SHATRANAJI AND NASAR H W CO OP PRODUCTIONS AND SALES SOCIETY LTD Vs. DIRECTOR OF HANDLOOMS AND TEXTILES HYD

JUDGEMENT

(1.) This writ appeal is filed by the appellants- petitioners assailing the order of the learned Single Judge, dated 26-8-1996 in Writ Petition No.9373 of 1996 on the ground that it is unsustainable in law.

(2.) The appellant-societies have challenged the proceedings No.275 6/96/1, dated 6-4-1996 of 1st Respondent and R.C.No.2631/95-B,dated28-3-1996of2nd Respondent rejecting the appellants' request to operate Bank accounts in any Nationalised Bank preferably Central Bank of India, Warangal viz., 4th Respondent for the purposes of business transactions and to receive the amounts granted by the Central Government under destitute programme and also from the 3rd respondent, as arbitrary.

(3.) It is contended before us by the appellants that the appellant-societies are weavers' co-operative societies established long back. The main activity of the Societies, is only to provide employment to the persons by engaging them in weaving activity and production of cloth. The cloth thus produced would be purchased mainly by the 3rd respondent and other organisations. The appellant-societies were originally financed by Central Co-operative Bank being a federal Bank and in course of time, due to unforeseen circumstances viz., amalgamation ofunviable societies with the appellant-societies non- release of debt relief amount and rebate amount etc., the appellants are not in a position to provide work to the members. The funds are released from the various Banks and these funds are deposited in the Co-operative Banks. It is further stated that the Central Government in order to assist the destitute societies, is releasing special funds to the tune of Rs.2 lakhs to each of the society, so thatthe amounts could be utilised for the labour force connected with the societies.