High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE S. MANIKUMAR
V.P. Periyasamy
Versus
General Manager, District Registrar of Industrial Cooperative Societies, Coimbatore & Another
W.P.Nos.29428 & 29429 of 2008 & M.P.No.1 of 2008
Decided on: 05-10-2009
Tamil Nadu Co-operative Societies Act - Declaration of Bye-law No.11-C as Ultra Vires - Articles 14, 15, 19-1(e) and 21 of the Constitution of India - Section 23 of the Co-operative Societies Act - [RESIDENCE] - [CO-OPERATIVE SOCIETIES ACT, SECTIONS 2(8), 6, 9(D), 11, 12, 21, 23, 24, 29, RULES 6, 35] - The court upheld the constitutional validity of the amended bye-law 11(C) of the second respondent society, which restricted the membership to those residing within the area of operation of the society. The court found that the amendment was in line with the statutory provisions and did not infringe the constitutional guarantee of the petitioner.
Fact of the Case:
The petitioner, a member of a society formed under the Tamil Nadu Co-operative Societies Act, sought a declaration declaring bye-law No.11-C of the second respondent society as ultra vires of the Constitution of India. The petitioner also sought a writ of certiorari to quash the order of the General Manager/Registrar of Industrial Co-operative Societies, Coimbatore, by which the petitioner had been removed from the membership of the second respondent society.
Finding of the Court:
The court found that the impugned amendment to the bye-law and the order of termination were in consonance with the statutory provisions and did not infringe the constitutional guarantee of the petitioner. The court dismissed the writ petitions and vacated the interim stay granted.
Issues: The issues revolved around the constitutional validity of the amended bye-law 11(C) of the second respondent society, the removal of the petitioner from the membership of the society, and the alleged bias and mala fide action by the second respondent.
Ratio Decidendi: The court held that the amendment to the bye-law and the order of termination were in line with the statutory provisions and did not infringe the constitutional guarantee of the petitioner. The court also found that there was no bias or mala fide action by the second respondent in removing the petitioner from the membership of the society.
Final Decision: The court dismissed the writ petitions and vacated the interim stay granted. The connected miscellaneous petition was also closed. No costs were awarded.
Petitioner, a member of a society formed under the Tamil Nadu Co-operative Societies Act, has sought for a declaration declaring bye-law No.11-C of the second respondent society, as ultra vires of Articles 14, 15, 19-1(e) and 21 of the Constitution of India read with Section 23 of the Co-operative Societies Act and the rules framed thereunder. He has also sought for a writ of certiorari to quash the order of the General Manager/Registrar of Industrial Co-operative Societies, Coimbatore, dated 111. 2008, by which the petitioner has been removed from the membership of the second respondent society. As pleadings and submissions are common, both the writ petitions are taken up together and dispose of by a common order.
2. Facts leading to the writ petitions are as follows:
On 19. 1996, the petitioner enrolled as a member in Arignar Anna Co-operative Industrial Estate to frame object is to carry on business of developing and maintaining industrial estate for the members, to establish cottage, small and minimum scale industries. He has paid a sum of Rs.45,527/- and Rs.27,500/- for allotment of land in his name on 19. 1996 and 8. 2006 respectively. The name of the second respondent society was later on amended as Anna Industrial path. The total membership of the society is 1128 and only 550 have paid the value for the purchase plots. The second respondent society had purchased lands to an extent of 70. 31 acres out of the amount contributed by the members to the extend of two crores till 1999 in various villages namely, Kittampalayam, Karumathampatti, Thekkalur etc. Though lands have been purchased in 1999, no allotment has been made in the name of the petitioner. In the meantime, the respondents had private negotiation with one Suzian Infrastructures Limited had ended into settlement and thereby acted against the interest of the members.
3. To know the details about the administration, management and allotment of lands etc., the petitioner sent a petition dated 8. 2008 under the Right to Information Act seeking for the above details. It is the contention of the petitioner that the above said petition has provoked the respondents 1 and 2, to issue show cause notices dated 310. 2008 and 29. 2008 calling upon the petitioner to submit his explanation as to why he should not be removed from the membership of the society, in view of violation of by-law No.11(C) of the second respondents society. Though the petitioner, has submitted his explanation dated 11. 2008, stating that the amended bye-law restricting the place of residence of the petitioner to the area of operation of the Co-operative Industrial Estate has violative of the Constitutional Provisions and requested the General Manager/District Registrar of Industrial Co-operative Societies, Coimbatore, the first respondent not to proceed further and also sought for one month time to give a comprehensive reply, notwithstanding the same, the first respondent, by order dated 111. 2008, ordered that the petitioner is disqualified to be a member as per by-law No.11(C) of the bye-laws of the society read with Section 23(h) (i) of the Co-operative Societies Act and removed the petitioner from the membership of the second respondents society. Both the orders are under challenge in these writ petitions.
4. The General Manager/District Registrar of Industrial Co-operative Society, Coimbatore, the first respondent, in his counter affidavit has admitted that the object of Arignar Anna Co-operative Industrial Estate is to carry on the business of developing and maintaining industrial estate. He further submitted that every Co-operative Society is having its own area of operation and that the services of the society would be applicable only to those who are residing within the area of operation of the society. According to him, the second respondents society has collected advance in the form of deposit from the members to generate funds for the purchase of lands. He has denied the content
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