KANHAIYALAL SAHU Vs. STATE OF M P

JUDGEMENT

(1.) This is a petition filed by the petitioners challenging an order passed by Joint Registrar, Co-operative Societies, under Section 16 (3) of the Madhya Pradesh Co-operative Societies Act, 1960 directing amalgamation of the petitioners' Society viz. Adivasi Bahu Uddeshiya Sahakari Samiti Niwas with respondent No. 4 Society called, Adim Jati Sewa Sahakari Samiti, Niwas.

(2.) It is alleged by the petitioners that they are the share holders members of the Bahu Uddeshiya Society, district Mandla. This society was registered as multi-purpose society vide, registration No. 281 dated 4-1-1947 and the area of operation of this society extends to 20 villager around Niwas. The objects of the society are to purchase and sell consumer goods, agricultural implements, seed, fertilizers and generally to undertake all such work as may improve the economic conditions of its members. This society has in all 334 members of which 32 are Scheduled Tribes, 35 are Scheduled Caste and the rest are general. Its paid up share capital is Rs. 3,417. The Society has permanent assets of its own in the form of one building with open enclosures which is valued at Rs. 17,430. According to the audit note for the year ending 30th June 1978, the society carried on business worth Rs. 10,59,477.93 gross profit was Rs. 10,849.34 and net profit was Rs. 10,849.34 and net profit was Rs. 3,612.92. The society has no liability to repay loans to any society, person or the State Government.

(3.) On 26-11-1975, it is alleged that a meeting of various Heads of Departments presided over by the Chief Secretary of Madhya Pradesh was held to consider all questions of reorganising co-operative societies of the areas falling under the Scheme for Tribals. The meeting also reviewed the question of retaining the multipurpose and labour co-operative societies existing in the areas falling under the Tribunal Scheme. It was found that the Tribunal Societies had failed to achieve their objects and were running in losses. In order to infuse life in them, the said committee resolved to reorganise the Tribal Societies by amalgamating the multi purpose co-operative societies working in the project area and if such multi purpose societies were not agreeable, the committee also took a decision to force amalgamation by exercising powers under Section 16 (3) of the M. P. Co-operative Societies Act.