2026 Supreme(AP) 99
IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
Dhiraj Singh Thakur, C.J., Challa Gunaranjan, J.
The Krishna District Milk Producers Mutually Aided Cooperative Union Ltd. - Petitioner
Versus
The State of Andhra Pradesh and Others - Respondents
Writ Petition No: 15652 of 2024 And Writ Appeal No.894 of 2024
Decided On : 03-02-2026
For the Petitioner: Dr.P.B.Vijay Kumar, learned senior counsel, for Smt. A V S Laxmi
For the Respondent: GP For Animal Husbandary, GP For Cooperation, Mr. Ghanta Prasad
The Tribunal's failure to provide a separate procedure for diverging opinions violates the 1995 Act; such actions deemed ultra vires without explicit review provisions.
Headnote:(A) Andhra Pradesh Mutually Aided Cooperative Societies Act, 1995 - Section 37 - Andhra Pradesh Cooperative Tribunals (Procedure) Rules, 1994 - Rule 20(4) - Procedure for Tribunal in case of divergent opinions - The Tribunal must devise its own procedure in accordance with Article 14, rather than using a rule that effectively reviews prior decisions, which is ultra vires the 1995 Act. (Paras 2, 4, 18, 19, 23)
(B) Constitutional Law - Principle of 'reading down' - Judicial interpretation may limit a rule to maintain constitutional validity without striking it down entirely, reaffirming statutory coherence with Article 14 of the Constitution. (Paras 20, 21, 22)
Facts of the case:
Dispute arose when the managing committee of a cooperative society elected members, leading to a rejected nomination and divergent opinions among Tribunal members on the election's legality. The Tribunal referred the matter to a Full Bench improperly for review.
Findings of Court:
The court directed the reference to a third member instead of a Full Bench to ensure procedural integrity and compliance with the statutory framework.
Issues: Applicability of Rule 20(4) of the 1994 Rules to the Tribunal’s operations and the legality of reviewing previous decisions by the Tribunal.
Ratio Decidendi: The court emphasized that lack of express review power in the 1995 Act limits the Tribunal's ability to refer dissenting opinions to a Full Bench and called for adherence to procedural fairness as per Article 14.
Result: Writ petition and writ appeal disposed of with no costs, directing proper procedural adherence.
| Table of Content |
|---|
| 1. factual background on the election dispute. (Para 2) |
| 2. court's observations on applicable rules and procedures. (Para 3 , 7 , 8 , 9 , 10 , 12) |
| 3. arguments regarding the tribunal's procedural authority. (Para 4 , 5 , 6) |
| 4. analysis of procedural validity and potential reading down of the rules. (Para 17 , 18 , 19 , 20 , 21) |
| 5. modification of order to refer to third member; setting judicial procedure. (Para 22 , 23) |
| 6. conclusion and disposition of the writ petition and appeal. (Para 24) |
JUDGMENT :
Challa Gunaranjan, J.
Both writ petition and as well as writ appeal raise a common question with regard to the procedure to be adopted by the Andhra Pradesh Co-operative Tribunal (for short, ‘the Tribunal”) for the purpose of deciding the disputes enumerated under Section 37 of the Andhra Pradesh Mutually Aided Cooperative Societies Act, 1995 (for short, “the 1995 Act”), more particularly, in case of difference of opinion expressed by the Tribunal consisting of two members, therefore, these matters are heard together and disposed of by this common judgment.
2. Facts in brief are as follows:
The petitioner initially was registered under the provisions of the Andhra Pradesh Cooperative Societies Act, 1964 (for short, “the 1964 Act”) and later got converted as Society under the 1995 Act. As per its bye-laws, the managing committee consists 19 Directors, who were required to be elected from amongst the eligible members. In that view, in order to elect three of the Directors, notification, dated 18.08.2022, was issued proposing to conduct elections on 30.08.2022. The nomination of 3rd respondent came to be rejected and eventually the election was concluded and accordingly, three members came to be declared elected as Directors. Eventually, the 3rd respondent filed E.O.P.No.56 of 2022 on the file of the Tribunal, under Section 37 (2) of the 1995 Act, to declare rejection of his nomination as null and void and consequently, to set aside the elections held on 30.08.2022, and further to direct for conducting fresh elections. The said E.O.P. was heard by the Tribunal consisting of judicial member and administrative member, who ultimately, by order, dated 21.07.2023, differed in opinions, the judicial member rendered elaborate order with reasoning dismissing the E.O.P., however, the administrative member, expressing opinion otherwise without any reasons, differed to concur with the order of the judicial member. In view of the divergent opinions expressed, ultimately, the matter has been referred to Full Bench consisting of three members for disposal of the case, in terms of Rule 20(4) of the Andhra Pradesh Cooperative Tribunals (Procedure) Rules, 1994 (for short, “the 1994 Rules”). Subsequently, the 3rd respondent had preferred application vide S.R.No.359 of 2023, with a prayer to re-open the matter enabling to send the disputed signatures of petitioner therein on Ex.A13 and Ex.B2 to the A.P. Forensic Science Laboratory at Mangalagiri for expert opinion. The said application came to be rejected as not maintainable, vide order, dated 21.09.2023. The 3rd respondent challenged the aforesaid two orders and also non-constitution of Full Bench in terms of Rule 20(4) of the 1994 Rules in W.P.No.26409 of 2023. The said writ petition came to be disposed of by order, dated 15.03.2024, directing the Commissioner for Cooperation and Registrar of Cooperative Societies to act upon the request of Deputy Registrar for the purpose of constitution of Full Bench to decide the E.O.P. in terms of Rule 20(4) of the 1994 Rules. In this background, the writ petitioner preferred W.P.No.15652 of 2024 challenging the vires of Rule 20(4) of the 1994 Rules to the extent of reference being made to Full Bench in case of divergent opinions expressed by two members to be in violation of Article 14 of the Constitution of India, besides challenging the order of the learned single Judge, dated 15.03.2023, passed in W.P.No.26409 of 2023, by preferring Writ Appeal No.89