Section 79-A of the Maharashtra Co-operative Societies Act, 1960 and the Government Resolution/direction dated 23-6-1987 are valid.

JUDGMENT - MOHTA V.A., J.:---Validity of section 79-A of the Maharashtra Co-operative Societies Act, 1960 (the Act) and the Government Resolution/direction dated 23-6-1987 (Annexure E) passed/issued under the Act is impugned in this petition by 12 Primary Marketing Co-operative Societies. Section 79-A reads thus:

"79-A. (1) If the State Government, on receipt of a report from the Registrar or otherwise, is satisfied that in the public interest or for the purposes of securing proper implementation of co-operative production and other development programmes approved or undertaken by Government, or to secure the proper management of the business of the society generally, or for preventing the affairs of the society being conducted in a manner detrimental to the interest of the members of the depositors or the creditors thereof, it is necessary to issue directions to any class of societies generally or to any society or societies in particular, the State Government may issue directions to them from time to time, and all societies or the societies concerned, as the case may be, shall be bound to comply with such directions.

(2) The State Government may modify or cancel any directions issued under sub-section (1), and in modifying or cancelling such directions may impose such conditions as it may deem fit.

(3) Where the Registrar is satisfied that any person was responsible for complying with any directions or modified directions issued to a society under sub-sections (1) and (2) and he has failed, without any good reason or justification to comply with the directions, the Registrar may by order---

(a) if the person is a member of the Committee of the society, remove the member from the Committee and appoint any other person as a member of the Committee for the remainder of the term of his office and declare him to be disqualified to be such member for a period of six years from the date of the order;

(b) if the person is an employee of the society, direct the Committee to remove such person from employment of the society forthwith, and if any member or members of the Committee, without any good reason or justification, fail to comply with this order, remove the members, appoint other persons as members and declare them disqualified as provided in Clause (a) above:

Provided that, before making any order under this sub-section, the Registrar shall give a reasonable opportunity of being heard to the person or persons concerned and consult the federal society to which the society is affiliated. Any order made by the Registrar under this section shall be final."

2. The substance of the impugned Resolution is that agriculturists will have the liberty to purchase agricultural inputs also from the Agro Service Centers.

3. The challenge to the above provision is that it gives unguided and unchannelised power to the State Government to issue any binding direction to the co-operative societies and, therefore, is violative of Article 14 of the Constitution. The challenge to the resolution is that it is in excess of the authority conferred by section 79-A.

4. We will first take up for consideration challenge to the provision. Bare reading of the provision will indicate that directions can be issued thereunder only: (a) in public interest, (b) for the purposes of securing proper implementation of co-operative production and other development programmes approved or undertaken by Government; (c) to secure the proper management of the business of the society generally; and (d) for preventing the affairs of the society being conducted in a manner detrimental to the interest of the members of the depositors or the creditors thereof. The purposes of directions are specified, have direct nexus to the object of the Act and the power is conferred in the State Government itself. Under the circumstances, the challenge has no substance and has to be repelled. Indeed the point stands concluded by a Division Bench decision of this Court in the case of (Sangli Zilla Sa

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