UTIAR PRADESH CO-OPERATIVE FEDERATION versus THE STATE OF U.P. & ORS.

UTIAR PRADESH CO-OPERATIVE FEDERATION versus THE STATE OF U.P. & ORS.

As shares held by the co-operative banks and the District Co-operative Federation, Saharanpur were not validly removed, retired, or transferred as per the Act and Rules, the Government's shareholding never reached 60%; thus, the State Government's exercise of nomination powers under section 34 was not justified.

Parties
Petitioner/appellant: Uttar Pradesh Co-operative Federation; Respondents: The State of U.P. & Ors.
Jurisdiction
India
Judgment Date
19 January 1973
Procedural Posture
Writ Petition and Civil Appeal / Supreme Court Appeal From Allahabad High Court; Challenge to State Government Order
Outcome
Petition and appeal allowed
Legal Topics
State Government's Power to Nominate Committee Members Under S. 34 U.p. Cooperative Societies Act, Reduction of Share Capital in Co Operative Societies, Interpretation of Statutory Provisions Concerning Membership and Shareholding, Validity of Government Power Vis À Vis Constitutional Rights
Administrative Law Co Operative Societies Law Constitutional Law State Government's Power to Nominate Committee Members Under S. 34 U.p. Cooperative Societies Act Reduction of Share Capital in Co Operative Societies Interpretation of Statutory Provisions Concerning Membership and Shareholding Validity of Government Power Vis À Vis Constitutional Rights

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Parties

Uttar Pradesh Co-operative Federation

Petitioner/appellant

The State of U.P. & Ors.

Respondents

Procedural Posture

Writ Petition and Civil Appeal / Supreme Court Appeal From Allahabad High Court; Challenge to State Government Order

Legal Issues

  1. 1 Whether the State Government was justified in exercising its right to nominate two-thirds of the committee of management of the Federation under section 34 of the U.P. Cooperative Societies Act, 1965
  2. 2 Whether there was a valid reduction of share capital entitling the State Government to such rights
  3. 3 Whether the condition precedent of 60% Government shareholding was fulfilled

Ratio Decidendi

As shares held by the co-operative banks and the District Co-operative Federation, Saharanpur were not validly removed, retired, or transferred as per the Act and Rules, the Government's shareholding never reached 60%; thus, the State Government's exercise of nomination powers under section 34 was not justified.

Court Disposition

Petition and appeal allowed

Orders

  • Order of the State Government dated 26 June, 1971 quashed
  • Judgment of the High Court set aside