued the judgment on March 13, 2025, after hearing the matter on November 5, 2024. The court found that the Registrar acted beyond the statutory powers vested in the office when setting aside the Board’s decision and reinstating the secretary. The judgment states: “The Registrar appointed under Section 3 of the 2007 Act—either by Section 49(2)(l) or by Section 92 or by Section 111 of the 2007 Act—has not been vested with any power, authority, and jurisdiction to decide on any decision taken by a validly constituted Board of a registered cooperative society either in the matter of appointment or in the matter of removal of the Chief Executive/Secretary of the Society, a full-time employee appointed by it.”

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The dispute arose when M/s Bikrampur Samabay Samity Ltd., a cooperative society registered in Cachar, Assam, removed its Secretary, Abhijit Chakraborty, through a Board resolution on December 1, 2021. Following his removal, the Board issued an advertisement on December 9, 2021, inviting applications to fill the vacancy.

Chakraborty challenged his removal on the ground that he was not given prior notice or an opportunity to defend himself. He filed an appeal before the Registrar of Cooperative Societies, Assam, under Section 49(2)(l) and Section 111 of the Assam Cooperative Societies Act, 2007. The Registrar, through an order dated January 10, 2022, set aside the advertisement and directed that Chakraborty continue in office until further orders.

The cooperative society, through its Chairman Billal Uddin Borbhuiya, challenged the Registrar’s order before the Gauhati High Court, contending that the Board was the sole authority empowered to remove the Secretary and that the Registrar had no jurisdiction to interfere.

The court examined the provisions of the Assam Cooperative Societies Act, 2007, and observed that the power to appoint and remove a Chief Executive or Secretary is vested exclusively in the Board. The judgment states: “With power to remove the Chief Executive/Secretary of a cooperative society vested by the 2007 Act only in the Board of such society without any other rider, it is not open for any other authority like the Registrar, outside the society, to enforce any bye-law on the ground of its non-compliance.”

The court also examined Section 45 of the Act, which requires that proceedings of all general and special general meetings be submitted to the Registrar for approval. However, it found that “Section 45 is, however, silent on the aspect of sending the proceedings of any board meeting of a cooperative society to the Registrar for approval.” The judgment records that the Act does not stipulate that the removal of a Chief Executive or Secretary requires prior approval from the Registrar.

The court further observed that the Registrar had incorrectly assumed jurisdiction under Section 49(2)(l) and Section 111 of the Act, noting that these provisions do not empower the Registrar to override the decision of the Board. The judgment states: “The Registrar has not been vested with any power, authority, or jurisdiction to decide on any decision taken by a validly constituted Board of a registered cooperative society either in the matter of appointment or in the matter of removal of the Chief Executive/Secretary of the Society, a full-time employee appointed by it.”

The judgment also addressed the cooperative society’s bye-laws, noting that even if a bye-law suggested a requirement for the Registrar’s approval in employment decisions, it could not override the statutory provisions of the Act. The judgment records: “Any bye-law not in conformity with the provisions of the 2007 Act cannot stand in the way in terminating the contractual employment of the respondent no. 4.”

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The court set aside the Registrar’s order dated January 10, 2022, stating: “In view of the reasons recorded and the findings reached at hereinabove, the impugned Order dated 10.01.2022 passed by the respondent no. 2 is set aside and quashed.”

The court further held that the Board’s resolution removing the Secretary and the advertisement for a replacement could not be interfered with, stating: “As a corollary, there shall be no interference to the resolution adopted by the Board of M/s Bikrampur Society on 01.12.2021 and the Advertisement published by the Board of M/s Bikrampur Society in the daily newspaper, Juga Sangha, in its issue dated 09.12.2021.”

The court permitted the cooperative society to proceed with the selection of a new Secretary and noted that, given the time elapsed since the initial advertisement, the Board could issue a fresh advertisement if necessary. The judgment states: “The Board of M/s Bikrampur Society is, therefore, at liberty to proceed with the process of selection and appointment of a new Chief Executive/Secretary of the Society. As a sufficient time period has elapsed since the publication of the Advertisement on 09.12.2021, it would be open for the Board of M/s Bikrampur Society to publish a fresh advertisement, in case of necessity, for selection and appointment of a new Chief Executive/Secretary.”

Advocates Representing the Parties

 For the Petitioners (M/s Bikrampur Samabay Samity Ltd.): Mr. B. Sinha, Advocate

For the Respondents (State of Assam and Registrar of Cooperative Societies): Mr. S.K. Talukdar, Standing Counsel, Cooperation Department

For Respondent No. 4 (Abhijit Chakraborty): Mr. R. Goswami, Advocate

Case Title: The Bikrampur Coop Societies Ltd. & Anr. v. The State of Assam & Ors.

Neutral Citation: 2022:GAU-AS:18798

Case Number: W.P.(C) NO. 925/2022

Bench: Justice Manish Choudhury

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