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Smart Summary

Comprehensive Summary of the Full Bench Opinion (S.S. Sandhawalia, C.J.)

Factual and Procedural Background

The petitioner, Ajmer Singh, was employed as a Field Inspector in the Punjab State Co-operative Supply and Marketing Federation Ltd. (Markfed), which is registered under the Punjab Co-operative Societies Act, 1961. By an order dated 13 November 1978 (annexure P.2) the Managing Director dismissed the petitioner from service; that dismissal was affirmed on appeal by the Administrator (annexure P/5). The petitioner filed a writ petition under Article 226 of the Constitution challenging the dismissal and its affirmance in appeal. At the motion stage the respondent (Markfed) raised a preliminary objection that a writ petition was not maintainable against a Cooperative Society. The petitioner relied on Kulwant Singh v. State of Punjab (1972 P.L.J. 399). Because of perceived conflict among authorities the Motion Bench referred the matter to a Full Bench.

Legal Issues Presented

  1. Whether a society merely registered under the Punjab Co-operative Societies Act, 1961, is amenable to the writ jurisdiction under Article 226 of the Constitution of India.
  2. Whether, in the circumstances of this case, a writ petition challenging an order of appointment of an Administrator (annexure P/5) is maintainable against State authorities (including the Registrar and Additional Registrar) on the ground of a purported violation of Section 26 (as referred to in the opinion) of the Act.

Arguments of the Parties

Petitioner's Arguments

  • The petitioner initially challenged both the dismissal by the Managing Director (annexure F/2) and the affirmance by the Administrator (annexure P/5) by way of writ under Article 226.
  • Reliance was placed on Kulwant Singh v. State of Punjab (1972 P.L.J. 399) as authority for maintainability of the writ petition in the present facts.
  • After conceding inability to sustain a general proposition that a writ lies against a Cooperative Society, counsel for the petitioner sought to limit the challenge to annexure P/5, asserting that the appointment of the Administrator violated Section 26(ID) of the Act (the opinion quotes that provision) because the order was not the Registrar's in writing but purportedly made by an Additional Registrar in a reverse appointment. The submission was that annexure P/5 was therefore a nullity and susceptible to challenge.

Respondent's Arguments

  • The respondent (Markfed) raised a preliminary objection that no writ petition was maintainable against a Co-operative Society registered under the Act, i.e., that the society is not amenable to the writ jurisdiction under Article 226.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Kulwant Singh v. State of Punjab (1972 P.L.J. 399) Writ was allowed in that case principally because of a flagrant violation of Section 26(B) of the Punjab Co-operative Societies Act. The Full Bench distinguished Kulwant Singh: it held the case was not authority for the general proposition that a writ lies against a Co-operative Society, but supported the limited principle that where a statutory provision is flagrantly violated (by a Registrar or statutory authority), a writ may be maintainable against the statutory authority.
Dharam Pal Soni v. State of Punjab (1969 S.L.R. 349; LPA 1973 2 Serv. L.R. 845) Held that a Co-operative Society (a non-statutory body) is not amenable to writ jurisdiction; affirmed on letters patent appeal. The Full Bench treated this line of authority as forming an unbroken precedent within the Court and relied on it to support the general rule that a society registered under the Act is not amenable to writ jurisdiction under Article 226.
Krishan Lal Pahwa v. State of Haryana (1974 S.L.W.R. 298) Followed the principle in Dharam Pal Soni that a Co-operative Society is not amenable to writ jurisdiction. Noted as following Dharam Pal Soni and forming part of the consistent line of precedent within the Court.
Dilavar Singh v. Administrator, Khanna Co-op. Marketing Society Ltd. Followed the view that writ petition is not maintainable against a Co-operative Society. Included among the subsequent single-judge decisions that supported the unbroken precedent.
Anup Singh v. State of Punjab (1975 S.L.W.R. 27 Punj) Followed the Dharam Pal Soni principle of non-amenability. Referenced as part of the consistent judicial line within the Court.
P.S. Saini v. State of Punjab (C.W.P. No. 4410 of 1979) Division Bench holding that Markfed, being a Co-operative Society, was not subject to writ jurisdiction; petition dismissed in limine. Regarded as directly covering the issue and reinforcing the view that Markfed is not amenable to writ jurisdiction.
Praga Tools Corporation v. CBI Manual (1969 1 SCC 585) Observations on distinction between statutory corporation (authority) and other entities; used analogically. Relied upon by analogy in earlier decisions (including Dharam Pal Soni) and noted by the Full Bench as supporting the distinction between statutory authorities and merely registered societies.
Co-operative Central Bank Ltd. v. Additional Industrial Tribunal, Andhra Pradesh (AIR 1970 SC 245) Supreme Court observations relevant to status and writ jurisdiction vis-à-vis co-operative bodies. Referred to as part of the Supreme Court authority that buttresses the view that a registered society is not an authority under Article 12 and ordinarily not amenable to writ.
Sabhijit Tewari v. Union of India (AIR 1975 SC 1329) Held that a society incorporated under the Societies Registration Act, despite government interest/control, is not an 'authority' under Article 12; therefore writ not maintainable against it on that basis. Quoted as supporting the fundamental distinction between statutory authorities and societies merely incorporated/registered under the Societies Registration Act.
Narayan Rath v. Registrar, Co-operative Societies, Orissa (I.L.R 1970 Cut. 437) Held (High Court) that an employee could maintain a writ petition against a Co-operative Society for enforcement of service conditions. The Full Bench noted this decision and explained that the Supreme Court later repelled that view on appeal (see Nayagarh), so the High Court ruling should not be treated as authoritative for the proposition that a writ is maintainable against a Co-operative Society.
Nayagarh Co-operative Central Bank Ltd. v. Narayan Rath (1977 3 SCC 576; AIR 1977 SC 112) Supreme Court repelled the High Court view and observed that the High Court decision was not strictly in accordance with Supreme Court decisions; also held that a writ may be maintainable where relief is sought against an order passed by the Registrar (a statutory authority) acting under the Co-operative Societies Act. The Full Bench relied on Nayagarh to hold that although a society itself is not amenable to writ, a writ is maintainable when the challenge is to an order passed by the Registrar (or statutory authorities) exercising powers under the Act.

Court's Reasoning and Analysis

The Full Bench proceeded by first observing that within the jurisdiction of the Court there exists a long, unbroken line of precedent (beginning with Dharam Pal Soni and followed by subsequent single-judge and Division Bench decisions) concluding that a Co-operative Society, being a non-statutory body merely registered under the Co-operative Societies Act, is not amenable to writ jurisdiction under Article 226. The Bench considered it unnecessary to re-examine first principles in detail because of this settled internal precedent.

The Court closely examined the principal authority relied on by the petitioner, Kulwant Singh, and concluded that it did not contravene the existing line of precedents. Kulwant Singh had been decided on the basis that there was a blatant violation of a statutory provision (Section 26(B) of the Act) and therefore the writ jurisdiction was available to remedy that statutory infraction. The Full Bench treated Kulwant Singh as distinguishable and not laying down a general rule that a writ may be brought against a co-operative society in all circumstances.

The Bench also surveyed Supreme Court decisions (Praga Tools, Co-operative Central Bank, Sabhijit Tewari) that emphasized the distinction between statutory authorities/corporations created by statute and societies incorporated or registered under the Societies Registration Act or the Co-operative Societies Act. Those decisions supported the view that a registered society is ordinarily not an 'authority' within the meaning of Article 12 and hence not generally subject to writ jurisdiction.

The Bench addressed the divergent view taken by an Orissa High Court decision (Narayan Rath) and relied on the Supreme Court reversal in Nayagarh Co-operative Central Bank Ltd. v. Narayan Rath (1977 3 SCC 576). The Full Bench quoted Nayagarh for the proposition that a writ petition is maintainable where the relief sought is not really against a Co-operative Society but against an order passed by the Registrar who is acting as a statutory authority under the Co-operative Societies Act.

Applying these principles to the facts, the Bench noted that the petitioner had abandoned any challenge to the Managing Director's dismissal order (annexure F/2) and confined his challenge to annexure P/5 (the Administrator's affirmance). The petitioner alleged that the appointment of the Administrator was in patent violation of Section 26(ID) of the Act (the opinion includes the full text of the provision). The claimed illegality consisted in the fact that the law requires an order in writing by the Registrar to appoint an Administrator, whereas here an Additional Registrar purportedly appointed the Registrar as Administrator (a "reverse" appointment), producing a defect, according to counsel.

The Court found this focused challenge to annexure P/5 to be on a plausible legal footing: where the writ is directed to the Registrar or other statutory functionaries for alleged violation of the statutory scheme (as opposed to being directed to the society itself), the writ jurisdiction is available. Consequently the Full Bench held that the writ petition would be maintainable only to the limited extent of the challenge to annexure P/5 against respondents Nos. 1 to 4 and 6 (which include the State, the Registrar and the Additional Registrar). The Bench concluded that the merits of the challenge did not involve any conflict of precedent or exceptional difficulty and therefore directed that the matter be placed before a learned single Judge for decision on merits.

Holding and Implications

Holding: The Full Bench answered the principal question in the negative: a society merely registered under the Punjab Co-operative Societies Act, 1961, is not amenable to the writ jurisdiction under Article 226 of the Constitution of India.

Implications:

  • Direct consequence for the parties: The writ petition cannot be maintained against Markfed as such; however, the petition is maintainable to the limited extent that it challenges annexure P/5 (the Administrator's order) on the ground that its appointment violated the statutory provision quoted in the opinion (referred to primarily as Section 26(ID) of the Act). The writ is therefore maintainable against respondents Nos. 1 to 4 and 6 (which include the State and statutory functionaries such as the Registrar and Additional Registrar) insofar as that specific statutory infirmity is challenged.
  • The Full Bench directed that the limited challenge to annexure P/5 be placed before a learned single Judge to decide the merits.
  • The decision reaffirms the existing line of authority within the Court and the interpretive stance taken by the Supreme Court authorities cited; it does not purport to create a broad new exception to the general rule against writs to co-operative societies, but it affirms the narrower exception that where the relief sought targets actions of statutory authorities (Registrar/officials) taken in violation of statutory provisions, writ relief may be available.

Order: The Full Bench made the above declarations and directed the case to be placed before a single judge for disposal on merits. The separate concurring judges (P.C. Jain J. and J.M. Tandon J.) agreed with the reasoning and order.

    Ajmer Singh v. The Registrar, Co-Operative Socities, Punjab, Chandigarh And Others

    S.S Sandhawalia, C.J:— The meaningful question whether a society registered under the Punjab Co-operative Soceities Act, 1961, is amendable to the writ jurisdiction under Article 226 of the Constitution of India has been reagitated before the Full Bench.

    2. In view of the pristinely legal nature of the issue aforesaid, it is unnecessary to recount the facts in detail. Suffice it to mention that the petitioner Ajmer Singh was employed as a Field Inspector in the Punjab State Co-operative Supply and Marketing Federation Ltd. (hereinafter called Markfed) which admittedly is registered under the Cooperative Societies Act. The Managing Director of the Markfed by his order dated the 13th of November, 1978 (Annexure P. 2) dismissed the petitioner from service and his appeal against the said order was in turn dismissed by its Administrator vide annexure P/5. The writ petition sought to challege the order of dismissal and its affirmance in appeal. At the motion stage, a preliminary objection was raised on behalf of the respondent Markfed that no writ petition was maintainble against a Cooperative Society. On behalf of the petitioner, however, reliance was firmly placed on the D.B judgment in Kulwant Singh v. State of Punjab . 1972 P.L.J 399.. The Motion Bench, apparently discerning some conflict of authority admitted the present petition for a hearing by a Full Bench.

    3. Now it appears to me that within this jurisdiction there is such a long line of unbroken precedent covering the legal issue before us that it would be apparently wasteful to launch on a digression on first principles. The matter had first come up directly for decision before Tuli, J in Dharam Pal Soni v. State of Punjab . 1969 S.L.R 349. and after exhaustively examining the point both on principle and precedent the learned Judge concluded that a Cooperative Society being a non-statutory body a writ petition against it was not mantinable. The aforesaid view was strenously challenged in a letters Patent Appeal but was conclusively repelled by the Bench in Dharam Pal Soni v. State of Punjab . 1973 2 Serv. L.R 845 Subsequently Dharam Pal Soni's case (supra) has been unreservedly followed by learned single Judge of this Court in Krishan Lal Pahwa v. State of Haryana . 1974 S.L.W.R 298., Dilavar Singh v. Administrator, Khanna Co-op. Marketing Society Ltd,5 and Anup Singh v. State of Punjab . 1975 S.L.W.R 27 Punj. Lastly directly covering the issue is the Division Bench judgment in P.S Saini v. State of Punjab . C.W P. No. 4410 of 1979, C.W.P No. 4410 of 1979 decided on the 23rd of February, wherein it has been specifically held that Markfed being a Cooperative Society a writ petition against it was not maintainable and the same was consequently dismissed in limine.

    4. Now the reliance of Mr. Khoji on Kulwant Singh's case, (supra) both before the Motion Bench as also before us for holding a contrary view does not appear to me as at all well concieved. A close analysis of the said Division Bench judgment would plainly indicate that the learned Judges did not at all dissent from the view consistently held within this Court Indeed therein expres reference has been made to Dharam Pal Son's and it was distinguished specifically on the ground that the observations made therein were not applicable to the facts of the case. On an in-depth examination of the judgment, it appears to us that it is no authority whatsoever for the proposition that writ petition would be maintainable against a co-operative Society. Indeed it is evident that the learned Judges allowed the writ petition primarily and indeed solely on the ground that the case disclosed a flagrant and blatant violation of the statutory provision of Section 26(B) of the Punjab Co-operative Societies Act (hereinafter called the Act). It is elementary that where the infraction of a statutory provision arises, the writ jurisdiction provides an obvious remedy therefor. We must, therefore, conclude that Kulwant Singh's case is wholly distinguishable and in no way detracts from the consistent line of precedent within this Court which stands noticed above. It called for the pointed notice that Mr. Khoji, learned counsel for the petitioner, conceeded before us that he could note cite any other judgment whatsoever for a contrary view.

    5. However, the matter does not appear to us as resting on the judgments of this Court alone. It only deserves highlighting that in Dharm Pal Soni's case (1973-2 Serv. L.R 845) and the other judgments of the Court reliance was heavily placed by way of analogy on the observations of the final Court in Praga Tools Corporation v. C.B Imanual . 1969 1 SCC 585, and Co-operative Central Bank Ltd. v. Additional Industrial Tribunal, Andhra Pradesh AIR 1970 SC 245. Subsequent judgments of their Lordships seem to further buttress the aforesaid view. In Sabhijit Tewari v. Union of India AIR 1975 SC 1329, the basic distinction of a statutory Corporation created by an Act and Society merely incorporated in accordance with the provisions of the Socities Registration Act was highlighted and it was held that despite the factors of an overwhelming governmental interest and control over such a society it was neverthless not an authority within the meaning of Article 12 of the Constitution and no writ was maintainable against the same.

    6. What then calls for pointed notice is that a Division Bench of the Orissa High Court in Narayan Rath v. Registrar, Co-operative Societies, Orissa . I.L.R 1970 Cut. 437, took the view that an employee of a Cooperative Society can maintain a writ petition against it for the enforcement of its service conditions. On appeal, their Lordships repelling such a view in Nayagarh Co-operative Central Bank Ltd. v. Naryan Rath . 1977 3 SCC 576, have observed as follows:—

    “The High Court has dealt with the question whether a writ petition can be maintained against a Co-operative Society, but we are inclined to the view that the observations made by the High Court and its decision that such a writ petition is maintainable are not strictly in accordance with the decisions of this Court”

    “We would like to observe that the judgment of the High Court should not be treated as an authority for the proposition that a writ petition is maintainable against a Co-perative Society. That question shall have to be decided by the High Court as and when it arises in the light of the decisions of this Court”

    7. In view of the above, affirming the earlier judgments of this Court, we would answer the question posed at the outset in the negative to the effect that a Society merely registered under the Act is not amenable to the writ jurisdiction under Article 226 of the Constitution of India.

    8. What perhaps deserves notice is that when with the afore quoted unsurmountable wall of precedent, Mr. B.S Khoji the learned counsel for the petitioners had ultimately to concede that he was unable to sustain his proposition that a writ petition was maintainable against a Co-operative Society. Consequently he fairly stated that he would abandon all challenge to annexure F/2 which is the order of dismissal passed by the Managing Director of the Markfed and in express terms stated that he claims no relief against the same.

    9. However, beating a tactical retresat, Mr. Khoji then submitted that neverheless within the writ jurisdiction he could still maintain his challenge to annexure P/5 as against respondents Nos. 1 to 4. It was submitted by him that now, in essence, he was only assailing the order passed by the Registrar or the Additional Registrar of the Co-operative Societies in patent infraction of the provisions of Section 26(ID) of the Act. That provision runs as under:—

    “Where any committee has ceased to held office and committee has not been constituted in accordance with the provisions of this Act and rules and bye-laws, made thereunder, the Registrar may, by an order in writing, appoint Government servant as an administrator for such period as may from time to time, be specified in the order and the Administrator shall before the expiry of the period of his appointment, arrange for the constitution of a new committee in accordance with the provisions of this Act and rules and bye-laws made thereunder.

    10. In the light of the above, it was contended that herein an administrator had been appointed for the Markfed but this appointment suffers from a patent illegality because the law requires an order in writing by the Registrar himself, whereas, in the present case admittedly the order had been passed by an Additional Registrar appointing the Registrar in reverse as the Administrator of Society. Counsel submitted that for this glaring violation of Section 26(ID) of the Act the order of appointment of the Administrator was wholly illegal and as a necessary consequnce, annexure P/5 passed by the purported Administrator was a nullity.

    11. On the aforesaid ground the learned counsel for the petitioner seems to us as being on a plausible footing in so far as the challenge to annexure P/5 alone is concerned. In view of the stand now taken before us this writ petition is directed only against respondents Nos. I to 4 and 6. For this limited purpose the petitioner would appear to us as entitled to sustain his challenge to annexure P/5 alone and maintain the writ against the State as also the public and statutory functionaries like Registrar and the additional Registrar. This aspect of the case is well supported on plain principle as also on precedent. Indeed in Kulwant Singh a case (1972) Punjab L.J 399) (supra), the writ was allowed to be main tained because of the fact that it sought to challenge a glaring infraction of Section 26(B) of the Act. as already notices, in essence, now the case of the petitioner is confined to the violation of Section 26(18) of the Act. Where a relief is sought primarily against the Registrar of the Co-operative Societies, a writ would be plainly maintainable and this view is further strengthened by the following observations of their Lordships in Nayagarh Co-operative Central Bank Ltd's case (1977) 3 SCC 576 : AIR 1977 SC 112) (supra).

    “We would have liked to go into the question for ourselves but it is unnecessary to do so as respondent No. 1. by his writ petition was asking for relief not really against a Co-operative Society but in regard to the order which was passed by the Registrar, who was acting as a statutory authority in the purported exercise of powers conferred on him by the Co-operative Societies Act. The writ petition was in that view maintainable.”

    12. In view of the above, we hold that only to the limited extent of the challenge to annexure P/5 as being violative of the provisions of Section 26(ID) of the Act the writ would be maintainable against respondents Nos. 1 to 4 and 6. Admittedly, however, the merits of this case involve neither any conflict of precedent nor any exceptional difficulty and can aptly be disposed of by a learned single Judge. Having settled the basic question of law which had necessitated this reference we direct that this case be placed for decision on merits before a single Bench.

    P.C Jain J.:— I agree

    J.M Tandon J.:— I agree.

    R.M.S
    Order accordingly.

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    Ajmer Singh v. The Registrar, Co-Operative Socities, Punjab, Chandigarh And Others
    (Aug 6, 1980)