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High Court Of Calcutta
Satyabrata Sinha
BHOLANATH ROY - Appellant
Versus
STATE OF WEST BENGAL - Respondent
C. O 4793 (W) Of 1993
Decided On : 11/09/1995
CO-OPERATIVE SOCIETY - EMPLOYEES - PAYMENT OF SALARY - MAINTAINABILITY OF WRIT PETITION - WHETHER CO-OPERATIVE SOCIETY IS A 'STATE' WITHIN THE MEANING OF ARTICLE 12 OF THE CONSTITUTION OF INDIA.
Fact of the Case:
The petitioners, employees of Gour Co-operative Milk Producers' Union (respondent No. 5), filed a writ petition for issuance of a writ of mandamus directing the respondents to pay them the scales of pay payable to the employees of the State Government and yearly increments. The petitioners contended that the respondent Milk Union was a project of the State of West Bengal and N. D. D. B. and, thus, they acquired a status and were entitled to all consequential service benefits.
Finding of the Court:
1. The writ petition is not maintainable as the respondent Milk Union is not a 'state' within the meaning of Article 12 of the Constitution of India. 2. The Milk Union was not earlier a Department of the State. The State merely made out a project to enable farmers to form Co-operative Societies and sell their products to the Milk Union. 3. The fund for running such Co-operative Societies had to be raised by the members themselves who were their shareholders. The State and/or N. D. D. B. merely extended their help, guidance, and finance to tide over financial difficulties. 4. Some members had been nominated in the Board to realize the loan advanced by the State and the N. D. D. B.
Issues: 1. Whether the respondent Milk Union is a 'state' within the meaning of Article 12 of the Constitution of India? 2. Whether the writ petition is maintainable?
Ratio Decidendi: 1. To determine whether a co-operative society is a 'state' within the meaning of Article 12 of the Constitution of India, various factors must be considered, including the extent of funding by the State and the degree of control exercised over the society's affairs. 2. A writ of mandamus can only be issued by the High Court against a State, with exceptions for public bodies exercising public functions or enjoying a monopoly status. 3. Article 12 cannot be stretched to include every autonomous body with some nexus with the Government. 4. In the instant case, the Milk Union was not a State as it was not owned or controlled by the State. The State merely provided financial assistance and guidance to help the society tide over its financial difficulties. 5. The petitioners were not entitled to the same scale of pay as the employees of the State Government as their contract of employment was private in nature.
Final Decision: The writ petition was dismissed, but the parties were directed to pay and bear their own costs. The petitioners were advised to seek alternative remedies for ventilating their grievances.
( 1 ) THE petitioners are employes of Gour Co-operative Milk Producers' Union-the respondent No. 5 herein, which is a Co-operative Society registered under West Bengal Societies Act. The said petitioners filed this writ application, inter alia, for issuance of a writ in the nature of Mandamus directing the respondents to pay to them the scales of pay as payable to the employee of the State Government and yearly increments which allegedly had been given to other Milk Unions.
( 2 ) THE Animal Husbandry and veterinary Services Department of the State of West Bengal allegedly evolved a scheme commonly known as Operation Flood II for establishing eight (8) Anand Pattern Co-operative Milk Unions out of which four were existing and four were to be set up. Requisites man power required for the said Milk Unions had been recruited through National Dairy Development Board hereinafter referred to as N. D. D. B for placement under various Milk Unions. The apprentices so inducted were to be absorbed by the existing and future Milk Unions and they were also required to execute a bond to serve under the Milk Unions for a period of three years. A sum or Rs. 38. 13 crores were earmarked for the Dairy Co-operatives which was to be made available from Union Dairy Co-operative over a period of six years.
( 3 ) THE said programme was to be implemented as a 3 Dairy co-operative structure consisting of:- (1) West Bengal Co-operative Milk Producers' Federation, (2) 8 District Level Milk Unions and (3) 3,980 Anand Pattern Primary Milk Producers Co-operative Societies. It is stated that standard bye laws were suggested by N. D. D. B.
( 4 ) THE Maldah District was selected for implementing the Operation flood II Programme jointly by Government of West Bengal and National Dairy Development Board with the financial help and guidance etc. from N D. D. B and State or West Bengal the respondent No. 4 was registered on April 12, 1983. The petitioners alleged that N. D. D. B. is an authority within the meaning of Article 12 of the Constitution and thus the employees of the Board Milk Unions have acquired a status and, thus, they are entitled to all consequential service benefits. The petitioners have contended that the entire funds of the Project and Operation of the Gour Milk Union is being made by N. D. D. B. West Bengal and the control and supervision over the Gour Milk Union, Maldah is being headed by N. D. D. B. and the Government of West Bengal. The petitioners further contended that there was a public element in their employment and thus the said respondents cannot adopts hire and fire policy. The petitioners were appointed in between the period 1983 to 1986; their names having been sponsored for such employment by the Employment Exchange. The petitions were allegedly also confirmed in their services. The first Managing Committee of the respondent No. 5 was dissolved and one Special Officer was appointed. However, on December 7, 1967 a Managing Committee of the Gour Milk Union was constituted by an order dated December 7, 1981 issued by the Registrar of Co-operative Societies with nine members Development Board, Managing Director of the West Bengal Co-operative Milk Producers' Federation Ltd. were to send their nominees for being included in the Managing Committee of the Union.
( 5 ) THEREAFTER in or about 1980, however, the said Managing Committee was dissolved and a Board of Administrator consisting of 12 members were appointed. The Managing Director of the Federation authorised some Officers to carry out statutory inspection and supervision of various activities of the Society on April 2, 1991. On December 23, 1991 the General Secretary of the Employees' Association wrote a letter to the Manager of the Union with a prayer for withdrawal of freezing of salary and introduction of D A. , yearly increments etc. On October 11, 1992 the District Magistrate, Maldah, being the Chairman of the Union addressed the letter to the Secreta
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