In Brief
Eight cooperative credit societies in Gujarat were facing winding-up proceedings under the Cooperative Societies Act, 1961. When elections for an Agricultural Produce Marketing Committee were held, the managing committee members of these societies were excluded from the voter list on the ground that societies undergoing winding-up cannot be deemed to be 'dispensing agricultural credit'. The High Court allowed the members' challenge. The Supreme Court dismissed the appellants' appeals, holding that such exclusion lacks legal authority. The phrase 'dispensing agricultural credit' describes the purpose for which societies are established, not a condition requiring current activity. Since interim winding-up orders may be vacated, and managing committee members retain office until final winding-up, excluding them would cause public mischief and cannot be permitted.
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