(1.) Chintapalli Agency Taluk Arrack Sales Co-operative Society Ltd. and the Paderu Taluk Tribal Arrack Sales Co-operative Society Ltd. were registered as Co-operative Societies by the Deputy Registrar of Co-operative Societies, Yelamanchili.he question raised in this case by these two Societies has been decided by a common judgment of the High Court of 27th January, 1977. It is sufficient to state the facts appertaining to Chintapalli Agency Taluk Arrack Sales Co-operative Society Ltd. (briefly the appellant) as these are common.
(2.) The appellant was registered by the Deputy Registrar of co-operative Societies, Yelamanchili, on 26th September, 1975. The area of operation of the appellant as provided in its bye-laws was for the entire taluk with a view to grant arrack licences to it in respect of all the arrack shops within the said taluk. There was, however, an infection of the co-operative movement and it appears that tribals in the various villages in the taluk were also encouraged by the Co-operative Department to form their own village co-operative societies and to ask for grant of licences of their village shops in favour of the respective village societies instead of granting all the licences of the taluk to a single society, such as the appellant. With this purpose of initiating them into the liquor trade, the village societies were registered on 4th October, 1975.
(3.) Having thus registered the village co-operative societies (briefly the village societies), the Deputy Registrar of Co-operative Societies gave a notice to the appellant under Section 16 (5) of the Andhra Pradesh Co-operative Societies Act, 1964, calling upon it to amend its bye-laws so as to restrict its area of operation only to the taluk headquarters.