Judgement

JUDGMENT :- Impleadment and Intervention allowed.

2. Leave granted

3. We have heard learned counsel for the parties.

4. These appeals raise an interesting question of law relating to the validity of the Act and the Rules providing reservation for or nomination of weaker sections into the Co-operative Societies registered under the U.P. co-operative Societies Act, 1965 (for short, the Act) and the U.P. Co-operative Societies Rules, 1968 (for short, the Rules), as amended from time to time.

5. The question is : whether the U.P. Legislature has power to make the law to so amend the Act and the Rules as to provide for reservation to the weaker sections? The High Court declared Section 130(2)(xii) and (xii-A) and the provisos and the explanation to sub-rule 393-A, Rule 393-B, clause (d) of sub-rule (4) and part of sub-rules (6) to (8) of Rule 440, so far as relating to reservation of seats for weaker-sections, sub-rule (3) of Rule 444-A and clause (i) of sub-rule (5) of Rule 453 as ultra vires the Constitution and accordingly quashed them. Calling in question this judgment of the High Court of Allahabad dated March 10, 1995 in CMWP Nos. 40006 and 40121 of 1994, these appeal, have come to be filed.

6. Due to absence of representation of democratic character in the management of the co-operative societies on the basis of election by the general body of the society, the members of the weaker sections, namely, Scheduled Castes and Scheduled Tribes women and other backward classes do not find place. Consequently, the Government introduced amendment to the Act. By adoption of the definition of "Other Backward classes" contained in U.P. Public Services Reservation for Scheduled Castes and Scheduled Tribes and Other Backward Classes Act, 1994, brought Other Backward Classes within the ambit of weaker sections and made all of them members of the Committee of the Management of the Co-operative Society registered under the Act so as to enable them to the elected or nominated as members. Section 4 of the Act prescribes the guidelines in the matter of formation of the Co-operative Societies and reads as under:

"4. Societies which may be registered - Subject to the provisions of this Act, a society which has as its object the promotion of the economic interest of its members in accordance with co-operative principles or a society established with the object of facilitating the operations of such a society, may be registered under this Act.

EXPLANATION - Co-operative principles shall mean

(a) advancement of economic interest of the members in accordance with public morals, decency and the relevant directive principles of State Policy enunciated in the Constitution of India;

(b) regulation and restriction of the profit notice;

(c) promotion of thrift, mutual aid and self-help;

(d) voluntary membership; and

(e) democratic constitution of the society.

7. Section 29 of the Act envisages the constitution of Committee of Management. Sub-section (1) reads as under:

"29(1) The management of every co-operative society shall vest in a Committee of Management constituted in accordance with this Act, the rules and the bye-laws, which shall exercise such powers and perform such duties as may be conferred or imposed by this Act, the rules and the bye-laws.

(Emphasis supplied)

8. Other sub-sections are not relevant; hence omitted. Section 30(1) to (4) deals with election of the Chairman and Vice-Chairman of the Society. Section 130(1) provides that the State Government may make Rules. Sub-section (2) postulates that, in particular, and without prejudice to the generality of the power under sub-section (1), the rules to be made under this section may provide for all or any of the matters enumerated therein. In pursuance thereof, Rules came to be amended. Clauses (xii) and (xii-A) read as under: "(xii) the election of the members and chairman and Vice-Chairman of the Committee of Management of a co-operative society, including delimitation of constituencies, reservation