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2024 DAILYLAW 1741 (AP)

THE AP STATE CONSTRUCTION EMPLOYEES CO OPERATIVE HOUSE BUILDING SOCIETY LIMITED v. The State of Andhra Pradesh

WP/28886/2024 · 2026-05-04

Nyapathy Vijay

Transfer Petitionbody2024

Judgment text

Extracted from the PDF above. The PDF is authoritative.

APHC010554622024 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3460] TUESDAY, THE FIFTH DAY OF MAY TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE NYAPATHY VIJAY WRIT PETITION NO:28886/2024 Between: 1. THE AP STATE CONSTRUCTION EMPLOYEES CO OPERATIVE HOUSE BUILDING SOCIETY LIMITED, CO- OPERATIVE HOUSE BUILDING SOCIETY LIMITED, VISAKHAPATNAM, REG. NO. 1879, 10-1-13, MEHAR NAGAR, BESIDE GREEN APPLE HOTEL, OLD GAJUWAKA, VISAKHAPATNAM. REP. BY ITS PRESIDENT, K VENKATESWARARAO, S/O PAPA RAO, AGED 73 YEARS. 2. K. VENKATESWARARAO, S/O PAPARAO, AGED 73 YEARS. PRESIDENT OF THE A.P. STATE CONSTRUCTION CORPORATION EMPLOYEES CO-OPERATIVE HOUSE BUILDING SOCIETY LIMITED VISAKHAPATNAM, R/O FLAT NO. 302, TRENDSET DEDAFFODILLS, PLOT NO. 26 A AND B, JUBLIEE GARDEN, KONDAPUR, HYDERABAD, TELANGANA. 3. M. DAKSHINAMURTHY, S/O RAGAVAIAH, AGED 74 YEARS. VICE- PRESIDENT OF THE A.P. STATE CONSTRUCTION CORPORATION EMPLOYEES CO-OPERATIVE HOUSING BUILDING SOCIETY LIMITED, VISAKHAPATNAM, R/O MIG 94, 7TH PHASE, KPHB COLONY, KUKATPALLY, HYDERABAD, TELANGANA. ...PETITIONER(S) 2 AND 1. THE STATE OF ANDHRA PRADESH, , REP.BY PRINCIPAL SECRETARY, AGRICULTURE AND COOPERATION DEPARTMENT SECRETARIAT BUILDINGS, VELAGAPUDI, THULLUR MANDAL, GUNTUR DISTRICT. 2. THE REGISTRAR OF COOPERATIVE SOCIETIES, REP. BY ITS COMMISSIONER, GOVERNMENT OF ANDHRA PRADESH SKYLAR TOWERS, SYAMALA NAGAR, GUNTUR DISTRICT. 3. THE DISTRICT COLLECTOR, VISAKHAPATNAM DISTRICT, VISAKHAPATNAM. 4. THE DISTRICT COOPERATIVE OFFICER, VISAKHAPATNAM DISTRICT, VISAKHAPATNAM. 5. THE DIVISIONAL COOPERATIVE OFFICER CUM DEPUTY REGISTRAR OF COOPERATIVE SOCIETIES, VISAKHAPATNAM, VISAKHAPATNAM DISTRICT. 6. VEMULAPALLI RAVINDRANATH TAGORE S/O VENKATA RATNAM, D.NO.13-4-4-1/3, SECTOR -4, MURALINAGAR, VISAKHAPATNAM -530007.(GENERAL MEMBER OF THE SOCIETY NO.94) 7. M SAMBASIVA RAO S/O M NARAYANA RAO, AGED BY 68 YEARS, OCC EMPLOYEE, R/O N.T.R.COLONY, THATIGADAPA, VIJAYAWADA, KRISHNA DISTRICT, (GENERAL MEMBER OF THE SOCIETY.NO.42) RR 6 AND 7 ARE IMPLEADED AS PER THE COURT'S ORDER DT.20.12.2024 IN I.A.NO. 02 OF 2024. 8. A V SUBBA RAO S/O SURYANARAYANA RAO, AGED 67 YEARS, R/O FLAT NO.101, KNR ROYAL NIVAS NAVODYA COLONY, TADEPALLI, GUNTUR DISTRICT, ANDHRA PRADESH. 3 9. G V KRISHNA RAO S/O DORAYYA, AGED 62 YEARS, R/O FLAT NO.302B, SIRI JEWEL APARTMENT, GOTHIPATI BRAHMAYYA STREET, AYYAPPA NAGAR, VIJAYAWADA-520007, ANDHRA PRADESH 10. CH SATYANARAYANA S/O RAMACHANDRAYYA, AGED 70 YEARS, R/O D.NO.53-41-46, VENKATESWARA RESIDENCY, FLAT NO.403, KRM COLONY, P AND T COLONY POST, VISAKHAPATNAM-530013, VISAKHAPATNAM DISTRICT, A.P. RR 8 TO 10 ARE IMPLEADED AS PER THE COURT'S ORDER DT.01.05.2025 IN I.A.NO. 03 OF 2025. ...RESPONDENT(S): Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a writ order or orders especially in the form of WRIT OF MANDAMUS declaring the action of the 5th respondent in issuing notice vide Rc.No.1096/2023/C, dated 19/11/2024 as illegal, arbitrary, unconstitutional and consequently set-aside the notice vide Rc.No.1096/2023/C, dated 19/11/2024 of the 5th respondent by making it clear that the 5th respondent cannot take the law into his hands for conducting general body meetings for the registered co-operative societies solely basing upon representations by some of the alleged members without there being any enquiry or investigation or notice and by bypassing the powers of the elected body and pass such other orders. IA NO: 1 OF 2024 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased may be pleased to suspend the notice vide Rc.No.1096/2023/C, dated 19/11/2024 of the 5th respondent and pass such other orders. 4 IA NO: 2 OF 2024 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased may be pleased to implead the Proposed Respondents No.6 & 7 as Respondent No.6 &7 in the above Writ Petition No. 28886 of 2024 and also in I.A’s and pass such other orders. IA NO: 3 OF 2024 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased may be pleased to suspend the orders vide Rc.No.1096/2023-C, dated 13/12/2024 of the 5th respondent and pass such other orders. IA NO: 4 OF 2024 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased May be pleased to permit the petitioner to insert paragraph no.13 in the main writ affidavit and petition as, “pending further orders, this Hon’ble court may be pleased to suspend the notice vide Rc.No.1096/2023-C, dated 13/12/2024 of the 5th respondent and pass such other orders. IA NO: 1 OF 2025 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to permit the petitioners to conduct general body meeting of first petitioner before 31-3-2025 alternatively declare that non conducting of the meeting before 31-3-2025 may not be put against the petitioners and pass such other orders. 5 IA NO: 2 OF 2025 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to vacate the interim order dt:20-12-2024 passed in IA.No.3/2024 in WP.No.28886/2024 and dismiss the present writ petition and pass such other orders. IA NO: 3 OF 2025 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to implead A.V. Subba Rao, GV Krishna Rao, and Ch. Satyanarayana Rao, as respondents 8 to 10 in WP No 28886 of 2024 and connected lAs and pass such other orders. IA NO: 4 OF 2025 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to direct the respondent authorities not to act upon the resolutions passed in alleged general body meeting dt.12/06/2025 especially regarding the extension of term of PIC etc. and pass such other orders. IA NO: 5 OF 2025 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to vacate the interim order granted on 15-07-2025 in I.A.No.4/2025 in W.P.No.28886/2024 and pass such other orders. IA NO: 6 OF 2025 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to grant leave and permit the petitioners/respondents no.8 to 10 to file counter affidavit and pass such other orders. 6 IA NO: 7 OF 2025 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased may be pleased to permit the petitioners/proposed respondents 11 to 51 to come on record as party respondents 11 to 51 in W.P.No.28886/2024 as well as in I.A.No.4/2025 and pass such other orders. IA NO: 8 OF 2025 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased may be pleased to vacate the interim order granted on 15-07-2025 in I.A.No.4/2025 in W.P.No.28886/2024 and pass such other orders. Counsel for the Petitioner(S): 1. PONNADA SREE VYAS Counsel for the Respondent(S): 1. P SUBRAHMANYESWARA RAO 2. GP FOR COOPERATION 3. YASWANTH GADE The Court made the following: 7 THE HON’BLE SRI JUSTICE NYAPATHY VIJAY WRIT PETITION No.28886 of 2024 ORDER: 1. The present Writ Petition is filed questioning the action of Respondent No.5 in issuing Notice vide Rc.No.1096/2023/C, dated 19.11.2024 and to declare the same as illegal and arbitrary and consequently to set-aside the said notice. 2. The brief facts are as follows; Petitioner No.1, which is a House Building Society Limited was incorporated vide Proceedings Rc.No.1232/83, dated 11.03.1983 on the file of the Deputy Registrar of Co-operative Societies, Visakhapatnam. The primary object of the Society is to buy, acquire, purchase, mortgage, exchange and build any buildings for the welfare of the members of the Society. It is stated that there are a total 93 members in the Society and as per the bye-laws of the Society the general body meeting has to be conducted once in every six months. It is stated that on 04.04.2024, a committee meeting was held by the Board of Directors of the Society and it was decided to conduct a general body meeting. 8 3. Accordingly, notices dated 05.04.2024 through e- mail/registered post, were issued to all the members of the Petitioner-Society and a general body meeting was held on 22.04.2024. As all the members of the Society failed to attend the meeting on the scheduled date i.e., on 22.04.2024 necessary quorum for conducting general body meeting was not available and only the managing committee and two others attended the meeting. 4. While so, on 18.07.2024, a requisition was received from 53 members for conducting a special general body meeting of the Society. As per bye-laws of the Society to act upon the letter of requisition, the mandatory strength is 2/3rd members. The total strength of the Society is 93 members and 2/3rd strength comes to 62 members and the letter of requisition was signed by only 53 members and the general body meeting was not called. While so, Respondent No.5 had issued the impugned notice, dated 19.11.2024 directing the members of the Society to attend the general body on 13.12.2024. The said notice was issued under Section 60(1) of the A.P. Cooperative Societies Act, 1964 (for short “the APCS Act, 1964”), which is not applicable to the facts of this case. 9 5. It is stated that a requisition letter dated 07.10.2024 was issued by 53 members, pursuant to which the department had issued the impugned notice. The Petitioners submitted a detailed representation on 01.12.2024 requesting to enquire into the matter and cancel the general body meeting. However, there was no reply thereon. Hence, the present Writ Petition is filed questioning the authority of Respondent No.5 to call for the general body meeting without calling for any explanation or making any efforts to address certain basic facts. 6. In the Counter-Affidavit filed by Respondent No.5, it is stated that on 07.01.2024, 51 members of the Society had signed on the requisition to initiate action to call for general body in the first half year 2024-25 as required under Section 32(1) of APCS Act, 1964 even though a representation was given by them to that effect. It is also stated that the present President of the Society had unilaterally entered into an agreement with M/s. Hasini Infra Private Limited on 24.03.2024 as Vice-President of the previous Committee and registered the deed in favour of the Realtor in the ratio of 74:26. After this aspect was brought to the notice of the Deputy Registrar of Cooperative Societies, Visakhapatnam through a petition on 10 03.10.2023 and during the preliminary enquiry, the alleged acts of the President have been confirmed. 7. In that context, a direction was given by Respondent No.5 to conduct the general body of the Society and take appropriate action to redress the grievance of the members. It is also stated that the provisions of Section 32(1) of APCS Act, 1964 R/w Bye-law No.38 of the Registered Bye-laws of the Petitioner-Society, it shall be statutory obligation on the part of the managing committee of the Society to call not less than two general body meetings, provided that one meeting shall be held in each half year. It is stated that there are only 61 members existing in the Society as on 18.07.2024 since 32 members had expired and two members had withdrawn from their membership. 8. The contention of the Petitioners that there are total 93 members in the Society is not correct. The 2/3rd strength of the members comes to 41 only and when 53 members have given requisition to conduct general body meeting, the managing committee of the Society was bound to give effect to the same. Apart from that, as the managing committee failed to conduct general body meeting, the committee had ceased to hold office in view of Section 32(1-A) of the APCS Act, 1964. It is further stated 11 that the District Registrar of A.P. Cooperative Societies conducted a general body as provided under Section 32 (5)(a) of APCS Act, 1964 and transacted agenda items. 9. It is stated that 35 members had attended the general body meeting and 23 members were absent. As per Bye-law No. 38(e) the quorum for the general body is 20 or 1/3rd of total members, whichever is less and the general body is validly conducted. Two resolutions were also extracted in the Counter-Affidavit. The Non-official Person In-charge Committee (3 men) was appointed as per Section 32(7)(a) of the APCS Act, 1964 vide Proceedings Rc.No.1096/2023/C, dated 13.12.2024 and that the committee has assumed charge on the same day at 4.00 p.m. 10. Implead applications were filed vide I.A.No.2 of 2024 and I.A.No.7 of 2025 by Respondent Nos.6, 7 and 11 to 51 respectively. Counter-Affidavits were filed by reiterating the fact that out of 93 original members of the Society, 35 members have died and that there are only 58 members as on that date. The implead- Respondents denied the general body said to have been conducted on 22.04.2024 and that the same was postponed for want of quorum. The other contentions are with regard to the strength of the 12 Society and the same were in support of the Counter-Affidavit filed by Respondent No.5. 11. Heard Sri K.S. Murthy, learned Senior Counsel for Sri Ponnada Sree Vyas, learned counsel for the Petitioners and Senior Counsel K. Chidambaram for Sri Yashwant Gade, Sri Krishna Kishore, learned Assistant Government Pleader for Cooperation appearing for Respondent No.5 and M/s. V. Sesha Kumari, learned counsel for Respondent Nos.11 to 51. 12. Pursuant to the impugned notice, the general body meeting was held on 13.12.2024 as this Court did not pass any interim orders. Pursuant to the meeting, agenda items were discussed and resolutions were passed. Further, the Non-official Person In-charge Committee (3 men) was appointed as per Section 32(7)(a) of APCS Act, 1964 vide Proceedings Rc.No.1096/2023/C, dated 13.12.2024 and that the committee has assumed charge on the same day. 13. On merits, the provisions relevant for this case are Section 32(1), (1-A) and (2)(i) of the A.P. Cooperative Societies Act,1964. The same is extracted below; “32. General meetings and committee meetings: [Rule 23, 23A, 23B, 23AA, 26] 13 (1) The committee may, at any time, call not less than two general meetings of a society in a co-operative year: Provided that one meeting shall be held in each half year. (1-A) If the general meeting is not convened in accordance with the provisions of sub-section (1), the members of the Committee shall cease to hold office on the day next after the 1st day on which the general meeting should have been held, and it shall be competent for the Registrar, notwithstanding anything in the bye-laws, to call such general meeting in such manner as may be prescribed.] (2) The committee shall call a general meeting of the society within thirty days of the date of receipt of a requisition in writing from (i) such number of members or proportion of the total number of members, as may be specified in the bye- laws” 14. As per the above provisions, a general body meeting should be convened twice every year, preferably once every (06) months. In default, the members of the committee shall automatically cease to hold office. Thereupon, the Registrar can call for such general body meeting. The above Rules also contemplate the general body meeting at the requisition of the minimum number of members as prescribed in the bye-laws of the Society. 14 15. The managing committee was elected in March, 2023 and was superseded by the impugned orders on 19.11.2024 for not convening a general body meeting as contemplated under Section 32(1) of the Act. When an allegation of this nature is made, the obligation is on the managing committee to establish the fact that general body meetings were convened in terms of the above provision. 16. In the pleadings in support of the Writ Petition, there is no plea as to whether the two general body meetings in the year 2023 were conducted. In the pleadings, the only defence was that the managing committee had convened a general body meeting vide Notice dated 05.04.2024 and the meeting was scheduled on 22.4.2024. However, the same could not fructify for want of quorum as only two members had attended. The Respondents seriously disputed this and it is their specific stand that no meeting was convened and the Petitioners issued no notice. 17. The bye-law No.38 of the Society contemplates the manner in which the notice for general body be given to the members. The relevant portion of the bye-law is extracted below; 15 “38. General Body Meeting: a) The Board of directors may at any time call a general meeting of the society for the conduct of business, but such meeting shall be held at least once in a cooperative year. b) The General Body Meeting shall consist of all the members of the society. c) The Board of Directors shall call a General Meeting of the society within 30 days from the date of receipt of requisition of writing from 2/3rd of total number of members, the A.P.C.H.S.F. Ltd., Hyderabad to which it is indebted, a federal society to which the society is affiliated, the Registrar or any person authorized by him. d) A notice of the meeting of the General Body shall be issued specifying time, place and date of the meeting at least 15 clear days in advance. Such notice shall be sent to the members by any of the following modes namely:- i) by local delivery or ii) by post under certificate of posting e) The quorum for the General Meeting shall be 20 or 1/3rd of the total number of members on rolls whichever is less. f) The President or the Vice-President or in the absence of both, any member elected by the General Body shall preside at the General Body Meeting. Every member present shall have one vote. All questions except those 16 motioned by byelaw No.16, shall be decided by a majority of votes of the members present, provided that in a General meeting convened for the purpose of election of the members of the Board of Directors, the election offer under rule 22 of the A.P.C.S. Rules, 1964 shall preside over the meeting and conduct the proceedings. g) In case of quality of votes, the chairman of the meeting except the Election Officer under Rule 22 shall have casting vote or a second vote. h) The General Body shall be convened by the resolutions of the Board of Directors.” 18. In the material papers, it is mentioned at Page 37 that registered post was sent to 16 members and notice through ordinary post was sent to 64 members. However, no proof of service of notice is filed in the material papers nor any plea was taken that notices to the members were served or served before the due date. In the absence of proof of service of notice, it cannot be said that a general body meeting was called for by the executive/managing committee of the Society. 19. Further, in the notice (Ex.P.5) dated 05.04.2024 calling for general body meeting on 22.04.2024, it was mentioned that the general body meeting would be convened at “10.30 am at YRPC 17 (Yeleswaram Reservoir Project Canal) Guest House, Near C.E North Coast office, Opp: AU Ladies Hostel, III town Police Station Junction, Pedda Waltair Road, Visakhapatnam-3”. The Ex.P.6 is the handwritten note regarding the general body meeting held on 22.04.2024. The same reads as under; “General Body Meeting held on 22.04.2024 under the chairmanship of Sri. K. Venkateswara Rao, President of AP SCCECO-OP H. Bld in the premises of Hotel Meghalaya at 10.30 A.M. Members Present (i) Signed - (ii) Signed - (iii) Signed - (iv) Signed - (v) Signed - (vi) Signed - (vii) Signed - For want of quorum meeting postponed Signed 22.04.2024 President” 20. At Page 43 of the material papers, irrelevant papers masquerading as a neat copy of the handwritten resolution were filed. This Court expresses displeasure in the manner the so called neat copy was filed. Be that as it may, this change in the place of general body was not an typographical error as this aspect was 18 re-iterated in the representation dated 01.12.2024 (Ex.P.10) given by the Petitioners to the Deputy Registrar of Cooperative Societies seeking to postpone the general body meeting vide impugned notice, it was mentioned that the general body meeting was conducted “at Meghlaya hotel,Vyshali restraraunt at 10.30 am on 22.04.2024”. 21. These unexplained contradictions in Ex.P.5, Ex.P.6 and Ex.P.10 regarding the place of the alleged general body meeting on 22.04.2024, adds credence to the objections raised by the impleaded Respondents regarding non-convening of meeting by the managing committee of the society. A general body meeting scheduled at one place in the notice and conducted at another place amounts to no valid call for a meeting at all. 22. Coming to the plea regarding non-convening of the General body upon receipt of requisition from 53 members of the society, It was pleaded in Writ Affidavit at Paragraph 5 that the total strength of the Society is 93 members and 2/3rd strength comes to 62 members and the requisition of 53 members does not meet the requirement as per bye-law No.38 (c) of the society. In the Reply Affidavit filed by Respondent No.5 at Paragraph No.3, it was stated that the total strength of the Society is 81 members and 2/3rd strength comes 19 to 54. There is an element of inconsistency as regards the strength of the Society, even as per the Writ Affidavit and Reply Affidavit. In the Counter-Affidavits filed by Respondent No.5 and other Respondents, it has been consistently said that 35 members of the Society had expired and 58 members are alive as on date. 23. One of the contentions of the Petitioners was that the principles of natural justice were not adhered to by the Respondent- authorities and relied upon judgments of this court in Awari Devanna v. Divisional Co-operative Officer1 and of Coordinate Bench in W.P.No.3191 of 2008. The Principles of Natural Justice is not an absolute Rule and certain exceptions were brought in through precedents over a period of time. In S.L. Kapoor v. Jagmohan2, the Hon’ble Supreme Court held that futile writs should not be issued when only one conclusion is possible on admitted or indisputable facts. Relevant portion of Paragraph 24 is extracted below; “In our view the principles of natural justice know of no exclusionary rule dependent on whether it would have made any difference if natural justice had been observed. The non-observance of natural justice is itself prejudice to any man and proof of prejudice independently of proof of denial of 1 (1994) 1 ALT 363 2 (1980) 4 SCC 379 20 natural justice is unnecessary. It ill comes from a person who has denied justice that the person who has been denied justice is not prejudiced. As we said earlier where on the admitted or indisputable facts only one conclusion is possible and under the law only one penalty is permissible, the court may not issue its writ to compel the observance of natural justice, not because it is not necessary to observe natural justice but because courts do not issue futile writs. We do not agree with the contrary view taken by the Delhi High Court in the judgment under appeal.” 24. This principle was followed consistently and term “useless formality” was coined in this context in Aligarh Muslim University v. Mansoor Ali Khan3. In the light of indisputable facts referred above, only one conclusion can be arrived at i.e., general body meeting was not validly convened by the managing committee. 25. Therefore, this Court does not find any error in issuing the impugned notice and accordingly the Writ Petition is dismissed. 26. No order as to costs. As a sequel, pending applications, if any, shall stand closed. _________________ NYAPATHY VIJAY, J Date: 05.05.2026 IS 3 2000 (7) SCC 529 21 THE HON’BLE SRI JUSTICE NYAPATHY VIJAY WRIT PETITION No.28886 of 2024 Date: 05.05.2026 IS