Bhanwar Lal S/o Shri Gopram vs State of Rajasthan through the Secretary (Law Legislative) Drafting Department

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2017 Supreme(Raj) 402

IN THE HIGH COURT OF RAJASTHAN
Govind Mathur, G.R. Moolchandani, JJ.
Shri Bhanwar Lal S/o Shri Gopram – Petitioner
Versus
State of Rajasthan through the Secretary (Law Legislative) Drafting Department and Others – Respondents
D.B. Civil Writ Petition Nos. 7143, 7769, 7770, 8098, 8472, 8476, 8477, 8573, 8595, 9004, 10334, 10403, 11962, 12172, 12411, 13745, 13748, 13859, 13860, 13861, 13862, 13866, 13867 of 2016, 217, 403, 430 of 2017 and 1651 of 2015
Decided On : 11-05-2017

Advocates Appeared:
For the Petitioners: Mr. Manoj Bhandri, Mr. Rajesh Joshi, Mr. R.S. Champawat and Mr. B.S. Sandhu.
For the Respondents: Mr. S.S. Rathore, Mr. Gaurav Srimali, Mr. Manish Sisodiya, Mr. Rajesh Panwar, Mr. Parvej Khan, Ms. Kusum Rao and Mr. Darshan Jain.

Headnote:
Constitution of India, 1950 - Articles 368(2), 368,226,227, 14, 19(1)(c), 43-B, 243-ZJ, 243-ZK, 243-ZL - Rajasthan Cooperative Societies (Amendment) Act, 2013 - Sections 2, 16, 18, 25, 27, 30, 32, 33, 34, 52, 62, 109, 122 - By an appropriate writ order Act of 2001 introduced vide may kindly be declared ultra virus of so as to be volatize Constitution of India to extent that it gives power to appoint Administrator in Co-operative Society while removing and superseding existing Committee - Rajasthan Co-operative Land Mortgage Banks Act, was passed which was based on Madras Land Mortgage Banks Act, and Its main object was to provide for long term loans to holders of land to enable them to discharge their debts to carry our agricultural improvements to acquire land for formation of economic holding and other like purposes and to promote thrift and self help among them With that Act which provides that a tenant may also transfer rights in whole or part of his holding in form of a simple Mortgage for purpose of obtaining loans from Rajasthan Central Land Mortgage Bank or a Co-operative Land Mortgage Bank or Co-operative credit society registered or deemed to be registered as such under Rajasthan Co-operative Societies Act, Such mortgages were to be governed by provisions of act - Held, amendments introduced in of Rajasthan Cooperative Societies Act, under amendment Act of are in direct conflict with provisions of read with Constitution of India, same are declared illegal are quashed as that was existing prior to amendments introduced in it under amendment Act of stands restored and provisions of Rajasthan Cooperative Societies Act as amended under amendment Act of are declared illegal being in conflict with provisions of Constitution of India, same are declared illegal are quashed as that was existing prior to amendments introduced in that under amendment Act of stands restored and respondents shall ensure elections of cooperative societies in accordance with law at earliest by acting upon provisions which are declared unconstitutional if any Government Servant has been appointed as Administrator for any cooperative society by Registrar of cooperative societies then such Administrator shall be removed from office at earliest by holding elections of committee as far as possible within a period of days from today No order to costs - Oder Accordingly

ORDER :

Govind Mathur, J.

1. These petitions for writ are before us for examining constitutional validity of certain provisions of the Rajasthan Cooperative Societies Act, 2001 and to have reliefs as follows:-

"(i) By an appropriate writ, order or direction, the Section 30(1)(c) of the Act of 2001 introduced vide Notification dated 8th October, 2015 may kindly be declared ultra vires of the Constitution of India so as to be violative of Article 14 and Article 19(1)(c) of the Constitution of India to the extent that it gives power to appoint the Administrator in the Co-operative Society while removing and superseding the existing Committee.

(ii) By an appropriate writ, order or direction, the sub-section (7-A) of Section 28 of the Rajasthan Cooperative Societies Act, 2001 introduced vide Notification dated 26th April, 2016 (Anx.4) published in the Rajasthan Gazette on the said date may kindly be declared unconstitutional as being ultra vires of the constitution of India and be quashed and set aside.

(iii) By an appropriate writ, order or direction, the Section 30-C read with Section 32 of the Rajasthan Cooperative Societies Act, 2001 as amended vide Notification dated 8th October, 2015 (Anx.7) may kindly be declared ultra vires of the Constitution of India and be quashed and set aside.

(iv) By an appropriate writ, order or direction, the petitioner and/or the Members of the Board of Directors who have completed two or more than 2 terms be permitted to take part in the forthcoming elections for the third consecutive term in order to take part in the elections of Board of Directors/Committee of Jodhpur Nagrik Sahkari Bank Limited, Jodhpur.

(v) by an appropriate writ, order or direction, the respondents be restrained to appoint Administrator during the pendency of the present writ petition and/or till the elections to the Board of Directors, takes place in Jodhpur Nagrik Sahkari Bank Limited, Jodhpur."

2. In some of the writ petitions challenge is also given to the provisions of Section 30-B of the Act of 2001 as amended vide the notification dated 26.4.2016.

Cooperative Sector in the State of Rajasthan:-

Before coming to merits of the case, it would be appropriate to notice legislative background of the cooperative movement in the State of Rajasthan, as referred in the Rajasthan Co-operative Societies Act, 2001 by Professor S.R. Bhansali, 2005 Edition:-

"The Co-operative movement in Rajasthan was initially started about seventy five years back primarily to meet the credit requirements of the agriculturists. Ajmer which was a centrally administered territory, witnessed the first Co-operative movement in the State, under the Acts of 1904 and 1912. In the erstwhile Bharatpur State, on the lines of Central Act of 1912, the Bharatpur Co-operative Societies Act, 1915 was enacted. On the same lines Co-operative Societies Act were passed by the Kota State in 1916, by Bikaner State in 1926, by Alwar State in 1934, by Kishangarh State in 1935, by Jodhpur State in 1943 and by Jaipur State in 1943. The condition for the growth of the Cooperative movement were not very favourable in all parts of Rajasthan at the time of merger of various princely States. At the time of the formation of Matsya State (Alwar, Bharatpur, Dholpur and Karauli), the Matsya Co-operative Societies (Extension of provisions) Ordinance, 1948 was promulgated. Immediately after about a month when the United States of Rajasthan was formed, the Co-operative Societies Ordinance, 1948 (No. 96 of 1948) was promulgated.

By 1949, when the State of Rajasthan was formed, the co-operative movement has already started in Udaipur, Dholpur, Karauli, Jhalawar, Bundi and Kushalgarh States, but in 11 princely States the movement has not taken deep roots and even in places where the movement actually existed in some form, it had not progressed beyond the supply of credit to agriculturists.

The first Rajasthan Co-operative Societies Act, 1953 came into force from first April 1953. That Act had followed

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2017 Supreme(Raj) 402

Cases Referred (1)