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1998 Supreme(SC) 87

1998(1) Supreme 283
SUPREME COURT OF INDIA
(From Madras High Court)
S.P. Bharucha and V.N. Khare, JJ.
S.K. Paramasivam etc. -Appellants
versus
Govt. of Tamil Nadu & Ors. -Respondents
Civil Appeal No. 4465 of 1997
With C.A. No. 4466 of 1997
Decided on 20-1-1998
Counsel for the Parties :
For the Appellant :Mr. R. Mohan, Mr. P.R. Ku-marmanglam, Sr. Advocates, Mr. R.A. Pe-rumal and Mr. P.K. Mullick, Advocates.
For the Respondents : Mr. V.R. Reddy, Addi-tional Solicitor General, Mr. T. Harish Kumar and Mr. V. Krishnamurthi, Good-will Indeevar, Advocates.

Headnote:Constitution of India-Art. 136 -Tamil Nadu Cooperative Societies Act, 1983-Sections 26 & 170-Rule 51A-Bye-law 5-Election to Milk Producers Co-operative Society-Government Order dated 26.4.1990 providing that for partici-pating in election, a member should have supplied a minimum quantity of 300 litres of milk, or should have supplied milk for a minimum period of 120 days in the previ-ous cooperative year-Another G.O dated 10.9.1990 amending earlier order-Third order dated 27.9.1996, G.O. Ms. No. 166 rescinding the exemption given earlier-All the Members of the Premary Dairy Co-operative Societies who satisfy conditions of Rule 51A shall be eligible to vote at or stand for any election to the society-Order challenged as contrary to require-ments of the statute and bad in law-Whether the order is valid?-(Yes)-There is nothing which prevents State Government in law from issuing the im-pugned Government Order. (Paras 5 & 6)

       

JUDGMENT

Bharucha, J.-These appeals by special leave impugn the judgment and order of the High Court at Madras dismissing the writ peti-tions filed by the present appellants, along with other similar writ petitions, and giving certain directions (with which we are not immediately concerned).

2. For the purposes of appreciating what is involved, certain provisions of the Tamil Nadu Co-operative Societies Act, 1983 and the Rules and Bye-laws made thereunder need to be cited. Section 21 of the said Act prescribes the qualifi-cations for membership of a co-operative society. What is relevant is that it provides that the indi-vidual or registered society or the body of per-sons referred to in items (i), (ii) and (iv) thereof shall possess such further qualifications as may be specified in the Rules or the Bye-laws. Sec-tion 23 sets out the disqualifications for mem-bership of a society. Among them is the follow-ing :

"does not possess the qualification, with reference to the principal object of the so-ciety, prescribed in the rules or the bye-laws".

Section 26 relates to the votes of members. Un-der sub-section (1) clause (a) thereof, no member of a registered society shall have more than one vote in the affairs of the society, and clause (C) reads thus :

"(C) Save as otherwise provided under this Act and the rules, no member of a registered society shall be deprived of his right to vote in the election of the mem-bers of the board of such society."

Section 170 empowers the State Government, in the public interest, by general or special order, whether prospectively or retrospectively, to ex-empt any registered society from any of the pro-visions of the Act (except some provisions with which we are not here concerned) or of the Rules, subject to such conditions as may be specified. Rule 14 of the Rules made under the Act empowers the Registrar to classify and cate-gories societies into the classes therein men-tioned, according to the principal object pro-vided in the bye-laws thereof. The 6th class thereunder is "Diary Society" and this class has 5 categories, namely, Milk Producers Society, Milk Consumers Society, Milk Supply Society. Milk Supply Union and Dairy Farm. Rule 51A provides for the eligibility of members to vote at, or stand for, elections. It reads thus:

"Notwithstanding anything contained in the bye-laws of a society, the members who are not otherwise disqualified to vote at, or stand for, any election in accor-dance with the provisions of the Act or these rules, shall be eligible to vote at, or stand for, any election to the society."

Bye-law 5, specifically applicable to Milk Pro-ducers Co-operative Societies, upon which reli-ance is placed by the appellants, reads thus:

"Bye-law 5(1)(a). Any person who is re-siding in the area within the jurisdiction of the Society, who is above 18 years of age, who is competent to enter into a con-tract, who is a genuine milk producer, who undertakes to sell the milk produced by him through the society, is eligible to become a member.

(b) The application for becoming a mem-ber is to be approved by the Board of Di-rectors of the Society. (Rejection of appli-cations should strictly be under the provi-sions of the Co-operative Societies Act).

(c) The person should not be a milk ven-dor or a vendor of milk products.

(ii) Any member who had supplied less than 300 litres of milk or supplied milk for less than 120 days in the preceding co-operative year, will not be entitled to any rights, other than pecuniary rights such as bonus, dividend, etc."

3. On 26th April, 1990, the State Govern-ment issued a Government Order which pro-vided that for participating in an election to a Milk Producers Co-operative Society, a member should have supplied a minimum quantity of 300 litres of milk, or should have supplied milk for a minimum period of 120 days in the previ-ous co-operative year. On 10th September, 1990, another Government Order was issued. The ear-lier G.O. was referred to therein as having been is
















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