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2007 Supreme(AP) 505

Andhra Pradesh High Court
Judges : G.S.SINGHVI, G.BHAVANI PRASAD
B. Narasimha Reddy - Appellant
Versus
State of A.P., rep. by its Secretary to Govt. of Andhra Pradesh - Respondent
Decided On : 05/01/2007
Case No : Writ Petition Nos. 2214 of 2006, 2290, 2291, 2294, 2295, 2456, 2457, 3184, 3189, 3275, 3281, 3371, 3372, 3401, 3406, 3413, 3459, 3498, 3502, 3512, 3530, 3576, 3577, 3624, and 4327 of 2006

Advocates Appeared:For the Petitioner:S. Rama Chandra Rao, K.R. Prabhakar Advocates. For the Respondent:R1, R2, R3 & R6, Advocate General, R7, Satyanarayana Prasad Kumari C. Sindhu Kumari Counsel for the Intervenor, K.G. Kannabhiran, Advocate.

Headnote:

Andhra Pradesh Mutually Aided Co-operative Societies (Amendment) Act 20 of 2006 - Andhra Pradesh Mutually Aided Co-operative Societies (Amendment) Ordinance 2 of 2006 - Andhra Pradesh Co-operative Societies Act, 1964 - Andhra Pradesh Mutually Aided Co-operative Societies Act, 1995 - Section 4 (3) (e) - Constitutional and legal validity - Replacement of the Ordinance - Filing formal applications for the purpose - Constitutional and legal validity of the Andhra Pradesh Mutually Aided Co-operative Societies (Amendment) Ordinance 2 of 2006 and the consequential Government Orders and Proceedings are under challenge in this batch of writ petitions. On replacement of the Ordinance by the Andhra Pradesh Mutually Aided Co-operative Societies (Amendment) Act 20 of 2006, W.P. was permitted to be amended for the purpose of challenging the constitutionality and vires of the Amendment Act without the necessity of filing formal applications for the purpose in the other petitions - Andhra Pradesh Co-operative Societies Act, 1964 is hereinafter referred to as “1964 Act” and the Andhra Pradesh Mutually Aided Co-operative Societies Act, 1995 is referred to as “1995 Act” - Andhra Pradesh Dairy Development Corporation is referred to as “the Corporation” and the Andhra Pradesh Dairy Development Co-operative Federation Limited is referred to as “the Federation”. Chairmen of the District Milk Producers Co-operative Unions filed Writ Petition - District Milk Producers Mutually Aided Co-operative Societies Associations filed Writ Petition Nos - Co-operative Development Foundation, a society registered under the Andhra Pradesh Societies Registration Act, filed Writ Petition - Women Mutually Aided Milk Producers Co-operative Union Limited, directly registered under 1995 Act with 101 member village dairy co-operative societies, filed Writ Petition - Writ Petition was filed by 435 Primary Milk Producers Co-operative Societies majority of which were converted from 1964 Act to 1995 Act, some were directly registered under 1995 Act and some are awaiting registration under 1995 Act – Held adjudication of the questions in controversy herein is confined to examination of the constitutionality or otherwise of the impugned legislation incidentally touching upon the other matters in controversy between the State Government, the Federation and the District Unions including those which are the subject matter of pending judicial and other proceedings. Any reference in the discussion herein to these matters incidentally considered, has not to be taken as an expression of opinion on them and such disputes or controversies or judicial and other proceedings between the State Government, the Federation and the District Unions shall be determined in accordance with law uninfluenced by any observations in this judgment - In the result - (a) Andhra Pradesh Mutually Aided Co-operative Societies (Amendment) Act 2006, Andhra Pradesh Act 20 of 2006, is struck down as unconstitutional - (b) Even if the said Act is to be considered constitutional, the Boards of Directors of the Mutually Aided Co-operative Societies covered by the said Act shall be deemed to have been continued under the provisions of Andhra Pradesh Co-operative Societies Act, 1964 - (c) G.O. Ms. No.10 Animal Husbandry, Dairy Development & Fisheries (Dairy-II) Department, dated 04-02-2006 and the consequential proceedings of the Milk Commissioner and Registrar of Milk Co-operatives and the District Collectors concerned are quashed and (d) writ petitions are allowed accordingly – Petition is Allowed.

Judgment :-

G. Bhavani Prasad, J.

The constitutional and legal validity of the Andhra Pradesh Mutually Aided Co-operative Societies (Amendment) Ordinance 2 of 2006 and the consequential Government Orders and Proceedings are under challenge in this batch of writ petitions. On replacement of the Ordinance by the Andhra Pradesh Mutually Aided Co-operative Societies (Amendment) Act 20 of 2006, W.P. No.3275 of 2006 was permitted to be amended for the purpose of challenging the constitutionality and vires of the Amendment Act without the necessity of filing formal applications for the purpose in the other petitions.

The Andhra Pradesh Co-operative Societies Act, 1964 is hereinafter referred to as “1964 Act” and the Andhra Pradesh Mutually Aided Co-operative Societies Act, 1995 is referred to as “1995 Act”. The Andhra Pradesh Dairy Development Corporation is referred to as “the Corporation” and the Andhra Pradesh Dairy Development Co-operative Federation Limited is referred to as “the Federation”.

The Chairmen of the District Milk Producers Co-operative Unions of Nalgonda - Ranga Reddy, Krishna, Karimnagar, Kurnool, Nellore, Prakasam and Guntur filed Writ Petition Nos.2214, 2291, 2294, 2295, 2456, 2457 and 2290 of 2006.

The District Milk Producers Mutually Aided Co-operative Societies Associations of Guntur, Krishna and West Godavari filed Writ Petition Nos.3401, 3184 and 3189 of 2006.

Co-operative Development Foundation, a society registered under the Andhra Pradesh Societies Registration Act, filed Writ Petition No.3275 of 2006.

Mulkanoor Women Mutually Aided Milk Producers Co-operative Union Limited, directly registered under 1995 Act with 101 member village dairy co-operative societies, filed Writ Petition No.3502 of 2006.

Writ Petition No.3372 of 2006 was filed by 435 Primary Milk Producers Co-operative Societies of Karimnagar district, the majority of which were converted from 1964 Act to 1995 Act, some were directly registered under 1995 Act and some are awaiting registration under 1995 Act.

The remaining writ petitions were filed by Primary Milk Producers Co-operative Societies, which were converted from 1964 Act to 1995 Act.

The National Dairy Development Board was originally shown as respondent in some writ petitions, but was permitted to be deleted.

Miscellaneous petitions were filed by Sri Basavaraju Saraiah, M.L.A., Warangal, Indian National Trade Union Council, Hyderabad represented by its Secretary and Velivolu Milk Producers Co-operative Society Limited requesting to be impleaded to intervene and oppose the writ petitions.

Pending the writ petitions, interim directions were given staying the operation of G.O. Ms. No.10, dated 04-02-2006 and orders dated 04-02-2006 issued by the Registrar and allowing the elected bodies of the District Unions and other societies to continue subject to the condition that they shall not take any policy decision until the final adjudication of the writ petitions and shall not incur any expenditure except payment of dues to the milk producers, salaries of the employees and other statutory dues.

ORDINANCE / ACT AND CONSEQUENTIAL ORDERS:

The Andhra Pradesh Mutually Aided Co-operative Societies (Amendment) Ordinance 2006, Ordinance 2 of 2006 was promulgated and published in the Andhra Pradesh Gazettee on 01-02-2006. By Section 1 (3), the Ordinance shall be deemed to have come into force with effect from 01-06-1995. Section 2 of the Ordinance amended Section 2 (d) of the Principal Act substituting the words “under the provisions” for the words “under Section 7” and adding at the end the words “but does not include the Milk/Dairy o-operative Societies”. Section 4 of the Principal Act was amended by Section 3 of the Ordinance by substituting the expression “under the provisions” for “under section 7” in sub-section (1) and adding a Proviso to sub-section (1), namely—

“Provided that no Co-operative Society shall be registered as a dairy or milk Co-operative Society and no dairy or milk Co-operative Society reg















































































































































































































































































































































































































































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