K.C.Agrawal, V.K.Khanna, JJ. - (1.) Having heard Sri A. C. Dutt, counsel for the petitioners, at some length we are unable to find any substance in this writ petition.
(2.) The point urged in this writ petition was about the validity of Section 122-A of U. P. Co-operative Societies Act. Counsel admitted that this controversy has already been decided by a Division Bench of this Court in Writ Petition No 623 of 1 78, Shambhu Nath v. State of U.P. His submission, however, was that the law laid down by that Division Bench was incorrect and required reconsideration. We are not inclined to accept that submission The Division Bench has considered the various facts in that decision We respectfully agree with the same. As most of the arguments made are already covered, we need not refer the same in our judgment. We, however, wish to mention only ODe point which had been argued at some length. The said point was about the competence of the U. P. Legislature to enact Section 122-A. Counsel submitted that the petitioner Co-operative Society had power to manage its own affairs in the manner it liked, and, as such, the State Government could not lawfully make any provision for the creation of the Centralised Service and take upon itself the power to transfer the employees of one society to another.
(3.) The expression 'Co-operative Societies'used in Entry 32 of List II of the Constitution has not acquired any fixed connotation, as is contended by the petitioners' learned counsel. Initially, Co-operative-Societies were formed on the basis of man Co-operation. In the concept of incorporation, the limited liability was not known to such Co-operative Societies. At that stage, there was only Co-operation of the individuals. This concept was not a static one. It kept on developing With the development of economic system and the requirement of capital, incorporation became necessary. Petition and supervision of the Government in the activities of the Co-operative Societies is of vital importance. That being the position, the Government is empowered to make such provisions which keep a watch on the proper functioning of the Co-operative societies registered under the Act.;