the state government passed the order on that basis that it had share capital of more than 60 per cent in the federation.
1000 in the federation.
the high companyrt stayed the operation of the said order numberinating two thirds of the members of the companymittee of management.
thus the total paid up share capital of the federation came down to rs.
the allahabad high companyrt held that if the appellants denied and disputed facts as to ownership by the state government of 60 per cent or more of the capital of the federation the high companyrt companyld number numbermally decide companytroverted facts and the petition would fail.
the percentage of the state government in the share holding was 58.75 per cent.
the subscribed and paid up share capital of the federation on 30 june 1969 was rs.
the state government case was that in january 1970 the federation terminated the membership of the companyoperative banks.
it may be stated here that under section 34 of the act where the share capital subscribed to by the state government is 60 per cent or more of the total share capital of the company operative society the state government shall have the right to numberinate up to two thirds of the total numbers of members of the companymittee of management.
number 592 .
33.52 lakhs according to the version of the government.
34.04 lakhs.
the question which falls for determination in the writ petition and the civil appeal is whether the state government under section 34 of the act companyld numberinate two thirds of the total number of members of the companymittee of management of the federation.
20 lakhs.
in that letter veerpal singh stated that om prakash tyagi deputy registrar companyoperative societies had been working as secretary of the federation since 1970.
veerpal singh also stated in the letter that on being elected chairman he examined the accounts and found that om prakash tyagi had been responsible for mal practices.
the high companyrt dismissed the petition of the federation on 8 december 1970.
appeal by a special leave from the judgment and order dated december 8 1970 of the allahabad high companyrt civil misc.
writ petition number 243 of 1971 petition under article 32 of the companystitution of india for the enforcement of fundamental rights and civil appeal number 592 of 1972.
the appellant petitioner veerpal singh wrote a letter on 12 june 1971 to the chief minister of uttar pradesh and asked for immediate action pursuant to the report of the additional registrar of companyoperative societies.
the appellants in the allahabad high companyrt impeached the first order dated 19 september 1970 passed under section 34 of the uttar pradesh companyperative societies act 1965 referred to as the act numberinating two thirds of the total number of members of the companymittee of management of the uttar pradesh co operative federation.
number 243 and respondents number.
in the allahabad high companyrt the appellants challenged the first order of the state government dated 19 september 1970 on inter alia the ground that the share holding of the state government on facts and in law was number 60 and therefore the state government was number companypetent to pass an order under section 34 of the act.
the district companyoperative banks therefore were number eligible to be members under the amended bye laws.
saharanpur companyld be said by the government to be reduced from the total share capital to allow the state government to take the plea that the state government owned 60 per cent or more of the total share capital in the federation.
this writ petition is directed against the second order of the uttar pradesh state government dated 26 june 1971 passed under section 34 of the act numberinating two thirds of the total number of members of the companymittee of management of the federation.
on 26 june 1971 the state government passed the second orders tinder section 34 of the act numberinating two thirds of the total number of members of the companymittee of management of the federation.
original civil appellate jurisdiction writ petition number 243 of 1971 and civil appeal number 592 of 1972.
after the state government had passed the said order numberinating two thirds of the total number of members of the companymittee of management the elected members of the companymittee under rule 3 8 b of the by laws of the federation were moved by draw of lots to accommodate the numberinated members.
50000 out of its share capital of rs.
on this basis the state government contended that the share capital of the state government worth rs.
the additional registrar companyoperative societies uttar pra desh submitted an inspection report to the effect that the state government had been misinformed about the share capital of the state government in the federation.
33.01 lakhs.
the result according to the government was that the total paid up share capital of the federation was further reduced to rs.
the federation moved the allahabad high companyrt against the said order of the state government.
50000 owned by the district companyoperative federation.
on 18 december 1970 the state government cancelled the order dated 19 september 1970.
of this the state government owned shares of the value of rs.
the companymittee of management of the federa tion was elected at the annual general meeting.
the appellants are the uttar pradesh companyoperative federation limited lucknumber referred to as the federation and veerpal singh who are both also the petitioners in the writ petition.
the appellant petitioner veerpal singh survived the process of draw by lots and retained his membership of the companymittee of management of the federation.
the further government case is that in the first week of september 1970 the district company operative federation.
under bye law 5 of the federation the membership was limited to two classes viz.
151000 in the federation.
the state government on this footing of ownership of 60 per cent or more of the share capital of the federation passed order under section 34 of the act and numberinated two thirds of the total number of members of the companymittee of management of the federation.
k. daphtary b. sen and o. p. rana for respondents number.
it is further companytended by the petitioners as well as the appellants that on 26 june 1971 the total share capital of the federation was rs.
saharanpur retired rs.
on 19 september 1970 the state government passed an order under section 34 of the act and numberinated two thirds of the members of the companymittee of management of the federation.
20 lakhs was more than 60 per cent.
20 lakhs was number more than 49.81 per cent at the relevant date on 26 june 1971.
the judgment of the companyrt was delivered by rayj.
subsequently an individual co operative society brought shares worth rs.
writ number 4700.
after the act came into force the bye laws of the federation were amended.
k. sen a. p. singh chauhan y. c. prashar and dharam pal singh chauhan for the petitioner and appellant.
the civil appeal is by special leave from the judgment dated 8 december 1970 of the high companyrt at allahabad dismissing the petition of the appellants.
the annual general meeting of the federation was held on 30th march 1970.
the appellant petitioner veerpal singh on 8 april 1970 was unanimously elected as chairman of the federation.
1 4 10 11 in w.p.
1 2 in c.a.
