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2003 Supreme(Mad) 850

IN THE HIGH COURT OF JUDICATURE AT MADRAS
B.Subhashan Reddy, C.J. and K.Govindarajan, J.
P.Baluchamy
Versus
The State represented by the Secretary to Government, Co-operation, Food and Consumer Protection Department, Chennai and others
W.P.Nos.7081, 7182, 7345, etc. of 2001
Decided On : 23 June 2003

Advocates:
G.Rajagopalan, Senior Counsel, for C.Prakasam, S.M.Subramanian, G.Ravishankar, P.H.Manoj Pandian, V.Bhiman, S.Jayachandran, K.Chandru, Senior Counsel, for P.Chandrasekaran, P.Sureshbabu, S.A.Balasubramanian, S.Ayyathurai, T.S.Rajamohan, S.Kamadevan, Ms.S.Ponnarasi, Mrs.S.Aparna, K.Annandan, for Petitioners.
N.R.Chandran, Advocate General, assisted by V.Raghupathi, Government Pleader, M.S.Palaniswamy, Special Government Pleader, M.Devaraj, M.R.Raghavan, K.Vasu Venkat, S.Silambanan, G.Sukumaran, P.S.Jayakumar, P.Chandrasekaran, A.S.Thambuswamy, for Respondents.

Provisions made are only to regularise affairs of society.

Headnote:Tamil Nadu Co-operative Societies Act, 1983-Constitution of India-Article 19(1) (c)-Validity of the Rules-Formation of a common cadre by Government for the Secretary of co-operative Bank-Held, framing of common cadre is only to secure proper management of societies-Rules held valid.

K.Govindarajan, J.: The Government, on the basis of the recommendations of the Registrar of Co-operative Societies, decided to constitute the Tamil Nadu Primary Agricultural Co-operative Bank’s common cadre of service in respect of the post of Secretary in Primary Agricultural Co-operative Banks. To implement the said decision, exercising powers conferred under Sec.75 of the Tamil Nadu Co-operative Societies Act, 1983 (hereinafter called ‘the Act’), the Government passed order in G.O.Ms.No.55, Co-operation, Food and Consumer Protection Department, dated 24.3.2000 constituting common cadre of service in respect of the post of Secretary in Primary Agricultural Co-operative Banks in the State. They have also formed the Tamil Nadu Agricultural Co-operative Banks common Cadre Service Regulations.

2. Challenging the said Government Order, most of the petitioners have filed the writ petitions. Some of the have challenged the validity of Sec.75 of the Act.

3. Mr.Chandru, learned senior counsel appearing for some of the petitioners submitted that if common cadre is created, it will be a financial burden to the Society and the Secretaries employed were not given opportunity before the Government Order was passed. He further submitted that the reason for changing the system by creating common cadre is not adequate which clearly shows that the Government passed the impugned Order without applying their mind. According to the learned Senior Counsel, if the existing Secretaries are not given option to come within the common cadre, they have to go out, which amounts to termination of service. So, the impugned Government Order cannot be sustained. As contemplated under Sec.39 of the Act, Societies are corporate bodies with perpetual succession and common system and so, they are entitled to employ their own employees. Even the power given under Rule 147 of the Rules to the Board of Directors cannot be taken away. When the Registrar is having every power to control the Secretary of the Society, bringing the said post under common cadre may not be necessary. If the Secretary comes from outside the Society in view of the common cadre system, he may not have special training with respect to the Society in question to discharge his function effectively.

4. Mr.Ayyadurai, learned counsel appearing for some of the petitioners submitted that the Secretary cannot be construed as an employee of the Government and so, the common cadre cannot be created. If any proceedings under Sec.75 of the Act are upheld, they will create problem in the Society. Unless the Board of Directors are having a Secretary for their confidence, the Society cannot run effectively and the Board of Directors lose their power to appoint their own Secretary of their choice.

5. Mr.G.Rajagopal, learned Senior counsel has submitted that Sec.75 of the Act has to be struck down as it is ultra vires of Arts.19(1)(c) and 19(1)(g) of the Constitution of India. Referring to the Preamble to the Tamil Nadu Co-operative Societies Act, he submitted that any interference with the right of Board of Directors in appointing Secretaries amounts to taking away the right of Board of Directors in appointing Secretaries amounts to taking away the right of management. He also submitted that Art.19(1)(c) guarantees freedom to form association to all the citizens which right includes right to mange the said association or the society. So, thrusting upon the society to have a Secretary as suggested under Sec.75 of the Act is violative of Art.19(1)(c) of the Constitution. Learned counsel has also put forth his argument that the said provision has to be struck down as violative of Art.19(1)(g) of the Constitution of India. This submission made on the basis that compelling the Society to have a Secretary as provided under Sec.75 of the Act is nothing but unreasonable restriction.

6. Learned Advocate General submitted that the State Government is given power to create common cadre under Sec.75 of the Act. The Governme



































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