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PETITIONER: STATE OF U.P.. & ANR. ETC.

       Vs.

RESPONDENT: C.O.D. CHHEOKI EMPLOYEES’ CO-OP.SOCIETY LTD. & ORS. ETC.

DATE OF JUDGMENT:       17/01/1997

BENCH: K. RAMASWAMY, S. SAGHIR AHMAD

ACT:

HEADNOTE:

JUDGMENT:                             WITH                 CIVIL APPEAL NO. 605 OF 1997          (Arising out of SLP (C) No.12379 of 1995)                          O R D E R      Impleadment and Intervention allowed.      Leave granted.      We have heard learned counsel for the parties.      These appeals  raise an  interesting questions  of  law relating to  the 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 ‘Rules’), as amended from time to time.      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 provisos and  the explanation to sub-rule 393-A, Rule 393-B, clause (d)  of sub-rule (4) and part of sub-rules (6) to (8) of Rules 440, so far as relating to 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 appeal have come to be filed.      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 classes do not find  place.   Consequently,   the   Government   introduced amendment to  the Act.  By adoption  of  the  definition  of "Other Backward  Classes" contained  in U.P. Public Services Reservation for  Scheduled Castes  and 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  registered under. The Act so as to enable

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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 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      (a)  advancement    of     economic      interest   of    the   members   in      accordance  with   public   morals,      decency and  the relevant directive      principles    of    State    Policy      enunciated in  the Constitution  of      India;      (b)  regulation and  restriction of      profit notice;      (c)  promotion  of  thrift,  mutual      aid and self-help;      (d)  voluntary membership; and      (e)  democratic constitution of the      society."      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  rules and  the  bye-laws,      which shall  exercise  such  powers      and perform  such duties  as may be      conferred or  imposed by  this Act,      the rules and the bye-laws."           (emphasis supplied)      Other sub-sections  are not  relevant;  hence  omitted. Section 30(1)  to (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 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. In pursuance thereof, Rules came to be amended. Clauses (xii) and (xii-A) read as under:      "(xii)    the   election   of   the      members  and   Chairman  and  Vice-      Chairman  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;      (xii-A) the nomination of women and      members   belonging    to    weaker      sections  in   the   committee   of

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    management   of    a   co-operative      society."      These amendments  were brought  on statue  by Amendment Act 17 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      e provided  in its bye-laws subject      to a  maximum of  fifteen  persons.      Any   other   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-operative      society  three   seats   shall   be      reserved  of  which  one  shall  be      reserved for  Scheduled  Castes  or      Scheduled Tribes,  one for Backward      Classes of  citizens  and  one  for      women:      Provided further  that in  case  of      Uttar Pradesh Co-operative Consumer      Federation,  Central   and  Primary      Consumer   Co-operative   Societies      there seats  shall be  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      Section  2  of  the  Uttar  Pradesh      Public  Service   (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      Management such  number of  persons      for whom  seats are reserved or the      vacancy occurs the deficiency shall      be made  good or filed, as the 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 explanation 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 shall promote with  special care,  the economic  interest  of  the weaker sections  of the  people". The object of Section 4 of

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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 co-operative  principles   by   providing   facilities   and opportunities. The  advancement of  economic improvement  is one of  the rights enshrined under the constitution. Section 4,  therefore,  intends  to  effectuate  the  constitutional objective  in   accordance  with   co-operative  principles, morality, decency  and the relevant directive principles and the State  Policy enunciated  in the  Preamble,  Fundamental Rights and  Directive Principles  of the  State  Policy,  by operation of  clause (a) of Explanation of 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  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 Committee. Is one  of the principal programmes and the policy under the Act. Clause  24 and  (25) of  Article 366  define "Scheduled Castes" and  "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 of identification of other Backward Classes and no  more. Under  the Act,  all of them constitute weaker sections for  the  purpose  of  the  representation  in  the management of  the  Committee  of  the  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 Management      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 Government      shall nominate  on the Committee of      Management  of  such  societies  as      many persons as may be necessary to      provide   representation   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 Management.      393-B.  Where   the  term   of  the      elected members of the Committee of

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    Management of such society does not      have  such  number  of  persons  as      provided in the aforesaid rules the      State       Government       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  representation  to  such      person to  the extend  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 number  of persons by draw      of lots,  so as to accommodate such      nominees." Rule 440 sub-rule (1)(4)(d) reads as under:      "(4) For  purpose  of  election  of      members of  Committee of Management      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  of co-operative  societies      determine provisionally -      (a) ...      (b) ...      (c) ...      (d) the  number of  seats  reserved      for weaker section." Rule 444-A(3) reads as under:      "The Registrar  or  the  authorised      officer shall,  under provisions of      sub-rule (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   the   Committee   of      Management area to be elected."      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  rotation,  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 Act, shall be vested in a Committee of  management constituted in accordance with this Act, the  Rules and  the bye-laws  with  elective  component inclusive of  weaker sections. In its absence, by nomination of them. Section 130(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 Committee of management of

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a co-operative  Society including  reservation for 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 Tribes, other Backward  Classes  and  women  are  not  elected,  the Government have  been given  power to  nominate the  members belonging to  weaker sections  and the women to an extent of three seats  as envisages  thereunder, namely, one Scheduled Caste, one  Backward Class  and one  women in  each  of  the Committee  of  the  Management  of  the  every  co-operative society..pa      The question  is: whether  such a power is violative of Article   19(1)(c)    of   the   Constitution?   Shri   Raju Ramachandran, learned  senior counsel  for 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 enrolment 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 outsider, therefore, could  be brought  or nominated  as member of the management Committee  without being  a member of the General Body. In  Daman Singh  & Ors.  vs. 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 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 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 to  the Co-operative  Societies, was  considered by  this Court in  Babaji Kondaji  Garad etc.  vs. Nasik Merchants C- 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  of  the      management of  every society  in  a      committee  to   be  constituted  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 members. Section 73-      B making observation obligatory was      introduced in   the Act by Amending      Act  27   of  1969.  Why  was  this      specific   amendment    made?   The      working  of   the  Act   must  have

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    disclosed a  sorry state of affairs      that even  though the  co-operative      movement was expanding by leaps and      bounds,   the    members   of   the      Scheduled  Castes   and   Scheduled      Tribes or the weaker section of the      members  of  the  society  was  not      represented in  the  committee  and      had 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 shall  endeavour to      promote cottage  industries  on  an      individual or co-operative basis in      rural areas. In our onward march of      economic  independence,  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 agricultural  in      the  rural   area  is  considerably      influenced  by   the   co-operative      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      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 introduced 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      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   provision      contained  in   Part  XVI   of  the      Constitution     and     especially      Articles 330  and 332 which provide

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    for reservation  of  seats  in  the      House  of   People   and   in   the      Legislative Assembly of every State      for the  Scheduled Castes  and  the      Scheduled    Tribes.    The    felt      necessities of  the  time  and  the      historical  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 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  treatment      both  social  and  economic  cannot      obtain  representation  because  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  underlying      the  provision  making  reservation      and not  thwart it.  In the  part a      method of  construction was used to      extend a  remedial  statute  called      proceeding upon  ‘the equity of the      statute’. In Hay v. Lord provost of      Perth [(1863)  4 Macq. 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 according  to which  Acts of      parliament  were   at   that   time      framed". Undoubtedly, 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  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 Bethlem  Hospital [(1875)  LR 19      Eq. 457],  that ‘the  equity of the      statute’ may  as well as mean "such      a  thing   as  construing   an  Act      according to  its  intent,  thought      not  according   to   its   words".

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    Alternatively,  one  can  bring  in      Heydon’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  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 weaker  section  of      the members  of the society, though      they  would   be  subject   to  the      dictate of  the society they 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      could  not   get  elected   to  the      decision   making   bodies.   While      ascertaining  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      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. 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,  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  holding   the   election.   If      election   is   held   giving   out      information   that   there      are      reserved seats  and no candidate is

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    forthcoming  to   contest  for  the      reserved seats,  the Legislature in      its wisdom  provided that the seats      shall to  remain vacant  but can be      filled in by two subsidiary methods      such as  appointment  or  co-option      which  cannot  be  put  on  par  or      equated with  election which  is  a      universally  recognised  method  by      which  representative  institutions      are set up. Therefore, the language      and   the    chronology   of    the      methodology of  filling in reserved      seats  employed   in  Section  73-B      provide  a   clue  to  its  correct      construction and there should be no      doubt  that   opportunity  must  be      provided for  filing  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   the      election and  failure to elect such      person  should   permit  resort  to      other methods  of  filling  in  the      reserved seats."      In the  case  of  Toguru  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 Section 31 of the A.P. Co-operative  Societies Act and the validity of the Act and the  power of  the Government for nomination of them was upheld.      Thus,  it  is  settled  law  that  no  citizen  has  an fundamental right  under Article 19(1)(c) to become a member of a  Co-operative Society.  His 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, 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 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 regulated by Section  29 of  the Act.  The composition thereof is also regulated by  the Act  and has  to be in accordance with the Rules and the bye-laws. The Rules referred to here in before have to  be in  furtherance of  and in  conformity with  the provisions contained  in Section 130(2)(xii) and (xii-A) and the Rules  providing for  reservation in the election of the

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committee or  for nomination  to the Management Committee of the members  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.      Shri Raju  Ramachandran, relying  upon the  judgment of this Court in Damyanti Naranga vs. The Union of India & Ors. [(1971 3  SCR 840], has contended that in view of the ration 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  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, it  was held  that the Parliament had lacked power to enact  the law  incorporating 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  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 Public  Services Reservation  Act  applicable  to  and covering the  public services,  they are  being inducted  as 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 unconstitutional.  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 Constitution, 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 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 19(1)(c).  Though  Article  19(1)(c) gives freedom  to form  association, it is controlled by the provisions of the Act. As held by this Court, once a society has been  registered under  the Act,  the management  of the society 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 and  women  elected,  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 the waker sections is arbitrary and uncanalised and it 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.

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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 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 Rules cannot be declared to be ultra vires.      Shri Raju Ramachandran relied upon the judgment of this Court in  Lalit Narayan  Mishra of  Economic Development and Social Change,  Patna etc.  vs. State  of Bihar  & Ors. [AIR 1988 SC  1136] in  support of  his contention.  But far from helping him,  the ratio  therein also is consistent with the law laid down by this Court.      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 unconstitutional. The  election of  nomination of the weaker sections to  the Committee  of  Management  is  as  per  the provisions of  the Act,  the Rules  and the bye-laws. 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 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, 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 dismissed. No costs.