THE PALLI JHIKHI MULTIPURPOSE COOPERATIVE AGRICULTURAL SOCIETY LTD. & ANR. Vs. STATE OF PUNJAB & ORS.

JUDGEMENT

(1.) The first petitioner is a Co-operative Agricultural Society registered under the Punjab Co-operative Societies Act, 1961 (in short, 'the Act'). Petitioner No.2 is an ex-Director of the Nawanshahr Cooperative Bank Ltd. The Punjab Ordinance No.8 of 2013 notified on 9th September, 2013 whereby a proviso to sub-Clause (b) of Clause (a) of sub-Section (2) of Section 26 of the Act has been inserted, is impugned by the petitioners, as according to them, the amended provision is wholly unconstitutional and is an act of colorable legislative power. The petitioners also challenge the advertisement dated 12th September, 2013 issued by respondent No.3-Bank pursuant to the above-stated amended provision, it being allegedly in violation of the Act, Rules and the Byelaws.

(2.) The Punjab Co-operative Societies Act, 1961 had been enacted to simplify the Co-Operative law and to remove bottlenecks in the way of development of co-operative movement. Chapter-II of the Act contains provisions for registration of Co-operative Societies. Chapter- III deals with Members of Co-operative Societies and their rights and liabilities. Chapter-IV provides for the management of Co-operative Societies. Chapter-V enshrines privileges of Co-operative Societies, while its Chapter-VIII deals with settlement of disputes. Chapter-IX lays down the procedure for winding up and cancellation of registration of a Co-operative Society, while Chapter-X deals with execution of awards, decree, orders and decisions passed by the Liquidator in the winding up proceedings of a Co-operative Society. Chapter-XI provides for appeals and revisions, Chapter-XI-A deals with Co-operative Banks and Chapter-XII provides for offences and penalties.

(3.) Section 26 of the Act provides for the "Election and Nomination of Members of Committees". Its sub-Section (1) says that members of the Committee of a Co-operative Society shall be elected in the manner prescribed and no person shall be so elected unless he is a share holder in the Society. For better appreciation of the petitioners' challenge, it would be useful to firstly reproduce the un-amended Section 26 of the Act as it existed before issuance of the impugned Ordinance. It reads as follows:-