SUPREME COURT OF INDIA
BEFORE V. R. KRISHNA IYER AND O. CHINNAPPA REDDY, JJ.
VIRENDRA PAL SINGH AND OTHERS
Versus
DISTRICT ASSISTANT REGISTRAR, COOPERATIVE SOCIETIES, ETAH AND ANOTHER
Civil Appeal No. 288 of 1978 (with Special Leave Petitions Nos. 7188 of 1979, 4214-4216 of 1980; Writ Petitions Nos. 568-572, 579, 662, 765, 908, 1077 of 1979, 298 and 419 of 1980)
Decided on 2-5-1980
Uttar Pradesh Cooperative Societies Act, 1965 – Section 29,34,30,121,122,122-A and 37 - Retirement - Age of retirement - Civil appeal, special leave petitions and writ petitions were heard together - There were some points common to all cases and some special only to a few of the cases - It is unnecessary to state facts of any of the cases in detail - Before the passing of U. P. Cooperative Societies Act, 1965, Cooperative Societies Act, 1912, was in force and various cooperative societies including cooperative banks were registered under that Act - U. P. Cooperative Societies Act, 1965, was passed to consolidate and amend the law relating to cooperative societies, in Uttar Pradesh - Statement of Objects and Reasons shows that effort was to reorient policy of State towards cooperation and to adopt cooperative techniques in various spheres of developmental activity - Experience had shown that it was also necessary to introduce some provisions to entrust additional function and responsibilities to cooperative societies but at same time it was necessary to give proper guidance and exercise effective supervision and control - It was expressly stated that one of principal objects, of Act was to enable weaker section of the public to benefit from cooperatives - Cooperative society is defined in the Act as meaning a society registered or deemed to be registered under Act - An apex society, apex level society or State level cooperative society is defined as meaning U. P. State Cooperative Land Development Bank Ltd. and such other State-level cooperative banks, including any other central cooperative society with an area of operation covering whole of Uttar Pradesh and fulfilling certain prescribed conditions - Whether a legislation falls under an entry in one list or another entry in another list – Held, fact that Regulations had not been made when appointments were made did not empower committee of management to make the appointments usurping power of the U. P. Cooperative Institutional Service Board - It appears that such persons as were appointed by Committee of Management during the Interregnum were given an opportunity to appear before the U. P. Cooperative institutional Service Board and were screened - Some were selected and some were not - Another question which was raised was that though the age of retirement of employees of some of cooperative societies was originally 60 years under the U. P. Cooperative Societies Employees Service Regulations, age of retirement has now been made 58 years - Court are unable to see any force in this submission - Regulation 24(ii) itself provides that if before the coming into operation of Regulations the society had entered into any contract with an employee on date of his employment whereby he was entitled to continue beyond 58 years, rule of retirement at the age of 58 years shall not apply and the age of retirement shall be governed by the contract - Therefore, if in any case there is a contract between a cooperative society and an employee entered into before Regulations came into force stipulating age of retirement as 60 years the Regulation now stipulating age of retirement as 58 years will not apply to him - Court make it clear that this principle does not apply to the members of the centralised services – Petition dismissed.
JUDGMENT
Chinnappa Reddy, J.- The civil appeal, the special leave petitions and the writ petitions were heard together. There were some points common to all the cases and some special only to a few of the cases. It is unnecessary to state the facts of any of the cases in detail. Before the passing of the U. P. Cooperative Societies Act, 1965, the Cooperative Societies Act, 1912, was in force and various cooperative societies including cooperative banks were registered under that Act. In 1965 the U. P. Cooperative Societies Act, 1965, was passed to consolidate and amend the law relating to cooperative societies, in Uttar Pradesh. The Statement of Objects and Reasons shows that the effort was to reorient the policy of the State towards cooperation and to adopt cooperative techniques in various spheres of developmental activity. Experience had shown that it was also necessary to introduce some provisions to entrust additional function and responsibilities to cooperative societies but at the same time it was necessary to give proper guidance and exercise effective supervision and control. It was expressly stated that one of the principal objects, of the Act was to enable the weaker section of the public to benefit from cooperatives. Therefore, provision was made for State aid to cooperative societies in various forms while at the same time providing for a proper machinery for supervision and guidance.
2. Cooperative society is defined in the Act as meaning a society registered or deemed to be registered under the Act. An apex society, apex level society or State level cooperative society is defined as meaning U. P. State Cooperative Land Development Bank Ltd. and such other State-level cooperative banks, including any other central cooperative society with an area of operation covering the whole of Uttar Pradesh and fulfilling certain prescribed conditions. A central society or central cooperative society is defined as meaning a cooperative society which has other cooperative societies as its ordinary members and is not a primary cooperative society. A primary society is defined as a cooperative society, whose ordinary membership is not open to any other cooperatixe society. A credit society is defined as a society which has as its primary object the raising of funds to be lent to its members. A financing bank or central bank is defined to mean a cooperative society whose main object is to lend money to cooperative societies which are its ordinary members. Committee of management is defined to mean the committee of cooperative society by whatever name called to which the management of the affairs of the Society is entrusted under Section 29 of the Act.
3. Chapter II of the Act deals with Registration of Cooperative Societies. Chapter III deals with Members of Cooperative Societies and their Rights and liabilities. Chapter IV deals with Management of Societies.
4. Section 28 of the Act vests the final authority of a cooperative society in the general body of its members in general meeting. Section 29 "provides for the vesting of the management of every cooperative society in a committee of management constituted in accordance with the Act, Rules and bye-laws. Section 34 provides for the nomination of members by the government to the committee of management in the case of certain Cooperative Societies. Section 29 further provides that where the term of office of a committee has expired and for any reason the election of the members of the Management committee has not taken place, the Registrar is empowered to appoint an administrator for the management of the affairs of the society. Section 30 provides for the election of a Chairman who shall be responsible for the control, supervision and guidance of the affairs and business of the society. Section 31 provides that there shall be a Secretary for every cooperative society (except in the case of an apex society) to be appointed and removable by the society subject to the provisions of S
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