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1976 Supreme(P&H) 41
PUNJAB & HARYANA HIGH COURT
Bhopinder Singh Dhillon and M.R.Sharma JJ.
Bapauli Co-operative Agricultural Service Society
Versus
State Of Haryana
Civil Writ No. 427 of 1975,
Decided On : APRIL 19, 1976
The provisions of Section 84A of the Punjab Co-operative Societies Act, 1961, do not infringe upon the rights of the managing body of a primary co-operative society appearing in Section 23(1) of the Act and the Legislature has not abdicated its essential legislative functions by enacting Section 84A of the Act.
Headnote:
CO-OPERATIVE SOCIETIES - COMMON CADRE RULES - VALIDITY - PUNJAB CO-OPERATIVE SOCIETIES ACT, 1961 - SECTIONS 23(1), 84A - INTERPRETATION - RULES FRAMED UNDER SECTION 84A DO NOT INFRINGE UPON THE RIGHTS OF THE MANAGING BODY OF A PRIMARY CO-OPERATIVE SOCIETY - LEGISLATURE HAS NOT ABDICATED ITS ESSENTIAL LEGISLATIVE FUNCTIONS.
Fact of the Case:
The petitioner, a Co-operative Society registered under the Punjab Co-operative Societies Act, 1961, challenged the validity of the Common Cadre Rules framed by the apex society under Section 84A of the Act, arguing that they infringed upon the statutory rights of the Primary Co-operative Societies conferred on them under Section 23(1) of the Act.
Finding of the Court:
The Court held that the rules framed under Section 84A of the Act do not infringe upon the rights of the managing body of a primary co-operative society appearing in Section 23(1) of the Act and that by enacting Section 84A of the Act the Legislature has not abdicated its essential legislative functions.
Issues: 1. Whether the Common Cadre Rules framed by the apex society under Section 84A of the Act infringe upon the statutory rights of the Primary Co-operative Societies conferred on them under Section 23(1) of the Act? 2. Whether the Legislature has abdicated its essential legislative functions by enacting Section 84A of the Act?
Ratio Decidendi: 1. Section 23(1) of the Act vests the final authority in a co-operative society in the general body of members or its managing body elected in accordance with its bye-laws, but this authority is not absolute and free from restraints. 2. Section 84A of the Act authorizes the Registrar to require an apex society to constitute a common cadre of employees and to make rules for the regulation of recruitment and the conditions of service of such employees. 3. The rules framed under Section 84A do not necessarily impinge upon the authority of the general body of a society conferred upon it under Section 23 of the Act. 4. The words "recruitment" and "conditions of service" have well-known meanings and furnish sufficient guidelines to the apex society to make rules. 5. The Legislature has given a clear expression to its policy by enacting Section 84A(2) of the Act and has not delegated its essential legislative functions in favor of an outside agency.
Final Decision: The petition was dismissed with no order as to costs.
M.R.SHARMA, J.
1. The petitioner is a Co-operative Society registered under the Punjab Co-operative Societies Act, 1961 (hereinafter called the Act). In exercise of powers u/s. 84A of the Act, the Registrar Co-operative Societies, Haryana, Chandigarh, directed the Apex Society respondent No. 3 to frame Common Cadre Rules applicable to some of the categories of servants of its member societies, including the petitioner-Society. Respondent No. 3 consequently framed the Primary Co-operative Agricultural Credit/Service Societies, Secretaries Common Cadre Rules, 1973, which were later on replaced by the Haryana State Central Co-operative Bank Staff Service (Common Cadre) Rules, 1975 (hereinafter called the Rules). It is alleged that these Rules infringed upon the statutory rights of the Primary Co-operative Societies conferred on them u/s. 23(1) of the Act, which lays down that final authority in a co-operative society shall vest in the general body of the members and where the bye-laws of such a society provide the constitution of a smaller body, such authority shall vest in the smaller body consisting of the delegate members of the society.
2. The other ground of challenge is that the Legislature has not provided sufficient guidelines in Sec. 84A of the Act to the apex societies to frame the requisite rules. The petitioner-Society has urged that it is highly satisfied with the services rendered by the Secretary appointed by it about five years back whom it wants to retain even now and because of the Common Cadre Rules it may be forced to dispense with his services.
3. This petition and certain other such petitions came up for hearing before my learned brother Dhillon, J., on 7.11.1975. It was argued before him that the provisions of Sec. 84A run counter to the provisions of Sec. 23 and Sec. 85(2)(xxxviii) of the Act. My learned brother was of the view that the question involved was of considerable importance affecting a large number of employees of the various societies, and for this reason he recommended that the case be decided by a larger Bench. This is how, this reference has come up before us for decision.
4. At the very outset I would like to notice the provisions of the Act. Section 2 of the Act provides the definition of certain expressions used in the Act. According to sub-section (aa) an apex society means a co-operative society whose membership includes central societies. According to sub-sec. (bb) a central society means a co-operative society whose membership includes primary societies. According to sub-section (bbb) a primary society means a co-operative society whose membership consists exclusively of individuals .
5. According to sub-sec. (b) of Sec. 2 committee means the governing body of a co-operative society, by whatever name called, to which the management of the affairs of the society is entrusted .
6. Each and every society is not entitled to be registered as a co-operative society under the Act. Section 4, lays down that subject to the other conditions of the Act, a society which has its object the promotion of the economic interests of its members in accordance with the co-operative principles, or a society established with the object of facilitating the operations of such a society, may be registered under the Act with or without limited liability. The emphasis is on the promotion of the economic interests of the members of a society in accordance with co-operative principles.
7. Section 7 lays down the manner in which an application for registration of a society is to be made to the Registrar. Section 8 (1) is of some importance which may be reproduced as under:
"8. Registration (1) If the Registrar is satisfied- (a) that the application complies with the provisions of this Act and the rules,
(b) that the objects of the proposed society are in accordance with Sec. 4,
(c) that the proposed bye-laws are not contrary to the provisions of this Act and the rules, and
(d) that the proposed society has
