Fishermen Cooperative Society vs State Of Telangana

This writ petition is filed for the following relief:

“…. to issue Writ of Mandamus declaring the Notice of the respondent No.3 issued under Sec. 16 (5) of the Telangana Cooperative Societies Act, 1964 vide No.32/B/2020, dated 30.12.2022 as bad, arbitrary, contrary to Section 16 (5) of T.C.S. Act, 1964 and also offends Articles 14, 19 (1) (g) and 21 of the Constitution of India”.

Heard Ms. M. Vidyavathi, learned counsel for the petitioner, learned Assistant Govt. Pleader for Fisheries appearing for respondent Nos.1 to 3 and Sri N. Sridhar Reddy, learned counsel appearing for respondent No.4.

Learned counsel for the petitioner submits that the petitioner Society was registered in the year 1959 under the provisions of the Telangana Co-operative Societies Act, 1964 (hereinafter referred to as ‘the Act’ for brevity). The Society is covering three villages viz., 1. Pedda Cheruvu, 2. Turaka Cheruvu and 3. Voora Cheruvu, and 145 members are existing in the society. All members of the Society are depending upon the fishing activities to eke out their livelihood.

3.1. She further submits that on 06.05.2022 respondent No.3 issued Notice under Section 16 (5) of the Act directing the petitioner Society to pass a resolution for separation/deletion of Gurrampalli Village and the tank located therein from the area of operation of the petitioner Society, within 30 days after convening General Body Meeting in order to amend the bye-laws. Questioning the same, petitioner Society filed W.P. No.24906 of 2022 contending that respondent No.3 issued notice under Section 16 (5) of the Act without following the mandatory procedure prescribed under the Act. The respondent No.3 ought to have issued notice under Section 15-A of the Act, to get the opinion of the Society with regard to the viability of the bifurcation and the effect it would have on the present Society. The respondent No.3 issued notice straight away under Section 16 (5) of the Act and the same is in contravention of the Act and the said writ petition was disposed of on 02.12.2022 by setting aside the Notice No.32/B/2020, dated 06.05.2022 issued under Section 16 (5) of the Act and permitted the petitioner Society to submit its opinion to the notices dated 18.01.2021 and 28.07.2021 issued under Section 15-A of the Act within a period of 15 days from the date of receipt of a copy of the order and thereafter the respondents are directed to consider the same and take appropriate decision in accordance with law and complete the entire procedure within a period of four (04) weeks thereafter.

3.2. She further submits that the petitioner Society submitted detailed explanation on 15.12.2022 but respondent No.3 passed impugned order vide Notice No.32/B/2020, dated 30.12.2022 without considering the explanation submitted by the petitioner and without following the mandatory procedure prescribed under Section 15 (A) of the Act on the very same grounds which are mentioned in the earlier Notice dated 06.05.2022 and the same is contrary to the provisions of the Act and also contrary to the orders dated 02.12.2022 passed by this Court in W.P. No.24906 of 2022.

The learned Assistant Government Pleader for Fisheries submits that the respondents after following the due procedure as contemplated under the provisions of the Act, passed the impugned order dated 30.12.2022 and there is no illegality and irregularity in the impugned Notice.

Sri N. Sridhar Reddy, learned counsel appearing for respondent No.4 also submits that in W.P. No.24906 of 2022 this Court while setting aside the impugned notice dated 06.05.2022 therein issued under Section 16 (5) of the Act, specifically directed the respondents to take appropriate decision in accordance with law. But the respondent No.3 passed the impugned order/Notice dated 30.12.2022 without following the provisions of Sec. 15 (A) of the Act, hence, he requested the Court to direct the respondent No.3 to pass orders afresh by duly following the provisions of Sec. 15 (A) of the Act, by fixing time limit.

Having considered the rival submissions of the respective parties and upon perusal of the record, it clearly reveals that prior to issuance of the impugned proceedings/Notice No.32/B/2020, dated 30.12.2022, the respondent No.3 had issued Notice on 06.05.2022 under Section 16 (5) of the Act, directing the petitioner Society to pass a resolution for separation/deletion of Gurrampalli Village and tank located therein, from the area of operation of the petitioner Society, within 30 days after convening General Body meeting.

Questioning the said notice dated 06.05.2022, the petitioner filed W.P. No.24906 of 2022 and this Court after considering the rival submissions of the respective parties, set aside the said notice, and permitted the petitioner Society to submit its opinion within a period of 15 days from the date of receipt of a copy of the order and further directed the respondents to consider the same and take appropriate decision in accordance with law and complete the entire procedure within four (04) weeks thereafter by its order dated 02.12.2022.

It also reveals from the record that pursuant to the above said orders of this Court, petitioner Society submitted explanation to the respondent No.3 on 15.12.2022. The specific ground raised by the petitioner is that respondent No.3 without following the mandatory procedure prescribed under Section 15-A of the Act passed the impugned proceedings under Section 16 (5) of the Act directing the petitioner Society to amend the bye-laws of the Society for deleting the Village of Gurrampalli along with the tank of Voora Cheruvu.

It is very much relevant to extract the provisions of Section 15-A and Sec.16 (5) of the Act hereunder for better adjudication of the case.

“15-A. Identification of vialibility of societies and consequences thereof:-

(1) Notwithstanding anything in this Act or the rules made thereunder or the bye-laws of the society concerned, if the Registrar is of the opinion that 44 [in respect of a society or societies in receipt of State aid as specified under section 43 of the Act,] it is necessary to amalgamate or merge any society with any other such society or to divide and restrict or transfer the area of operation of a society or to liquidate a society for any of the following purposes, namely:-

(a) for ensuring economic viability of any or all the societies concerned ; or

(b) for avoiding overlapping or conflict of jurisdictions of societies in any area; or

(c) for securing proper management of any society; or

(d) in the interest of the co-operative movement in general and of cooperative credit structure in particular in the State taken as a whole; or

(e) for any other reason in the public interest,

he may identify the viable and non-viable societies which may be retained or divided with consequential restriction of the area of operation or the transfer of such area or amalgamated or liquidated, as the case may be, and may by a notification to be published in the prescribed manner, specify the area of operation of each society or societies to be retained divided or amalgamated with any other society indicated in the said notification and invite objections or suggestions from the societies or any members, depositors, creditors, employees or other persons concerned with the affairs of each such society to be received within twenty one days from the date of publication of the notification.

Amendment of bye-laws of a society:-

(5) If in the opinion of the Registrar, an amendment of the bye-laws of a society is necessary or desirable in the interest of such society or of the Co-operative movement, he may, in the manner prescribed, call upon the society, to make any amendment within such time as he may specify. If the society fails to make such an amendment within the time so specified, the Registrar may, after giving the society an opportunity of making its representation, register such amendment and forward to the society by registered post a copy of the amendment together with a certificate signed by him; such a certificate shall be conclusive evidence that the amendment has been duly registered; and such an amendment shall have the same effect as an amendment of any bye-law made by the society”.

The above said provisions of the Act, clearly envisage that after completion of the procedure as contemplated under Section 15-A of the Act, the respondent No.3 has to take steps under Section 16 (5) of the Act. Whereas, in the instant case, the respondent No.3 without following the due procedure under Section 15-A of the Act, straight away issued the impugned proceedings/Notice dated 30.12.2022 under Section 16 (5) of the Act, directing the petitioner Society to amend the bye-laws for deleting the Village of Gurrampalli along with the tank of Voora Cheruvu, which is clear contravention of the provisions of Section 15-A of the Act, and also contrary to the orders passed by this Court in W.P. No.24906 of 2022, dated 30.12.2022.

In view of the foregoing reasons, without going into the other aspects of the case, the impugned proceedings/Notice No.32/B/2020 dated 30.12.2022 issued by respondent No.3 is set aside and the respondent No.3 shall consider the explanation submitted by the petitioner dated 15.12.2022 and to take appropriate decision in accordance with law, and complete the entire procedure within a period of six (6) weeks from the date of receipt of a copy of this order.

Accordingly, the writ petition is disposed of. No order as to costs.

Miscellaneous petitions, if any, pending in this writ petition, shall stand closed.