DAMAN SINGH & ORS. versus STATE OF PUNJAB & ORS.
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A B c D E F G H DAMAN SINGH & ORS. v. STATE OF PUNJAB & ORS. April 4, 1985 (Y.V. CHANDRACHUD, C.J., D.A. DESAI, 0. CHINNAPPA REDDY, E.S. VENKATARAMIAH AND RANGANATH MISRA, J J.] Constitution of India, Article 144-Affidavits of underlings of the Executive usefulness for deciding the vires of legislation-Compulsory a1na/gan;ation of co-operative societies, constitutional validity of-Punjab Co-operative Societies Act, 196!, sub-sections8, 9, 10 and If of section 13-Whether the provisio11s thereof interfere wrth the Right to fonn or to be a nw1nber of a society and therefore, contrav!!ne 4rticle 19(I)(c) of the Constitution and also violate the principles of natural justice-Words and phrases-"Corporations" 111eani11g and what it comprehends in the scheme of the Constitution of India-Constitution of India; 1950 Article 31-A(l)(c), Entries 43 and 44 of [)st I and Entry 32 of Lisr II of the Seventh schedule and 4rticle 43-Superior Courts cannot go into the question whether a certain ground to which no reference is found in the judg111ent of the subordinate court was argued before that court or not-Proper procedure in such case explained-Professional Ethics-Counsel appearing in rhe. Supre1ne Court-Duty to court explained. Pursuant to a policy decision arrived at an All -India Conference on Co· operative Societies, various State Legislatures, roughly at about the san1e time introduced enactments providing for amalgamation of co-operative societies. The vires of the provisions, contained in sub-sections 8 to 1 i of section 13 of the Punjab Co·operative Societies Act, 1961, providing for co1npulsory amal~ gamation of cooperative soci~ties if it is rn.::ccssary iu the interests cooperative societies, i~ challenged in these appeals by special-kave and other special Je"'ve petitions. Dismissing the appeals and petitions, the Court, HELD 1. The vices of legislation is not to be decided_ on the basis of affidavits of underlings of the e,11;ecutive who can hardly be described as authorised to 'speak for the legislature. As usual in these and such cases, l i \ • DAMAN SINGH v. PUNJ,\B 58! the Counter-affidavits. where they have been filed, leave n1uch to be desired and are least helpful to the Court. [584F-G 585A] A 2.1 The law providing for amalgamation of co-operative societies, "in view of the constitutional bar contained in Article 31-A (1) (c) cannot be struck down as violative of the provisions of Article 19 (1) (c) of tbc Constitu- tion. The dght of a citiz.!n to form a society or to be a member ofa certain cooperative society is not interfered wi1h if the society of which he has become a momber is amalgamateci with another society consisting of members with whom he may not be willing to be associated. [588D-G] In the cases here, the cooperative societies are governed by statute from their inception. They arc created by statute, they are controlled by statute and so there can be no objection to statutory interference with their composi· tion on the ground of contravciition of the indiVidual right of freedom of association. [594C-~J Damya1lli Naranga v. Unio:1 of J11dia, if971] 3 S.C.R. 840, explained and distinguished. 2.2 The exprcssiun "Corporations" occurring in Article 31-A (1) (c) of the Constitution cannot be given such a limited or narrow interpretation, so as not to comprehend cooper.--. tive societies in its expanse. On the other hand the very requirement of the Corporation mentioned io Article 31-A (I) (c) ' require!:> the expression to b~ given a broad interpretation since there can been higher intcr.:st than the public interest.[S89C-DJ 2.3 Section 30 of the Punjab Cooperative Societies . .<\ct, 1961 confers every rcgist·~red co-operative ~ociety the status of a body corporate having perpetual succession and a common seal, with power to holdproperty enter into contracts, institute and defond suits and other legal proceedings and to do all things necessary the purposes for which it is constituted. Therefore, co~ operative society i~ a corporation as commonly understood. [5910-H, 592A], Board of Trustees, Ayurvedic, and Unani Tibia College, Delhi v. The State of Delhi, [196~] Suppl. I SCR 156 applied. 2.4 1he scheme of the Constitution as enjoin:d in Entries 43 and 44 of List I of the s~venth Schedul~ an Entry 32 of List II does not make any difference either. The mention of co-operative societies both in Entry 43 of List I and Entry
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