LAWS(ORI)-1995-5-27

CHANDRA NAIK Vs. STATE OF ORISSA

Decided On May 08, 1995
CHANDRA NAIK Appellant
V/S
STATE OF ORISSA Respondents

JUDGEMENT

(1.) The Notification issued by the State Government in exercise of power under Section 123 of the Orissa Co -operative Societies Act (hereinafter referred to as the 'Act') dated 26th October, 1991, exempting the Orissa State Co -operative Spinning Mills Federation Limited from the provisions of Sub -section (3) of Section 31 of the Act and directing that the provision of Sub -section (1) of Section 28 -A of the Act shall apply to the aforesaid Federation with the modification as specified in the said Notification, is being challenged in this writ application. In view of the aforesaid Notification, the Chairman of the Board of the Federation is nominated by the State Government, The petitioner's case in nut -shell is that the aforesaid Notification in purported exercise of power under Section 123 of the Act is a mala fide exercise of power and is contrary to the very object of the Act and, therefore, should be struck down. It is alleged that by such notification, the features of co -operative democracy have been destroyed and the basic structure enshrined in Section 28 -A of the Act is also destroyed.

(2.) A counter affidavit has been filed on behalf of opp. party No. 1 and the stand taken therein is that the conferment of power on the State Government under Section 123 can neither be held to be arbitrary nor any decision taken thereon can be interfered with so long as the same is bona fide.

(3.) I agree.