SATYA BRATA SANYAL, J.

1. The four writ petitions have been taken up together as the points involved are common. TMs judgment will govern all of them.

2. All these writ petitions arise out of a proceeding under S.16 (3), Bihar Land Reforms (Fixation of Ceiling Area and Acquisition of Surplus Land) Act, 1961 (hereinafter to be referred to as the Act). The petitioners, on 11-4-1971, through four separate sale deeds purchased 11 kathas 5 dhurs of C.S.Plot No. 387 (R. S.Plot No. 10007), New Khata No. 1665 of village Paroo District Muzaffarpur. The registration of the sale deeds were completed on 12-8-1971. Paroo Vyapar Mandal Sahyog Samiti Ltd. (hereinafter to be referred to as the Samiti), a marketing and credit co-operative institution, filed an application under S.16 (3) of the Act in the prescribed manner, claiming pre-emption, as being adjoining raiyat to the land transferred. The Deputy Collector I/C Land Reforms, the Additional Collector as well as the Additional Member, Board of Revenue, upheld the claim of pre-emption. The Courts below found the Samiti engaged in cultivation of land and as such raiyat within the meaning of the Act.

3. Mr. Sreenath Singh, learned counsel appearing for the petitioners, submitted that the Samiti is a marketing and credit co-operative institution constituted under the Bihar and Orissa Co-operative Societies Act, 1935 (hereinafter to be referred to as the Co-operative Act), with the object laid down in its bye-laws. Clause 4 of its bye-laws having not provided the impugned activity as one of the objects of the Samiti, cultivation of land by such an institution is an ultra vires act, the activity being beyond the function laid down in the objects clause, i.e., the bye-laws. The Samitis claim of pre-emption, therefore, is not maintainable. In support of this contention he relied on the following para of Ramaiyas Book on the Companies Act (1977 Edition Page 69).

"It is ultra vires for a company to act beyond the scope of its memorandum. Any attempted departure will be invalid and cannot be validated even if assented to by all the members of the company. By ultra vires is meant an act or transaction of a company, which, though it may not be illegal, is beyond the companys powers by reason of not being within the objects of the memorandum is, so to speak, the area beyond which a company cannot travel. Ashbury Ry. Carriage Company V/s. Riche, (1875) 7 HL 653. An act beyond the objects mentioned in the memorandum is ultra vires and void and cannot be ratified. Dr. Lakshmanaswami Mudaliar V/s. Life Insurance Corporation, AIR 1963 SC 1185".

He also drew, our attention to a para of Ghoshs Company Law, 1979 Edition at page 115. He submits that cl. 4 of the bye-laws provides the area beyond which the Samiti cannot travel and that being the position, the Samiti cannot have a right of pre-emption even though it has taken up raiyatwari activities. He, however, conceded that a Co-operative Society, a Company, Trust, Association can be a raiyat under the Act.

Mr. Sidheshwarli Prasad Singh, learned counsel appearing for the Samiti, on the other hand, contended that the act of the Samiti is not ultra vires. On the contrary, cultivation on the part of the Samiti is incidental and conducive to the attainment of the object of distribution of seeds. The learned counsel submits, to provide seeds to the cultivators, being one of the objects as envisaged under cl.4 (6) of the bye-laws, the act of acquisition of land and cultivation thereof will be deemed to have been conferred under cl.4 (10) which reads as follows : "Upper 1 Se 9 Tak Men Udasayon Ki Purti Ke Liye Anya Karya Ko Karua".

4. It is true, as contended by Mr. Sreenath Singh, that whether it be a company or a statutory authority or a co-operative society which is formed or created to carry out certain objects as provided under the memorandum of association or the statute or the bye-laws as the case may be, in the case of company it must act within the