JUDGMENT - THAKKER C.K., C.J.:-Rule. Mr. C.J. Sawant, Senior Advocate instructed by Mr. P.M. Patil, Assistant Government Pleader, appears and waives service of notice of rule on behalf of respondent Nos. 1 to 3. Dr. B.R. Naik, Senior Advocate, instructed by Mr. Prashant Naik, appears and waives service of notice of rule on behalf of respondent No. 4. In the facts and circumstances and with the consent of parties, the matter has been taken up for final hearing.

2.This petition is filed by the petitioners for an appropriate write, direction or order quashing and setting aside orders passed by the State of Maharashtra, respondent No. 1, under section 157 read with section 77-A of the Maharashtra Co-operative Societies Act, 1960 (hereinafter referred to as "the Act"), granting exemption under sections 73-G and 73-H of the Act to Maharashtra Rajya Sahakari Dudh Mahasangh Maryadit, respondent No. 4 herein, as ultra vires, unconstitutional and bad-in-law. A relief is also sought to declare Bye-law No. 7.3.3. of respondent No. 4 society ultra vires, unconstitutional and unlawful. A prayer is made to direct respondent-authorities to hold election of Board of Directors of respondent No. 4, society forthwith in accordance with law. During the pendency of the petition, a notification was issued on 14th November, 2003 by the first respondent-State. By way of amendment, therefore, a prayer is made to quash the said notification also.

3.The case of the petitioners before this Court is that they are Co-operative Societies registered under the Act. They are established with primary object of collecting milk from their areas of operation. The petitioner societies are collecting milk from different Primary Milk Societies who are their members and registered under the Act so that they may get good rates benefiting to milk producers, respondent No. 1 State of Maharashtra has supervisory control on milk production and its distribution in the State of Maharashtra. Respondent No. 2 is Collector of Mumbai, who has been conferred with the power under the Act to hold election of Co-operative Societies situated in Mumbai. Respondent No. 3 is Joint Registrar, Co-operative Societies appointed by the first respondent and is having control over the Co-operative Societies. The first respondent has framed guidelines for registration of milk societies in the State. In pursuance of the said guidelines, respondent No. 4 is registered in accordance with the provisions of the Act as the Apex Society having territorial jurisdiction throughout the state.

4.The respondent No. 1 issued a resolution laying down three tier system of milk societies; (i) Primary Milk Societies at village level; (ii) Intermediate Societies at Taluka level or District level; and (iii) Federal Society at State level. The petitioners are Intermediate Societies. They collect milk from Primary Societies, milk producers and farmers who are members of primary Societies and supplying milk to Primary Societies. Primary Societies in turn supply the milk collected by them to petitioners Taluka and District Intermediate Societies and the petitioners supply it to respondent No. 4 Apex Society. Respondent No. 1, by issuing a Government Resolution, appointed Board of Directors consisting of 12 members including the Minister of Dairy as the President for a tenure of five years in respondent No. 4. The order was subsequently modified and the number of Directors were increased to 17 and then to 27.

5.Thereafter from time to time Board of Directors of respondent No. 4 was nominated by respondent No. 1. No election of respondent No. 4 was ever held.

6.On or about November 30, 2000, the petitioners learnt that the State Government had issued an order under section 77-A read with section 157 of the Act exempting respondent No. 4 Society from the provisions of the Act. According to the petitioners, no such exemption could have been granted. It is alleged that in the audit for the year 2001-2002 of respondent No. 4,

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