Hari Swarup, J. - (1.) -This petition challenges the order of the State Government nominating respondent No. 3 as the Chairman in exercise of the powers under the first proviso to subsection (1) of Section 34 of the U. P. Co-operative Societies Act. The petitioner was an elected Chairman and on the passing of this order of nomination, has by virtue of sub-section (5) of Section 34 of the Act ceased to be the Chairman.
(2.) Learned counsel contended that Section 34 was ultra vires and void on the ground that it violates Article 14 of the Constitution, has been made in colourable exercise of legislative powers, is violative of Art. 19 (1) (f) and (g) and is void on other grounds also. All these grounds raised by the learned counsel were considered by a Division Bench of this Court in Jalaun Producers Co-operative Union v. State (1979 All LJ 244) , and it was held that Section 34 is not void. We see no reason to differ from the view taken therein.
(3.) It is urged that Section 34 of the Act gives no guidelines and confers on the State Government power to act arbitrarily. The relevant portion of Section 34 runs as under: (1) Where the State Government has - (a) subscribed directly to the share capital of a co-operative society under Chapter VI; or (b) assisted indirectly in the formation or augmentation of the share capital of a co-operative society as provided in Chapter VI; or (c) given loans or made advances to a co-operative society or guaranteed the repayment of principal and payment of interest on debentures issued by a cooperative society or guaranteed the repayment of principal and payment of interest on loans or advances to cooperative society.- The State Government shall have the right to nominate on the Committee of Management of such society not more than two persons one of whom shall be a Government servant, so, however, that the Government servant shall not vote at an election of an office-bearer of the society: Provided that where the share capital subscribed to by the State Government is not less than fifteen lakhs of rupees the State Government shall also have the right to nominate the Chairman of the Committee of Management from amongst the members of the Committee; ";