BIHAR STATE COOPERATIVE MILK PRODUCERS' FEDERATION LTD Vs. STATE OF JHARKHAND
LAWS(JHAR)-2003-6-35
HIGH COURT OF JHARKHAND
Decided on June 26,2003

Bihar State Cooperative Milk Producers' Federation Ltd Appellant
VERSUS
STATE OF JHARKHAND Respondents

JUDGEMENT

S.J.MUKHOPADHAYA,J. - (1.) THE Secretary, Department of Animal Husbandry and Fisheries, Government of Jharkhand issued an order No. 52 dated 23rd November, 2001 under Sections 41 and 42 of the Bihar Re -organization Act, 2000 declaring the Ranchi dairy, Ranchi, Bokaro dairy, Bokaro, Jamshedpur dairy, Jamshedpur and Cattle Feed Factory, Ranchi of Bihar State Co -operative Milk Producer's Federation Limited (hereinafter referred to as COMFED) as immovable and movable properties of the State of Jharkhand. The Chief Executive Officer/ Manager of the dairies and Cattle Feed Factory, Ranchi were directed to function under the control of Department of Animal Husbandry and Fisheries, Government of Jharkhand with immediate effect.
(2.) THE Managing Director, COMFED by letter No. 7035 dated 26/27th November, 2001 informed the Secretary, Department of Animal Husbandry and Fisheries, Government of Jharkhand that the provision of Sections 41 and 42 of the Bihar Re -organization Act, 2000 relates to division of assets/liabilities of the State Government and not of legal entities like Co -operative Societies. It further informed that the COMFED, the Co -operative Society, after re -organization has become a Multi -State Co -operative Society. The order No. 52 dated 23rd November, 2001 was alleged to be not in accordance with law and, thereby, requested the Secretary to rescind/recall the order aforesaid. Subsequently, the Government of Jharkhand issued a Resolution No. Gavya/ Yo 813/2001 - 444 813/2001 - 444 dated 4th June, 2002 under Sections 41 and 42 of the Bihar Reorganization Act, 2000 and taken over the aforesaid Ranchi dairy, Ranchi, Bokaro dairy, Bokaro, Jamshedpur dairy, Jamshedpur and Cattle Feed Factory, Ranchi. In this background, the petitioner has challenged the order No. 52 dated 23rd November, 2001 issued by the Secretary, Department of Animal Husbandry and Fisheries, Government of Jharkhand and the Resolution No. Gavya/Yo - 813/2001 -444 813/2001 -444 dated 4th June, 2002 in the present case on the ground that they are illegal and without jurisdiction. During the pendency of the writ petition, the Central Registrar, Multi -State Co -operative Societies, New Delhi passed an order on 5th November, 2002, communicated vide letter No. L - 11016/9/2002 - L and M dated 4th December, 2002 and refused to declare the COMFED a Multi -State Co -operative Society. The aforesaid decision has also been challenged by the petitioner by filing a petition for amendment of prayer, I.A. No. 335 of 2003. The questions for consideration are : (a) Whether Ranchi dairy, Ranchi, Bokaro dairy, Bokaro, Jamshedpur dairy, Jamshedpur and Cattle Feed Factory, Ranchi situated within the territory of Jharkhand belonged to the petitioner or erstwhile State of Bihar and stood transferred to the successor State of Jharkhand under Sections 41 and 42 of the Bihar Re -organization Act, 2000 or not. (b) Whether, after re -organization of the State, the COMFED, a Co -operative Society shall be deemed to be a Multi -State Co -operative Society under Section 95(1) of the Multi -State Cooperative Societies Act, 1984 or not.
(3.) TO appreciate the points involved, it is necessary to set out few facts as also the claim and counter claim of the parties. The case of the petitioner is that initially the dairy activities in the State of Bihar used is to be carried out by the erstwhile State of Bihar through 'Bihar State Dairy Corporation' (hereinafter referred to as the dairy Corporation), a registered Government Company. The dairy Corporation failed to achieve the objects, Subsequently, a pilot scheme in the name and style of 'Operation Flood' was launched by National Dairy Development Board (hereinafter referred as Dairy Development Board). As a policy decision, it was decided to launch Operation Flood Scheme through Co -operative Sector with an apex federation at the helm of affairs. As per the Operation Flood Scheme, a Co -operative Society in the name and style 'COMFED' was registered under the Bihar Co - operative Societies Act. 1935, Certain assets of Dairy Corporation were transferred by the State of Bihar in favour of petitioner. According to petitioner neither movable, nor the immovable properties of Ranchi dairy, Ranchi, Bokaro dairy, Bokaro, Jamshedpur dairy, Jamshedpur and Cattle Feed Factory, Ranchi belonged to the erstwhile State of Bihar. All assets of the aforesaid three dairies and the Cattle Feed Factory belongs to petitioner. It is stated that the Jamshedpur Milk Supply Scheme of Dairy Corporation was transferred to COMFED by erstwhile State of Bihar on management basis but it was defunct. The bottling plant at Jamshedpur soon become scrap. Subsequently, COMFED purchased 10 acres of land on long term lease hold basis from Adityapur Industrial Area Development Authority for consideration of Rs. 12,23,388/ -. In support of aforesaid claim, the petitioner relied on letter No. 696/A.D.A. dated 14th May, 1998 issued by the Adityapur Industrial Area Development Authority and the letter issued by petitioner No. 2247 dated 28th June, 2001 whereby it was shown that a sum of Rs. 12,23,388/ - was paid towards cost of the land, interest etc. vide Cheque No. 3086199 dated 28th June, 2001. So far as Ranchi Dairy, Ranchi is concerned, the case of petitioner is that it obtained 20 acres of land at Hatia, Ranchi from H.E.C., Ranchi on 30 years lease and the Ranchi Dairy, Ranchi has been set up by petitioner on such 20 acres of H.E.C. land, which never belonged to the then State of Bihar. Reliance has been placed on a letter dated 6th June, 1990 issued by the Animal Husbandry and Fisheries Department in support of such claim. The petitioner also claimed that the Bokaro Dairy, Bokaro is situated over the land which petitioner obtained from Bokara Steel Plant on a token rent of Re. 1/ - per annum. Counsel for the petitioner relied on one or other enclosure attached to the paper book in support of claim aforesaid. ;


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