AMITAVA LALA, J. - (1.) SINCE common question is involved in both the aforesaid writ petitions, the same are decided by this judgment having binding effect in both the cases. However, the Writ Petition No. 61489 of 2007 is taken as leading one.
(2.) THE aforesaid both the writ petitions have been made with the similar prayers. However, prayers of the first writ petition are as follows: "(i) to issue a writ, order or direction in the nature of certiorari quashing order dated 22.10.2007 (Annexure-12 to the writ petition); (ii) to declare Ordinance No. 21 of 2007 dated 7.8.2007, as well as Uttar Pradesh Cooperative Sugar Mill Societies (Special Provisions) Rules, 2007 as amended vide notification dated 5.10.2007 (Annexure-9,10 and 11 of the writ petition) ultra-vires to the provisions of Constitution of India and be struck down and be declared invalid piece of legislation; (iii) to issue a writ, order or direction in the nature of mandamus restrain­ing the respondents from, in any manner, proceeding to utilize the amount of Rs. 75 crores secured from U.P. Cooperative Bank Ltd., Lucknow, after plac­ing the sugar mill as mortgage and the said amount of Rs. 75 crores may kindly be directed to be either returned to the bank and the mortgage deed be surrendered; (iv) to issue any other writ, order or direction which this Hon'ble Court may deem fit and proper under the circumstances of the instant case so that justice be done; (v) to award cost of the petition to the petitioners as against the respon­dents; (vi) to declare U.P. Act No. 29 of 2007 that is U.P. Cooperative Societies (Amendment) Act, 2007 as ultra-vires (Annexure-38 to the writ petition); (vii) to issue a writ, order or direction in the nature of certiorari quashing the order of the State Government dated 27.12.2007 (Annexure-39 to the writ petition); (viii) to issue a writ, order or direction in the nature of certiorari quashing the order of the Registrar dated 28.12.2007 (Annexure-40 to the writ petition); (ix) to issue a suitable writ, order or direction commanding upon the Central Government to constitute a high power committee comprising of tech­nical and financial experts to go into the cause which have resulted in losses to the sugar mill society and suggest remedial measures so that the sugar mill society is run as sound business." Two preliminary issues have been raised by the contesting parties herein. According to the State, the writ petitions are not maintainable by the pen of the petitioners. According to the petitioners, when the concerned sugar factories are governed by the Multi-State Co-operative Societies Act, 2002 (hereinafter called as the 'Act, 2002'), any ordinance under the UP. State Act i.e. Uttar Pradesh Co-operative Societies Act, 1965 (hereinafter called as the 'Act, 1965') read with Uttar Pradesh Co-operative Societies (Amendment) Act, 2007 is nullity.
(3.) SINCE the first point is relating to maintainability of the writ petition, let us discuss the same at first. Admittedly, the petitioners are shareholders of Kisan Co-operative Sugar Factory Limited, Majhola, District Pilibhit, Uttar Pradesh (here­inafter called as the 'Co-operative Society'). They contended that they are vitally interested persons in the affairs of the society itself, therefore, they have locus to file the present writ petition. Aco-operative society of such persons is an indepen­dent body of joint ownership on principle only to fulfil the constitutional objective therein. The co-operative society is farmers' co-operative society. If the proposal of the State to consider transfer of co-operative society to the private owners takes place, it will affect the interest of the farmers. The factory after formation of the co-operative society started its function since 1965. The elected body con­sisting of farmer members controlled and supervised the work of the sugar fac­tory. The petitioner No. 1 was the Director of the elected body during that period. In the balance sheet of the sugar mill society as on 30th June, 1975 subscribed capital of the society consisted of 26017 shares of Rs. 300/- each amounting to Rs. 78,17,100/-. The producer members' share value was approximately Rs. 35,16,384.83, whereas the share of the State Government was Rs. 30,00,000/-. It is true to say that due to lack of expansion and modernization of plant, condition of the sugar factory plant was deteriorated time to time. Occasionally break down was caused, which ultimately resulted to subsidy coverage etc. of the State. In effect, State also became the shareholder of such co-operative society. By virtue of the sickness an Administrative Officer was appointed by the State who is controlling the state of affairs. No election was held for a considerable period.;