The State must independently form an opinion on public interest before appointing nominees to a cooperative society's managing committee, as mandated by Section 80(2) of the Gujarat Cooperative Societies Act.

JUDGMENT :

NIKHIL S. KARIEL, J.

1. Heard learned Senior Advocates Mr. Harin Raval and Mr. Mihir Thakore with learned advocate Mr. Chintan Champaneri for the petitioners, learned Advocate General Mr. Kamal Trivedi with learned AGP Mr. Vinay Vishen for the respondent Nos. 1 to 3 and learned Senior Advocate Mr. P.K. Jani with learned advocate Mr. Arpit Jani for the respondent No. 4 and learned advocate Mr. Kunal Nanavati for the respondent Nos. 5 to 7.

2. By way of this petition, the petitioners have challenged an order dated 16.03.2023 passed by the Registrar, Cooperative Societies, Gujarat State, appointing the respondent Nos. 5 to 7 as Government Nominees in the Managing Committee of M/s. Kheda District Cooperative Milk Producers Union Ltd., in exercise of power under Section 80(2) of the Gujarat Cooperative Societies Act, 1961 (hereinafter referred to as “the Act”)

3. It is the case of the petitioners that they are elected members of the Managing Committee/Board of Directors of the respondent No. 4 Union. It is submitted that the respondent No. 4 is a Cooperative Society registered under the provisions of the Gujarat Cooperative Societies Act, 1961 and the Managing Committee/Board of Directors are the competent authorities to manage the affairs and the business of the society. It is submitted that under Section 80(2) of the Act, the State Government is empowered to nominate three representatives on the Managing Committee of Society. It is submitted that such nomination is subject to the condition that the State Government is required to form an opinion as regards the public interest involved, it is necessary and expedient to nominate the representatives on the Committee of society. It is submitted that the impugned order is bereft of any such opinion having been formed by the State Government. It is further submitted that the order in question, is in the teeth of decision of this Court between the petitioners and the official respondents dated 26.08.2022 in Special Civil Application No. 13072 of 2020. It is submitted that the order in question, being passed is in contravention of the applicable provisions of law and in complete contravention of the law laid down by this Court in the identical situation concerning the same Cooperative Society, therefore, this Court may intervene and set aside the order in question.

4. Learned Senior Advocate Mr. Raval for the petitioners would submit that the respondent No. 4-Union is being managed by a Managing Committee/Board of Directors and the election of the Managing Committee/Board of Directors, which was held on 29.09.2020 and the result was declared on 31.08.2020 and whereas the petitioners have been elected as Directors. It is submitted that there are 12 elected Directors from the Electoral Division and one elected representative elected by the individual members of the Union. It is submitted that while there is a provision under Bye-laws for nomination of one member by the Registrar and whereas there is also a provision for a representative of a financial institution to be present in Board, if financial assistance has been availed and since no financial support has been obtained, there are no representatives in the Managing Committee under the said head. It is submitted that Section 80(2) of the Act empowers the State Government to nominate its representatives, three in numbers to the Board of the society and whereas it is submitted that the precondition for such nomination is that the State Government should form an opinion that since there is public interest involved in operation of the society, it is necessary or expedient to nominate representatives of the State in the Board of the society. It is submitted that the representatives so nominated, have all rights, duties, responsibilities and liabilities as if the representatives had been elected to the Management Committee/Board of Directors.

5. Learned Senior Advocate would submit that vide the impugned order dated 16.03.2023, the Stat