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1993 Supreme(MP) 358

1993 JLJ 512
(FULL BENCH)
S.K. Dubey, R.C. Lahoti and Shacheendra Dwivedi, JJ.
Dinesh Kumar Sharma v. M.P. Dugdha Mahasangh Sahkari
Maryadit and another
M.P. No. 1573 of 1992; Decided on 22.6.1993.

Advocates:
H.N. Upadhyaya and Arun Mishra for petitioners; R.D. Jain for respondents.

Headnote:(1) Constitution of India --Art. 12 and 226 -- co-operative society -- when not a "State" within the meaning of Art. 12 and thus not amenable to writ jurisdiction under Art. 226.

       Entire share capital of society not held by State Government. No financial assistance by the State to meet almost entire expenditure of the society. No enjoyment of State conferred or State protected monopoly status. Deep and pervasive State control not existing. Society dealing in it... business independently to achieve its object without any rider of State Government or its nominees. Society performing commercial function for betterment of its members. Such function cannot be termed as Governmental function. No Government department was ever transferred to the society. Such society is not instrumentality or agency of State within the meaning of Article 12 of the Constitution and is not amenable to writ jurisdiction of the High Court. AIR 1989 Ori. 31, AIR 1982 P & H 228, AIR 1990 AP 171 and 1985 Lab. I C 1807 relied on. AIR 1981 SC487, AIR 1979SC 1628, AIR 1992SC 76 AIR 1993 SCW 863 AND AIR 1988 SC 469 discussed and followed. M.P. No 1159/87/M.P. 1139187 and M.P. No. 267/88 overruled. [Paras 10 to 25

       (2) Constitution of India -- Art. 226 and] 2 -- society not falling within the meaning of "State" under Art. 12 -- still amenable to writ jurisdiction to enforce a statutory duty or even duty imposed by custom or contract.

       A co-operative society cannot be characterised as a "State" within the meaning of Art. 12, even so a writ would lie against it to enforce a statutory public duty which an employee is entitled to enforce against the society. In such a case, it is unnecessary to go into the question whether the society is being treated as a "person," or an "authority" within the meaning of Art. 226 of the Constitution. What is material is the nature of the statutory duty placed upon it, and the Court will enforce such statutory public duty. 1976 JU 293 (FB) and AIR 1990 AP 171 relied on. [Paras 26 & 27

       To be enforceable by mandamus a public duty does not necessarily have to be one imposed by statute. It may be sufficient for the duty to have been imposed by charter, common law, custom or even contract. AIR 1989 SC 1607 and AIR 1993 SC 863 followed. [Para 28

       

ORDER

S.K. Dubey, J. -- 1. The two petitions have come up before this Full Bench on a reference by a Division Bench of this Court constituted by one of us (S.K. Dubey,J.) and Shri S.K. Chawla, J. Before the Division Bench, during the course of hearing, a preliminary objection was raised by the respondents that the respondent No.1, the Madhya Pradesh Dugdha Maha Sangh Sahkari Maryadit, Bhopal, was registered on 13.5.1980 by the Registrar, M.P. Co-operative Societies, Bhopal (for short, the 'Registrar') under section 9 of the M.P. Cooperative Societies Act, 1960 (for short, the' Act'), and was classified as 'Federal Society' vide registration certificate (Annexure R/4), whereby bye- laws (Annexure R/5) were also approved under section 9 of the Act by the Registrar. The respondent No.2 was registered as a Co- operative Society on 4.7.1983 and classified as 'Central Society,' which also had its own approved bye-laws, Annexure RI7. The two societies are not rendering any important public service nor are carrying out governmental activity and governmental functions of vital importance; therefore, the respondents are not "the State" within the dynamics of Article 12 of the Constitution of India, and, hence, are not amenable to writ jurisdiction, as held by a Division Bench of this Court at Indore Bench in an unreported decision in M.P. No. 836/1988, Dilipkumar v. State of M.P., decided on 19.4.1990. On the other hand, the petitioners relied two unreported Division Bench decisions rendered at the same Bench in M.P. No. 1139 of 1987, Krishnakant v. M.P. Dugdha Mahasangh, decided on 28.8. 1990 and M.P. No. 1159/1987, Chandrakant v. Appellate Authority & others, decided on 9.1.1991, wherein the respondent No.1 has been held to be "the State." As there was a conflict between the two sets of above-said decisions, the Division Bench, hearing the aforesaid petitions, to get an authoritative pronouncement, referred the matter to Hon'bie the Chief Justice for constituting an appropriate larger Bench for resolving the difference: hence, this reference.

2. Where the two Co-operative Societies, registered under S.9 of the Act, are, in essence, instrumentalities and agencies of the State and, consequently, amenable to writ jurisdiction of the High Court, is the question to be decided. If the answer to this question is in the negative, whether the High Court can issue an appropriate writ direction or order against the Co-operative Society or its. officers who act in violation of the Act or the rules or the bye-laws and/or fail to discharge statutory public duty, is also the question, which we have been called upon to answer in this reference.

3. To appreciate a few facts relevant to the questions aforesaid, deserve to be noticed. The two petitioners are presently holding posts of Village Organiser under respondent No.2 at Banmore, District Morena. The respondent No.1 by an order dated 30.9.1992 transferred the two petitioners, sending them on deputation to Raigarh and Sarguja respectively for working in the Integrated Tribal Dairy Projects, which are not under the organisation of the two respondents. The transfer order is challenged as mala fide, being in violation of the statutory service rules governing the terms and conditions of the employment, which are approved by the Registrar under section 55 (1) of the Act and are known as "MADHYA PRADESH DUGDHA MAHA SANGHA (SAHKARI) MARYADIT, KARMACHARI BHARTI, VARGIKARAN TATHA SEWA SHAR TEN VINIY AM, 1985. "

4. Before we proceed to have a look to the bye-laws of the respondents No.1 and 2 for determining the questions, it would be appropriate 10 state that Government of M.P. through its Veterinary Department was carrying on in certain areas of the State the activity of supply of milk through its offices. On 22nd March 1975, the Government of Madhya Paradesh for carrying on the said business of milk and its products, incorporated a Company, by name, M.P. State Dairy Development Corporation Ltd., registered






































































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