Madras High Court Upholds Sections 74 and 75(1) of Tamil Nadu Cooperative Societies Act, 1983 and Common Cadre Service Rules for Cooperative Societies. The Court held that the impugned provisions and rules are constitutionally valid and do not violate Article 19(1)(c) or Article 43B of the Constitution.

High Court: Madras High Court
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Case Note & Summary

The judgment concerns two writ petitions filed under Article 226 of the Constitution of India challenging the constitutional validity of Sections 74 and 75(1) of the Tamil Nadu Cooperative Societies Act, 1983, and the consequential Government Orders constituting common cadre service rules for cooperative societies. The first petition, WP No.31973 of 2025, was filed by the Primary Agricultural Cooperative Society Employees Association, represented by its State Vice President S.Murugesan, challenging G.O.(Ms) No.14 dated 12.02.2019 and G.O.(Ms) No.29 dated 15.02.2024 which constituted the Tamil Nadu Primary Agricultural Cooperative Credit Society common cadre Service Rules, 2019. The second petition, WP No.17071 of 2025, was filed by K.Anbalagan challenging G.O.(Ms) No.12 dated 24.01.2024 constituting the Tamil Nadu Employees Cooperative Thrift & Credit Societies common cadre service Rules, 2024. The petitioners contended that these provisions and rules are ultra vires Article 19(1)(c) which guarantees the right to form associations, and Article 43B which directs the state to promote cooperative societies. They argued that the common cadre rules interfere with the autonomy of cooperative societies and their right to manage their own affairs. The respondents, represented by the Advocate General Mr.P.S.Raman, argued that the provisions are reasonable restrictions in the interest of the general public and the cooperative movement, and that the rules are necessary for ensuring efficiency and uniformity in service conditions. The Court, after hearing both sides, held that the right to form associations under Article 19(1)(c) is subject to reasonable restrictions, and the impugned provisions are such reasonable restrictions. The Court further held that Article 43B does not prohibit state regulation but rather encourages the state to promote cooperative societies, and the common cadre rules are in furtherance of that objective. The Court dismissed both writ petitions, upholding the constitutional validity of Sections 74 and 75(1) of the Tamil Nadu Cooperative Societies Act, 1983 and the impugned Government Orders.

Headnote

A) Constitutional Law - Right to Form Associations - Article 19(1)(c) - Sections 74, 75(1) Tamil Nadu Cooperative Societies Act, 1983 - The petitioners challenged the validity of provisions enabling the government to frame common cadre service rules for cooperative societies, arguing that it infringes the right to form associations. The Court held that the right to form associations does not include the right to manage the association without any state regulation, and the impugned provisions are reasonable restrictions in the interest of the general public and cooperative movement. (Paras 1-41)

B) Cooperative Law - Common Cadre Service Rules - Sections 74, 75(1) Tamil Nadu Cooperative Societies Act, 1983 - The Court upheld the validity of G.O.(Ms) No.14 dated 12.02.2019 and G.O.(Ms) No.29 dated 15.02.2024 constituting common cadre service rules for Primary Agricultural Cooperative Credit Societies and Employees Cooperative Thrift & Credit Societies. The Court reasoned that such rules are aimed at ensuring efficiency, uniformity, and better service conditions, and are within the legislative competence of the State. (Paras 1-41)

C) Constitutional Law - Directive Principles - Article 43B - The petitioners argued that the impugned provisions violate Article 43B which promotes cooperative societies. The Court held that Article 43B encourages the state to promote cooperative societies, but does not prohibit reasonable regulation. The impugned provisions and rules are in furtherance of the objective of promoting cooperative societies by ensuring their proper functioning. (Paras 1-41)

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Issue of Consideration

Whether Sections 74 and 75(1) of the Tamil Nadu Cooperative Societies Act, 1983 and the consequential Government Orders constituting common cadre service rules are ultra vires Articles 19(1)(c) and 43B of the Constitution of India and the preamble of the Act.

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Final Decision

Both writ petitions are dismissed. Sections 74 and 75(1) of the Tamil Nadu Cooperative Societies Act, 1983 and the impugned Government Orders are held to be constitutionally valid.

Law Points

  • Constitutional validity of cooperative society service rules
  • Right to form associations under Article 19(1)(c)
  • Directive Principles under Article 43B
  • Ultra vires challenge to state legislation
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Case Details

2026 LawText (MAD) (03) 174

WP Nos.31973 and 17071 of 2025

2026-03-05

Manindra Mohan Shrivastava, Chief Justice, G.Arul Murugan

Mr.C.Prakasam (in WP No.31973 of 2025), Mr.S.Sathiaseelan (in WP No.17071 of 2025), Mr.P.S.Raman, Advocate General, assisted by Mrs.M.Geetha Thamaraiselvan, Special Government Pleader (in both cases)

Primary Agricultural Cooperative Society Employees Association, Regn.No.116/TNI rep. By its State Vice President S.Murugesan (in WP No.31973 of 2025); K.Anbalagan (in WP No.17071 of 2025)

1.The Secretary to Government of Tamil Nadu, Department of Cooperation, Food & Consumer Protection, Chennai; 2.The Registrar of Cooperative Societies, Chennai; 3.The Administrator, Transport Corporation Employees Cooperative Thrift & Credit Society Limited No.X-367, Chennai (in WP No.17071 of 2025)

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Nature of Litigation

Writ petitions challenging the constitutional validity of Sections 74 and 75(1) of the Tamil Nadu Cooperative Societies Act, 1983 and consequential Government Orders constituting common cadre service rules.

Remedy Sought

Declaration that Sections 74 and 75(1) of the Tamil Nadu Cooperative Societies Act, 1983 and the consequential Government Orders are ultra vires Articles 19(1)(c) and 43B of the Constitution of India and the preamble of the Act.

Filing Reason

The petitioners alleged that the impugned provisions and rules infringe the right to form associations under Article 19(1)(c) and violate the directive principle under Article 43B.

Issues

Whether Sections 74 and 75(1) of the Tamil Nadu Cooperative Societies Act, 1983 are ultra vires Article 19(1)(c) of the Constitution? Whether the common cadre service rules framed under the said provisions violate Article 43B of the Constitution?

Submissions/Arguments

Petitioners argued that the impugned provisions and rules interfere with the autonomy of cooperative societies and their right to manage their own affairs, violating Article 19(1)(c). Respondents argued that the provisions are reasonable restrictions in the interest of the general public and the cooperative movement, and are necessary for ensuring efficiency and uniformity.

Ratio Decidendi

The right to form associations under Article 19(1)(c) is subject to reasonable restrictions in the interest of the general public. The impugned provisions and rules are reasonable restrictions aimed at ensuring efficiency, uniformity, and better service conditions in cooperative societies. Article 43B does not prohibit state regulation but encourages the state to promote cooperative societies, and the common cadre rules are in furtherance of that objective.

Judgment Excerpts

The right to form associations under Article 19(1)(c) is subject to reasonable restrictions in the interest of the general public. Article 43B does not prohibit state regulation but encourages the state to promote cooperative societies.

Procedural History

The writ petitions were filed under Article 226 of the Constitution of India challenging the constitutional validity of Sections 74 and 75(1) of the Tamil Nadu Cooperative Societies Act, 1983 and the consequential Government Orders. The petitions were heard together and disposed of by a common order.

Acts & Sections

  • Tamil Nadu Cooperative Societies Act, 1983: 74, 75(1)
  • Constitution of India: Article 19(1)(c), Article 43B, Article 226
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