Holding

The reservation and nomination provisions for weaker sections in the Uttar Pradesh Co‑operative Societies Act and Rules are constitutionally valid and do not violate Article 19(1)(c) or Article 14.

Summary

The State of Uttar Pradesh challenged provisions of the Uttar Pradesh Co-operative Societies Act, 1965 and the 1968 Rules that reserve seats for Scheduled Castes, Scheduled Tribes, Other Backward Classes and women in the Committee of Management of co‑operative societies, arguing that the reservation and nomination powers violated Article 19(1)(c) of the Constitution. The High Court had struck down sections 130(2)(xii), 130(2)(xii‑A) and related rules as ultra vires, but the Supreme Court examined whether the legislature could enact such affirmative‑action measures to further the constitutional goal of socio‑economic justice for weaker sections. Relying on the object clause of the Act, the democratic principle of representation, and precedents upholding reservation in cooperative bodies, the Court held that the reservation and nomination provisions are a valid exercise of legislative power and consistent with Articles 15(4), 38 and 46. It further observed that membership and management rights in a co‑operative are statutory, not fundamental, and therefore not barred by Article 19(1)(c). Consequently, the Supreme Court reversed the High Court’s decision, upheld the reservation provisions, and allowed the appeals, dismissing the writ petition.

Issues considered

The constitutionality of Sections 130(2)(xii) and 130(2)(xii‑A) of the Uttar Pradesh Co‑operative Societies Act and the corresponding Rules providing reservation and nomination for weaker sections in co‑operative societies.
Whether such reservation infringes the fundamental right to form associations under Article 19(1)(c) of the Constitution.
Whether the provisions violate the equality clause, Article 14, of the Constitution.

Legislation cited

Constitution of Indias. Arts. 15, s. Arts. 15(4), s. Arts. 19(1)(c), s. Arts. 29, s. Arts. 38, s. Arts. 46
Uttar Pradesh Co-operative Societies Act, 1965s. 130(1), s. 130(2)(xii), s. 130(2)(xii-A), s. 29, s. 30, s. 4

Subjects

reservationco-operative societiesweaker sectionsconstitutional validityArticle 19(1)(c)Article 15(4)affirmative actionnominationelectionsocio‑economic justice

Judgment

A STATE OF U.P. AND ANR. ETC.
v.
C.O.D. CHHEOKI EMPLOYEES' CO-OP.
SOCIETY LTD. AND ORS. ETC.

JANUARY 17, 1997
B
[K. RAMASWAMY ANDS. SAGHIR AHMAD, JJ.]

U.P. Co-operative Societies Act, 1965/U.P. Co-operative Societies
Rules, 1968 :
c Sections 4, 130(2)(xii) and (xii-A)/Rules 393(1) & (2) 393-A, 393-B,
clause (d) of sub-rule (4), 440(6) to (8) 444-A and 453--Committee of
Management-Reservation in favour of weaker sections-Quashed by the.
High Court-On appeal, held the provisions of the Act and the Rules are
consistent with the policy and object of the Constitution-Hence, the High
D Court was wholly incorrect in declaring the provisions as ultra vires the
constitUtion--Constitution of India, Arts. 15, 19(l)(c), 29 and 46.

Daman Singh & Ors. v. State of Punjab & Ors., [1985] 2 SCC 640;
Babaji Kondaji Garad Etc. v. Nasik Merchants Co-operative Bank Ltd., Nasik
& Ors., [1984] 2 SCC 50; Toguru Sudhakar Reddy &Anr. v. Government of
E A.P. & Ors., [1993] Supp. (4) SCC 439; Damyanti Naranga v. The Union of
India & Ors., [1971] 3 SCR 840 and Lalit Narayan Mishra of Economic
. Development and Social Change, Patna Etc. v~ State of Bihar & Ors., AIR
(1988) SC 1136, relied on.

F Hay v. Lord Provost of Perth, [1863] 4 Macq. HL (SC) 535, 544 and
Re Beth/em Hospital, (1875) I.R 19 Eq; 457, cited.

CIVIL APPELLATE JURISDICTION: Civil Appeal No. 603-04 of
1997 Etc.

G From the Judgment and Order dated 10.3.95 of the Allahabad High
Court in C.M.W.P No. 40006 and 40121 of 1994.

Yogeshwar Prasad, P.K. Bajaj and AK Srivastava for the Appel-
lants.

H Raju Ramachandran, S. Markandeya, Ajay Singh, Ms. C. Markan-
380
STATE v. C.O.D. CHHEOKI EMPLOYEES' 381
deya, Ms. Meenakshi Aggarwal, Prashant Kumar, Sunil Ambwani, Ms. A
Suman Bala Rastogi, S.C. Patel and Ms. Rani Chhabra for the Respon-
dents.

The following Order of the Court was delivered :

Impleadment and Intervention allowed. B
Leave granted .
..... •;

We have heard learned counsel for the parties.

These appeals raise an interesting question of law relating to the c
validity of the Act and the Rules providing reservation for or nomination
of weaker sections into the Co-operative Societies registered under the
U.P. Co-operative Societies Act, 1965 (for short, the 'Act') and the U.P.
Co-operative Societies Rules, 1968 (for short, the 'Rules'), as amended
from time to time.
D
), The question is : whether the U.P. Legislature has power to make
the law to so amend the Act and the Rules as to provide for reservation
to the weaker sections? The High Court declared Section 130(2) (xii) and
(xii-A) and the provisions and the explanation to sub-rules (1) & (2) of
Rule 393, Rule 393-A, Rule, 393-B, clause (d) of sub-rule (4) and part of
E
sub-rules (6) to (8) of Rule 440, so far as relating to the reservation of seats
for weaker sections, sub-rule (3) of Rule 444-A and clause (i) of sub-rule
(5) of Rule 453 as ultra vires the Constitution and accordingly quashed
them. Calling in question this judgment of the High Court of Allahabad
dated March 10, 1995 in CMWP Nos. 40006 and 40121 of 1994, these
_;
appeals have come to be filed. F

Due to absence of representation of democratic character in the
management of the co-operative societies on the basis of election by the
general body of the society, the members of the weaker sections, namely,
Scheduled Castes and Scheduled Tribes women and other backward clas-
ses do not find place. Consequently, the Government introduced amend- G
ment to the Act. By adoption of the definition of "Other Backward Classes"
contained in U.P. Public Services Reservation for Scheduled Castes and
-.;
h
Scheduled Tribes and Other Backward Classes Act, 1994, brought Other
Backward Classes within the ambit of weaker sections and made all of them
members of the Committee of the Management of the Co-operative Society H
382 SUPREME COURT REPORTS [1997] 1 S.C.R.
A registered under the Act so as to enable them to be elected or nominated
as members. Section 4 of the Act prescribes the guidelines in the matter
of formation of the Co-operative Societies and reads as under :

"4. Societies which may be registered - Subject to the provisions
of this Act, a society which has as its object the promotion of the
B economic interest of its members in accordance with co-operative
principles or a society established with the object of facilitating the
operations of such a society, may be registered under this Act.

EXPLANATION - Co-operative principles shall.

c (a) advancement of economic interest of the members in accord-
ance with public morals, decency and the relevant directive prin-
ciples of State Policy enunciated in the Constitution of India;

(b) regulation and restriction of profit notice;

D (c) promotion of thrift, mutual aid and self-help;

(d) voluntary membership; and

( e) democratic constitution of the society."

E Section 29 of the Act envisages the constitution of Committee of
Management. Sub-section (1) reads as under :

"29(1) The management of every co-operative society shall vest in
a Committee of Management constituted in accordance with this
Act, the mies and the by1~-laws, which shall exercise such powers
F and perform such duties as may be conferred or imposed by this
Act, the rules and the by1!-laws."

(emphasis supplied) ·

Other sub-sections are not relevant; hence omitted. Section 30(1) to
G (4) deal with election of the Chairman and Vice-Chairman of the Society.
Section 130(1) provides that the State Government may make Rules.
Sub-section (2) postulates that, in particular, and without prejudice to the
y
generality of the power under sub-section (1), the rules to be made under .'-
this section may provide for all or any of the matters enumerated therein.
H In pursuance thereof, Rules came to be amended. Clauses (xii) and (xii-
STATE v. C.O.D. CHHEOKI EMPLOYEES' 383

\
A) read as under : A
"(xii) the election of the members and Chairman and Vice-Chair-
man of the Committee of Management of a co-operative society,
including delimitation of constituencies, reservation of seats for
women and members belonging to weaker sections settlement of
election disputes, and levy of fees in respect of any such matter; B

(xii-A) the nomination of women and members belonging to
-<
weaker sections in the committee of management of a co- operative
society.":

These amendments were brought on statue by Amendment Act 17 c
of 1977. Rule 393 (1) provides as under :

"Section 393(1) : A co-operative society may have as many persons
on its Committee of Management as may be provided in its
bye-laws subject to a maximum of fifteen persons. Any other
D
committee or sub-committee of the society shall be smaller than
its Committee of Management and in no case such committee or
sub- committee shall consist of more than seven members;

Provided that in the Committee of Management of every co-opera-
tive society three seats shall be reserved of which one shall be E
reserved for Scheduled Castes or Scheduled tribes, one for Back-
ward Classes of citizens and one for women:

Provided further that in case of Uttar Pradesh Co-operative Con-
sumer Federation, Central and Primary Consumer co-operative
~
Societies three seats shall be reserved of which two shall be F
reserved for women and one for persons belonging to Scheduled
Castes or Scheduled Tribes or Backward Classes of citizens.

EXPLANATION - In this rule the expression "backward classes
of citizens" shall have the meaning assigned to it in clause (b) of
G
Section 2 of the Uttar Pradesh Public Services (Reservation of
Scheduled Castes, Tribes and other Backward Classes) Act, 1994.

; (2) Where a co-operative society referred to in sub- rule (1) for
any reasons whatsoever, fails to elect on the Committee of Manage-
ment such number of persons for whom seats are reserved or the H
384 SUPREME COURT REPORTS [1997] 1 S.C.R.

A vacancy occurs the deficiency shall be made good or filed, as the I
case may be, by the State Government by nominating persons
belonging to such class on the Committee of Management of such
society. Expression "weaker section" referred to in these rules shall
mean a person belonging to Scheduled Castes, Scheduled Tribes,
women and Backward Classes of citizens referred to in the ex-
B planation of sub-rule (1)."

The Preamble of the Constitution provides for socio-economic and
political justice to all citizens and dignity of person, with equality of status
and of opportunity. Article 46 of the Constitution enjoins that "the State
C shall promote with special care, the economic interest of the weaker
sections of the people". The object of section 4 of the.Act paves way to
promote the economic interest and status of the members of the society in
accordance with the co-operative principles to facilitate opportunity to
augment the economic improvement of the members of the society by
D co-operative principles by providing facilities and opportunities. The ad-
vancement of economic improvement is one of the rights enshrined under
the Constitution. Section 4, therefore, intends to effectuate the constitu-
tional objective in accordance with co-operative principles, morality decen-
cy and the relevant directive principles and the State Policy enunciated in
the Preamble, Fundamental Rights and Directive Principles of the State
E Policy, by operation of clause (a) of Explanation to Section 4. Clause ( c)
envisages representation of all sections of the society in a democratic set
up so that they all get the opportunity to avail promotion of their economic
interests in accordance with co-operative principles by being members of
the society established and registered under the Act, rules or bye- laws or
F by being elected to the management thereof when representation in the
management of the Committee by electoral process of the weaker sections
is not achieved on account of short fall in their nomination to the Commit-
tee. That is one of the principal programmes and the policy under the Act.
Clause 24' and (25) of Article 366 define "Scheduled Castes" and
G "Scheduled Tribes" and Articles 341 and 342 envisage issue of presidential
notification specifying for each State the list of Scheduled Castes and
Scheduled Tribes respectively. As far as women are concerned, there is no
need for specification. The Other Backward Classes are identified as those
specified in the Public Services Reservation act, 1994. The application of
this Act is only for the purpose ofidentification of other Backward Classes
H and no more. Under the Act, all of them constitute weaker sections for the
STATE v. C.O.D. CHHEOKI EMPLOYEES' 385

\
purpose of the representation in the management of the Committee of the A
Society. The rules provide for the principles for election or nomination.

Rules 393-A and 393-B of the Rules read as under:

"Notwithstanding anything contained in these rules or the bye-laws
of the society but subject to Rule 453, if the Committee of Manage-. B
ment of a co-operative society referred to in the proviso to sub-rule
(1) of Rule 393, on the date of commencement of this rule does
not have as many persons as are referred in the above sub-rule of
weaker sections or women, as the case may be, the State Govern-
ment shall nominate on the Committee of Management of such C
societies as many persons as may be necessary to provide repre-
sentation to the extent specified in the said proviso to sub-rule (1)
of Rule 393, and upon the nomination so made, the Committee of
Management of the society concerned shall retire the required
number of persons by draw of lots by the authority of the Registrar,
so as to accommodate such nominees on the Committee of D
Management.

393-B. Where the term of the elected members of the Committee
of Management of such society does not have such number of
persons as provided in the aforesaid rules the State Government E
shall, notwithstanding anything contained in the bye- laws of such
society, nominate on the Committee of Management thereof such
number of persons as may be necessary for providing repre-
sentation to such persons to the extent specified in the above
referred rule and on the nomination being so made, the Committee
of Management of the concerned society shall retire the required F
number of persons by draw of lots, so as to accommodate such
non1inees."1

Rule 440 sub-rule (1)(4)(d) reads as under :

"(4) For purpose of election of members of Committee of Manage- G
ment of a co-operative society, or as the case may be, of delegates
to general body of a co-operative society, the Registrar shall,
notwithstanding anything contained in the bye- laws of the Society,
before the issue of notice under sub-rule (2) of Rule 441 for
election of a co-operative society or, as the case may be, of a class H
386 SUPREME COURT REPORTS [1997] 1 S.C.R.

A of co-operative societies determine provisionally -

(a) ........................................... .

(b) ............................................ .

B (c) ············································
(d) the number of seats reserved for weaker section."

Rule 444-A(3) reads as under :

c "The Registrar or the authorised officer shall, under provisions of
sub-rules (6) of Rule 440, reserve· constituencies/areas for weaker
· section and such 'reservation shall be made to the extent of the
seats reserved by rotation in Hindi alphabetical order of the names
of constituencies/areas from which members of th:! Committee of
Management area to be elected."
D
Rule 453(1)(h) provides that no person shall be eligible to be or to
continue as a member of the Committee of Management of any co-
operative society, if he is not a member of the General Body thereof.

These rules demarcate the constituencies and provide for their rota-
E tion, notwithstanding the absence of the provisions for election of weaker
sections so as to effectuate the object of Section 29(1)read with Section
130(2)(xii) and (xii-a). A conjoint and harmonious reading of these
provisions would, thus, clearly indicate that the Management of every
co-operative Society whose object is in conformity with Section 4 of the
F Act, shall be vested in a Committee of management constituted in accord-
ance with this Act, the Rules and the bye-laws with elective component
inclusive of weaker sections. In its absence, by nomination of them. Section
l30(2)(xii) and (xiii-A) states that rules to be made may provide for
election of the members, the Chairman and Vice-Chairman of the Com-
mittee of management of a co-operative Society including reservation for
G women and Other Backward Classes. Therefore, the Rules have been made
to effectuate the purpose of the Act, namely, for the election of the
Committee of the Management and under the democratic process of
election as envisages under the Act and the Rules, they get elected. In case
the members of the weaker sections, namely, Scheduled Castes, Scheduled
H Tribes, other Backward Classes and women are not elected, the Govern-
STATE v. C.O.D. CHHEOKI EMPLOYEES' 387
ment have been given power to nominate the members belonging to weaker A
sections and the women to an extent of three seats as envisages thereunder,
namely, one Scheduled Caste, one Backward Class and one woman in each
of the committees of the Management of the every co-operative society.

The question is: whether such a power is violative.of Article 19(1)(c)
of the Constitution? Shri Raju Ramachandran, learned Isenior counsel for B
the respondents, contends that the Constitution has conferred right on
every citizen to form a society or to be its member. Formation of the
Society includes therein inviolability of incorporate character or enrolhnent
of any member who fulfils the objects of the society as per the bye- laws.
No outsider would be interposed or thrust against his/her wishes. No c
outsider, therefore, could lie brought or nominated as member of the
management Committee without being a member of the General Body. In
Daman Singh & Ors. v. State of Punjab & Ors., [1985] 2 SCC 670 at 681,
the constitution Bench had held that the creation, the constitution and the
management of the Society is a creature of the statute. They are controlled D
by the statute and so, there can be no objection to statutory interference
with their composition on the ground of contravention of the individual
right to freedom to form association. In para 11, this Court held that once
a person becomes a member of a Co-operative Society, he loses his
individuality qua the Society and he has no independent rights except those
given to him by the statute and the bye-laws. He must act and speak E
through the society or rather, the Society alone can act and speak for him
qua rights or duties of the Society as a body, The question whether the
Legislature has power to enact the law providing for nomination of the
members of the Scheduled Castes, Scheduled Tribes and women in the
matter of election to the Committee of Management to the Co-operative
F
Societies., was considered by this Court in Babaji Kondali Garad etc. v.
Nasik Merchants Co-operative Bank Ltd., Nasik & Ors., [1984] 2 SCC 50. In
paragraphs 9 and 12, this Court stated as under: .

"The Act was enacted In 1960 and it repealed the Bombay Co-
operative Societies Act, 1925. Section 73 provides for the vesting G
of the management of every so.ciety in a Committee to be con-
stituted in accordance with the Act, the rules and the bye- laws.
At the commencement of the Act, there was no provision for
reservation of seats in favour of the members of the Scheduled
Castes and the Scheduled Tribes and the weaker section of the H
388 SUPREME COURT REPORTS [1997) 1 S.C.R.

A members. Section 73-B making reservation obligatory was intro- (
duced in the Act by Amending Act 27 of 1969. Why was this
specific amendment made? The working of the Act must have
disclosed a sorry state of affairs that even though the co- operative
movement was expanding by leaps and bounds, the m.embers of
B the Scheduled Castes and Scheduled Tribes or the weaker section
of the members of the society were not represented in the com-
mittee and has no opportunity to participate in the decision making
process, laying down broad policies and management of the
society. Article 43 of the Constitution set the goal that the State
c shall endeavour to promote cottage industries on an individual or
co-operative basis in rural areas. In our onward march of
economic independenc1e, India was destined to be a co-operative
commonwealth. Since activities were diversified, more especially
in the rural areas. Every activity of a person devoted to agricul-
D tural in the rural area is considerably influenced by the co-opera-
tive movement, such as seed distribution, credit, disposal of
agricultural produce etc. The member of the Scheduled Castes and
Scheduled Tribes predominantly in rural areas did not remain
unaffected by the gigantic stride that the co-operative movement
E took, They were directly and substantially affected by it. In order
to avoid that those who are affected by the movement in their vital
day to day existence enjoy a second class status by being denied
the opportunity to be represented in the management council and
decision making bodies, a provision like Section 73-B was intro-
F duced to ensure representation of such persons who in the absence
of reservation may find it difficult to be elected to the Committee
in which the entire power of management vests. Absence of
representation coupled with subjection to the dictates of the
society would be antithesis of democratic process reducing such
G persons to serfdom. A co-operative society is to be governed by a
committee elected by democratic process. This democratic
process must permeate in filling in reserved seats otherwise the
committee would not enjoy a representative character. One can
draw light from the provisions contained in Part XVI of the
H Co;nstitution and especially Articles 330 and 332 which provide for
STATE v. C.0.D. CHHEOKI EMPLOYEES' 389
reservation of seats in the house of People and in the Legislative A
>
Assembly of every State for the Scheduled Castes and the
Scheduled Tribes. The felt necessities of the time and the histori-
cal perspective of class domination led to the constitutional
guarantee of reservation so that India can truly be a sovereign
socialist secular democratic republic. A republic is made up of B
men and institutions. That is why· democratic institutions have to
be set up by providing for election and to make the democratic
institutions truly representative, reservation of seats for those who
on account of their backwardness, exploitation and unjust treat-
ment both social and economic cannot obtain representation be- C
cause of the class domination. This is the genesis of reservation.
Therefore, any provision making for reservation must receive such
construction as would advance the purpose and intendment un:
derlying the provision making reservation and not thwart it. In the
part a method of construction was used to extend a remedial D
statute called proceeding upon 'the equity of the statute'. In Hay
v. Lord Provost of Perth, (1863) 4 Marq. HL (SC) 535, 544 Lord
Westbury observed that the mode of construction known as 'the
equity of the statute' was "very common with regard to our earlier
statutes, and very consistent with the principle and manner accord- E
ing to which Acts or parliament were at that time framed". Un-
doubtedly, nowadays this mode of construction has fallen into
disuse. Even though the expression 'the equity of the statute' has
fallen into disuse, it is still in vogue in somewhat similar form in
that if it is manifest that the principles of justice require something F
to be done which is not expressly provided for in an Act of
Parliament, a court of justice will take into consideration the spirit
and meaning of the Act apart from the words. In this context, one
can recall the words of Jessel M.R. in Re Bethem Hospital, (1875)
LR 19 Eq; 457, that ' the equity of the statute' may as well as G
mean "such a thing as construing an Act according to its intent,
though not according to its words". Alternatively, one can bring in
Hevdon 's test more often noticed by this Court that in order to
arrive at true intendment of a statute, the court should pose to
itself the questions : (1) what was the situation prior to the H
390 SUPREME COURT REPORTS [1997] 1 S.C.R.
A provision under construction, (2) what mischief or defect was
noticed before introducing the provision, (3) whether it ·was
remedial and (4) the reason for the remedy. Applying this test,
the same result would follow inasmuch as looking to the position
and the plight of Scheduled Castes and Scheduled Tribes and the
B weaker section of the members of the society, though they would
be subject to the dictate of the society they had had no voice in
the managerial councils and that to raise the stature and status of
such persons so as to bring them on the footing of equality with
other segments of the society, reservation was provided in the
absence of which those in whose favour reservation was made
c could not get elected to the decision making bodies. While ascer-
taining the true canon of construction applicable to Section 73-B,
these aspects must start into our face.

When statute requires a certain thing to be done in a certain
D
manner, it can be done in that manner alone unless a contrary
indication is to be found in the statute. If the Legislature uses the
expression 'if no such persons are elected' it indubitably suggests
that primarily the reserved seats are to be filled in by election.
Failing the election, one can resort to appointment or co-option.
E The chronology of the methodology by which seats are to be filled
in as set out in Section 73-B clearly manifests the legislative
intention. The first and the foremost pride of place is accorded
to election, it ought to be so because a representative institution
ordinarily must be democratically elected. The section, therefore,
F speaks ' if no such persons are elected' which would mean that the
authorities charged with a duty to hold election must proceed to
arrange for holdin1~ the election. If election is held giving out
information that there are reserved seats and no candidate is
forthcoming to contest for the reserved seats, the Legislature in its
G wisdom provided that the seats shall not remain vacant but can be
filled in by two subsidiary methods such as appointment or co-op-
tion which cannot he put on par or equated with election which is
a universally recognised method by which representative institu-
tions are set up. Therefore, the language and the chronology of
H the methodology of filling in reserved seats employed in Section

./
STATE v. C.O.D. CHHEOKI EMPLOYEES' 391
73-B provide a clue to its correct construction and there should A
be no doubt that opportunity must be provided for filling in seats
by election. It is the failure of the election machinery to fill in the
seats which would enable the concerned authority to fill in the
seats by appointment or co-option. The condition precedent to
filling in reserved seats by appointment or co- option is holding of B
the election and failure to elect such persons would permit resort
to other methods of filling in the reserved seats."

In the case of Togunt Sudhakar Reddy & Anr. vs. Government of
A.P. & Ors., (1993) Supp. 4 SCC 439, this Court considered the power of
the Government to nominate women to the Co-operative Societies under C
Section 31 of the A.P. Co-operative Societies Act and the validity of the
Act and the power of the Government for their nomination was. upheld.

Thus, it is settled law that no citizen has fundamental right under
Article 19 (1) (C) to become a member of a Co-operative Society. His D
right is governed by the provisions of the statute. So, the right to become
or to continue being a member· of the society is a statutory right. On
fulfilment of the qualifications prescribed to become. a member and for
being a member of the society and on admission, he becomes a member.
His being a member of the society is subject· to the operation of the Act, E
rules and bye-laws applicable from time to time. A member of the Society
has no independent right qua the Society and it is the society that is entitled
to represent as the corporate aggregate. No individual member is entitled
to assail the constitutionality of the provisions of the Act, rules and the
bye-laws as he has his right under the Act, rules and bye-laws and is
F
subject to its operation. The stream cannot rise higher than the source.

So, the society having been formed is governed by the provisions of
the Act. The individual members do not have any fundamental right to the
management of the Committee except in accordance with the provisions of
the Act, rules and bye-laws . The management of the Committee is G
regulated by Section 29 of the Act. The compositions thereof is also
regulated by the Act and has to be in accordance with the Rules and the
bye-laws. The Rules referred to hereinbefore have to be infurtherance of
and in conformity·with the provisions contained in Section 130 (2) (xii) and
(xii-A) and the Rule~ providing for reservation in the election of the H

l\
392 SUPREME COURT REPORTS (1997] 1 S.C.R.
A Committee or for nomination to the Management Committee of the mem- .:
bers belonging to the weaker sections and women should be to effectuate
socio economic and political justice assured by the Preamble, Articles 38
and 46 of the Constitution.

B Shri Raju Ramachandran, relying upon the judgment of this Court
in Damyanti Naranga v. The Uizion of India & Ors., (1971] 3 SCR 840, has
contended that in view of the ratio laid down by this court, the Government
is devoid of power to make law unless any of the restrictions as controlled
by clause ( 4) of Article 19 of the Constitution of India are infringed. The
C Government has no power to enact a law incorporating the reservation to
the members of weaker sections and women thereof. We find no force in
the contention. It could be seen that therein, the Government had enacted
the Sahitya Sammelan Act exercising the power under Entry 63, List I of
the Seventh Schedule to the Constitution. This Court pointed out that the
Act did not envisage that the Samiti is of national importance. Therefor,
D it was held that the Parliament had lacked power to enact the law incor-
porating the society and inducting outside members against the wishes of
the founder members of the Society registered under the Societies
Registration Act. This Court also held that the properties belonging to the
original Society stood vested in the Society incorporated under Section 4
E of the Act without any compensation. Therefore, it was violative of Article
31 of the Constitution of India, as it stood then. The ratio therein has no
application to the facts in this case. He then contended that "Other
Backward Classes" defined under the State Pub:ic Services Reservation Act
applicable to and covering the public services, they are being inducted as
F 'members of the society which are otherwise not eligible and, therefore, the
induction of them by amendment of Rules made on 15.7.1994 is unconstitu-
tional. In support thereof, he contends that though Article 15 (4) of the,
Act provides that it is subject to Articles 15(2) and 29(2) of the Constitu-
tion, it does not envisage that it is also subject to Article 19(1)(c) of the
Constitution. Therefore, the reservation provided to the weaker sections is
G unconstitutional. We find no force in the contention. The object of Article
15(4) is to lift the prohibition of general equality guaranteed in Article
15(2) and 29(2) of the Constitution dealing with the right to admission into
~·
an educational institution maintained by the State or receiving aid from the
State. Therefore, /their object is distinct and different from Article
H 19(1)(c). Though Article 19(ll)(c) gives freedom to form association, it is
STATE v. C.O.D. CHHEOKI EMPLOYEES' 393

::I - "'· controlled by the provisions of the Act. As held by this Court, once a A
society has been registered under the Act, the management of the society
I through Section 29 and the Rules made thereunder, is regulated by duly
• elected members. In the democratic set up, all eligible persons are entitled
to contest the election, as held, according to the provisions of the Act and
Rules. In the absence of elected members belonging to the weaker sections B
and elected women members their nomination of them by the Government
is the alternative dispensation envisaged as one of the policies of the Act,
Therefore, the Court cannot interfere with the policy and declare it is
unconstitutional violating Article 19(1) (c) of the Constitution.

It is then contended that nomination of the members belonging to C
the weaker sections is arbitrary and uncanalised and i! is violative of Article
14 of the Constitution. It is seen that the provisions of the Act and the
relevant Rules provide necessary guidelines, The persons are identified.
The bye-laws prescribe the eligibility of the members who would be eligible
to be nominated as members of the society and the disqualifications have D
been provided under Rule 393 of the Rules. Under those circumstances.
these provisions do indicate the guidelines under the Act. If any one is
nominated in derogation of the guidelines provided under the Act and
rules, that would be an individual case to be considered separately but on
that count alone, the Act and the R,ules cannot be declared to be ultra vires. E
Shri Raju Ramachandran relied upon the judgment of this Court in
Lalit Narayan Mishra of Economic Development and Social Change, Patna
etc. v. State of Bihar & Ors. AIR (1988) SC 1136 in support of his conten-
tion. But far from helping him, the ratio therein also is consistent with the
Jaw laid down by this Court.
F

It is then contended by Mr. S. Markandeya, learned counsel for some
of the respondents, that the Workers Ordinance Co-operative Society
consists of weaker sections and further induction of weaker sections by
nomination or women who do not become' members of the society is G
unconstitutional. The election or nomination of the weaker sections to the
Committee of Management is as per the provisions of the Act, the Rules
and the bye-Jaws. If any society consists solely of those segments and
elected Committee of Management consists of them, the question of
nomination to represent them as that segment again would not arise. In the H
394 SUPREME COURT REPORTS [1997) 1 S.C.R.
A absence of elected members being there in the Committee, necessarily,
the Government have the power to nominate the unfilled membership of
the Committee.

Thus, considered, we are of the view that the provisions of the Act
and rules are consistent with the policy and object of the Constitution and,
B therefore, the High Court was wholly incorrect in declaring the aforesaid
provision to be ultra vires the Constitution.

The appeals are accordingly allowed. The writ petition stands dis-
missed. No costs.

C G.N. Appeals are allowed.