ALLAHABAD HIGH COURT
GANGESHWAR PRASAD, JAGDISH SAHAI, JJ.
State of U.P. - Appellant
Versus
District Cooperative Bank - Respondent
Special Appeal No. 726 of 1967 connected with Special Appeal Nos. 727, 728, 729, 730, 731, 705, 741 and 719 of 1967. Special Appeal against the judgmeni dated 26th August, 1967, of the Hon'ble Mr. Justice Satish Chandra in Civil Misc. Writ No. 2027 of 1967 (The District Cooperative Bank, Hardai and others v. State of U. P. and others) .
Decided On : 23-04-1969
JUDGMENT
Gangeshwar Prasad, J. - These are nine connected special appeals arising out of nine writ petitions challenging the orders of the Deputy Registrar, Cooperative Societies, (exercising the power of the Registrar, Cooperative Societies) for suspension of nine societies registered under the Cooperative Societies Act 1912 (hereinafter referred to as the Act) . The orders were passed under Rule 31 (a) of the Rules framed under the Act. In the case of some societies the orders were only under the main provision of Rule 31 (a) while in the case of others under the proviso to that rule as well, and in respect of all the societies some incidental orders provided for in the rule were also passed. The differences in the nature of the orders are not material for our purpose because the learned single Judge against whose judgments these Special Appeals have been filed dealt only with the questions of the validity of Rule 31 (a) and we too propose to deal with that question alone.. The grounds on which the orders of the Deputy Registrar were challenged before the learned Judge may be stated in his own words from the judgment in writ petition No. 1996 of 1967.
(i) That Rule 31 of the U. P. Co-operative Societies Rules, 1936 is ultra vires the rule making power conferred by Section 43 of the Cooperative Societies Act 1912.
(ii) That Rule 31 is void for delegation of legislative powers, beyond the constitutionally permissible limits.
(iii) That Rule 31 violates Article 31 (a) and (2) of the Constitution of India.
(iv) That the impugned orders do not satisfy the conditions precedent set out in Rule 31.
(v) That the impugned orders have been passed mala fide with a view to sub serve the political interests of the Jan Sangh party which was a constituent of the State Government by ousting Congressmen who were in control of the committee's of management of the stores,
(vi) That the notice contains vague charges and does not disclose the mate-rials which were treated as sustaining them.
2. The learned Judge accepted the first ground of challenge and held that Rule 31 was invalid. On the second ground he expressed the opinion that if Section 43 (1) were to be interpreted as authorising the framing of Rule 31 it will be invalid on the ground that it delegates to the State Government legislative powers beyond the constitutionally permissible limits, and the result would be that Rule 31 would be void. The third ground was not pressed before him on behalf of the petitioners, and on the remaining grounds he did not think it necessary to give any finding. On the basis of the findings on the first two grounds, all the writ petitions were allowed and the impugned orders were quashed. The State of U. P. and the authorities conceded have preferred these appeals.
3. The United provinces Cooperative Societies Rules which contained Rule 31 were made in exercise of the power conferred by Section 43 of the Act. The relevant portion of Section 43 is as follows:
"43- (1) The State Government may, for the whole or any part of the State and for any registered society or class of such societies, make rules to carry out the purposes of the Act.
(2) In particular and without prejudice to the generality of the foregoing power such rules may:
(g) Provide for the appointment, suspension and removal of the members of the committee's and other officers, and for the procedure at meetings of the committee's, and for the powers to be exercised and the duties to be performed by committee's and other officers;"
4. The expression "Committee" occurring in clause (g) of Section 43 (2) has been defined in Section 2 (b) as The governing body of a registered society to whom the management of its affairs is entrusted. The Act does not, however, itself provide for the method of constituting the governing body nor for any other matter pertaining to it, and these things have been left to be provided for by rules. Rules 26 to 31 of the U. P. Cooperative Societies Rules are the rules which relat
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