JUDGMENT (CAV)

1. The following issues arise for consideration:

1. Whether the Bihar Co-operative Societies Rules, 1959 (referred to as the Rules) suffer from the vice of excessive delegation of the powers envisaged under the parent Statute, i.e. the Bihar Co-operative Societies Act, 1935 (referred to as the Act)?

2. Whether the power to the specified officers to grant membership in a society violates Article 19(1)(c) of the Constitution of India; and provisions of the Act?

3. Whether the order passed by a superior authority can be subjected to scrutiny by an authority subordinate to it? Whether the Rules provide for a redressal or appeal mechanism against the orders passed by such subordinate authority? Hence, whether Rule 7(4) of the subordinate legislation (Rules) is manifestly arbitrary?

2. The Petitioners in the present petition are a Primary Agricultural Co-operative Society ("PACS") and are aggrieved by the State's actions dated 25.03.2013, directing PACS to enrol a minimum of 1000 members from amongst the weaker section of particular caste denominations. This was to be done by way of a special camp in the presence of all the members of the Managing Committee, Block Co-operative Extension Officer, and the PACS Manager, failing which disciplinary proceedings were to be initiated against all concerned. This action was challenged in CWJC No. 18367 of 2013 titled Dasdhrath Singh versus The State of Bihar & Ors. Vide order dated 01.11.2013, this Court stayed the directives issued by the State Government.

3. However, the State Government directed the local officers of various districts to commence the exercise of membership drive of the PACS at their level. Under that, the BDO, Paliganj, inducted many persons as members of the Petitioner-Society. This was vide letter Nos. 1225, 1225(ka) dated 26.06.2014, letter No. 1273, 1285 dated 28.06.2014, letter Nos. 1287, 1300, 1301 dated 30.06.2014 and the exercise was carried out under Rule 7(4) of the Rules.

4. The petitioners claim that the exercise of power is by a usurpation of the powers of the PACS and its Managing Committee.

5. Hence the writ petition (CWJC No. 14267 of 2014 titled as Laxmikant Sharma & Ors. Versus the State of Bihar & Ors.) with the following prayers: -

"(i) To declare that the provisions of impugned Rule 7(4) of the Bihar Cooperative Societies Rules, 1959 as ultra vires the Constitution of India being violative of Articles 19(1)(c), 43(b) and 243(ZL) of the Constitution of India as well as ultra vires the Sections 27(1), 32A(1)(n) and (p) of the Bihar Cooperative Societies Act, 1935 in so far as the same completely encroaches the domain of the Primary Agricultural Society registered under the Bihar Co-operative Societies Act, 1935 with respect to the Membership of the PACS giving the said power/prerogative to the Government functionaries such as Block Development Officer, Assistant Registrar, Cooperative Societies and District Cooperative Officer.

(ii) To consequently quash the order dated 26.06.2014 contained in letters No.1225, 1225(ka), order dated 28.6.2014 contained in letters No. 1273, 1285, order dated 30.06.2014 contained in letter No. 1287, 1300 and 1301 issued by the Block Development Officer, Paliganj in exercise of power vested in him under Rule 7(4) of the Bihar Cooperative Societies Rules, 1959 by which 250 persons were made members of petitioners Primary Agricultural Cooperative Society, Paliganj (Patna) as being illegal and without jurisdiction.

(iii) To any other relief or reliefs for which the petitioners are found to be entitled in the facts and circumstances of the case."

6. Similar is the relief and issue in the analogous matter.

Submissions of the Petitioner

7. Shri Y. V. Giri, learned Senior Advocate appearing for the petitioners, submits that under Rule 7, any person wanting to obtain Membership of a society has to apply in Form-V. The Act is a self-contained Code and Rule 7(4) suffers from the vice of-(a) excessive delegation; (b) arbitrariness; a