B. Narasimha Reddy, Chairman, Nalgondaranga Reddy District Milk Producers Co-op. Union Ltd. and ors. Vs. State of Andhra Pradesh, Rep. by Its Secretary, Legislative Affairs and Justice, Law Department and ors. - Court Judgment

SooperKanoon Citationsooperkanoon.com/441648
SubjectConstitution
CourtAndhra Pradesh High Court
Decided OnMay-01-2007
Case NumberWrit Petition No. 2214 of 2006
JudgeG.S. Singhvi, C.J. and ;G. Bhavani Prasad, J.
Reported in2007(6)ALT681
ActsAndhra Pradesh Co-operative Societies Act, 1964 - Sections 1A, 1(3), 2, 2(I), 4, 18, 19, 19(1), 21, 21(1), 28, 29, 30, 31, 32(7), 33, 34, 38, 117, 130(1) and 131; Andhra Pradesh Mutually Aided Co-operative Societies (Amendment) Act, 2006; Andhra Pradesh Mutually Aided Co-operative Societies Act, 1995 - Sections 2, 3, 4, 4(1), 4(1A), 4(3), 4(4), 6(2), 9, 25 and 27 to 40; Andhra Pradesh Societies Registration Act; Principal Act - Sections 2, 3, 4 and 7; Companies Act, 1956; Constitution of India - Articles 13(2), 14, 16, 19(1), 19(4), 38, 39, 43, 48 and 213; Essential Commodities Act, 1955; National Dairy Development Board Act; Multipurpose Co-operative Societies Act; Milk and Milk Products Order, 1992; Andhra Pradesh Cooperative Societies Rules, 1964 - Rule 12, 12(1), 12(4) and 1
AppellantB. Narasimha Reddy, Chairman, Nalgondaranga Reddy District Milk Producers Co-op. Union Ltd. and ors.
RespondentState of Andhra Pradesh, Rep. by Its Secretary, Legislative Affairs and Justice, Law Department and
Appellant AdvocateP.P. Rao, ;S. Rama Chandra Rao and ;D. Prakash Reddy, Sr. Counsels, ;K.R. Prabhakar, ;B.V. Subbaiah, ;G. Mohan Rao, ;K. Bindu, ;S. Niranjan Reddy, ;V.V. Prabhakar Rao, ;G. Mohan Rao, ;S. Chakrapani an
Respondent AdvocateAdv. General and ;S. Satyanarayana Prasad and ;Kumari C. Sindhu Kumari, Advs.
DispositionPetition allowed
Excerpt:
- specific relief act, 1963 [c.a. no. 47/1963]. sections 31 & 34: [bilal nazki, v.v.s. rao & g. chandraiah, jj] [per court] cancellation of registered sale deed inherent power of registering authority - fraudulent transfer of property sale taking place by reason of fraud played by transferor and transferee held, it is void. true owner can nullify the sale by executing and registering a cancellation deed without seeking declaration or cancellation of fraudulent transfer deed from court. registering authority is empowered to cancel sale deed earlier registered. registration of document cannot be understood to be an absolute sale divesting vender of its title else it would render sections 31 and 34 of specific relief act, otiose. -- transfer of property act,1882[c.a. no. 4/1882]. sections 53 & 126: [per court] cancellation of registered sale deed inherent power of registering authority - fraudulent transfer of property sale taking place by reason of fraud played by transferor and transferee held, it is void. true owner can nullify the sale by executing and registering a cancellation deed without seeking declaration or cancellation of fraudulent transfer deed from court. registering authority is empowered to cancel sale deed earlier registered. registration of document cannot be understood to be an absolute sale divesting vender of its title else it would render sections 31 and 34 of specific relief act, otiose. orderg.s. singhvi, c.j.1. the constitutional and legal validity of the andhra pradesh mutually aided co-operative societies (amendment) ordinance 2 of 2006 and the consequential government orders and proceedings are under challenge in this batch of writ petitions. on replacement of the ordinance by the andhra pradesh mutually aided co-operative societies (amendment) act 20 of 2006, w.p. no. 3275 of 2006 was permitted to be amended for the purpose of challenging the constitutionality and vires of the amendment act without the necessity of filing formal applications for the purpose in the other petitions.2. the andhra pradesh co-operative societies act, 1964 is hereinafter referred to as '1964 act' and the andhra pradesh mutually aided co-operative societies act, 1995 is referred to as '1995 act'. the andhra pradesh dairy development corporation is referred to as 'the corporation' and the andhra pradesh dairy development co-operative federation limited is referred to as 'the federation'.3. the chairmen of the district milk producers co-operative unions of nalgonda - ranga reddy, krishna, karimnagar, kumool, nellore, prakasam and guntur filed writ petition nos. 2214, 2291, 2294. 2295, 2456, 2457 and 2290 of 2006.4. the district milk producers mutually aided co-operative societies associations of guntur, krishna and west godavari filed writ petition nos. 3401, 3184 and 3189 of 2006.5. co-operative development foundation, a society registered under the andhra pradesh societies registration act, filed writ petition no. 3275 of 2006.6. mulkanoor women mutually aided milk producers co-operative union limited, directly registered under 1995 act with 101 member village dairy co-operative societies, filed writ petition no. 3502 of 2006.7. writ petition no. 3372 of 2006 was filed by 435 primary milk producers co-operative societies of karimnagar district, the majority of which were converted from 1964 act to 1995 act, some were directly registered under 1995 act and some are awaiting registration under 1995 act.8. the remaining writ petitions were filed by primary milk producers co-operative societies, which were converted from 1964 act to 1995 act.9. the national dairy development board was originally shown as respondent in some writ petitions, but was permitted to be deleted.10. miscellaneous petitions were filed by sri basavaraju saraiah, m.l.a., warangal, indian national trade union council, hyderabad represented by its secretary and velivolu milk producers co-operative society limited requesting to be impleaded to intervene and oppose the writ petitions.11. pending the writ petitions, interim directions were given staying the operation of g.o. ms. no. 10, dated 04-02-2006 and orders dated 04-02-2006 issued by the registrar and allowing the elected bodies of the district unions and other societies to continue subject to the condition that they shall not take any policy decision until the final adjudication of the writ petitions and shall not incur any expenditure except payment of dues to the milk producers, salaries of the employees and other statutory dues.ordinance/act and consequential
Judgment:
ORDER

G.S. Singhvi, C.J.

1. The constitutional and legal validity of the Andhra Pradesh Mutually Aided Co-operative Societies (Amendment) Ordinance 2 of 2006 and the consequential Government Orders and Proceedings are under challenge in this batch of writ petitions. On replacement of the Ordinance by the Andhra Pradesh Mutually Aided Co-operative Societies (Amendment) Act 20 of 2006, W.P. No. 3275 of 2006 was permitted to be amended for the purpose of challenging the constitutionality and vires of the Amendment Act without the necessity of filing formal applications for the purpose in the other petitions.

2. The Andhra Pradesh Co-operative Societies Act, 1964 is hereinafter referred to as '1964 Act' and the Andhra Pradesh Mutually Aided Co-operative Societies Act, 1995 is referred to as '1995 Act'. The Andhra Pradesh Dairy Development Corporation is referred to as 'the Corporation' and the Andhra Pradesh Dairy Development Co-operative Federation Limited is referred to as 'the Federation'.

3. The Chairmen of the District Milk Producers Co-operative Unions of Nalgonda - Ranga Reddy, Krishna, Karimnagar, Kumool, Nellore, Prakasam and Guntur filed Writ Petition Nos. 2214, 2291, 2294. 2295, 2456, 2457 and 2290 of 2006.

4. The District Milk Producers Mutually Aided Co-operative Societies Associations of Guntur, Krishna and West Godavari filed Writ Petition Nos. 3401, 3184 and 3189 of 2006.

5. Co-operative Development Foundation, a society registered under the Andhra Pradesh Societies Registration Act, filed Writ Petition No. 3275 of 2006.

6. Mulkanoor Women Mutually Aided Milk Producers Co-operative Union Limited, directly registered under 1995 Act with 101 member village dairy co-operative societies, filed Writ Petition No. 3502 of 2006.

7. Writ Petition No. 3372 of 2006 was filed by 435 Primary Milk Producers Co-operative Societies of Karimnagar district, the majority of which were converted from 1964 Act to 1995 Act, some were directly registered under 1995 Act and some are awaiting registration under 1995 Act.

8. The remaining writ petitions were filed by Primary Milk Producers Co-operative Societies, which were converted from 1964 Act to 1995 Act.

9. The National Dairy Development Board was originally shown as respondent in some writ petitions, but was permitted to be deleted.

10. Miscellaneous petitions were filed by Sri Basavaraju Saraiah, M.L.A., Warangal, Indian National Trade Union Council, Hyderabad represented by its Secretary and Velivolu Milk Producers Co-operative Society Limited requesting to be impleaded to intervene and oppose the writ petitions.

11. Pending the writ petitions, interim directions were given staying the operation of G.O. Ms. No. 10, dated 04-02-2006 and orders dated 04-02-2006 issued by the Registrar and allowing the elected bodies of the District Unions and other societies to continue subject to the condition that they shall not take any policy decision until the final adjudication of the writ petitions and shall not incur any expenditure except payment of dues to the milk producers, salaries of the employees and other statutory dues.

ORDINANCE/ACT AND CONSEQUENTIAL