IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE TWENTY SEVENTH DAY OF FEBRUARY TWO THOUSAND AND EIGHT PRESENT THE HON'BLE DR JUSTICE G.YETHIRAJULU WRIT PETITION NO : 214 of 2004 Between: Nimmala sekhar Reddy, s/o Ganga Reddy Agriculture and Chairman PIC, PACS, Rayakal, R/o Rayakal, Rayakal Mandal, Karimnagar District. ..... PETITIONER AND 1 Government of Andhra Pradesh, rep., by the Registrar of Cooperative Societies, Gruhakalpa, Nampally,Hyderabad. 2 A.P.State Cooperative Bank, Troop Bazar, Hyderabad-500 001, rep., by its Managing Director. 3 The District Collector, Karimnagar District, Karimnagar. 4 The Karimnagar District Cooperative Central Bank Ltd., rep., by its General Manager, Karimnagar, Karimnagar District. 5 The Chairman and Board of Directors, Karimnagar District Cooperative Central Bank Limited, Karimnagar, Karimnagar District. .....RESPONDENT(S) Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to to issue an appropriate writ,order or direction more particularly one in the nature of writ of mandamus declaring the action of the 1st respondent in not initiating steps under Rule 36-B of A.P.Cooperative Societies Rules, 1964 against the Karimnagar District Cooperative Central Bank Limited, Karimnagar and its Managing Committee and consequently i) direct the 1st respondent to initiate steps for charging the Managing Committee members of the Karimnagar District Cooperative Central Bank Limited, Karimnagar, jointly andseverally for the expenditure made in violation of Rule 36-B of the A.P.Cooperative Societies Rules read with Section 116-C of the A.P.Cooperative Societies Act, 1964; ii) direct the Karimnagar District Cooperative Central Bank Limited, Karimnagar tostrictly comply with the provisions of Section 116-C of A.P. Cooperative Societies Act before making any expenditure in terms of Rule 36-B of the A.P.Cooperative Societies Rules; iii) direct the Karimnagar District Cooperative Central Bank Limited, Karimnagar to charge the Managing Committee jointly and severally towards the excess expenditure including the recovery from the officials responsible for violation of the Rules; Counsel for the Petitioner:MR.NANDIGAM KRISHNA RAO Counsel for the Respondent No.: GP FOR COOPERATION The Court made the following : IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE TWENTY SEVENTH DAY OF FEBRUARY TWO THOUSAND AND EIGHT PRESENT THE HON'BLE DR JUSTICE G.YETHIRAJULU WRIT PETITION NO : 215 of 2004 Between: Nomula Tirupathi Reddy, s/o Papi Reddy, R/o Mamunoor, Hanamakonda Mandal, Warangal District. ..... PETITIONER AND 1 Government of Andhra Pradesh, rep. by the Registrar of Cooperative Societies, Gruhakalpa, Nampally, Hyderabad. 2 A.P. State Cooperative Bank, Troop Bazar, Hyderabad - 500 001, Rep. by its Managing Director. 3 The District Collector, Warangal District, Warangal. 4 The Warangal District Cooperative Central Bank Ltd., rep. by its General Manager, Warangal, Warangal District. 5 The Chairman and Board of Directors, Warangal District Cooperative Central Bank Limited, Warangal, Warangal District. .....RESPONDENT(S) Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to to issue an appropriate writ, order or direction more particularly one in the nature of Writ of Mandamus declaring the action of the 1st respondent in not initiating steps under Rule 36-B of A.P. Cooperative Societies Rules, 1964 against the Warangal District Cooperative Central Bank Limited, Warangal and its Managing Committee and consequently (i) direct the 1st respondent to initiate steps for charging the Managing Committee memberfs of the Warangal District Cooperative Central Bank Limited, Warangal , jointly and severally for the expenditure made in violation of Rule 36-B of the A.P. Cooperative Societies Rules read with Section 116-C of the A.P. Cooperative Societies Act, 1964; (ii) direct the Warangal District Cooperative Central Bank Limited, Warangal to strictly comply with the provisions of Section 116-C of A.P. Cooperative Societies Act before making any expenditure in terms of Rule 36-B of the A.P. Cooperative Societies Rules; (iii) direct the Warangal District Cooperative Central Bank Limited,a Warangal, to charge the Managing Committee jointly and severally towards the excess expenditure including the recovery from the officials responsible for violation of the Rules; Counsel for the Petitioner:MR.NANDIGAM KRISHNA RAO Counsel for the Respondent No.: GP FOR COOPERATION The Court made the following : HON’BLE Dr. JUSTICE G. YETHIRAJULU WRIT PETITION NOs.214 & 215 of 2004 COMMON ORDER: Since the subject-matter in both the writ petitions is one and the same and as the respondents are common, both the writ petitions are heard together and being disposed of by this common order. These two writ petitions have been filed by the petitioners to direct the first respondent to initiate steps for implementation of Section 116-C of A.P. Co-operative Societies Act (for short ‘the Act’) and other reliefs. The contention of the petitioners is that the societies are becoming sick on account of non-implementation of the mandate provision under Section 116-C of the Act, which directs that the expenditure shall be restricted to see that it shall not exceed 2% of the working capital or 30% of the gross profit, but no society in the State more particularly Cooperative Banks are not implementing it, thereby they are incurring loss. The petitioners further submitted that in the audit report for the year 2002-03 it was pointed out by the audit party that Section 116-C has not been implemented. Learned counsel for second respondent-Bank represented that the writ petitions itself cannot be maintained as the petitioners did not make any representation to any of the concerned authorities for implementation of Section 116-C of the Act and the petitioners directly approached this Court seeking writ of Mandamus, which cannot be maintained. Therefore, he requested to dismiss the writ petitions as not maintainable. Learned Government Pleader for Cooperation also represented that the primary cooperative societies have been exempted from restricting their expenditure as provided under Section 116-C of the Act in so far as payment of salaries to the employees of the respective societies is concerned. In view of the representation made by the Employees’ Unions, Government released certain funds for payment of salaries of employees and as the petitioners did not show any specific case in respect of which banks Section 116-C has not been implemented and without making any representation to the authorities concerned drawing their attention about non-implementation of the Section, the writ petitions cannot be maintained. After going through the record, it is found that the petitioners have directly approached this Court on the basis of the audit report and there seems to be no representation either to the Registrar of Cooperative Societies or to the Government for implementation of Section 116-C of the Act. The learned counsel for respondents 4 & 5 submitted that the salaries to all the employees are in accordance with the agreement entered under the Industrial Disputes Act and therefore, it is not possible to implement Section 116-C of the Act and they also made similar representation before the Hon’ble Supreme Court. In the light of the above circumstances, no direction can be given under these writ petitions to any of the respondents without there being inaction on their part and without their attention being drawn with reference to this problem. Therefore, the petitioners are at liberty to make representations to the Government as well as the Registrar of Cooperative Societies and the authorities are at liberty to examine all the aspects relating to the implementation of Section 116-C of the Act and pass appropriate orders in accordance with law. The Writ Petitions are accordingly disposed of. There shall be no order as to costs. _________________ Dr. G. YETHIRAJULU.J 27th FEBRUARY, 2008 Tsr. Copy To 1 The Registrar of Cooperative Societies, Government of Andhra Pradesh, Gruhakalpa, Nampally,Hyderabad. 2 The Managing Director, A.P.State Cooperative Bank, Troop Bazar, Hyderabad-500 001. 3 The District Collector, Karimnagar District, Karimnagar. 4 The General Manager, Karimnagar District Cooperative Central Bank Ltd., Karimnagar, Karimnagar District. 5 The Chairman and Board of Directors, Karimnagar District Cooperative Central Bank Limited, Karimnagar, Karimnagar District. 6. Two C.C.s to G.P. for Cooperation, High Court buildings, (OUT) 7. Two C.D. copies.