Translate
Text Highlighter

Bookmark

PDF

Share

Report a problem
AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Judges
Acts
Are you a practicing lawyer?
Enhance your digital presence and reach by creating a Casemine profile.
Upload pleading to use the new AI search
Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Judges
Acts
Smart Summary

Judgment Summary — B.R. Tuli, J.

Factual and Procedural Background

The petitioner, Dharam Pal Soni, was appointed Store Keeper of the Jullundur Central Co-operative Consumers' Store Ltd. (the Store) by a Board order dated 4 May 1963 and was later promoted to Purchase and Sale Assistant (grade Rs. 200-10-300) with various office orders in September–October 1964 regarding the effective date of appointment and pay adjustments. In January 1968 the post of the then Stock and Supplies Officer (Bawa Narinder Singh) was abolished and the petitioner was required to take over his duties.

On 14 June 1968 the petitioner received a letter notifying him that his post had been abolished and that he was being given thirty days' notice. The petitioner alleged mala fide action influenced by the State Minister for Co-operation. Board minutes from March, May and June 1968 reflect discussion and resolutions concerning alleged complaints and the redundancy of the petitioner's post, references to inquiries by the Registrar/Deputy Registrar of Co-operative Societies, and a decision to abolish the post and issue 30 days' notice.

The petitioner filed a writ petition in this Court on 11 July 1968. The petition was admitted by the Motion Bench on 11 July 1968, but no stay was granted, and the petitioner therefore lost his post. Returns were filed by the State of Punjab (Respondent 1) and the Store (Respondent 2). Respondent 2 raised two preliminary objections: (1) that it is a private co-operative society and not amenable to writ jurisdiction, and (2) that Section 55 of the Punjab Co-operative Societies Act required arbitration/ reference to the Registrar. Respondent 2 also maintained that the post was abolished in the interest of economy and that the petitioner had received 30 days' notice (the learned counsel for Respondent 2 stated the notice was issued under Section 22 of the Punjab Shops and Commercial Establishments Act, 1958).

Legal Issues Presented

  1. Whether the Jullundur Central Co-operative Consumers' Store Ltd. (Respondent 2) is "State" within the meaning of Article 12 of the Constitution, such that constitutional protections (including Article 311) would apply to the petitioner's termination.
  2. Whether a writ under Article 226 of the Constitution is maintainable against Respondent 2, a co-operative society registered under the Punjab Co-operative Societies Act, 1961.
  3. Whether the petitioner's dispute was barred from writ adjudication by the statutory remedy under Section 55 of the Punjab Co-operative Societies Act (i.e., obligation to refer the dispute to the Registrar or his nominee for arbitration).
  4. Whether the termination/abolition of the petitioner's post was mala fide or otherwise procedurally flawed such that it should be quashed (including the petitioner's contention that he should have been reverted to an earlier post).

Arguments of the Parties

Petitioner's Arguments

  • Respondent 2 is effectively "State" within Article 12 because the State Government holds a substantial number of shares (20,000 shares of Rs. 10 each) and the Registrar of Co-operative Societies exercises complete control over co-operative societies; therefore Article 311 protections should have been observed prior to termination.
  • The termination was mala fide and made at the instance of the Minister for Co-operation; minutes and communications show ministerial involvement and adverse treatment.
  • Even if the post was abolished, the petitioner contended he should have been reverted to his prior post (Purchase and Sale Assistant) rather than being dismissed outright.

Respondents' Arguments

  • Respondent 2 is a co-operative society registered under the Punjab Co-operative Societies Act, 1961, and is a private body (non-statutory) — not "State" within the meaning of Article 12; writ jurisdiction therefore does not lie against it.
  • Under Section 55 of the Punjab Co-operative Societies Act the petitioner was required to refer his dispute to the Registrar or his nominee for arbitration; the writ petition is therefore not maintainable.
  • The post was abolished in the interest of economy and the petitioner had no lien on any other post; the petitioner was given the statutory 30 days' notice before termination. The Minister's role was limited to suggesting withdrawal of purchase duties after complaints; the Board itself passed the termination/abolition resolution and acted in the Store's interest.
  • At hearing counsel for Respondent 2 stated the notice given to the petitioner was issued under Section 22 of the Punjab Shops and Commercial Establishments Act, 1958.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Dukhooram Gupta Hart Prasad Gupta v. Co-operative Agricultural Association Ltd., Kawardha (A.I.R 1961 M.P. 289) Held that a Co-operative Society under the Co-operative Societies Act may fall within the meaning of "State" in Article 12 because byelaws can be binding and have the force of law. Cited by the petitioner to support the argument that a co-operative society can be "State". The Court considered it as part of the conflicting authorities on the question but did not adopt it as the controlling precedent for this case.
Bramadathan Nambooripad v. Cochin Dewaswom Board (A.I.R 1956 T.C. 19) Expression "other authorities" in Article 12 includes authorities/bodies exercising power to make byelaws or regulations having the force of law. Relied upon in Dukhooram Gupta and referred to in the discussion of what constitutes an "other authority." The Court noted this principle in the survey of authorities but did not treat it as controlling over the Supreme Court decision it later applied.
Madan Mohan Sen Gupta v. State of West Bengal (A.I.R 1966 Cal. 28) Held that a co-operative society registered under the Bengal Co-operative Societies Act or its managing committee is amenable to writ jurisdiction; noted that control by Registrar/State is a factor for Article 226 maintainability. Cited as authority supporting the proposition that state control/registrar control may make a society amenable to writ. The Court noted this authority in the conflict of decisions but ultimately did not rely on it as dispositive.
Rajasthan State Electricity Board Jaipur v. Mohan Lal (A.I.R 1967 S.C. 1857) Held that the Rajasthan Electricity Board is "State"; the phrase "other authorities" is wide enough to include authorities created by statute and functioning under government control. Cited by the petitioner for the broad meaning of "other authorities" in Article 12. The Court found the case distinguishable (the Board was created under a statute — the Electricity Supply Act) and did not treat it as controlling for a co-operative society registered under the Co-operative Societies Act.
Kartick Chandra Nandi v. West Bengal Small Industries Corporation Ltd. (AIR 1967 Cal 261) Examined the meaning of "other authorities" and held that generally to be an "other authority" a body must be created by statute and have power to make regulations/byelaws having force of law; non-statutory bodies exercising no statutory powers are generally not "State". Relied upon by Respondent 2 and discussed by the Court as part of the line of authority contending that non‑statutory bodies (including companies and certain societies) may not be "State". The Court considered this view in its analysis.
University of Madras v. Shanta Bai (AIR 1954 Mad 67) Referenced in discussion about the interpretation of "other authorities" and what constitutes the power to make and enforce rules having the force of law. Referred to in the Court's review of authorities (via Kartick Chandra Nandi) concerning the characteristics that bring a body within Article 12; used to inform the conflict of judicial opinions examined by the Court.
Sarangapani v. Madras Port Trust (AIR 1961 Mad 234) Interpreted "local authority" and the scope of bodies that may be considered public authorities for Article 12 purposes. Referenced in the judicial discussion of the meaning of "other authorities" and local authorities; used as part of the legal background the Court surveyed.
Kishan Singh v. State of Punjab (A.I.R 1961 Punj. ?) Referenced in the context of interpreting "other authorities" and Article 12 (text prints a citation as part of the supporting authorities). Mentioned among authorities considered by the Court in the survey of conflicting decisions; the opinion records it as part of the jurisprudential background.
S.K. Mukherjee v. Chemicals and Allied Products (A.I.R 1961 Cal 10; A.I.R 1966 Raj. 1 (FB)) Discussed in relation to bodies exercising statutory powers and when a non‑statutory body might be treated as a public authority for Article 12 purposes. Referred to in the Court's review of relevant case law; used to illustrate limits on treating non‑statutory bodies as "State".
Narasimhan (K.V.) v. Chikacole Co-operative Central Bank Ltd., Srikakulam (1959 1 LLJ 554) Held that writs are not available against private bodies or organisations like companies or co-operative societies; writs issue only to inferior courts/tribunals and bodies entrusted with powers by law of the land to affect rights. Cited by Respondent 2 and considered by the Court as support for the contention that co-operative societies cannot be challenged in writ proceedings; formed part of the conflicting authorities the Court surveyed.
C. Lakshminiah Reddiar v. The Sri Perumbadur Taluk Co-operative Marketing Society Ltd. (AIR 1982 Mad 169) Held that a Board of Directors of a co‑operative society is not a statutory tribunal with authority to determine rights of parties and that Article 226 cannot be used to quash proceedings of such a body when regulations are internal (have no statutory force). Quoted as authority supporting the proposition that orders of co‑operative society boards are not ordinarily amenable to writ jurisdiction; the Court included it in the catalogue of authorities but did not treat it as the controlling precedent for dismissal (the Court found the Supreme Court decision it relied upon to be decisive).
Praga Tools Corporation v. C.A. Inamual (CA No. 612 of 1966; 1969 S.N. 208) Held that a company registered under the Companies Act is a separate legal entity and not necessarily a Government Corporation; a mandamus will not lie to secure reinstatement in an office which is essentially of a private character; no statutory/public duty was enforceable by mandamus against such a company. This Supreme Court decision was treated by the Court as directly applicable by analogy. The Court applied its reasoning to conclude that Respondent 2, being a co‑operative society registered under the Punjab Co‑operative Societies Act, is a non‑statutory body in respect of which no statutory/public duty was enforceable by mandamus; on that basis the writ petition was held not to be competent and was dismissed.
Devdas v. Karnatak Engineering College (case referenced) Used in the discussion about non‑statutory/state‑aided institutions and the limits of Article 12 coverage. Referred to as part of the jurisprudential context in which the Court examined whether non‑statutory bodies exercising no statutory powers can be "State".
Devaswom Board authorities (A.I.R 1956 Trav. Co. 19 cited) Used in prior cases to describe bodies exercising statutory or regulatory powers and whether those bring them under Article 12. Mentioned in the Court's survey of differing judicial views; referenced in the discussion of earlier holdings influencing the debate.

Court's Reasoning and Analysis

The Court undertook a focused review of the conflicting judicial authorities on whether co‑operative societies are "State" under Article 12 and whether writ jurisdiction under Article 226 can be invoked against them. The Court identified a clear judicial conflict: some decisions (e.g., Dukhooram Gupta, Madan Mohan Sen Gupta) suggested that where state/regulatory control is pervasive a co‑operative society might fall within Article 12, while other decisions (e.g., Kartick Chandra Nandi, Narasimhan) took a narrower view, limiting Article 12 to statutory bodies with powers to make rules having the force of law.

The Judge considered referring the matter to a larger Bench because of the conflict, but instead found and applied a later decision of the Supreme Court in Praga Tools Corporation v. C.A. Inamual (1969 S.N. 208). In Praga Tools the Supreme Court held that a body incorporated under the Companies Act — even if majority‑owned by Government — remains a separate legal entity and that mandamus will not lie to enforce private‑character offices or obligations owed by such an entity. The Court in the present case treated that reasoning as "aptly appl[icable]" to Respondent 2, a co‑operative society registered under the Punjab Co‑operative Societies Act, 1961.

Applying Praga Tools by analogy, the Court concluded that Respondent 2 is a non‑statutory body governed by the Co‑operative Societies Act and that there is neither a statutory duty nor a public duty imposed on Respondent 2 by statute in respect of which the petitioner could seek enforcement by mandamus. Because the writ petition was therefore not a competent remedy, the Court did not proceed to decide the merits of the petitioner's alternative contentions (including the claim he should have been reverted to a prior post) or fully resolve the question of ministerial mala fides. The Court observed the existence of preliminary objections (private body and Section 55 arbitration) and the factual assertions regarding abolition in the interest of economy and the 30 days' notice, but the dispositive legal basis for dismissal was the lack of competence of the writ petition in view of the cited Supreme Court authority.

Holding and Implications

Holding: The writ petition is not maintainable and is DISMISSED. The Court dismissed the petition but ordered no costs ("dismissed but without any order as to costs").

Implications:

  • Direct effect on the parties: the petitioner is denied relief by writ; the termination/abolition decision by the Store remains unquashed by this proceeding in this Court.
  • The Court relied on the Supreme Court decision in Praga Tools to treat Respondent 2 as a non‑statutory/private entity for the purposes of writ jurisdiction; the opinion does not purport to lay down a new binding precedent beyond applying that Supreme Court authority.
  • No broad new legal principle was announced by this Court; the practical consequence is that, on the basis of the Court's reasoning in this opinion, disputes of this character against co‑operative societies registered under the Act may not be remediable by mandamus before the High Court where the statutory and public‑duty elements required by Praga Tools are absent.

Note: This summary strictly reflects the arguments, authorities and conclusions contained in the provided opinion. No information beyond the opinion text has been introduced.

    Dharam Pal Soni v. State Of Punjab And Others

    B.R Tuli, J.:— The petitioner Dharam Pal Soni was appointed Store Keeper of the Jullundur Central Co-operative Consumers' Store Ltd., Jullundur, hereinafter referred to as the Store, by the Board of Directors of the Store by order dated 4th May, 1963. The scale of his pay was fixed as Rs. 125-5-175 ??? all allowances. He was to draw Rs. 125/- p.m from 11th April, 1963, to 30th April, 1963 and Rs. 150/- with effect from 1st May, 1963, onwards. He was promoted as Purchase and Sale Assistant in the grade of Rs. 200-10-300 with effect from 1st April, 1964. Out the stand of the respondents is that he was appointed in the grade of Rs. 200-10-300 as Chief Store Keeper and Supply Officer and was made responsible for the supply line by a resolution of the Board of Directors dated 6th July, 1964. The office order was issued on 12th September, 1964, according to which Shri Dharam Pal Soni, Store Keeper, General Merchandise, was to take over as Purchase and Sale Assistant (new post) in the grade of Rs. 200-10-300. It is further stated that “Pay revision from 1st April, 1961. Arrears to be paid. Conveyance allowance is to be decided by the Board in the next meeting.” On 10th October, however, another order was passed which is as under:—

    “Shri Dharam Pal, Purchase and Sale Assistant.

    In partial supersession of this office order No. 542-46 dated 14th September, 1964, you are informed that your appointment is approved as purchase and sale assistant in the grade of Rs. 200-10-300 w.e.f 14th September, 1964 by the Board (vide resolution No. 9 dated 8th October, 1964). It is further to intimate to you that your pay is raised from 14th September, 1964. The amount of excess payment received by you, should please be paid in 4 installments starting from October, 64 salary.”

    2. Bawa Narinder Singh was working as Assistant Manager (Stocks and Supplies) according to the return but as Stock and Supplies Officer according to the petitioner and that post was abolished with effect from 15th January, 1968, and the petitioner was directed to take charge of the records etc. from him. The petitioner was required to perform the duties which were performed by Bawa Narinder Singh before that. The petitioner, on 14th June, 1968, received a letter from the General Manager, No. 1286–1287 dated 8th June, 1968, informing him that the post which he was holding in the establishment of Store had been abolished and thirty days' notice was being given to him and he should hand over charge to Shri R.N Shorey, Manager Super Bazar, after the expiry of the period of notice. According to the petitioner, this notice was issued mala fide at the instance of the Minister for Co-operation of the Punjab State. In a meeting of the Board of Directors held on 2nd March, 1968, there was an item on the agenda “To consider termination of services of Shri Dharam Pal Soni, Incharge Stock and Supplies, as desired by the Minister for Co-operation Department of Punjab” and the following resolution was passed:—

    “It was enquired from the General Manager regarding the integrity and the work of Shri Dharam Pal Soni and he stated that be is a good worker and nothing is against him. It was, therefore, resolved that the reference may be made to the Minister for Cooperation through the Registrar Co-operative Societies, Punjab to find out the special allegations against the individual and the reasons for which it was proposed to terminate his services.”

    3. Thereafter, a meeting of the Board of Directors was held on 3rd May, 1968, in which one of the items on the agenda was to consider D.O letter No. Store/590 dated 19th March, 1968, from the Joint Registrar, Co-operative Societies, Punjab, Chandigarh, regarding termination of the services of Shri Dharam Pal Soni. There was a note appended to the said item of the Agenda saying that “the Minister for Co-operation desired that the services of Shri Dharam Pal Soni should be terminated. The matter came up for consideration in the meeting of the Board of Directors held on 2nd March, 1968, in which it was resolved that a reference should be made to the Minister for Co-operation through the Registrar, Co-operative Societies to find out the special allegations against Shri Dhas am Pal Soni and reasons for which it was proposed to terminate his services Consequently a reference was made to the Registrar, Co-operative Societies, Punjab, who had intimated vide his aforesaid D.O letter that in view of the increased operational cost the post of Purchase and Sale Assistant has become redundant and that the incumbent of the post was obviously responsible for the heavy purchases which had in many cases been made in disregard to the requirement of the Store and the past sales. He further desired that matter should be referred to the Board for orders and in case the Board was unable to comply with the orders of the Minister, the Chairman of the Board might discuss the matter with the Minister and have it clarified. The matter is submitted to the Board for consideration”. Against this item, the following resolution was passed:—

    “Resolution No. 4—Considered. It was resolved that the Deputy Registrar Co-operative Societies should be request to go into the whole case and the work of Shri Dharam Pal Soni and make a report to the Chan man for taking further necessary action.”

    4. The next meeting of the Board of Directors was held on 13th June, 1968, and the relevant item on the agenda and the decision of the Board in respect thereof was “To approve action taken against Shri Dharam Pal Soni in pursuance of Resolution No. 4 of previous meeting of the Board of Directors. Deputy Registrar of Co-operative Societies, Jullundur, made a report to the Chairman who has agreed with the former. As the post held by Shri Dharam Pal Soni was found redundant, the same should be abolished Consequently 30 days' notice should be issued to Shri Dharam Pal Soni that his services are no longer required after the expiry of 30 days' notice. This proposal was approved by the Board. Shri Chander Parkash only disagreeing”. The petitioner filed the present writ petition is this Court on 11th July, 1963, which came up for admission before the Motion Bench on 11th July, 1968. The petition was admitted, but stay was not granted with the result that the petitioner had to leave his post.

    5. The return has been filed by the Jullundur Co-operative Consumers Stores Ltd. Jullundur, Respondent 2 and by the State of Punjab Respondent 1. Respondent 1 has mainly stated that the matters related to Respondent 2. The issuance of the D.O letter by the Joint Registrar. Co-operative Societies, Punjab, Jullundur dated 19th March, 1968, is admitted, and it is further stated that the petitioner was entitled to refer the case for arbitration under section 55 of the Punjab Co-operative Societies Act, 1955. In the return filed by Respondent 2, the following two preliminary objections have been raised:—

    (1) Respondent 2 is a Co-operative Society registered under the Punjab Co-operative Societies Act, 1961. It is a private body and not a public body and no writ petition lies against such a private body to challenge this order. As such, the writ is liable to be dismissed.

    (2) Under section 55 of the Punjab Co-operative Sixties Act, the petitioner is bound to refer the dispute to the Registrar, Co-operative Societies or his nominee for arbitration and as such the writ petition is not maintainable.

    6. On merits, it has been emphasized that the post held by the petitioner was abolished in the interest of economy and therefore, his services were terminated. He had no lien on any other post. It is denied that he had been appointed a permanent Store Keeper. It is further stated that the Minister for Cooperation of the Punjab State came into the picture only at one stage. He visited the Co-operative Storers. Jullundur, in the months of January and February, 1968 and discussed the problems and working of the Store with the officials, management and some public men. He thereafter suggested that Respondent 2 should consider the desirability of withdrawing the duties of purchases from the petitioner as he had found his work unsatisfactory on account of complaints received against him. Thereafter, the job of purchases was not assigned to the petitioner and he was given other duties only. Thereafter, the Minister did not come into the picture and the order terminating the petitioner's services had been passed by the Board in the interest of the Store and not under the pressure of the Minister or anybody else. The petitioner was given 30 days' notice before terminating his services. At the hearing of the petition, the learned counsel for Respondent 2, on my enquiry, stated that this notice had been issued under section 22 of the Punjab Shops and Commercial Establishments Act, 1958. The petitioner filed a replication and Respondent 2 filed a further affidavit in reply thereto.

    7. The first point argued by the learned counsel for the petitioner is that Respondent 2 is “State” within the meaning of Article 12 of the Constitution and, therefore, before terminating the services of the petitioner, the procedure prescribed in Article 311 of the Constitution had to be followed. Since that procedure was not followed, the termination of his services is illegal and should be quashed. The reason in support of this argument is that the State Government holds twenty thousand shares of Rs. 10 each in the Co-operative Society Respondent 2 and under the Act the Registrar of Co-operative Societies exercises complete control on the business, management and affairs of the Co-operative Societies. In reply, it has been urged that Respondent 2 is an ordinary Co-operative Society registered under the Punjab Co-operative Societies Act, 1961 and cannot be termed as ‘State’ as defined in Article 12 of the Constitution. The State Government is only one of the shareholders and it is admitted that it holds twenty thousand shares of Rs. 10 each. The members of the general public are stated to be holding seventeen thousand seven hundred and fifty-three shares. The management of the Society is in the hands of the Board of Directors which is elected according to the bye-laws of the Society. The Government has a right to nominate up to one-third members of the Managing Committee subject to a maximum of three. The other members of the Managing Committee consist of one representative for every one thousand individual shareholders under Class “A” subject to a minimum of six one representative of ‘B’ class shareholders, one representative of ‘C class shareholders and General Manager and the Assistant Registrar, Co-operative Societies, are ex-officio members. It is thus claimed that Respondent 2 is mostly being ran by the Government and, in any case, strictly under its supervision and, therefore, it is a “State”. Reliance has been placed on a Division Bench judgment of the Madhya Pradesh High Court in Dukhooram Gupta Hart Prasad Gupta v. Co-operative Agricultural Association Ltd., Kawardha . A.I.R 11961 M.P 289., in which it was held that:—

    “A Co-operative Society under the Co-operative Societies Act, 1912, with which we are concerned in the instant case, has power to make byelaws. We shall refer to the relevant provisions of the Act and the byelaws later. These byelaws are binding on it as well as the public corning within the ambit of the byelaws. A society registered under the Act would thus fall within the meaning of “State” as defined in Article 12 and Chapter III would thus have application to such a society.”

    8. In this judgment, the learned Judges relied upon the judgment in Bramadathan Nambooripad v. Cochin Dewaswom Board . A.I.R 1956 T.C 19. in which it was held that “the expression referred to any authority or body of persons exercising the power to issue rules, byelaws or regulations having the force of law.”

    9. In Madan Mohan Sen Gupta v. State of West Bengal . A.I.R 1966 Cal. 28., it was held (as per Head Note (a) that—

    “A Co-operative Society registered under the Bengal Co-operative Societies Act, 1940, or its managing committee is amenable to the writ jurisdiction of the High Court.

    What constitutes a public authority cannot be precisely defined. Profit making is one of the distinguishing features of an authority not being a public authority. Commercial under-takings and Companies, which are profit making concerns are not generally public authorities.

    The Management of the affairs and the activities of such Societies are entirely controlled by the Registrar of the Co-operative Societies who is a public authority. Such affairs cannot be private affairs. It is not necessary that a body in order to be a public body must always be constituted by a State though its powers and duties are created by an Act or the rules. The control which State Government and the Registrar have over such Co-operative Societies is one of the distinguishing features for the maintainability of an application under Article 226 of the Constitution. Even where the Society is a person, there cannot be any broad and general proposition that no writ lies against him. It depends on particular facts of each case”

    10. The learned counsel for the petitioner has then sought to get support for his argument from the judgment of their Lordships of the Supreme Court in Rajasthan State Electricity Board Jaipur v. Mohan Lal . A.I.R 1967 S.C 1857., in which it was held that the Rajasthan Electricity Board is a “State”. It was further held that “the expression ‘other authorities’ in Article 12 is wide enough to include within it every authority created by a Statute and functioning within the territory of India, or under the control of the Government of India; and we do not see any reason to narrow down this meaning in the context in which the words “other authorities” are used in Article 12 of the Constitution.” This judgment, in my opinion, is distinguishable in the sense that the Electricity Board is created under the provisions of the Electricity Supply Act.

    11. As against these authorities, the learned counsel for Respondent 2 has relied upon the judgment of D. Basu J. in Kartick Chandra Nandi v. West Bengal Small Industries Corparition Ltd. . AIR 1967 Cal 261. in which the learned Judge held as under:—

    “The residuary expression ‘other authorities’ comes after ‘local authority’. It is to be noted that the word ‘authority’ is common to both ‘local’ and ‘other bodies’ referred to by the definition. The dictionary meaning of the word ‘authority’ is a person or body exercising power or having a legal right to command and be obeyed (Webster's Dictionary; Odham's Dictionary). From this, it has been held that the word ‘authority’ in Article 12 refers to persons or bodies having the power to make rules, bye-laws etc. having the force of law Nambooripad v. Cochin Dewaswom Board, and also the power to enforce them-University of Madras v. Shanta Bai . AIR 1954 Mad 67.. The possession of these powers brings the ‘other authorities’ on the same platform with the Government and Legislature of the Union or a State or a local authority, such as a Municipality and like bodies which come within the definition of the expression ‘local authority’ in Section 3(31) of the General Clauses Act, 1897, which has been imported to interpret the expression ‘local authority’ in Article 12 of Sarangapani v. Madras Port Trust . AIR 1961 Mad 234., Kishan Singh v. State of Punjab . AIR 1961 Puni I3 FB. Though there has been some controversy as to whether the expression ‘other authorities’ must be interpreted ejusdem generis with the expression ‘local authority’ (A.I.R 1954 Mad 67.) or it would comprise other statutory bedies which do not or it discharge functions similar to that of local self-Government organ, e.g, a State Electricitv Supply Board Mohan Lal v. State . AIR 1966 Raj 15 FB. or a Devaswom Board (A.I.R 1956 Trav. Co. 19(21), there is an agreement on the following points:—

    (i) In order to constitute an ‘other authority’ within the meaning of Art. 12, the body must be a body created by statute and having the power to make regulations having the force of law (Paramatmav, Chief Justice10; A.I.R 1956 Trav. Co. 19 (21) or exercising statutory powers as a ‘public authority (S.K Mukherjee v. Chemicals and Allied Products . AIR 1961 Cal 10. A.I.R 1966 Raj. 1 (FB).

    (ii) A non statutory body, such as a company S.K Mukherjec's case,12 or a State-aided educational institution (Devdas v. Karnatak Engineering College) and exercising no statutory powers, cannot come within the definition of ‘State’ in Article 12.”

    12. The learned counsel for respondent 2 has then relied upon a Division Bench judgment of Andhra Pradesh High Court in Narasimhan (K.V) v. Ckicacole Co-operative Central Bank Ltd., Srikakulam . 1959 1 LLJ 554., in which it has been held (as per Head Note) as under:—

    “A writ which is available to an aggrieved party could not be issued to private bodies or organization like companies or Co-operative societies. It could be issued only to inferior Courts, tribunals and bodies entrusted with powers by the law of the land to affect the right of parties. Hence an order passed by a Co-operative society dispensing with the services of one of its employee could not be challenged in a writ proceeding on the ground that such order was passed in violation of the bye-laws framed by the society.”

    13. In C. Lakshtniah Reddiar v. The Sri Perumbadur Taluk Co-operative Marketing Society Ltd. . AIR 1982 Mad 169., it has been held by a Division Bench as under:—

    “The Board of Directors of a Co-operative Society in considering the objections to the nominations for the election of members of the Board of Directors is not a statutory Tribunal with authority to determine the rights of parties: No doubt the Directors at a meeting of the Board discharge the functions entrusted ta them by the regulations, but these regulations are framed by the Society itself and have no statutory force. Clearly therefore an order of the High Court under Article 226 of the Constitution connot issue to quash the proceedings of such a body.”

    14. After perusing the above-cited judgments I came to the conclusion that there was a judicial conflict on the point set out above and on the point whether a writ under Article 226 of the Constitution of India can be issued to the Co-operative Society. I was inclined to refer this petition to a larger Bench for decision, but I have come across a decision of their Lordships of the Supreme Court in Praga Tools Corporation v. C.A Inamual . CA No. 612 of 1966. decided on February 19, 1969, and reported as 1969 Supreme Court Notes 208. The facts, as given in the said note, are that the Union Government and the Government of Andhra Pradesh held 56 per cent and 32 per cent shares respectively and the balance 12 per cent shares were held by private individuals in the petitioner Corporation. Being the largest shareholder, the Union Government had the power to nominate the company's directors. On these facts, it was held—

    “Even so, being registered under the Companies Act and governed by the provisions of the Act, the company is a separate legal entity and cannot be said to be either a Government Corporation or an industry run by or under the authority of the Union Government. A mandamus lies to seeure the performance of a public or statutory duty in the performance of which the one who applies for it has a sufficient legal interest. Thus, an application for mandamus will not lie for an order of reinstatement to an office which is essentially of a private character nor can such an application be maintained to secure performance of obligation owed by a company towards its workmen or to resolve any private dispute. The company being a non-statutory body and one incorporated under the Compaines Act, there was neither a statutory nor a public duty imposed on it by a statute in respect of which enforcement tould be sought by means of a mandamus, nor was there in its workmen any corresponding legal right for enforcement of any such statutory or public duty.”

    15. These observations aptly apply to respondent No. 2 in the instant case, which is a Co-operative Society registered under the Punjab Co-operative Societies Act, 1961, and is governed by the provisions of that Act. Respondent No. 2 being a non-statutory body and one incorporated ends the Punjab Co-operative Societies Act, there is neither a statutory duty nor a public duty imposed on it by a statute in respect of which the petitioner can seek enforcement by means of mandamus. In view of this judgment of their Lordships of the Supreme Court, I am of the considered view that the writ petition is not competent. Another point raised by the learned counsel for the petitioner is that even if the post held by the petitioner was abolished, he should have been reverted to the post which he held before he came to the post of Stock and Supplies Officer and that was the post of Purchase and Sale Assistant. This matter can only be raised and decided if the petitioner has the right to maintain the writ petition. Since I have held above that the writ petition is not maintainable, the petitioner cannot be granted any relief in this petition on any ground.

    16. For the reasons given above, this petition is dismissed but without any order as to costs.

    17. Petition dismissed.

    Use AI to get other relevant cases.

    Comments

    Dharam Pal Soni v. State Of Punjab And Others
    (Mar 26, 1969)