SANT SADHU SINGH Vs. STATE OF PUNJAB

JUDGEMENT

(1.) THIS order will dispose of Civil Writ Petitions No. 2820. 2858, 3090 and 3091 of 1969. The petitioners are mainly Directors of the Cooperative Banks and have filed the present petitions under Articles 226 and 227 of the Constitution of India, to challenge the vires of Punjab Co-operative Societies (Amendment) Ordinance, 1969 (Ordinance No. 10 of 1969) which Ordinance has later on been made Law (Punjab Co-operative Societies (Amendment) Act, 1969) (Pun-Jab Act 25 of 1969 ). Sections Nos. 4, 7, 10 and 11 of the Ordinance and now Sections Nos. 4, 6, 9 and 10 of the Act, are being challenged in these petitions. The main grounds of attack which were argued before us are:--

(2.) IT may be mentioned that only the first ground of attack was really pressed. The two grounds of attack have been merely stated to be rejected. We have been unable to see how the Act or the Ordinance are a colourable exercise of power, whereas the complete answer to the 3rd ground of attack is furnished by Article 31-A of the Constitution of India. Therefore, we only propose to deal with the facts of Civil Writ Petition No. 2820 of 1969 in order to bring out the controversy pertaining to the first ground. It is conceded that whatever our decision is in this petition it will conclude the other three petitions. We have not thought it necessary to advert to the facts of the remaining three petitions.

(3.) IN Civil Writ No. 2820 of 1969. the petitioners are the Directors of Central Cooperative bank Ltd. , Ropar -- hereinafter called the Bank. This Bank was registered under the Punjab Co-operative Societies Act, 1961. Petitioners Nos. 1, 2, 4 and 5, namely, Sant Sadhu Singh, S. Jagir Singh. S. Gurdev Singh and S. Sarwan singh respectively, were elected Directors of the Bank in an election held on the 9th of May. 1969. They were elected unopposed. Petitioner No. 3, Dr. Roy Bikram chand, was elected unopposed on the 13th of August, 1968, whereas petitioner no. 6, S. Karam Singh, was elected as a Director of the Bank on the 27th of september, 1968. According to the bye-laws of the Bank the Board of Directors is elected for a period of three years and l/3rd of the Directors retire annually in rotation. The Bank was established in the year 1927 with a nominal capital. Its present working capital is over two crores. The Punjab Government have also subscribed to the share capital of the Bank to the extent of about 20 lacs. It has also nominated three Directors as members of the Board of Directors under section 26 of the Punjab Co-operative Societies Act, 1961. It is claimed that by reason of the Ordinance and the Amending Act, the rights and powers of the share-holders in managing the co-operative Banks have been considerably curtailed and the Registrar of the Co-operative Societies has taken over completely the control of the Societies. It is also averred that the reason for the ordinance and the Amending Act is to deprive the control which was with the congress Party and make it over to the Akali Party.