1. Respondent 1, Bellary Central Co - operative Stores Ltd., Bellary (hereinafter referred to as the 'Society'), is a Co - operative Society with limited liability of its shareholders. The Society has been doing extensive business in consumer goods in Bellary District. In the year 1955, the Society started a Sugar Factory at Kampli near Hospet. The State Government has given to the Society aid of more than Rupees three lakhs in the form of share - capital, loans, and guarantee for loans taken by the Society for its activities in consumer goods. The Government has also subscribed Rs. 15 lakhs towards the share capital for the said Sugar Factory.

2. In exercise of the powers conferred by S.54 and S.121 of the Mysore Co - operative Societies Act, 1959 (hereinafter referred to as the 'Co - operative Act'), the Government issued a Notification (marked document A) on 14-6 1966. By this Notification, S.29 of the Co - operative Act has been modified in relation to this Society so as to enable the Government to nominate as its representatives, 6 persons as members of the Committee of this Society of whom one shall be the Chairman and Managing Director. By this Notification bye - law 18 (a)(