MVR,J
W.P.No.11680 of 2021
1
IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
HONOURABLE SRI JUSTICE M. VENKATA RAMANA
W.P.No.11680 of 2021
ORDER:
The petitioners sought a direction in the nature of writ of Mandamus declaring the order in Memo No.AGC01-COOPOFASCS(EPIC)-1-2021-COOP-II, dated 09.04.2021 passed by the 1st respondent vacating the stay granted vide Order No.365/2016, dated 27.09.2016 as against the Order in Rc.No.1261/2005-C, dated 26.10.2006 of the 3rd respondent directing merger of Peddakowkuntla PACS, Raketla PACS into Amidyala PACS of Uravakonda Mandal, Anantapur District and consequential order of 4th respondent in Rc.No.1261/2005-C, dated 10.05.2021 directing the 5th respondent to take necessary steps and for reporting compliance, as bad, illegal, arbitrary, violative of principles of natural justice, contrary to the provisions of A.P. Cooperative Societies Act, 1964 and offends Articles 14 and 19(c) of Constitution of India and consequentially to set aside the same.
2. The Government of Andhra Pradesh with an intention to restructure the Primary Agricultural Cooperative Societies (PACS) credit system in the State came out with a scheme setting out guidelines for implementation vide G.O.Ms.No.176 Agriculture & Cooperation (Coop.V) Department, dated 14.06.2005. The purpose and object in bringing out such scheme is stated in the opening paragraph of this G.O. It is extracted hereunder for convenience:
"The Government of Andhra Pradesh have felt that there is a need to restructure the Cooperative Credit Institutions for their strengthening and effective functioning for making them viable."
3. These guidelines included the following:
MVR,J W.P.No.11680 of 2021 2 "..................
(e) All the non-viable societies in a Mandal are to be amalgamated / merged with one focal non-viable society in the same Mandal. The focal point society among the non-viable societies for amalgamation/merger may as far as possible be at Mandal Head Quarters, provided there is no viable society at Mandal Headquarters.
(f) If the focal point society among the non-viable societies is not existing at the Mandal head quarters, any other village with the focal point non-viable society may be identified with better financial position, infrastructure, and at a convenient/ central.
..........................
(i) There shall not be merger of any non-viable society with a viable society."
4. To implement the scheme at the district level, a committee was also constituted with the District Collector as the Chairman, General Manager DCCB, Representative of NABARD and District Cooperative Officer as Members and District Cooperative Officer being convener. The task assigned to them was to identify viable and non-viable societies, Mandal wise and take action in terms of Section 15(A) of A.P. Cooperative Societies Act, 1964 and the rules thereunder. The District Collector was also directed to identify the suitable focal and non-viable societies with which other non-viable societies shall be merged.
5. Pursuant to these guidelines, the 3rd respondent - District Collector, Anantapur, issued a notification dated 21.06.2015 calling for objections in respect of merger of Amidyala, Raketla and Peddakowkuntla PACS, since they were identified as non-viable societies in Uravakonda Taluk. Amidyala PACS was identified as focal point non-viable society for the purpose of this proposed merger with effect from 25.06.2015.
MVR,J W.P.No.11680 of 2021 3
6. One Sri P.Venkata Narayana, S/o.Kesanna and Sri Jalipati Veerabhadra Goud, S/o.Verupana Goud filed W.P.No.19116 of 2005 aggrieved by the final order of the 3rd respondent directing such merger of other two PACS into Amidyala PACS. It was disposed of by an order dated 01.09.2005, setting aside the proposed merger as well as order of the 3rd respondent dated 25.07.2005, remitting the matter to the 3rd respondent to consider objections of the members of the society giving them an opportunity.
7. The above order was challenged by Smt.Gurram Ranganayakamma, W/o.Sri late Gurram Sreeramulu, President of Amidyala Gram Panchayat in W.A.No.2144 of 2005, where, by the judgment dated 14.11.2005 the 3rd respondent - District Collector was directed to attend to the objections of the parties and to pass a reasoned order in accordance with law.
8. Thereupon, the 3rd respondent - District Collector issued a revised notification on 16.12.2005 under Section 15-A (1)(e) of APCS Act for the same purpose of merger of these PACS with headquarter at Amidyala and also in terms of the guidelines issued in G.O.Ms.No.176 Agriculture & Cooperation (Coop.V) Department, referred to above, dated 14.06.2005.
9. Objections were received from members of these three PACS. Members of Raketla PACS and Pedda kowkuntla PACS expressed their unwillingness for the proposed merger and required to maintain their individual identity as such.
10. Sri P.Venkata Narayana, S/o.Sri Kesanna and Sri Jalipati Veerabhadra Goud, S/o.Sri Verupana Goud again filed W.P.No.27883 of 2005 questioning this revised notification dated 16.12.2005 of the 3rd respondent. By an order dated 06.01.2006 in W.P.M.P.No.215 of 2006, it was directed to proceed with the enquiry in this respect and not to pass a final order thereon. Thereafter, W.P.No.27883 of 2005 came to be MVR,J W.P.No.11680 of 2021 4 disposed of by the order dated 31.07.2006 directing to consider the objections in terms of G.O.Ms.No.176, dated 14.06.2005 and to pass an appropriate order.
11. The 3rd respondent considering these objections, financial position of these PACS and on account of central location of Amidyala PACS being convenient to the members of other two PACS, viz. of Pedda kowkuntla and Raketla, directed merger of all these three PACS identifying them as non- viable societies and further identifying Amidyala PACS as focal society directed merger of the above stated two PACS into Amidyala PACS by the order dated 26.10.2006.
12. Against the aforestated order of the 3rd respondent dated 26.10.2006, Sri P.Venkata Narayana, S/o.Sri Kesanna filed W.P.No.24291 of 2006, where an interim order of status quo was granted and ultimately the above writ petition was dismissed as infructuous by the order dated 10.03.2016 basing on the representation of learned counsel for the writ petitioners that the cause in the writ petition did not survive.
13. Thereafter, it is the contention of the writ petitioners that Sri P.Venkata Narayana, S/o.Sri Kesanna, approached the Government in revision and an order of stay was granted in order No.365/MIN EFST&COOP/2016, dated 27.09.2016.
14. It is the contention of the writ petitioners that the 1st respondent issued the impugned memo dated 09.04.2021 vacating the above interim order of stay, which was in force against the order of the 3rd respondent and that, basing on this memo, the 4th respondent issued consequential proceedings dated 10.05.2021 directing the 5th respondent to take necessary steps and report compliance within 30 days. This action of the respondents 1 and 4 is questioned in this writ petition.
MVR,J W.P.No.11680 of 2021 5
15. Sri D.V.Seetha Rama Murthy, learned Senior Counsel for Sri V.Venugopala Rao, learned counsel for the petitioners contended that this memo is issued without assigning any reasons and without mentioning if the main revision petition is still pending or rejected. Learned Senior Counsel further contended that no notice either to the petitioner, who moved revision petition as President of Pedda kowkuntla PACS and representing its members nor to the representative or members of this society including the present petitioners, was issued. Thus, learned Senior Counsel contended that this ground alone is sufficient to set aside these orders.
16. Sri D.V.Seetha Rama Murthy, learned Senior Counsel for the petitioners referring to effect of Section 15-A of APCS Act, contended that the order of the 3rd respondent dated 26.10.2006 was passed without application of mind and without considering the ground realities. Learned Senior Counsel brought to the notice of this Court that the PACS at Pedda kowkuntla is serving the purposes of not only the main village but also its hamlets, viz. China Kowkuntla, Y.Rampuram, Rachepalli and Mylarampalli and that this PACS at Peddakowkuntla has about 3000 membership, which is making profits as of now and since three years. Distance wise also it is contended by learned Senior Counsel Sri D.V.Seetha Rama Murthy, that proposal to merge all these three PACS into Amidyala PACS is a matter of convenience to other villagers and therefore, it is contended that the impugned memo as such cannot stand. It is also contended by learned Senior Counsel that the State Government is considering to come up with a new policy in this respect than what was envisaged in G.O.Ms.No.176.
17. Smt.Nischala Reddy, learned Government Pleader for Cooperation referring to the chequered history of this attempt of amalgamation of these three PACS referred to above, mainly contended that no revision petition as such is pending with the Government and surprisingly an order MVR,J W.P.No.11680 of 2021 6 of status quo was passed by then Minister for Cooperation. In these circumstances, learned Government Pleader contended that there is nothing wrong in vacating the stay so granted. Justifying the action of 3rd respondent stating that it is meeting all the requirements in terms of G.O.Ms.No.176 dated 14.06.2005, learned Government Pleader further contended that when W.P.No.24219 of 2006 filed by Sri P.Venkata Narayana and others questioning the issuance of proceedings by 3rd respondent was dismissed, the petitioners could not have laid the present writ petition, since it is barred on account of dismissal of the earlier writ petition on the same cause of action.
18. Smt.Nischala Reddy, learned Government Pleader for cooperation also contended that financial position sought to rely on by the petitioners is in respect of last three years and this financial position is not on account of the core activity of these three PACS but on account of sale of food grains as fair price dealers. Further contending that what is relevant to consider now is only the situation then available when the proceedings of the 3rd respondent was issued on 26.10.2006 and not the present status, it is contended that the writ petition is a misconceived attempt that does not lie.
19. Learned Government Pleader further contended that Amidyala PACS is centrally located to serve the purposes of other two PACS. Pointing out that the action of the 3rd respondent so taken finds justification and that the action of the 4th respondent - District Cooperative Officer by the proceedings dated 10.05.2021 directing its implementation is just and proper, it is further contended that consequent action was also taken. It is also contended by learned Government Pleader that these three PACS are merged consequently and Amidyala PACS alone is serving to the needs of the farmers of these three places. Learned Government Pleader also MVR,J W.P.No.11680 of 2021 7 referred to the letter of Divisional Cooperative Officer, Gooty of Ananthapuram District, where it is stated that the merger of these PACS went on and that Amidyala PACS alone is functioning as single society attending to the needs of the villagers. Contending that the writ petitioners did not have any right to enter into another round of litigation against same orders passed by 3rd respondent, learned Government Pleader requested to dismiss this writ petition.
20. Having regard to the nature of dispute and of the impugned order, now it has to be determined "Whether the impugned memo is meeting the requirements of principles of natural justice and an opportunity of being heard, before passing such order?"
21. It is desirable to extract the impugned government memo hereunder:
"GOVERNMENT OF ANDHRA PRADESH AGRICULTURE AND COOPERATION (COOP.II) DEPARTMENT Memo No.AGC01-COOP0FACS(EPIC)-1-2021-COOP-II Dated:09.04.2021 Sub: A & C Department - Elections - Vacation of stay against merger of two societies into Amidyala PACS
- Reg.
Ref: From the CC & RCS, A.P., Guntur, File No.AGC06-
13023/39/2018-PAC SEC-CCRCS, dt:22.01.2021.
*** The attention of the Commissioner for Cooperation & Registrar of Cooperative Societies, A.P., Guntur is invited to the reference cited and he is informed that Government after careful examination, hereby vacate the stay granted by the then Hon'ble Minister for Cooperation in order No.365/2016, dated 27.09.2016 against the orders of the District Collector, Ananthapuram in Rc.No.1261/2005-C, dated 27.10.2006 with regard to merger of Pedakowkuntla PACS and Raketla PACS in to Amidyala PACS.
2. The Commissioner for Cooperation & Registrar of Cooperative Societies, A.P., Guntur, shall take necessary action in the matter, accordingly.
Y. MADHUSUDHANA REDDY SPECIAL SECRETARY TO GOVERNMENT MVR,J W.P.No.11680 of 2021 8 To The Commissioner for Cooperation & Registrar of Cooperative Societies, A.P.
11th Line, Syamalanagar, Guntur-522006.
Copy to:
P.S. to Hon'ble Minister (Agrl. And Coop.) P.S. to Spl.Secretary to Government (AM & C) A & C Dept. Sf/Sc.
//FORWARDED :: BY ORDER// Sd/ B.Hemalata Devi SECTION OFFICER"
22. A bare perusal of this memo indicates that there are absolutely no reasons assigned much less the circumstances that impelled the 1st respondent to pass such an order. Not even there is a reference that a revision presented by Sri P.Venkata Narayana is pending consideration with the Government. It is not stated therein that after hearing on his behalf and all the parties concerned, this memo has been issued.
23. Learned Government Pleader produced a copy of status quo order issued by the then Minister for Cooperation, Government of Andhra Pradesh, dated 27.09.2016. Except this order of interim stay, no other proceeding relating to the revision petition is brought to the notice in the course of hearing in this writ petition by which the proceedings of the 3rd respondent with reference to these three PACS are sought to be interdicted.
24. As seen from this letter dated 27.09.2016, there is no indication that any revision was presented to the Government then, on behalf of the petitioners, during course of consideration of the same, this order of stay was issued by the then Minister for Cooperation.
25. Not only the impugned order but also order of stay referred to above are lacking in reasons nor indicative of any effort made to hear the parties, before issuing these orders.
26. May be for this reason learned Government Pleader contended that no revision is pending as such against the Amidyala PACS. Nonetheless, MVR,J W.P.No.11680 of 2021 9 having regard to the memo impugned in this writ petition, the contention of Sri D.V.Seetha Rama Murthy, learned Senior Counsel for the petitioners in this respect is quite appropriate.
27. Contention of learned Government Pleader that this impugned memo has been implemented merging these three PACS and that PACS Amidyala alone is functioning at present, cannot stand. No material except a letter of Sub-Divisional Co.Op.Officer, Gooty is produced by learned Government Pleader, in this context.
28. Having regard to nature of this memo and the findings so recorded above, it is unnecessary for this Court to consider the contentions of the petitioners and of the respondents on merits. The matter requires reconsideration by the 1st respondent, who shall necessarily follow due procedure, explicitly making out application of principles of natural justice. Hence, the impugned memo should necessarily be set aside allowing this writ petition and also setting aside the consequential action.
29. In the result, this writ petition is allowed. Memo of the Government of Andhra Pradesh in Memo No.AGC01-COOP0FACS(EPIC)-1-2021-COOP-II, dated 09.04.2021 is set aside and consequential action taken by the respondents is also set aside. The matter is remitted to the 1st respondent to reconsider this issue, after verifying if there is any revision pending, against the orders of the 3rd respondent-District Collector, giving all the parties an opportunity of being heard and shall dispose of the same on merits within two (02) months from the date of receipt of copy of this order. No costs. All pending petitions stand closed. Interim orders if any stand vacated.
____________________ M. VENKATA RAMANA, J Dt: 28.12.2021 Rns MVR,J W.P.No.11680 of 2021 10 HON'BLE SRI JUSTICE M. VENKATA RAMANA WRIT PETITION No.11680 OF 2021 Date:28.12.2021 Rns