Judgment

CHINAPPA REDDY, J.:- The opinion of the High Courts appears to be unanimous on the question of the validity of the relevant provisions of the Co-operative Societies Acts in force in their respective States providing for the compulsory amalgamation of Co-operative Societies. The Full Benches of the High Courts of Andhra Pradesh, Karnataka, Punjab and Haryana. (DB?) and a Division Bench of the Patna High Court, AIR 1978 Andh Pra 121 (FB). (There is also an excellent discussion by Vaidya, J. in ILR (1972) Andh Pra 1140) have upheld the validity of such provisions. But litigants, particularly those who are in a position to command funds are rarely deterred by such unanimity of judicial opinion. So, several Co-operative Societies of Punjab have chosen to prefer appeals to this Court questioning the vires of S. 13(8) of the Punjab Co-operative Societies Act which provides for the compulsory amalgamation of co-operative societies if it is necessary in the interests of the co-operative societies. The questions raised are simple and straight and are capable of but single, straightforward answers. Unfortunately a large number of appeals have piled up in this Court on these questions and we are told that a large number of writ petitions said to involve these or similar questions are pending in the various High Courts in the country awaiting the decision of this Court. We earnestly hope that this decision will put an end to this branch of the litigation and will serve to push forward the co-operative movement. We think it is needless to refer to the nature and history of the co-operative movement except to say that the promotion of the co-operative movement is one of the Directive Principles of State Policy (see Art. 43 of the Constitution). As usual in these and such cases, the counter-affidavits, where they have been filed, leave much to be desired and are least helpful. But, as pointed out by us often enough, the vires of legislation is not to be decided on the basis of affidavits of underlings of the executive Who can hardly be described as authorised to speak for the legislature. But even from the meagre material available to us from the record, it is obvious that the provisions relating to amalgamation of Co-operative Societies in different States, enactments were introduced pursuant to a policy decision arrived at an All India Conference. This is evident from the circumstance that these provisions were enacted by the various State legislatures roughly at about the same time. A reference to the policy decision at. an All India Conference may be found in the Full Bench Judgments of the Andhra Pradesh and Karnataka High Courts. It is unnecessary to say more on this aspect of the case.

2. The Punjab Co-operative Societies Act, 1961 which replaced the earlier Act was enacted, so it is stated in the Statement of Objects and Reasons, "In pursuance of the policy of the Government of India to simplify co-operative law and procedure in order to remove all bottlenecks in the way of development of co-operative movement in the country." It is further stated in the Statement of Objects and Reasons :

"The important provisions, such as relating to change of liability, amalgamation of societies, splitting up of societies, settlement of disputes and winding up of societies, etc. were found to be of a dilatory and complicated nature, and, therefore, creating problems in the day to day working of the co-operative societies. Special care has, therefore, been taken to cut out all unnecessary delays particularly in registration of societies and the provisions to this effect have been simplified. Another approach influencing a change is to make the Co-operative Law comprehensive. Moreover consistent with our national policy to promote the organisation and growth of the co-operative societies in the various fields of economic activity, more difficult and complicated forms of co-operative societies are to spring up as compared to Co-operative Credit S