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2023 Supreme(P&H) 3145

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
PANKAJ JAIN, J.
Dildar Gandhi – Petitioner
Versus
Primary Agricultural Cooperative Society & Ors. – Respondents
CWP-9760 of 2017 (O&M)
Decided On : 11-05-2023

Advocates Appeared:
None; For the Petitioner
For the Respondent: Mr. Inderpreet Singh Kang, AAG, Punjab.
Mr. H.S. Bedi, Advocate for Respondents No.3 and 4.

Headnote:(A) Cooperative Societies Act - Maintainability of writ petition against cooperative society - Resolution reducing salary of petitioner - The court held that a cooperative society's functions are not subject to control by the State under the Act, affirming that the resolution does not warrant judicial intervention in the absence of procedural violations. (Paras 2, 4, 5)

Facts of the case:
The petitioner challenged a resolution by the cooperative society that reduced his salary from Rs. 9,357/- to Rs. 7,000/-. He sought mandamus for the restoration of his salary based on the Payment of Wages Act.

Findings of Court:
The court found the writ petition not maintainable against the society due to the absence of statutory violations. The grievance was duly considered, but a statutory remedy through appeal exists.

Issues: Whether a writ petition can be maintained against a cooperative society regarding internal resolutions, particularly concerning salary adjustments.

Ratio Decidendi: The court confirmed that the functions of a cooperative society are distinct from State control, implying that internal resolutions cannot be subject to judicial review unless statutory rules are demonstrated to be violated.

Result: Writ petition dismissed as not maintainable.

Table of Content
1. petitioner claims salary restoration. (Para 1)
2. grounds for maintainability discussed. (Para 2 , 4)
3. legal tests for state agency established. (Para 3)
4. no legal violation; statutory remedy exists. (Para 5)
5. writ petition dismissed as not maintainable. (Para 6)

JUDGMENT

Mr. Pankaj Jain, J. (Oral)

The petitioner is aggrieved of resolution dated 26.02.2016 (P-3) passed by respondent No.3-Cooperative Society having an effect of reducing salary of the petitioner from Rs.9,357/- to 7,000/-. Further prayer is for writ in the nature of mandamus directing the respondents to pay the salary of the petitioner @ Rs.9,357/- with interest claiming that the salary is to be increased in sync with the provisions of Payment of Wages Act.

2. Counsel for the respondent-society submits that the present writ petition could not be maintainable against the cooperative society. Reliance has been placed upon law laid down by Apex Court in S.S. Rana v. Registrar Cooperative Societies and others 2006 (11) SCC 634, General Manager, Kisan Sahkari Chini Mills Ltd. Sultanpur, U.P. v. Satrughan Nishad and others JT 2003 (8) SC 235 and judgment rendered by this Court in CWP No.27527 of 2017 titled as 'Krishan Kant v. Punjab State Cooperative Agricultural Development Bank Ltd. and others.'

3. I have heard counsel for the parties and after perusing records of the case, this Court finds that the present writ petition could not be maintainable. The resolution has been passed by respondent No.3 which is a cooperative society. In the case of S.S. Rana (supra), it has been held as under:-

    "xx xx xx

    11. It is well settled that general regulations under an Act, like Companies Act or the Co-operative Societies Act, would not render the activities of a company or a society as subject to control of the State. Such control in terms of the provisions of the Act are meant to ensure proper functioning of the Society and the State or statutory authorities would have nothing to do with its day-to-day functions.

    12. The decision of the Seven Judge Bench of this Court in Pradeep Kumar Biswas (supra), whereupon strong reliance has been placed, has no application in the instant case. In that case, the Bench was deciding a question as to whether in view of the subsequent decisions of this Court, the law was correctly laid down in Sabhajit Tewary v. Union of India & Ors., (1975) 1 SCC 485, and it not whether the same deserved to be overruled. The majority opined that the Council of Scientific and Industrial Research (CSIR) was a 'State' within the meaning of Article 12 of the Constitution of India. This Court noticed the history of the formation thereof, its objects and functions, its management and control as also the extent of financial aid received by it. Apart from the said fact it was noticed by reason of an appropriate notification issued by the Central Government that CSIR was amenable to the jurisdiction of the Central Administrative Tribunal in terms of section 14(2) of the Administrative Tribunals Act, 1985. It was on the aforementioned premises this Court opined that Sabhajit Tewary (supra) did not lay down the correct law. This Court reiterated the following six tests laid down in Ajay Hasia v. Khalid Mujib Sehravardi, (1981) 1 SCC 722 :

    "(1) One thing is clear that if the entire share capital of the corporation is held by Government, it would go a long way towards indicating that the corporation is an instrumentality or agency of Government.

    (2) Where the financial assistance of the State is so much as to meet almost entire expenditure of the corporation, it would afford some indication of the corporation being impregnated with Governmental character.

    (3) It may also be relevant factor ...whether the corporation enjoys monopoly status which is State conferred or State protected.

    (4) Existence of deep and pervasive State control may afford an indication that the corporation is a State agency or instrumentality.

    (5) If the functions of the corporation are of

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