PATIL R V Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) Constitutional validity of Sec. 30A (1A) of the Karnataka Co-operative Societies Act, 1959 ('the Act' for short) and the order appointing a Special Officer to the Malaprabha Co-operative Spinning Mills Ltd., Saundatti (referred as 'the Society' hereinafter) are challenged in these two writ petitions, referred to the Division Bench by the learned single Judge. Writ Petitions are filed by 9 of the Directors of the Society in all.

(2.) The Society is stated to be a 'Major Class' Agricultural Produce Cooperative Society, with a vast area of operation. One of its objects is to purchase cotton from grower members and others. Its authorised share capital is Rs. 4 crores & fifty lakhs. The Board of Directors consist of 17 Directors elected by 'A' Class members, 3 Directors nominated by the State Government, of whom one is its Managing Director and one Director is the nominee of a Financing Agency.

(3.) The Society/Mill is being assisted under NCDC-III Project under the World Bank Agreement for setting up a Spinning Mill of 25000 spindles capacity with the ginning and processing emit attached thereto. The Karnataka State Co-operative Spinning Mills Federation Ltd., Bangalore, is the Project Consultant to help in the establishment of the plant. The Government of Karnataka constituted a project implementation Committee (PIC) for implementation of cotton component in accordance with the conditions of assistance stipulated under NCDC-III Project. The Government constituted a Committee to review the progress of the working regarding implementation of cotton component units under NCDC III Project with the persons specified in the said order. The project is a time bound project and as per implementation schedule, the Mill was expected to be commissioned by 22-7-1987. The project cost of the Mill as approved by the NCDC was Rs. 1361/- lakhs as per the Financial assistance.