GAJADHAR PRASAD CHOUDHARY Vs. STATE OF BIHAR

JUDGEMENT

(1.) The four writ petitions have been taken up together as the points involved are common. This judgment will govern all of them.

(2.) All these writ petitions arise out of a proceeding under Section 16 (3), Bihar Land Reforms (Fixation of Ceiling Area and Acquisition of Surplus Land) Act, 1961 (hereinafter to be referred to as 'the Act'). The petitioners, on 11-4-1971, through four separate sale deeds purchased 11 kathas 5 dhurs of C. S. Plot No. 387 (R. S. Plot No. 10007), New Khata No. 1665 of village Paroo District Muzaffarpur. The registration of the sale deeds were completed on 12-8-1971. Paroo Vyapar Mandal Sahyog Samiti Ltd. (hereinafter to be referred to as 'the Samiti'), a marketing and credit co-operative institution, filed an application under Section 16 (3) of the Act in the prescribed manner, claiming pre-emption, as being adjoining raiyat to the land transferred. The Deputy Collector I/C Land Reforms, the Additional Collector as well as the Additional Member, Board of Revenue, upheld the claim of pre-emption. The Courts below found the Samiti engaged in cultivation of land and as such raiyat within the meaning of the Act.

(3.) Mr. Sreenath Singh, learned counsel appearing for the petitioners, submitted that the Samiti is a marketing and credit co-operative institution constituted under the Bihar & Orissa Co-operative Societies Act, 1935 (hereinafter to be referred to as 'the Co-operative Act'), with the object laid down in its bye-laws. Clause 4 of its bye-laws having not provided the impugned activity as one of the objects of the Samiti, cultivation of land by such an institution is an ultra vires act, the activity being beyond the function laid down in the objects clause, i.e., the bye-laws. The Samiti's claim of pre-emption, therefore, is not maintainable. In support of this contention he relied on the following para of Ramaiya's Book on the Companies Act (1977 Edition Page 69).