Ganpat Ram vs State Of Rajasthan (2025:Rj-Jd:31399) on 17 July, 2025

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Rajasthan High Court – Jodhpur

Ganpat Ram vs State Of Rajasthan (2025:Rj-Jd:31399) on 17 July, 2025

[2025:RJ-JD:31399]

      HIGH COURT OF JUDICATURE FOR RAJASTHAN AT
                       JODHPUR
                 S.B. Civil Writ Petition No. 2568/2023

Ganpat Ram S/o Dula Ram, Aged About 47 Years, Rulaniyon Ki
Dhani, Village Jusari, Tehsil Makrana, District Nagour (Raj.).
                                                                    ----Petitioner
                                    Versus
1.       State Of Rajasthan, Through The Secretary, Secretariat,
         Department Of Cooperative Affairs, Jaipur, Rajasthan.
2.       Registrar, Cooperative Societies, Nehru Sahkar Bhawan,
         Bhawani Singh Road, Jaipur, Raj.
3.       Arbitrator Cum Deputy Registrar, Cooperative Societies,
         Nagaur, Raj.
4.       Joosari Gram Seva Sahkari Samiti Ltd., Joosari, Tehsil
         Makrana, District Nagaur, Raj. Through Its Manager.
5.       Amarchand Chotiya S/o Shivbaksh,                        Joosari,   Tehsil
         Makrana, District Nagaur (Raj.).
6.       Poosaram S/o Danaram, Beniwalon Ki Dhani, Joosari,
         Tehsil Makrana, District Nagaur (Raj.).
7.       Baluram S/o Kanaram, Beniwalon Ki Dhani, Joosari, Tehsil
         Makrana, District Nagaur (Raj.).
                                                                 ----Respondents


For Petitioner(s)         :     Mr. B.S. Sandhu
                                Mr. S.K. Shreemali
For Respondent(s)         :     Mr. Hari Prasad
                                Mr. Rajendra Singh
                                Mr. Samir Shrimali, Govt. Counsel


            HON'BLE MR. JUSTICE MUNNURI LAXMAN
                                     Order
17/07/2025

1.    The present writ petition has been filed challenging the order

dated 18.01.2023, whereby the Deputy Registrar has declared the

petitioner ineligible on account of default in payment of dues to

the society.

2.    The case of the petitioner is that the petitioner obtained a

loan from the society and he has paid the loan amount of

Rs.28,593/- with interest on 08.09.2022. The society has not



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declared him as a defaulter and as soon as the dues list was

prepared by the society, he paid the dues amount. The present

impugned proceedings have been taken up on the basis of a

complaint made by one of the contestants in the election. On the

basis of such complaint, the Registrar decided the reference of

dispute without any evidence and without following the procedure

contained under the Rajasthan Cooperative Societies Act, 2001

(hereinafter referred to as 'the Act of 2001') and the Rajasthan

Cooperative Society Rules, 2003 (hereinafter referred to as 'the

Rules of 2003').

3.    The    case      of   the     respondents,           including     the   private

respondents, is that the petitioner filed his nomination on

06.09.2022 to contest elections to the post of Member of the

Executive Committee of the Society and as per the provision of

the Act of 2001, whereunder if there is continuous default of three

months,     the      member       incurs     consequences           of   default.   The

petitioner failed to make payment of the loan amount for more

than three months as on the date of filing of the application for

nomination, and all dues were paid two days subsequent to filing

of nomination. As such, the acceptance of nomination by the

election officer is incorrect, and he ought to have disqualified the

petitioner, and such action of the election officer has been assailed

before the Registrar by way of a reference under Section 58 of the

Act of 2001 and the Registrar decided the reference by affirming

that the petitioner incurred ineligibility.

4.    Learned counsel for the respondents further submit that

against an order passed under Section 30 of the Act of 2001, a

remedy of appeal lies before the Cooperative Tribunal and the

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present writ petition is not maintainable. In this regard, it is

relevant to refer to Section 58, 60 and 105 of the Act of 2001,

which read as follows:

      "58. Disputes which may be referred to arbitration
      -

(1) Notwithstanding anything contained in any law for
the time being in force, if any dispute touching the
constitution, management or the business of a co-
operative society arises –

(a) among members, past members and persons
claiming through members, past members and
deceased members, or

(b) between a member, past member or a person
claiming through a member, past member or
deceased member and the society, its committee or
any officer, agent or employee of the society, or

(c) between the society or its committee and any
past committee, any officer, agent or employee, or
any past officer, past agent or past employee or the
nominee, heirs or legal representatives of any
deceased officer, deceased agent or deceased
employee of the society, or

(d) between the society and any other co-operative
society, or

(e) between the society and the surety of a member,
past member or a deceased member, or a person
other than a member who has been granted a loan
by the society or with whom the society has or had
transaction under section 52, whether such a surety
is or is not a member of a society, such dispute shall
be referred to the Registrar for decision and no court
shall have jurisdiction to entertain any suit or other
proceeding in respect of such dispute:

Provided that such disputes between the society and
its employees, for which a remedy is available under
the provisions of the service laws applicable on the
employees, shall not be entertained under this
section.

(2) For the purpose of sub-section (1), the following
disputes shall also be deemed to be the disputes
touching the constitution, management or the business
of a co-operative society, namely:-

(a) a claim by the society for any debt or demand
due to it from a member or the nominee, heirs or

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legal representatives of a deceased member,
whether such debt or demand be admitted or not;

(b) a claim by a surety against the principal debtor,
where the society has recovered from the surety any
amount in respect of any debt or demand due to it
from the principal debtor as a result of the default of
the principal debtor, whether such debt or demand is
admitted or not;

(c) any dispute arising in connection with the
election of any officer of the society:

Provided that no dispute under this clause shall be
entertained during the period commencing from the
announcement of election programme and ending on
the declaration of the results.

(3) If any question arises whether a dispute referred to
the Registrar under this section is a dispute touching the
constitution, management or the business of a co-

operative society, the decision thereon of the Registrar
shall be final and shall not be called in question in any
court.”

“60. Reference of disputes to arbitration –
(1) The Registrar may, on receipt of the reference of a
dispute under section 58,-

(a) decide the dispute himself, or

(b) transfer it for disposal to any person who has
been invested by the Government with powers in
that behalf, or

(c) refer it for disposal to an arbitrator having the
eligibility, prescribed therefor.
(2) The Registrar may withdraw any reference
transferred or referred for disposal under sub-section (1)
and either decide it himself or transfer or refer it again
for disposal to another person or arbitrator mentioned in
clause (b) or (c) of that sub-section, if the person or
arbitrator, to whom the dispute was first transferred or
referred,-

(i) dies, resigns or is transferred; or

(ii) has become incapable of acting or against whom
a complaint has been received regarding his
misconduct or corruption; or

(iii) neglects or refuses to act.

(3) The Registrar or any other person to whom a dispute
is referred for decision under this section may, pending
the decision of the dispute, make such interlocutory

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orders as he may deem necessary in the interests of
justice.

“105. Constitution of and appeals to the Tribunal. –
(1) The Government shall constitute a Tribunal, called
“Rajasthan State Cooperative Tribunal” to exercise the
powers and carry out the functions conferred on the
Tribunal by or under this Act.

(2) The Tribunal shall consist of a Chairman and two
other members to be appointed by the State
Government.

(3) The Chairman of the Tribunal shall be an officer of
the Rajasthan Higher Judicial Service of the rank of
District and Sessions Judge of selection grade.
(4) One member of the Tribunal shall be an Additional
Registrar of the Rajasthan State Co-operative Service.
(5) Another member of the Tribunal shall be either a
distinguished advocate who has atleast 15 years
experience in the co- operative law or a co-operator who
has atleast 20 years experience in the field of co-

operation and is a law graduate and has hold an office in
any of the State or National Level Co-operative societies
for not less than two times.

(6) The Chairman and members of the Tribunal shall
ordinarily, subject to the attainment of the age of
superannuation, be appointed for a period of five years.
The advocate member shall not continue to be the
member of the Tribunal after attaining the age of sixty
years.

(7) The other conditions of service and procedure for
selection of the Chairman and Members of the Tribunal
shall be such as may be prescribed by the State
Government from time to time.

(8) Any vacancy other than a casual vacancy in the
membership of the Tribunal shall be filled by the
Government.

(9) Subject to the previous sanction of the Government,
the Tribunal shall frame regulations consistent with the
provisions of this Act and the rules made thereunder, for
regulating its procedure and the disposal of its business.
The regulations shall come into force on the date of their
publication in the Official gazette.

(10) Any person aggrieved by –

(a) an order removing a member of the committee
of a co- operative society under section 30 or an
order debarring a member from election or

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appointment to a Committee under [sub-section
(12) of section 28], or

(b) any decision of the Registrar made under clause

(a) or sub-section (1) of section 60, or

(c) any decision of the person invested by the
Government with powers in that behalf under
clause (b) of sub-section (1) of section 60, or

(d) any award of an Arbitrator under clause (c) of
sub-section (1) of section 60, or

(e) any order made under [Section 101] with a
view to prevent any delay or obstruction in the
execution of any decision or award that may be
made under section 60,

(f) any decision passed by the State Government
or the Registrar, as the case may be, in an appeal
made under section 104,
[(g) any decision passed by the Registrar under
Section 125,] may within ninety days from the date
of the decision, award or order, as the case may
be, appeal to the Tribunal.

Explanation :- The Tribunal hearing an appeal
under this Act shall exercise all the powers
conferred upon an appellate court by section 97
and order XLI in the First Schedule to the Code of
Civil Procedure
, 1908 (Central Act 5 of 1908).
(11) Pending an appeal under sub-section (10), the
Tribunal may make such interlocutory orders, as it may
think fit in the interest of justice.”

5. It is also relevant to refer to Rule 77 of the Rules of 2003,

which reads as follows:

“77. Reference of dispute –

(1) A reference of a dispute under section 58 of the Act
shall be made in writing to Registrar in Form “H”.

Wherever necessary the Registrar may require the party
referring the dispute to him to produce a certified copy
of the relevant records on which the dispute is based
and such other statements or records as may be
required by him, before proceeding with the
consideration of such reference.

(2) Where on receipt of a reference under sub-rule (1),
the Registrar, decides under clause (c) of sub-section
(1) of section 60 of the Act to refer it for disposal by an
arbitrator, the reference shall be made to the arbitrator
appointed by the Registrar, who shall either be a serving

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or a retired officer or employee of the Rajasthan State
or Subordinate Co-operative Services or any other
serving officer of the Rajasthan State Services or any
other legal expert conversant with the working of the
concerned co-operative society.”

6. As per Section 58 read with Rule 77, any party to a dispute

can seek reference by filing a claim under Form H of the Rules of

2003, and when a reference is made to the Registrar, the Registrar

himself can decide or can appoint any person or refer the dispute

to an arbitrator. Such officer is required to pass orders by

exercising powers under Section 60 of the Act of 2001.

7. As per Section 105 Sub-Section 10(b) of the Act of 2001, if

the Registrar himself decides the reference under Section 60, the

remedy of appeal against such order of the Registrar lies before

the Cooperative Tribunal. Without availing such statutory remedy

provided under the Act, the present writ petition has been filed

before this Court.

8. The contention of learned counsel for the petitioner is that in

deciding the reference, the Registrar has not followed the basic

procedure contemplated under the Act and Rules, more

particularly Rule 78 of the Rules of 2003, and without any

evidence the proceedings were concluded.

9. The arguments of the learned counsel are touching the

merits of the impugned order. Such arguments can also be

advanced before the statutory forum specially created to

adjudicate the validity of such orders.

10. In the view of the effective alternative remedy available to

the petitioner under Section 105 of the Act of 2001, this Court is

not inclined to go into such disputed question of facts. It is left

open to the petitioner to canvas all arguments while challenging

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the merits of the order before the Cooperative Tribunal. The period

spent before this Court shall be excluded from entertaining the

appeal, if any, is filed against the impugned order. If any interim

application is filed with the appeal challenging this order before

the tribunal, the tribunal shall dispose of such application within a

period of one week.

11. With the aforesaid directions, the instant writ petition is

disposed of.

12. All pending applications, if any, shall also stand disposed of.

(MUNNURI LAXMAN),J
256-BhumikaP/-

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