TMI Blog1997 (1) TMI 520X X X X Extracts X X X X X X X X Extracts X X X X ..... d (xii-A) and the provisos and the explanation to sub-rule 393-A, Rule 393-B, clause (d) of sub-rule (4) and part of sub-rules (6) to (8) of Rules 440, so far as relating to reservation of seats for weaker-sections, sub-rule (3) of Rule 444-A and clause (i) of sub-rule (5) of Rule 453 as ultra vires the Constitution and accordingly quashed them. Calling in question this judgment of the High Court of Allahabad dated March 10, 1995 in CMWP Nos.40006 and 40121 of 1994, these appeal have come to be filed. Due to absence of representation of democratic character in the management of the co-operative societies on the basis of election by the general body of the society, the members of the weaker sections, namely, Scheduled Castes and Scheduled Tribes women and other backward classes do not find place. Consequently, the Government introduced amendment to the Act. By adoption of the definition of Other Backward Classes contained in U.P. Public Services Reservation for Scheduled Castes and Scheduled Tribes and Other backward Classes Act, 1994, brought Other Backward Classes within the ambit of weaker sections and made all of them members of the Committee of the Management of the Co- op ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iety. These amendments were brought on statue by Amendment Act 17 of 1977. Rule 393 (1) provides as under: Section 393(1) : A co-operative society may have as many persons on its committee of Management as may e provided in its bye-laws subject to a maximum of fifteen persons. Any other committee or sub- committee of the society shall be smaller than its Committee of Management and in no case such committee or sub-committee shall consist of more than seven members; Provided that in the Committee of Management of every co-operative society three seats shall be reserved of which one shall be reserved for Scheduled Castes or Scheduled Tribes, one for Backward Classes of citizens and one for women: Provided further that in case of Uttar Pradesh Co-operative Consumer Federation, Central and Primary Consumer Co-operative Societies there seats shall be reserved for women and one for persons belonging to Scheduled Castes or Scheduled Tribes or Backward Classes of citizens. EXPLANATION - In this rule the expression backward classes of citizens shall have the meaning assigned to it in clause (b) of Section 2 of the Uttar Pradesh Public Service (Reservation of Scheduled Castes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Scheduled Tribes and Articles 341 and 342 envisage issue of presidential notification specifying for each State the list of Scheduled Castes and Scheduled Tribes respectively. As far as women are concerned, there is no need for specification. The Other Backward Classes are identified as those specified in the Public Services Reservation Act, 1994. The application of this Act is only for the purpose of identification of other Backward Classes and no more. Under the Act, all of them constitute weaker sections for the purpose of the representation in the management of the Committee of the Society. The rules provide for the principles for election or nomination. Rules 393-A and 393-B of the Rules read as under: Notwithstanding anything contained in these rules or the bye-laws of the society but subject to Rule 453, if the Committee of Management of a co-operative society referred to in the proviso to sub-rule (1) of Rule 393, on the date of commencement of this rule does not have as many persons as are referred in the above sub-rule of weaker sections or women, as the case may be, the State Government shall nominate on the Committee of Management of such societies as many p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hese provisions would, thus, clearly indicate that the Management of every co-operative Society whose object is in conformity with Section 4 of the Act, shall be vested in a Committee of management constituted in accordance with this Act, the Rules and the bye-laws with elective component inclusive of weaker sections. In its absence, by nomination of them. Section 130(2) (xii) and (xiii-A) states that rules to be made may provide for election of the members, the Chairman and Vice-Chairman of the Committee of management of a co-operative Society including reservation for women and Other Backward Classes. Therefore, the Rules have been made to effectuate the purpose of the Act, namely, for the election of the Committee of the Management and under the democratic process of election as envisages under the Act and the Rules, they get elected. In case the members of the weaker sections, namely, Scheduled Castes, Scheduled Tribes, other Backward Classes and women are not elected, the Government have been given power to nominate the members belonging to weaker sections and the women to an extent of three seats as envisages thereunder, namely, one Scheduled Caste, one Backward Class and one ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vation obligatory was introduced in the Act by Amending Act 27 of 1969. Why was this specific amendment made? The working of the Act must have disclosed a sorry state of affairs that even though the co-operative movement was expanding by leaps and bounds, the members of the Scheduled Castes and Scheduled Tribes or the weaker section of the members of the society was not represented in the committee and had no opportunity to participate in the decision making process, laying down broad policies and management of the society. Article 43 of the Constitution set the goal that the State shall endeavour to promote cottage industries on an individual or co-operative basis in rural areas. In our onward march of economic independence, India was destined to be a co-operative commonwealth. Since activities were diversified, more especially in the rural areas. Every activity of a person devoted to agricultural in the rural area is considerably influenced by the co-operative movement, such as seed distribution, credit, disposal of agricultural produce etc. The member of the Scheduled Castes and Scheduled Tribes predominantly in rural areas did not remain unaffected by the gigantic stride that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cording to which Acts of parliament were at that time framed . Undoubtedly, nowadays this mode of construction has fallen into disuse. Even though the expression `the equity of the statute' has fallen into disuse, it is still in vogue in somewhat similar form in that if it is manifest that the principles of justice require something to be done which is not expressly provided for in an Act of Parliament, a court of justice will take into consideration the spirit and meaning of the Act apart from the words. In this context, one can recall the words of Jessel M.R. in Re Bethlem Hospital [(1875) LR 19 Eq. 457], that `the equity of the statute' may as well as mean such a thing as construing an Act according to its intent, thought not according to its words . Alternatively, one can bring in Heydon's test more often noticed by this Court that in order to arrive at true intendment of a statute, the court should pose to itself the questions : (1) what was the situation prior to the provision under construction, (2) what mischief or defect was noticed before introducing the provision, (3) whether it was remedial and (4) the reason for the remedy. Applying this test, the same res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ointment or co-option. The condition precedent to filling in reserved seats by appointment or co-option is holding of the election and failure to elect such person should permit resort to other methods of filling in the reserved seats. In the case of Toguru Sudhakar Reddy Anr. vs. Government of A.P. Ors. [1993 Supp. (4) SCC 439], this Court considered the power of the Government to nominate women to the Co-operative Societies under Section 31 of the A.P. Co-operative Societies Act and the validity of the Act and the power of the Government for nomination of them was upheld. Thus, it is settled law that no citizen has an fundamental right under Article 19(1)(c) to become a member of a Co-operative Society. His right is governed by the provisions of the statute. So, the right to become or to continue being a member of the society is a statutory right. On fulfilment of the qualifications prescribed to become a member and for being a member of the society and on admission, he becomes a member. His being a member of the society is subject to the operation of the Act, rules and bye-laws applicable from time to time. A member of the Society has no independent right qua the Soci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hout any compensation. Therefore, it was violative of Article 31 of the Constitution of India, as it stood then. The ratio therein has no application to the facts in this case. He then contended that Other Backward Classes defined under the State Public Services Reservation Act applicable to and covering the public services, they are being inducted as members of the society which are otherwise not eligible and, therefore, the induction of them by amendment of Rules made on 15.7.1994 is unconstitutional. In support thereof, he contends that though Article 15(4) of the Act provides that it is subject to Articles 15(2) and 29(2) of the Constitution, it does not envisage that it is also subject to Article 19(1)(c) of the Constitution. Therefore, the reservation provided to the weaker sections is unconstitutional. We find no force in the contention. The object of Article 15(4) is to lift the prohibition of general equality guaranteed in Article 15(2) and 29(2) of the Constitution dealing with the right to admission into an educational institution maintained by the State or receiving aid from the State. Therefore, their object is distinct and different from Article 19(1)(c). Though ..... X X X X Extracts X X X X X X X X Extracts X X X X
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