M. RANGA REDDY Vs. STATE OF ANDHRA PRADESH REPRESENTED BY ITS SECRETARY, FOOD AND AGRICULTURE, GOVERNMENT OF ANDHRA PRADESH, HYDERABAD AND ANOTHER

JUDGEMENT

(1.) The constitutionality of Sections 2 and 4 of the Andhra Pradesh Co-operative Societies (Amendment) Ordinance, 1987 (Ordinance 4 of 1987), hereinafter referred to as the Ordinance, is at issue in this writ petition. The petitioner is a member of the Kodakandla Primary Agricultural Co-operative Society, Kodakandla in Medak District.

(2.) Before adverting to the grounds on which the Ordinance is assailed, it is necessary to refer to the forensic serimmage that preceded the Ordinance in question. Elections to Co-operative Societies have not been held in the State since 1981 and for more than three years the managements of the Societies are in the hands of officials appointed as Persons-in-charge. When this Court was moved for direction to the Government to conduct elections, in W.P.M.P. 1802/84 a direction was issued on 28-10-84 to extend the term of office of the existing management committees for a, period of three months. That term was subsequently extended by the Government on 28-12-1984 for another three months and thereafter no elections were held. When G.O. Rt. No. 411 dated 15-3-1985 was issued appointing officials as Persons-in-Charge under Sec. 32 (7) (a) of the Andhra Pradesh Co-operative Societies Act, 1964, hereinafter referred to as the Act, W.P. No. 2519/85 and batch were filed in this Court challenging the validity of the G.O. Jeevan Reddy, J. suspended the impugned G.O. but made it specific that the Registrar of the Co-operative Societies or other competent authorities were not precluded from passing appropriate orders in respect of individual cases bearing in mind the principles enunciated by a Full Bench of this Court in M. Gidda Reddy Vs. Deputy Registrar, Kurnool, AIR 1977 AP 274 and until such action was taken the elected committees were directed to continue in office. On appeal in W.A. No. 354/85 and batch a Division Bench by judgment dated 5-4-1985, while sustaining a greater part of the aforesaid direction, set aside the last part of the direction relating to the continuance is office of the elected committees. The Government instead of implementing the orders of this Court, brought forth an Ordinance- Ordinance 4 of 1985-which was subsequently replaced by Act 21 of 1985, enacting provisions to conduct elections within a period of six months commencing from 22-4-1985, the date when the Ordinance 4 of 1985 came into force. As elections were not held within the statutorily specified period, Writ Petition No. 1168 of 1986 was filed which was allowed by a single Judge of this Court (Ramaswamy, J.) on 16-4-1986 and a Mandamus was issued to the State Government and other respondents to conduct elections within three months from the date of receipt of the judgment, to all classes of Societies, viz., Agricultural Credit, Marketing and Consumer Co-operative Societies, in terms of Rule 22 of the Rules framed under the Act. The matter was carried in appeal by the Government in Writ Appeal Nos. 503 and 504 of 1986. By a judgment dated 31-10-1986 a Division Bench of this Court comprising the Honourable the Chief Justice and Syed Shah Mohammed Quadri, J, while upholding the Mandamus issued by the learned single Judge, extended the period till Jan. 26, 1987. Instead of holding elections before the date specified in the aforesaid judgment, the Government brought a legislation-Act I of 1987 to conduct elections before 30-6-1987. This delay on the part of the Government, it was stated, was mainly due to the efforts of the Government to finalise what is commonly called Single Window System which contemplated reorganisation of the Co-operative Societies for the purpose of enabling easy flow of credit from a single society instead of multiple societies. With this end in view Sec. 15-A of the Act was amended by Act I of 1987. A Division Bench of this Court in Writ Appeal No. 138 of 1987 upheld the validity of Act I of 1987.

(3.) Under Sec. 21 of the Act, the general body of a society shall constitute a committee in accordance with the bye-laws for the purpose of managing the affairs of the society. Sec. 32 deals with the holding of meetings of the committees. Sub-section (3) enjoins a duty on the President of the Society to convene meeting of the Management Committee once in three months and on his failure to discharge the duty and if no meeting is held for a continuous period of four months, he shall cease to be the President. Sub-section (7) contemplates situations where there is no committee or where it is not possible to call a general body meeting for the purpose of conducting elections to the Management Committee. In such cases, the Government in respect of the prescribed societies, and the Registrar in respect of other societies are empowered to appoint a person or persons to manage the affairs of the society for a period not exceeding six months. After the expiry of the period of six months the Government may suo motu and the Registrar with the previous approval of the Government, extend from time to time the tenure of the person-in-charge, "so however that the aggregate period including the extended period, if any, shall not exceed two years". Clause (b) says that the person or persons so appointed under clause (a) shall "have power to exercise all or any of the functions of the committee or any officer of the society and to take all such actions as may be required in the interest of the society". Sec. 3 (1) enjoins appointment of Registrar of Co-operative Societies for the entire State. 'Clause (n) of Sec. 2 defines "Registrar" as meaning the Registrar of Co-operative Societies appointed under Sec. 3 (1) and includes any other person on whom all or any of the powers of the Registrar under the Act are conferred. In respect of Primary Agricultural Co-operative Societies, the District Collector is the Registrar. Act I of 1987 by which, among other things, the Single Window System was introduced, came into force on 9-1-1987. As already noticed, the maximum period for which a person-in-charge could be appointed under Sec. 32(7)(a) is two years and this period in respect of all the persons-in-charge managing the affairs of the Primary Agricultural Co-operative Societies in the State expired by 21-4-1987. Act I of 1987, by Sec. 12, which introduced Sec. 36 to the principal Act, lays down that notwithstanding anything to the contrary in the principal Act or any judgment, decree or order of any court or tribunal or other authority, "it shall be lawful for the Registrar to hold elections to the societies before the 30th June, 1987 in accordance with the provisions of the principal Act and the rules made thereunder". The Government was of the view that under Sec. 32 (7)(a) the aggregate term of office of the persons-in-charge could be extended beyond two years for a further period till 30-6-1987 or till the elections are over whichever is earlier, and in that view issued G.O. Ms. No. 190 dated 3-4-1987 in exercise of powers conferred by Sec. 32 (7)(a) extending the period of the persons-in-charge "for a further period from 22-4-1987 to 30-6-1987 or till elections are held whichever is earlier".