The provisions for a common cadre in the Tamil Nadu Cooperative Societies Act do not violate constitutional autonomy, as reasonable State regulation is permissible for effective governance.

ORDER :

MANINDRA MOHAN SHRIVASTAVA, CJ.

The aforesaid two writ petitions have been filed seeking declaration declaring Section 74 and 75(1) of the Tamil Nadu Cooperative Societies Act, 1983, and the consequential Government Orders dated 12.02.2019, 15.02.2024 and 24.01.2024 of the first respondent constituting the Tamil Nadu Primary Agricultural Cooperative Credit Society Common Cadre Service Rules, 2019 as ultra vires Article 19(1) (c) read with Article 43B of the Constitution of India and the preamble part of the Tamil Nadu Cooperative Societies Act, 1983, as amended by Act No.4 of 2013.

2. Submissions made on behalf of the petitioners :

(a) Learned counsel for the petitioners contended that Sections 74 and 75 of the Tamil Nadu Cooperative Societies Act and common pool cadre rules affect the autonomy of the Cooperative societies. The provisions contained in the aforesaid two sections are State-centric and while constituting common cadre of service in respect of the posts of Secretaries, Assistant Secretaries, Executive Officers, Assistant Executive Officers, General Managers, Assistant General Managers, Managers, Assistant Managers, Purchase Managers, Purchase Officers, Assistant Purchase Officers, Development Officers, Chief Accountants, Chief Accounts Officers, Accounts Officers, State has retained absolute control in every aspect of recruitment, disciplinary action, transfer, posting etc.

(b) The competent authority, being a committee formed in Rule 3 sub-Rule 4 of the Tamil Nadu Cooperative Societies Rules, alone is declared competent to recruit, appoint, transfer, suspend, take disciplinary action, terminate, decide all new matters etc., common cadre officers/employees, mostly of administrative/managerial rank. The power which has been reserved in the hands of the committee, thus for all legal and practical purposes, is the supreme body, next to the State. Thus, the entire power has been centralized in a manner that the autonomy of the Cooperative Societies has been completely taken away.

(c) The Cooperative Societies do not have any such control which the State or its authority exercises in respect of all the common cadre officers/ employees. This statutory scheme of the Act and the rules is destructive of complete and full autonomy of the Cooperative Societies. It also incidentally imposes unreasonable restrictions on the fundamental right to form Cooperative Society under Article 19(1)(c) of the Constitution of India, as amended, along with insertion of Article 43B of the Constitution of India, in 2012.

(d) Article 43B of the Constitution of India, though part of the Directive Principles of the State Policy, nevertheless provides that the State shall endeavour to promote autonomous functioning. Therefore, while framing legislation, the State's objective must be directed towards fulfillment of these directive principles and policies. Any provision or scheme of the legislation, which is destructive of the autonomy would be ultra vires Article 43B of the Constitution of India.

(e) Consequent upon insertion of Article 43B of the Constitution of India, the preamble to the Tamil Nadu Cooperative Societies Act was also amended, which clearly provides that it is expedient to promote functional autonomy.

(f) Tamil Nadu Cooperative Societies Act was enacted prior to insertion of Article 43B of the Constitution of India. After insertion of Article 43B of the Constitution of India, the preamble was also amended to bring it in tune with the new provision in the Constitution and, therefore, the Act, after the amendment in