- (1.) The challenge in this appeal is to the exercise of powers by the Central Government under Section 99 of The Multi State Co-operative Societies Act, 1984 (hereinafter referred to as 'the Act') whereby it has purported to grant an exemption to respondent No. 3, namely, The National Cooperative Union of India (for short NCUI) from the provisions of Section 36 and Section 37 of the said Act.
(2.) Briefly stated the facts for the purposes of this case are that respondent No. 3 is a Multi State Cooperative Society. Shri B. S. Vishwanathan, respondent No. 4 was first elected as its President in 1990. Upon the three years term contemplated by Section 35 coming to an end he was re-elected for a further period of three years. In the meanwhile National Cooperative Bank of India (later renamed Cooperative Bank of India) [hereinafter referred to as 'COBI'] was promoted. Respondent No. 4 was also elected as the Chairman of OB in February 1994 for a period of three years.
(3.) Since Section 36 of the Act restricted an individual from holding the office of Chairman/Vice-Chairman, President/Vice-President in more than one Multi State Co-operative Society, the Central Government was approached and by orders dated 23rd August, 1994 and 1st February, 1995 exemption was accorded under Section 99(2) in respect of Section 36 to NCUI and COBI. On 16th January, 1997 3rd exemption for two years from 3rd February, 1996 to 2nd February, 1998 was granted under Section 99 (2) from the bar of Section 36 of the Act. The fourth exemption from the bar of Section 36 for a period of two years was granted on 13-1-98 from 3rd February, 1998 to 2nd February, 2000. Bar of Section 37 was sought to be removed firstly by an exemption granted for two years by order dated 16th January, 1997 which was followed by a subsequent order dated 13th January, 1998.;