JUDGMENT

R.V. Raveendran, J.—

This appeal by special leave is filed by the State of Assam aggrieved by the order dated 14.6.2001 passed by the Division Bench of the Gauhati High Court. By that order the Division Bench upheld the order dated 23.12.1999 of the learned Single Judge in Civil Rule No.2996/1995 allowing respondent’s writ petition and directing the state government to sanction financial assistance by way of grant-in-aid to Cachar and Karimganj District Milk Producers’ Cooperative Union Limited (‘CAMUL’ for short) so as to enable CAMUL to make regular payment of monthly salaries, allowances as also the arrears to its employees.

2. CAMUL is a society registered under the Assam Co-operative Societies Act, 1949 (‘Act’ for short). Respondent, a Trade Union representing the workers of CAMUL, filed the said writ petition (Civil Rule No.2996/1995) contending that the state government formed and registered CAMUL as a co-operative society to run its cattle development project; that its Board of Directors including the Managing Director (always a government servant, on deputation) were appointed by the state government; that the post of the Managing Director of CAMUL was declared to