JUDGMENT - C.S. DHARMADHIKARI, J.:---The main challenge in this petition is to the order issued by the Government of Maharashtra in Agriculture Co-operation Department, Mantralaya, dated 25th of August, 1977 under the provisions of sub-section (1) of section 79-A of the Maharashtra Co-operative Societies Act, 1960. The said order reads as under:

“No. CSM-1377/35758/6-C)

Agriculture Co-operation Department

Mantralaya, Bombay-32.

25th August, 1977

ORDER

Whereas it has come to the notice of Government that Co-operative Institutions employing ten persons or more under them are not implementing fully Government orders regarding the recruitment of new persons and promotion of the existing persons under them in accordance with the policy laid down by Government.

And whereas the State Government is satisfied that for the purpose of securing proper implementation of development and welfare programmes approved of undertaken by Government is expedient to issue directive to all co-operative institutions employing 10 persons or more under them in the state under provisions of sub section 79-A of the Maharashtra Co-operative Societies Act, 1960 the State Government under sub-section (i) of section 79-A of the Maharashtra Co-operative Societies Act, 1960, hereby issues the following directions to all such Co-operative Institutions in the State of Maharashtra.

That while recruiting new persons and promoting the existing persons, the Co-operative institutions employing 10 persons or more shall adhere to a policy of (i) providing reservation of post class persons as per the percentages laid down for each category by Government from time to time and recruiting these persons as per rules of Government and (ii) for carrying forward of vacancies to wipe of the backlog in the recruitment of backward class persons.

By order and in the name of the Governor of Maharashtra.

Sd/-

(A.S.A. Khathatary)

Deputy Secretary to Government of Maharashtra, Agriculture Co-operation Department”.

2. Dr. Naik learned Counsel appearing for the petitioners, contended before us that section 79-A of the Maharashtra Co-operative Societies Act, 1960 is ultra vires of Articles 14, 19(1)(c) and 19(1)(g) of the Constitution. It is also contended by him that section 79-A suffers from the vice of excessive delegation. The Legislature has abdicated in favour of the Executive Essential policy matters without any guidelines. State Government has been given power to give directions arbitrarily, and, therefore, the said section is liable to be struck down. Further section 79-A fails to make out any classification. Assuming that there is any classification, it is not based on any intebligible differential distinguishing those that are grouped together from the others left out of the group. Further such differentia does not have nay rational relation or nexus with the object sought to be achieved by the said Act. It is then contended by him that the various expressions used in this section such as 'public interest' for the purpose of securing proper implementation of a co-operative production and other developmental programmes approved or undertaken by Government, 'to secure the proper management of the business of the society', and 'for preventing the affairs of the society being conducted in a manner detrimental to the interests of the members, or of the depositors or the creditors thereof' are wholly vague. Further the section does not lay down any safeguards and is, therefore, arbitrary and thus it is violative of Article 14 of the Constitution. The order issued under section 79-A dated 25th August, 1977 is also discriminatory since only certain banks are picked up for the application of the said directives. In the entire State of Maharashtra the number of Urban Co-operative Banks are nearabout 375, out of which majority of them are locat

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