High Court Of Madhya Pradesh
Shiv Dayal, C. J. , S. R. Vyas and J. P. Bajpai, JJ.
RAMSWARUP GUPTA - Appellant
Versus
MADHYA PRADESH STATE CO-OPERATIVE MARKETING FEDERATION - Respondents
Misc. Petn. 177 Of 1973
Decided On : 03/02/1976
CO-OPERATIVE SOCIETY - STATUTORY BODY - WRIT JURISDICTION - DISMISSAL OF EMPLOYEE - REINSTATEMENT - LEGAL RIGHT - STATUTORY OBLIGATION - M. P. CO-OPERATIVE SOCIETIES ACT, 1960 - SECTION 55.
Fact of the Case:
The case involved a dispute between an employee and a Co-operative Society registered under the M. P. Co-operative Societies Act, 1960. The employee alleged that his services were terminated in violation of the Act and sought reinstatement and back wages.
Finding of the Court:
The Court held that a Co-operative Society registered under the M. P. Co-operative Societies Act, 1960 is not a statutory body and is not amenable to writ jurisdiction under Article 226 of the Constitution of India. However, the Court held that a writ can be issued against a Co-operative Society or its officer in cases where the Society has not carried out any legal obligation or has acted in violation of any statutory provisions.
Issues: 1. Whether a Co-operative Society registered under the M. P. Co-operative Societies Act, 1960 is a statutory body? 2. Whether a writ of mandamus, direction, or order can be issued under Article 226 of the Constitution of India by a High Court against a Co-operative Society registered under the M. P. Co-operative Societies Act, 1960? 3. Whether the High Court can issue an appropriate writ, direction, or order against a Co-operative Society or its officer, who has, in violation of the Act or rules or bye-laws, dismissed its employee or terminated his services, for reinstatement and/or with back wages?
Ratio Decidendi: The Court held that a Co-operative Society registered under the M. P. Co-operative Societies Act, 1960 is not a statutory body because it is not created by the statute but is governed by the provisions of the statute. The Court further held that a writ can be issued against a Co-operative Society or its officer in cases where the Society has not carried out any legal obligation or has acted in violation of any statutory provisions. The Court relied on the provisions of Section 55 of the M. P. Co-operative Societies Act, 1960, which empowers the Registrar to frame rules governing the terms of employment and working conditions in a society or a class of societies.
Final Decision: The Court answered the first question in the negative, the third question in the affirmative, and the second question as follows: "writ can be issued in such cases where the Society has not carried out any legal obligation or has acted in violation of any statutory provisions."
( 1 ) THIS reference stems from a humdrum case of an employee of a Co-operative marketing Society, whose services have been brought to an end by accepting his resignation and thereafter the employee had taken practically all possible alternative stands by saying that firstly he had not at all submitted any resignation; or if there is any, the same must be forged or even if it bears his signature, he had simply written the same and kept it and never intended to submit it to the authority for acceptance. According to him, it was nothing but a surprise as to how the same could reach the authorities for further action. However, we are at present not concerned with the facts of the case inasmuch as only the following three questions of law have been referred : for being answered by us and we have to confine ourselves to the same :
(i) Whether Co-operative Society, registered under the M. P. Cooperative societies Act is a statutory body ?
(ii) Whether a writ of mandamus, direction or order can be issued under Article 226 of the Constitution by a High Court against a Cooperative society registered under M. P. Co-operative Societies Act, 1960 ?
(iii) Whether the High Court can issue an appropriate writ, direction or order against a Co-operative Society or its officer, who has, in violation of the Act or rules or bye-laws, dismissed its employee or terminated his services, for reinstatement and/or with back wages ? (sic)
( 2 ) THE Division ' Bench of this Court was inclined to make this reference in view of certain observations in Dukhoo-ram v. Co-operative Agricultural Association ltd. , Kawardha, AIR 1961 Madh Pra 289 and Ramnath Sharma v. State of madhya Bharat, AIR 1959 Madh Pra 21'8, which prima facie appear to be divergent. In AIR 1961 Madh Pra 289 (supra) it has been observed and held by the Division Bench of this Court that a Co-operative Society registered under the M. P. Co-operative Societies Act is an authority within the meaning of article 12 of the Constitution of India- However, in AIR 1959 Madh Pra 218 (supra), it was held by another Division Bench of this Court that a Cooperative society, registered in accordance with the provisions of the M. P. Cooperative societies Act, cannot be treated as an authority within the meaning of Article 12 of the Constitution of India and as such will not be amenable to writ jurisdiction. According to the Division Bench, a Co-operative Society registered under the provisions of the Co-operative Societies Act is not a statutory body. In this back-ground, his reference has arisen and we shall deal with all the three questions referred to us for being answered.
( 3 ) BEFORE any institution can be said to be a statutory body, it must be created by a Statute and must owe its existence to the Statute. This is the primary thing which has to be seen for deciding the first question. It will be necessary to mark a distinction between an institution which is not created by or under a statute but is governed by certain statutory provisions for the proper maintenance and administration of its affairs, and the one which is created by the Statute and owes its existence to the same. We come across a number of institutions which though not created by or under any statute, are after formation governed by certain statutory provisions regulating their affairs. Simply by doing so, they do not become statutory bodies. For instance, a company being incorporated in accordance with the provisions of the companies Act cannot be said to be a body created by the Companies Act. A company so registered and incorporated in accordance with the provisions of the Companies Act cannot be a statutory body because it is not created by the statute. It is nothing but a body created in accordance with and governed by the provisions of the Statute. The same is the case of a Co-operative Society. According to the requirements of law, for the time being in force, certain number of persons form a Society with certain aims a
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