1. Challenging validity of Sec.75 of Co-operative Societies Act and common cadre creation for Secretaries on constitutional grounds. (Para 21000282540001 , 21000282540007 , 21000282540011 )
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
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.
Legal Category Hierarchy
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constitutional law
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fundamental rights
- freedom of association (Para 21000282540012, 21000282540013, 21000282540014, 21000282540015, 21000282540016)
- freedom to practice profession (Para 21000282540017, 21000282540018, 21000282540019)
- reasonable restrictions (Para 21000282540012, 21000282540017, 21000282540019, 21000282540020)
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fundamental rights
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cooperative societies law
- statutory management and registration (Para 21000282540008, 21000282540009, 21000282540010)
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administrative law
- government orders and statutory authority (Para 21000282540021, 21000282540022, 21000282540023, 21000282540024, 21000282540025, 21000282540026)
Table of Contents
2. Challenge that Sec.75 violates Art.19(1)(c) and 19(1)(g) of Constitution; counter that Government has statutory power to create common cadre under Sec.75. (Para 21000282540002 , 21000282540003 , 21000282540004 , 21000282540005 , 21000282540006 )
3. Writ petitions dismissed; Sec.75, Rule 152, and impugned Government Order held valid and sustainable. (Para 21000282540027 )
4. Whether the right to form a co-operative society is a fundamental right under Art.19(1)(c) of the Constitution?
No, the right to form a co-operative society is a statutory right created by the Act. Co-operative societies are creatures of statute and are governed by its provisions; members cannot claim fundamental right to form such a society. (Para 21000282540012 , 21000282540013 , 21000282540014 , 21000282540015 , 21000282540016 )
5. Whether Sec.75 creating common cadre for Secretaries constitutes a reasonable restriction under Art.19(4) or Art.19(6) of the Constitution?
Yes, the power to constitute a common cadre is a reasonable restriction in the interest of the society and the co-operative movement, and is saved by Clause (6) of Art.19. (Para 21000282540012 , 21000282540017 , 21000282540019 , 21000282540020 )
6. Whether the impugned Government Order creating common cadre of service for Secretaries of co-operative banks is valid and sustainable?
Yes, the order is valid as it does not alter remuneration or conditions of service, and transfer of employees is an incident of service as held by the Apex Court. (Para 21000282540021 , 21000282540022 , 21000282540023 , 21000282540024 , 21000282540025 , 21000282540026 )
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