A.K. Basheer, P.Q. Barkath Ali, JJ.

These two cases are being disposed of by this common judgment since the issue or question involved in them is one and the same:

2. The question:

"Is the general power of the Government to grant exemption under Section 101 of the Co-operative Societies Act 1969 circumscribed or restricted by the provisions contained in sub-clause (c) of sub-section (1) of Section 7 of the Act"?

To put it differently;

"Can the Government exempt a new Society from any of the provisions of the Act and allow it to carry on the same or similar activity or business of another existing Society in a particular area, in derogation of the powers of the Registrar under Section 12(5) of the Act ? The above question has cropped up for consideration in the following scenario.

3. The appellant, viz., Muthalamada East Ksheera Vyavasaya Co-operative Society Ltd., in Palakkad district is a registered Society engaged in the business of procurement and sale of milk. It is beyond controversy that the appellant-Society which was established in the year 1971 has its area of operation in Ward Nos.2 to 8 and 10 to 14 of Muthalamada Grama Panchayat. Ward No.9, the only other remaining