- (1.) This appeal is directed against the judgment and order of the High court of Patna dated 30/06/1978 quashing the order of the registrar, Co-operative Societies as confirmed by the Minister, amending the bye-laws of the Postal Co-operative House Construction Society Limited, Kidwaipuri, Patna.
(2.) This litigation has a long history. We consider it necessary to have a brief resume of relevant facts giving rise to this appeal. The Postal Co-operative House Construction Society Limited, Kidwaipuri, Patna was registered on 14/12/1955 under the Bihar Co-operative Societies Act, 1935 (hereinafter referred to as the 'act'). The object of the Society was to acquire land and construct houses and allot the same to its members. Initially, membership of the Society was limited to the post office employees posted in the District of Patna who may have put in at least 3 years continuous service in the department. Soon the society realised that with the limited resources of the postal employees employed in patna the Society could not collect sufficient funds to acquire the land for construction of the houses. Faced with this difficulty, the Board of directors of the Society passed a resolution on 28/11/1987 amending the bye-laws of the Society permitting the central and State government employees also to be the members of the Society. Pursuant to the resolution, the appellant, Kuver Nath Lal, and several other Stategovernment employees were registered as members of the Society. The society collected money from them to the tune of Rs. 62,000. 00 and acquired land worth Rs. 75,000. 00. It appears that subsequently when the houses were constructed the Society did not allot any house to the appellant He raised a dispute which was referred to the arbitrator and in the arbitration proceedings it was ultimately held that the appellant was entitled to continue to be a member. On 11/04/1969 the Registrar, Co-operative Societies, passed a supplementary award holding that the house no. 29 should be allotted to the appellant. The Society thereupon filed a writ petition under Article 226 of the Constitution before the High court of Patna questioning the validity of the Registrar's award. The writ petition was allowed and the award of the Registrar, Co-operative Societies, was quashed on the finding that the appellant could not be a member of the Society as the Board of Directors had no power to amend the bye-laws inducting central government and State government servants as members of the Society. The court further held that the bye-laws could be amended only by the General Body or the Registrar. A special leave petition was filed in this court by the appellant but subsequently he withdrew the same.
(3.) The appellant thereafter made an application to the Registrar requesting him to amend the bye-laws to protect the interest of the appellant and other government employees who had deposited money with the Society, which the Society utilised for acquiring the land and constructed houses. The Registrar issued notice under Section 26 of the act to the Society directing it to amend the bye-laws or in default to show cause why the Registrar should not himself amend the bye-laws. The Society failed to amend the bye-laws, thereafter the Registrar amended the bye-laws of the Society permitting the State and central government employees to be the members of the Society by his order dated 8/03/1972. The order of the Registrar was confirmed in appeal by the Minister of the Co-operative Department. The Society thereupon filed a writ petition before the High court under Article 226 of the Constitution challenging the order of the Registrar as confirmed by the Minister. A division bench of the High court has by the impugned order set aside the order of the Registrar and the Minister on the ground that the amendment of bye-laws was made in the colourable exercise of power. Hence this appeal by special leave.;