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2009 Supreme(SC) 955

Supreme Court of India
THE HONOURABLE MR. JUSTICE S.B. SINHA & THE HONOURABLE DR. JUSTICE MUKUNDAKAM SHARMA
Naresh Shankar Srivastava
Versus
State of U.P. & Others
CIVIL APPEAL Nos.292-294 OF 2005 With CIVIL APPEAL No.1722 OF 2005
Decided on : 06-05-2009

Appearing Advocates:
For the Appearing Parties :Dr. Sumeet Bhardwaj, Ms. P. Dutta, Ms. Mridula Ray Bhardwaj, Manoj Swarup, Ms. Lalita Kohli, Ms. Charu Singhal (for M/s. Manoj Swarup & Co.), Rajesh Srivastava, D.K. Rastogi, Raghvendra P. Singh, Rakesh Dwivedi, Rakesh Kumar Chaudhary, Shantanu Krishna, Anuvrat Prakash, Preetika Dwivedi, Mukti Chowdhary, Rahul Dua, R.K. Gupta, Chandra Prakash Pandey, Abhay Prakash Sahay, Anuvrat Sharma, Kamlendra Mishra, Ms. Asha G. Nair, Ms. Kiran Bhardwaj, D.S. Mahra, Javed Mahmud Rao, Dr. (Mrs.) Vipin Gupta, Advocates.

Headnote:A. Multi State Co-operative Societies Act, 1984, Section 95 - U.P. State Re-Organization Act (2000), Sections 67, 86, 93 - State Co-operative Society - Bifurcation of the State on reorganization - Area of operation of Co- operative Society - Falling within both the States – Effect - Deemed to be Multi State Co-operative Society - Conversion not saved by Section 67 or Section 93 of Reorganization Act.

       [16,17 and 18]

       B. Multi-State Co-operative Societies Act, 1984, Sections 18 and 95 - State Co-operative Society - Bifurcation of the State on reorganization - Area of operation of Co- operative Society - Falling within both the States – Effect - Automatically becomes Multi-State Society - Procedure prescribed for conversion of State Society to Multi-State Society - Not required to be followed.

       [Para 23]

       C. Multi-State Co-operative Societies Act, 1984, Section 95 - Uttranchal Co-operative Societies Act, 2003, Section 129 - State Co-operative Society - Bifurcation of the State on reorganization - Area of operation of Co- operative Society - Falling within both the States – Effect - Subsequent enactment of Uttranchal Act 2003 - Cannot have the effect of converting such a Society into State Society.

       [Para 24]

Judgment :

Dr. Mukundakam Sharma, J.

1. The present appeals arise out of judgment and order dated 10.11.2004 passed by the High Court of Allahabad, Lucknow Bench, Lucknow in Writ Petition No. 5171 of 2002 along with 13 other similar connected writ petitions. Since the common questions are involved in these appeals, the same are being disposed of together with a common judgment.

2. The important legal issues which have arisen for consideration in these appeals are whether after the bifurcation/re-organisation of the State of Uttar Pradesh and creation of the State of Uttaranchal under the U.P. State Re-organization Act, 2000 (hereinafter referred to as the `Re- organisation Act) which was promulgated on 9.11.2000, the affairs of various cooperative societies carrying out their business in both the States at the time of re-organisation shall be governed by the U.P. State Cooperative Societies Act, 1965 (hereinafter referred to as the `UP Act) or by the Multi State Cooperative Societies Act, 1984 (hereinafter referred to as the `Multi-State Act) and whether these societies would automatically become Multi State Cooperative Societies with effect from 09.11.2000 i.e. the date of re-organisation of the State. This issue has emanated because of an order dated 14.02.2001 passed by the Registrar of Cooperative Societies to the effect that the U.P. Cooperative Processing and Cold Storages Federation Limited, Lucknow (in short the `PACSFED) is deemed to be a Multi State Cooperative Society under Section 7 of the Multi-State Act. The said order was the subject matter of the writ petitions out of which the present appeals arise.

3. Brief facts of the case for the purpose of disposal of present bunch of appeals are required to be stated first. The PACSFED was registered on 25.11.1974 as apex cooperative society under the provisions of the UP Act and the Rules framed thereunder. The area of operation of the PACSFED was the whole state of Uttar Pradesh. In the year 2000, the Re-organisation Act was passed which came into force on 09.11.2000. By the operation of the said Act, the State of Uttar Pradesh was bifurcated and a new State of Uttaranchal (now Uttarakhand) was created by carving out certain territories from the State of Uttar Pradesh.

4. Due to the aforesaid re-organisation, the PACSFED is taken to have become automatically a multi-state co-operative society on 09.11.2000 i.e. the date of reorganisation by virtue of operation of Section 95 of the Multi-State Act. On 14.02.2001, the Central Registrar of the Multi State Co-operative Societies issued a Registration Certificate granting registration of the PACSFED under the Multi-State Act. Aggrieved by this decision, the Registrar of Co-operative Societies, Lucknow filed a revision on 18.04.2001 before the Central Government under Section 92 of the Multi-State Act challenging the issuance of aforesaid Registration Certificate. However, on 06.02.2002 the said revision was dismissed by the Central Government.

5. The State of Uttar Pradesh and the Registrar, Co-operative Societies, Uttar Pradesh on 22.05.2002 filed two Writ Petitions bearing nos. 602 and 1710 of 2002 in the High Court of Allahabad challenging the aforesaid order dated 06.02.2002 of the Central Government. The High Court by impugned judgment and order dated 10.11.2004 allowed the said writ petition and quashed the Certificate of Registration dated 14.02.2001 and also the order of the Central Government dated 06.02.2002.

6. Feeling aggrieved by the aforesaid decision of the High Court, the present special leave petitions have been preferred. There were in total six appeals against the said decision of the High Court. This Court vide its order dated 17.01.2008 dismissed the appeal bearing C.A. No. 291/2005 as withdrawn. Another appeal bearing C.A. No. 290/2005 was dismissed for non-prosecution by this Court vide order dated 05.02.2009. Therefore, only four appeals bearing Civil Appeal Nos. 292/293/294 of 2005 and 1722 of 2005 a





























































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