R.V.SHANMUGANANDAM Vs. REGISTRAR,CO-OPERATIVE SOCIETIES

JUDGEMENT

(1.) The Tamil Nadu Co-operative Societies Act, 1983 (hereinafter called as Act) was enacted to provide for an orderly development of the co-operative movement in accordance with co-operative principles such as open membership, democratic management, limited interest on capital, distribution of surplus based on patronage, provision for co-operative education and cooperation among co-operatives for the promotion of thrift, self-help and mutual aid among persons with common socio-economic needs so as to bring about improvement in agriculture and industry, better methods of production, better business and better living.

(2.) The Hon'ble Supreme Court in the Judgment in Myurdhwaj Cooperative Group Housing Society vs. Presiding Officer Delhi Co-operative Tribunal, 1998 AIR(SC) 2410 has succinctly captured the purpose of forming Co-operative Society by holding that the Co-operative society is formed, with a laudable objective to inculcate spirit to work in a group freely for rendering benefit to its members through the Co-operative contribution.

(3.) Considering the importance of encouraging the Co-operative Movement, the Legislature thought it fit to give Co-operative Societies a constitutional recognition and the Constitution (97th amendment) Act, 2011 was brought into force on 15.02.2012. Thereby Article 43-B was inserted in Part-IV and a new Part IX-B was inserted in the Constitution. Article 43-B of the Constitution envisages that the State shall endeavour and promote voluntary formation, autonomous functioning, democratic control and professional management of Co-operative Societies. After this amendment, the Tamil Nadu Government decided to amend the Act in consonance with the provisions of the Constitution and thereby necessary amendments were brought in to the existing Act through Act 4 of 2013.