The Government cannot, under section 123 of the Andhra Pradesh Co-operative Societies Act, 1954, exempt an individual from the operation of the provisions of the Act, but can only exempt a society or a class of societies.

( 1 ) THE Yemmiganur Weaver s Cooperative production and Sales Society Limited, Yemmiganur, Kurnool District (hereinafter called the society ) was formed in the year 1938. Since the date of its incorporation till the year 1971, for an unbroken period of 30 years, the 3rd respondent s father Sri Somappa acted as its president. After the father the son, the 3rd respondent Sri Sivanna, took over the presidentship of the society. The 3rd respondent had acted as president of the society first, for a term of 1971 to 1974 and next for another term of 1974 to 1978. He has also now been acting as the president for the third term from 1st July 1978. It is the presidentship of the 3rd respondent for the third successive term that is now challenged in this writ petition.

( 2 ) THE Andhra Pradesh Co-operative Societies Act, 1954, which is the charter under which the aforesaid society is incorporated governs and regulates the method and manner of conducting the elections and also prescribes the qualifications and disqualifications of those who intend to consent to the offices of the Managing Committee. It is only necessary to read sections 30 and 31 and section 21-A and 21-C of the aforesaid Act. Section 30 clause (1) says, "subject to the provisions of this Act, the rules and the bye-laws, the ultimate authority of a society shall Vest in the general body. " Section 31 clause (1) reads as follows:- "the general body of a society shall constitute a committee in accordance with the bye-laws and entrust the management of the affairs of the society to such Committee. " these two provisions make it clear that the charter directs these members to chooset the managing committee in an election by the general body of the society. But the right to choose a member of the managing committee is not made into an unfettered right. It is restricted by the charter in several ways. But we are concerned with the restriction which section 21-A (d) read with Rule 24 imposes upon a person who seeks election as a member of the managing committee. Section 21-A (d) denies eligibility to a person for being chosen as and for being a member of the managing committee, if he acquires an interest in any subsisting contract made with or work being done for, the society, except as otherwise prescribed. Rule 24 clause (c) declares that a person shall be disqualified for election to the managing committee if he is interested directly or indirectly in any contract made with the society or in any sale or purchase made by the society privately or in any auction or in any contract or transactions of the society, other than investment and borrowing involving financial interest if the contract or transaction be subsisting or if the contract, transaction, sale or purchase be not completed. Section 21-C is another section which imposes similar restrictions. Sections 21-C introduced in the Act by way of Amendment in the year 1970 by the State Legislature reads as follows : "a person who holds or who has held office as a member of the committee for two consecutive terms shall not be eligible for being chosen as a member of the committee for a third term in continuation. " these provisions of law dealing as they do with disqualifications of a person to become a member of the managing committee of the society, impose the restrictions by way of ineligibility on the candidates intending to contest for the elections of the managing committee of the society.

( 3 ) THE 3rd respondent Sivanna has been disqualified from contesting to the managing committee under section 21-C of the Act because he has been a member of the managing committee for the two preceding terms. In order to confer eligibility on Sri Sivanna the executive Government has issued G. O. Rt No. 1026 dated 15th October, 1977 which reads as follows : - government OF ANDHRA PRADESH abstract handloom Industry - Exemption from section 21-C of the Andhra Pradesh Cooperative Societies Act (Andhra Pradesh act VII 1964) to the Yemmig

Click Here to Read the rest of this document