In a major victory for the autonomy of not only the PACS of Bihar but also of the rest of the country, the Patna High Court has ruled that the membership of PACs can be granted only by the PACS Managing Committee and not by the government officials such as BDO or CO. The ruling essentially proves that the PACS Chairman and Managing Committee are supreme.
Reacting to the development the Biscomaun Chairman and the prime mover in the case Sunil Kumar Singh said that the judgment will have ramifications for PACS across the country. “It is the victory of the co-op movement, ” he added.
Sunil said that Bihar’s cooperators have always been actively resisting draconian laws of the executive and cited the case of Vyapar Mandal in which the govt Farman only allowed co-op societies to be its members. ‘We fought in the court and argued that individuals who have been members of Vyapar Mandal for years, cannot be divested of their membership. The court upheld our point of view”, said Sunil. This was the third co-op act, in which we have been successful in turning the table against the government, said Sunil with a sense of victory.
It bears recall that the Nitish govt passed an act whereby PACS were directed to enroll a minimum of 1000 members from amongst the weaker sections of particular caste denominations. This was to be done by way of a special camp in the presence of all the members of the Managing Committee, Block Co-operative Extension Officer, and the PACS Manager, failing which disciplinary proceedings were to be initiated against all concerned.
This action was challenged and the Court stayed the directives issued by the State Government. However, the State Government directed the local officers of various districts to commence the exercise of membership drive of the PACS at their level. Under that, the BDO, Paliganj, inducted many persons as members of the Petitioner-Society.
Fighting under the banner of Bihar Rajya Sahkarita Vikash Samanway Samiti, the petitioners claimed that the exercise of power is by a usurpation of the powers of the PACS and its Managing Committee.
Ruling on the issue the Division Bench headed by the Patna High Court Chief Justice said “placing reliance on the core issues surrounding Rule 7(4), this Court holds that it is ultra vires and unconstitutional for it falls foul of Article 19(1)(c) as also the Patent Statute, i.e. the Act.
The main reasons cited by the judgment were Rule 7(4) falls foul of Article 19(1)(c) as it empowers the State to interfere with the composition of the Society in a manner not envisaged by the parent Act and the parent Act does not contemplate a situation where the State Government through its officers, can determine the composition of the Society without the consent of the original members.
The major points under consideration were whether the Bihar Co-operative Societies Rules, 1959 (referred to as the Rules) suffer from the vice of excessive delegation of the powers envisaged under the parent Statute, i.e. the Bihar Co-operative Societies Act, 1935 (referred to as the Act)?
The second issue was whether the power to the specified officers to grant membership in a society violates Article 19(1)(c) of the Constitution of India; and provisions of the Act.
