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Andhra Pradesh High Court
Judges : S.S.M.QUADRI, V.BHASKARAN NAMBIAR
State Of A.P. - Appellant
Versus
Multi Co-op., Association, Hyderabad - Respondent
Decided On : 10-31-86
CO-OPERATIVE SOCIETIES - ELECTION TO MANAGING COMMITTEES - POSTPONEMENT - VALIDITY - GOVERNMENT ORDER EXEMPTING CERTAIN CLASSES OF SOCIETIES FROM PROVISIONS OF ACT AND RULES RELATING TO CONDUCT OF ELECTIONS - VALIDITY - POWER OF GOVERNMENT TO EXEMPT CLASS OF SOCIETIES - SCOPE AND PURPOSE - DISCRETION TO BE EXERCISED BY GOVERNMENT - PRINCIPLES - RIGHT TO HAVE AFFAIRS OF SOCIETY MANAGED BY ELECTED REPRESENTATIVES - FUNDAMENTAL RIGHT - VIOLATION.
Fact of the Case:
In Andhra Pradesh, elections to the Managing Committees of Co-operative Societies had not been held for about a decade prior to 1981. The three-year term of the Managing Committees elected in 1981 expired in September/October 1984, and no elections were held thereafter. The petitioner-association, representing primary agricultural Co-operatives (PACs) of Andhra Pradesh, filed a writ petition seeking a direction to the respondents to hold elections to the managing Committees of the member-Co-operatives forthwith. The learned single Judge allowed the writ petition and directed the respondents to hold the elections within three months from the date of receipt of the copy of the judgment. The State of Andhra Pradesh and the Registrar of Co-operative Societies filed writ appeals challenging the validity of the judgment of the learned single Judge.
Finding of the Court:
The Court held that the impugned Government Order (G. O. Rt. No. 1196), dated 4-7-1985, exempting certain classes of Co-operative Societies from the provisions of Section 31 of the Act and Rule 22 of the Rules in regard to the conduct of elections, was invalid. The Court held that Section 123 of the Act, which empowers the Government to exempt any Society or any class of Societies from any of the provisions of the Act, is meant to meet extraordinary situations, to be used not in a casual way or with ulterior motives, and should be resorted to sparingly and under exceptional circumstances, not for such purpose like avoiding elections for indefinite periods. The Court held that the Government's action in issuing the impugned Government Order was arbitrary and violative of the basic statutory right of the Societies to have their affairs managed by elected representatives.
Issues: 1. Whether the learned single Judge was in error in allowing the writ petitions, giving the aforesaid directions ? 2. What, if any, is the direction to be issued by us in these appeals ?
Ratio Decidendi: 1. The Court held that the impugned Government Order (G. O. Rt. No. 1196), dated 4-7-1985, exempting certain classes of Co-operative Societies from the provisions of Section 31 of the Act and Rule 22 of the Rules in regard to the conduct of elections, was invalid. 2. The Court held that Section 123 of the Act, which empowers the Government to exempt any Society or any class of Societies from any of the provisions of the Act, is meant to meet extraordinary situations, to be used not in a casual way or with ulterior motives, and should be resorted to sparingly and under exceptional circumstances, not for such purpose like avoiding elections for indefinite periods. 3. The Court held that the Government's action in issuing the impugned Government Order was arbitrary and violative of the basic statutory right of the Societies to have their affairs managed by elected representatives.
Final Decision: The Court dismissed the writ appeals with costs and directed the appellants-respondents to take expeditious steps for holding the elections to the Managing Committees of the Societies concerned in the writ petitions so as to enable the newly elected managing Committees to assume office on or before January 26, 1987.
( 1 ) IN the State of Andhra Pradesh, it is said, there are about 48,000 Co-operative Societies. For about a decade that preceded the year 1981, no election to the Co-operative Societies appears to have been held in this State ; the three year term of the Managing Committees of the Co-operative societies to which elections were held in the year 1981 expired in September/october, 1984 ; and thereafter no election having been held to the Managing committees of about 7,000 Co-operative Societies represented by the petitioner-association. W. P. No. 961/86 was filed on 3-2-1986 for the issue of a writ of mandamus directing the respondents in the writ petition to hold elections to the managing Committees of the member-Co-operatives of the petitioner-association forthwith. The writ petition and W. P. No. 1163/86, filed on 6-2-86 for almost the same relief, have been disposed of by the learned single Judge by the Judgment dated 16-4-1986, directing the respondents in the writ petitions to hold the elections within three months from the date of receipt of the copy of the judgment. This writ appeals are filed by the respondents (the State of Andhra Pradesh and the registrar of Co-operative Societies) challenging the vllidity of the judgment of the learned single Judge. The fact remains that to this date elections have not been held to the Managing Committees of the Co-operatives in question. The questions falling for decision in these writ appeals are :1. Whether the learned single Judge was in error in allowing the writ petitions, giving the aforesaid directions ? and2. What, if any, is the direction to be issued by us in these appeals ?
( 2 ) FOR the sake of convenience, we would refer to the facts and material papers produced in W. P. No. 961/86, out of which arises W. A. 503/86, though by this common judgment, we would be disposing of W. A. No. 504/86, arising out of W. P. No. 1168/86 also. On 3-3-1984, the writ petitioner, an association of primary agricultural Co-operatives (PACs) of Andhra Pradesh, submitted a memorandum to the Government with a request to initiate action for conducting elections to Co-operatives before the expiry of the three-year term of elected committees in October, 1984. (Extracts from this memorandum should be seen at p. 12-B of the material papers ). The Government by Memorandum No. 41090/co-pp. IV/82-12, dated 4-8-1984 had called for a report from the registrar of Co operative Societies with respect to the conduct of elections to the co-operative Societies. That memorandum begins as follows :"elections were held to a number of Societies in September to December, 1981. The term of the Societies would be expiring in the next few months. Government decide the Registrar of Co-operative Societies should collect the following particulars from all the District Collectors before deciding the election schedule for all the Societies to which elections have to be held in the next few months. "
( 3 ) SOON thereafter, on 28-9-84, the Registrar gave telegraphic orders to the collectors and other subordinate officers to appoint person-in-charge in place of committees whose term of office was coming to an end. On October 9, 1984 invoking Section 123 of the A. P. Co-operative Societies Act, 1964 (Act 7 of 964) (her einafter referred to as the Act ), the Government passed orders postponing elections to the Managing Committees of all the Co-operatives by three months, and ordered the Registrar to replace the elected managements by official mominees. By the interim order dated 19-10-1984 in WPMP No. 18202 of 1984 in WP 13861/84 and the petitions in batch of writ petitions, this Court suspended the operation of the order appointing special officers and also directed the respon dents in the petitions to consider the feasibility of extending the tenn of the existing Committees. In obedience to this order, the Government passed orders in G. O. Rt. No. 1688, dated 25-10-1984 for extending the term of elected commi
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