G VENKATA NAIDU Vs. BELLARY CENTRAL CO OPERATIVE STORES LTD

JUDGEMENT

(1.) Bellary Central Co-operative Stores Ltd., Bellary (hereinafter referred to as the 'Society'), is a Co-operative Society with limited liability of its shareholders. The Society has been doing extensive business in consumer goods in Bellary District, in the year 1955, the Society started a Sugar Factory at Kampli near Hos-pet. The State Government has given to the Society aid of more than Rupees three lakhs in the form of share-capital, loans, and guarantee for loans taken by the Society for its activities in consumer goods The Government has also subscribed Rs. 16 lakhs towards the share capital for the said Sugar Factory.

(2.) In exercise of the powers conferred by Sections 54 and 121 of the Mysore Co operative Societies Act. 1959 (hereinafter referred to as the 'Co-operative Act'), the Government Issued a Notification (marked document A) on 14-6-1966. By this Notification Section 29 of the Co-operative Act has been modified in relation to this Society so as to enable the Government to nominate us its representatives 6 persons as members of the Committee of this Society of whom one shall be the Chairman and Managing Director. By this Notification bye-law 18(a) (v) of the Society has been amended to provide for nomination of fl persons of whom one shall be the Chairman and Managing Director

(3.) By its order, dated 14/16-6-1966 (marked as document B), the Government nominated Sri . J. T. Viswanathan of the Mysore Administrative Service as Chairman and Managing Director and the following 5 officers of the Government as Directors of the Society: