The right of a cooperative society to choose its representative for representing it on a multi-state cooperative society should not be fettered.

( 1 ) THIS order will dispose of two applications, one moved by the petitioner for interim relief during the pendency of the writ petition and the other moved by the Indian Labour Coop. Society Limited for vacation of the exparte interim order passed in favour of the petitioner.

THE petitioner has challenged the provisions of Section 29 (3) of the Multi-State Coop. Societies Act (hereinafter referred to as the Act) as being ultra vires the Act and the Constitution of India. The petitioner claims to be a person having vast experience of more than thirty years in the co-operative sector, particularly in the field of rural agricultural credit. He has been a Director of the Karnataka State Agricultural and Rural Development Bank (hereinafter referred to as the karnataka Bank ) for the last more than thirty years. The Karnataka State Agricultural and Rural Development Bank is a member of respondent Nos. 3, 4 and 5. These respondents are Multi-State Co-operative Societies under the said Act. For the last about eight years the petitioner claims to be the President of the Karnataka Bank. The petitioner had also been elected as a delegate of the Karnataka Bank to represent it in the Multi-State Co-operative Societies, like respondents 3 to 5. Respondents 3 to 5 have their own bye-laws. They have their respective governing bodies which elect President and other office bearers. The petitioner was elected as President of respondent No. 3, the National Co-operative Union of India and Chairman of respondent No. 5, the Co-operative Bank of India.

( 2 ) PRIOR to 1984 the Co-operative Societies registered under the provisions of Co-operative Societies Acts in the respective States but having operation in States other than where they were registered, were governed by the provisions of the Multi Unit Co-operative Societies Act 1942. The Multi-State Cooperative Societies Act, 1984 was enacted with the ostensible purpose to consolidate Co-operative Societies with objects not confined to one state and serving the interests of members in more than one state. In the present writ petition the petitioner has challenged Section 29 (3) of the Act. Section 29 is reproduced as under :

SECTION 29: General body, its constitution, pavers and functions- (1) The general body of a Multi-State Co-operative society shall consist of all the members of such Society: Provided that where the bye-laws of a Multi-State Co-operative Society provided for the constitution of a smaller body consisting of delegates of members of the society elected or selected in accordance with such bye-laws, that smaller body shall exercise such powers of the general body as may be prescribed or as may be specified in the bye-laws of the society. (2) Subject to the provisions of this Act, the rules and the bye-laws, the ultimate authority of a Multi-State Co-operative Society shall vest in the general body of its members: Provided that nothing contained in this sub-section shall affect the exercise by the Board or any officer of a Multi-State Co-operative Society of any power conferred on such Board or such officer by this Act or the rules or the bye-laws. (3) Where in any meeting of the general body or the Board of a Multi-State Cooperative society, a Co-operative society or another Multi-State Co-operative society is to be represented, such Co-operative society or Multi-State Co-operative society shall be represented in such meeting only through the Chairman or the Chief Executive of such Co-operative society or other Multi-State Co-operative Society, as the case may be, and where there is no Board or such Co-operative society or other Multi-State Co-operative Society, for whatever reasons, through the Administrator, by whatever name called, of such Co-operative society or other Multi-State Cooperative society.

( 3 ) THUS Sub-section (3) fetters the right of the members of a Society to elect any of its members as delegate to represent it in a Multi-State Co-operative Societ