The modification made by the government for providing for nomination of 6 directors, including the Chairman and Managing Director, did not touch the policy or essential character of the Act but pertained to details of exercise of control by the Government over the Society.

CHANDRASHEKHAR, J.

( 1 ) BELLARY Central Co-operative Stores Ltd. , Bellary (hereinafter referred to as the 'society'), is a co-operative Society with limited liability of its shareholders. The Society has been doing extensive business in consumer goods in Bellary District, in the year 1955, the Society started a sugar Factory at Kampli near Hos-pet. The State Government has given to the Society aid of more than Rupees three lakhs in the form of share-capital, loans, and guarantee for loans taken by the Society for its activities in consumer goods The Government has also subscribed Rs. 16 lakhs towards the share capital for the said Sugar Factory.

( 2 ) IN exercise of the powers conferred by Sections 54 and 121 of the Mysore Co operative societies Act. 1959 (hereinafter referred to as the 'co-operative Act'), the Government Issued a notification (marked document A) on 14-6-1966. By this Notification Section 29 of the co-operative Act has been modified in relation to this Society so as to enable the Government to nominate us its representatives 6 persons as members of the Committee of this Society of whom one shall be the Chairman and Managing Director. By this Notification bye-law 18 (a) (v) of the society has been amended to provide for nomination of fl persons of whom one shall be the chairman and Managing Director

( 3 ) BY its order, dated 14/16-6-1966 (marked as document B), the Government nominated Sri. J. T. Viswanathan of the Mysore Administrative Service as Chairman and Managing Director and the following 5 officers of the Government as Directors of the Society:

2. The Registrar of Co-operative Societies In Mysore, Bangalore, or his nominee 3. The Director of Agriculture in Mysore, Bangalore or his nominee. 4. The Deputy Commissioner. Bellary. 5. The Director of Industries and Commerce or his nominee 6. The Deputy Secretary to Government of Mysore. Kinance Department.

( 4 ) IN this petition under Article 228 of the Constitution the petitioner who is a shareholder of the Society has challenged the Notification (document A) and the Government Order (document B ). He has also asked for striking down Sections 64 and 121 of the Cooperative Act as being unconstitutional. The petitioner has also sought for restraining the Chairman and Managing director and five other nominated Directors (who have been impleaded as respondents 3 to 8)from functioning as such,

( 5 ) TO appreciate the petitioner's contentions it is necessary to set out certain provisions of the co-operative Act. (ft) Section 29 of the (Act as amended retrospectively by Section 10 of the Mysore Co-operative societies (Amendment Act, 1964), empowering the Government to nominate certain members of the Committee of a Co-operative Society reads:

( 6 ) NOMINEES of the Government on the Committee of a Co-operative Society.-- (1) Where the state Government

(a) has subscribed to the share capital of a Co-operative Society, or (b) has assisted indirectly in the formation or augmentation of the share capital of a Co-operative society as provided in Chapter VI. Or (c) has guaranteed the repayment of principal and payment of interest on debentures issued by a co-operative Society, or (d) has guaranteed the repayment of principal and payment of interest on loans and advances to a co-operative Society, the State Government or any authority specified by the State Government in this behalf, shall notwithstanding anything contained in this Act or the rules or the bye-laws of the co-operative society, but subject to any notification or order for the time being in force, issued or made under Section 54 or 121, have the right to nominate as its representative not more than three persons. (2)***** (3) ***** (4) *****

( 7 ) SECTION 54 of the Act providing for the control by the State Government of a Co operative society which has received assistance from Government, reads: 54 Control of Society assisted.--Where State aid amounting to not less than two lakhs of rupees is given to any

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