ORDER
Bhakthavatsala, J.
1. The petitioner who is the Chief Promoter of the proposed 'Kannada Career Souharda Sahakari Niyamitha', is before this Court under Articles 226 and 227 of the Constitution of India, praying for quashing the impugned orders Annexure 'D' dated 21.2.2003 and Annexure 'C' dated 16.4.2002 both on the file of Respondent No. 1 and Annexure 'B' dated 3.1.2003 on the file of Respondent No. 2 and for direction to the Respondent No. 2 to register the proposed 'Sahakari Niyamitha'.
2. The Respondents 1 and 2 are represented by Sri M. Keshava Reddy, learned Govt. Pleader.
3. Heard arguments for final disposal.
4. The brief facts of the case of the petitioner may be stated as under:
The petitioner is the elected Chief Promoter of the proposed 'Kannada Career Souharda Sahakari Niyamitha' ( in short 'Sahakari Niyamitha'). The petitioner made an application as per Annexure 'A' to the Respondent No. 2 as per Section 4 of the Act, for registration of the same. The Respondent No. 2 has issued an Endorsement dated 3.1.2003 as per Annexure 'B', imposing several conditions, and one among them is that the promoters have to collect a minimum 500 members contributing Rs. 10,000,00/-towards the share capital and deposit the same in a particular Bank and then only the registration of the 'Sahakari Niyamitha' would be considered and another condition is that the petitioner/ 'Sahakari Niyamitha' was directed that an amount of Rs. 5,000/- should be paid for registration, but the Challan for the registration would be issued after the condition No. 1 is fulfilled. Thereafter, the petitioner pointed out to Respondent No. 2 that the conditions are totally outside the purview of the provisions of the Act, particularly, Sections 4 to 7 and other provisions of the Act, but the Respondent No. 2 informed the petitioner in respect of the guidelines (Annexure 'C') issued by the Respondent No. 1 regarding registration of any 'Sahakari' under the Karnataka Souharda Sahakari Act, 1997 (in short 'the Act').
5. The petitioner has stated that he has collected Share amount in all amounting to Rs. 10,229/- from 50 members and submitted an application for registration of the Society. But on 20.1.2003, the Respondent No. 2 has rejected the application on the above said grounds. Therefore, the petitioner is before this Court, seeking for the reliefs as mentioned above.
6. The learned Government Pleader submits that the guidelines at Annexure 'C' are laid down in pursuance of the power conferred under Section 2(d) of the Act, and therefore, the petitioner has to comply with the conditions stipulated in Annexure 'C' for the purpose of registration of 'Sahakari'.
7. In view of the submission made by the learned Counsel for the parties, I shall refer to the Statement of Objections and reasons for enacting the Act (received the assent of the President on 20.8.2000, published in the Karnataka Gazette extra-ordinarily on 10th May 2000 and brought into force on 1st January 2001) and Section 2(d) of Section 4 of the Act.
Section 2(d) reads as under: 'Chief Promoter' means a person elected at the meeting of the promoters and authorized by the Registrar to collect initial share capital before registration and who shall take all such necessary steps for the registration of a co-operative or union co-operative;
Section 4 reads as under: Co-operatives which may be registered - Subject to the provisions of this Act where:-
(a) not less than ten individuals belonging to different families intend to form a co-operative ; or
(b) a co-operative society which intends to convert itself into a co-operative under this Act by passing a resolution in this behalf; they may be registered as cooperative under this Act.
7. As a matter of fact, in the instant case, the petitioner and the other Promoters in all 10, elected the petitioner as the Chief Promoter and approval of the Registrar was sought. The Registrar also has authorized the petitioner as Chief Promoter to collect the initial share capital. Accordingly, he has collected a sum of Rs. 10,229/- and moved the Registrar for registration.
8. Section 71 of the Act empowers the Government, to make rules to carry out the purpose of the Act, but no rules have been framed yet. As per Section 71, every rule framed has to be laid before each house of the State Legislature.
9. The learned Government Pleader submits that since no such rules have been made, the Respondent No. 1 has framed guidelines for the purpose of registration of the 'Sahakari' under Section 2(d) of the Act, and therefore, they are binding on the petitioner. I have read Section 2(d) of the Act. It does not confer any such power on the Respondent No. 1 to frame such guidelines.
10. What is required to be done for the purpose of registration of the 'Sahakari' under Section 4, is that there shall be not less than 10 individuals belonging to different families. The objects of passing the Act is to encourage voluntary formation of 'Cooperatives' based on self help, mutual aid and to remove all kinds of restrictions that have come to clog the free functioning of the 'Co-operatives' and the control and interference by the Government, except registration and cancellation. Since the Condition No. 1 is Annexure 'B' is contrary to the provisions of the Act, the same is liable to be quashed along with consequential endorsements.
11. In the result, I pass the following order:
The Writ Petition is allowed and Condition No. 1 of Annexure 'C' dated 16.4.2002 on the file of 1st Respondent and condition No. 1 in Annexure 'B' dated 3.1.2003 on the file of Respondent No. 2 are quashed. Consequently, the impugned order at Annexure 'D' dated 21.2.2003 is also quashed.
The Respondent No. 2 is directed to register the proposed 'Sahakari' known as 'Kannada Career Souharda Sahakari Niyamitha' in accordance with law, within 10 days from the date of receipt of this order.
Learned Government Pleader is permitted to file memo of appearance within four weeks.