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High Court Of Madhya Pradesh
G. P. Singh, C. J. and B. C. Varma, J.
BRIJ GOPAL DENGA - Appellant
Versus
STATE OF MADHYA PRADESH - Respondents
Misc. Petn. 396 Of 1977
Decided On : 06/25/1979
(2) Co-operative movement-object of
The Co-operative movement is both a theory of life and a system of business it is a form of voluntary association where individuals unite for mutual aid in the production and distribution of wealth upon principles of equity, reason and common good. It stands for distributive justice and asserts the principle of equality and equity ensuring to all those engaged in the production of wealth a share proportionately commensurate with the degree of their contribution. It provides as a substitute for material assets, honesty and a sense of moral obligation and keeps in view the moral rather than the material sanction. The movement is thus a great movement. 1967 RN 265=1967 JLJ 385 relied on. [Para 8
(3) Constitution of India - Arts. 19 (1) (c), 19 (1) (g) - difference between the two fundamental rights.
The fundamental right to form associations or unions guaranteed under Article 19 (1) (c) can be restricted by law as provided in clause (4) of Article 19 only when the law imposes reasonable restrictions on the exercise of the right in the interest of the sovereignty and integrity of India or public order or morality. In contrast, the fundamental right to practice any profession, or to carryon any occupation trade or business. guaranteed under Article 19 (1) (g) can be restricted by law imposing reasonable restrictions in the interest of the general public or for the protection of the interests of any Scheduled Tribe as provided in clause (5) of Article 19. [Para 9
(4) Co-operative Societies Act, 1960 (MP) - S. 19-C (2) - does not contravene Article 19 (1) (c)-application for registration and taking advantage of protection given to Co-operative Societies imply the acceptance of restriction laid down by the law-restrictions are reasonable.
Formation of a society is a voluntary act on the part of its members and so is the act of making an application for registration under the Act. The fundamental right to form an association does not carry with it the right to have the association recognised or registered. When a society applies for registration under the Act. it must be assumed that its members agree to be bound by the regulatory provisions of the Act for getting the privileges which the Act confers on a registered society. These privileges are purely statutory and are not in any way adjunct to the fundamental right to form an association.
When there is no statutory compulsion that every Cooperative society must get itself registered and when the making of an application for registration under the Act is a voluntary act on the part of members of a society, it cannot be held that section 19-C (2) of the Act infringes the fundamental rights of the members of a society to form associations or unions, conferred by Article 19 (1) (c) of the Constitution. AIR 1962 SC 263 relied on. [Para 11
Section 19-C (2) constitutes a reasonable restriction in the interests of the general public within the meaning of clause (6) of Article. 19. [Para 13
The power conferred under section 19- C (2) of the Act is quasi-judicial in nature and the order of expulsion is appeal able and that the period of five years during which a person is ineligible to become a member is also reasonable. The impugned provisions of sub-sections (2) and (3) of section 19-C of the Act thus fall within the protection of clause (4) of Article 19. [Para 16
(5) Constitution of India - Art. 19-word 'morality'-is not confined to sexual morality.
(6) Words and phrases - word 'morality' - meaning of - it is a fluid concept.
By morality in Article 19 of the Constitution is meant the ideas about right and wrong which are accepted by the right thinking members of the society as a whole of the country. Morality is a t1uid concept and its content will depend upon the time place and stage of civilisation. A fluid concept of this nature naturally gives rise to the difficulty in its application. Even so we are not prepared to accept that there is any good reason to limit 'morality' in Article 19 to sexual morality. AIR 1959 SC 781 referred to. [Para 14
( 2 ) THE petitioners in both these petitions which are filed under Article 226 of the constitution, challenged the constitutional validity of Sub-sections (2) and (3)of Section 19-C of the Madhya Pradesh Co-operative Societies Act, 19. 60, hereinafter referred to as the Act.
( 3 ) PETITIONER No. 1 in Misc. Petition No. 342 of 1977 is a citizen of India. Petitioners 2 and 3 in this petition are co-operative societies registered under the provisions of the Act. Petitioner No. 1 is a member of these societies. He is also a member of some other cooperative societies of Chhatarpur District. By order dated 23rd June 1977, passed under Sub-sections (2) and (3) of Section 19-C of the Act, the Registrar, Co-operative Societies, expelled the petitioner no. 1 from all the societies of which he was a member for a period of five years.
( 4 ) THE petitioner in Misc. Petition No. 396 of 1977 was a member of four cooperative societies. He was also connected with several other co-operative societies in various capacities. By order dated 25th August 1977, passed under sub-sections (2) and (3) of Section 19-C, the Registrar expelled the petitioner from the four societies of which he was a member.
( 5 ) THE aforesaid orders of expulsion are challenged by the petitioners on the ground that provisions of Sub-sections (2) and (3) of Section 19-C are ultra vires and void as they infringe the fundamental right guaranteed under Article 19 (1) (c) of the Constitution, viz. the freedom to form associations. The orders of expulsion are also attacked on merits in the petitions; but at the stage of arguments the only ground pressed was the constitutional validity of the aforesaid sub-sections, for the petitioners have an alternative remedy of challenging the orders on merits by filing appeals under Section 77 of the Act.
( 6 ) THE long title of the Act shows that it was enacted to consolidate and amend the laws relating to Co-operative Societies in Madhya Pradesh. Different laws on co-operatives were in force in the constituent units of the State. As indicated in the objects and reasons, the Act was passed "in order to have one uniform law for the whole State and with a view to strengthening and developing the Cooperative movement and to extend the assistance by the State including State partnership, wherever necessary. " Section 2 (z) defines "society" to mean a cooperative society registered or deemed to be registered under the Act. The deeming clause is obviously enacted to take in a society registered under the repealed Acts. Section 4 of the Act provides that "subject to the provisions of this Act, a society which has as its objects the promotion of the economic interest of its members or their general welfare in accordance with co-operative principles or a society established with the object of facilitating the operations of such a society, may be registered under the Act. The expression "may be registered" as used in Section 4, will show that registration is not compulsory. Section 6 provides for conditions of registration, Section 8 confers power on the registrar to decide certain questions pertaining to registration. Section 9 provides that if the Registrar is satisfied that society has complied with the provisions of the Act and the rules and that its proposed bye-laws are not contrary to the Act or the rules, he may register the society and its bye-law with modifications as he may consider necessary. The section further provides that nosociety shall be registered, if in the opinion of the Registrar, it is likely to be economically unsound or is likely to have an adverse effect upon any other society. Section 10 of the Act classifies the societies under ten heads, namely : (i) Consumers' Society; (ii) Farming Society; (iii) Federal Society; (iv)Housing Society; (v) Marketing Society; (vi) Multipurpose Society; (vii)Producers' Society; (viii) Processing Socie
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