Court finds procedural lapses in convening the meeting, emphasizes mandatory adherence to statutory rules.
In a significant ruling, the Allahabad High Court has quashed the no-confidence motion passed against Rajeshwar, the elected Chairman of Bahu-uddeshiya Prathmik Gramin Sahkari Samiti Limited, Khajuri, citing procedural irregularities. The Division Bench, comprising Justices J.J. Munir and Indrajeet Shukla, delivered the judgment on September 17, 2026, addressing the procedural lapses in the convening of the meeting and the adherence to statutory requirements under the U.P. Co-operative Societies Rules, 1968.
The court highlighted the mandatory requirement of a clear 21-day notice period for convening a no-confidence motion meeting, as stipulated under Rule 458(1) of the Rules, 1968. The meeting, held on October 6, 2025, violated this provision, having been convened with only 19 clear days' notice following the requisition on September 16, 2025.
Moreover, the court found that the statutory authority, the District Magistrate, failed to personally convene the meeting, instead allowing successive sub-delegation of this responsibility, which led to the Additional District Cooperative Officer presiding over the meeting. This contravened Rule 459, which mandates that the presiding officer must be a Gazetted Government Servant other than an officer of the Cooperative Department.
The bench emphasized that the procedural requirements are not merely directory but mandatory, ensuring that the democratic process within cooperative societies is preserved and not easily undermined. The court also quashed the consequential order dated August 19, 2026, which allowed the Acting Chairman, Mr. Amit Tyagi, to operate the society's bank account.
The ruling underscores the judiciary's role in upholding statutory mandates and protecting democratic processes within cooperative societies. The court granted liberty to the society's members to initiate a fresh no-confidence motion, provided it adheres strictly to the statutory framework.
Bottom Line :
Co-operative Societies - No-confidence motion against elected Chairman - Mandatory compliance with Part VII of U.P. Co-operative Societies Rules, 1968 - At least 21 clear days' notice under Rule 458(1) is compulsory - Meeting must be convened by District Magistrate as specified authority and cannot be sub-delegated - Officer of Cooperative Department cannot preside over meeting under Rule 459 - Resolution of no-confidence and consequential order permitting Acting Chairman to operate bank account quashed.
Statutory provision(s): U.P. Co-operative Societies Rules, 1968, Rules 455, 456, 457, 458(1), 459, 461, 462, 463, 464, 465
Rajeshwar v. State of U.P., (Allahabad)(DB) : Law Finder Doc id # 2987522
