CO-OPERATIVE BAR ASSOCIATION v. UNDER SECRETARY TO THE GOVERNMENT
1978-08-14
M.P.THAKKAR
body1978
DigiLaw.ai
M. P. THAKKAR, J. ( 1 ) AN Association of members of the legal profession practicing before the various authorities constituted under the Gujarat Co-operative Societies Act of 1961 known as Co-operative Bar Association has been obliged to invoke the jurisdiction of this Court under Article 226 of the Constitution of India as the members of the Bar apprehend criminal prosecution under sub-sec. (2) of sec. 146 of the Act for forming themselves into an Association bearing a namo which includes the word Co-operative upon an impossible interpretation being placed in regard to the provision contained in sec. 145 (1) by the competent authority. ( 2 ) THE facts are not in dispute. The petitioner Association has been formed by the members of the legal profession in order to deal with problems generally affecting the members of the profession with particular regard to those who are practicing before the various authorities constituted under the Act. It does not carry on any business or any trade. Even so the respondents insist that the petitioner Association is not legally entitled to carry on its activities under the name which includes the word Co-operative. This stand has been taken in the Sight of the prohibition contained in sec. 146 (1) which reads as under:"146 (1) No person other than a society registered or deemed to be registered under this Act and a person or his successor in interest of any name or title under which he traded or carried on business at the date on which this Act comes into force shall without the sanction of the State Government function trade or carry on business under any name or title of which the word Co-operative or its equivalent in any Indian Language forms part". On a plain reading of the provision it is clear that what is prohibited by the said provision is the carrying on of a trade or business under any name or title wherein the word Co-operative or its equivalent in any Indian Language forms part. Evidently the prohibition has been enacted so that persons carrying on trade or business may not deceive those who are dealing with them into believing that they are governed by the provisions of the Act.
Evidently the prohibition has been enacted so that persons carrying on trade or business may not deceive those who are dealing with them into believing that they are governed by the provisions of the Act. Be that as it may the prohibition is restricted to those who carry on a trade or a business meaning thereby a commercial activity with an eye on profit There is no prohibition against the carrying on of activities as members of a Bar Association with a view to promote the professional interest of those who are practicing before the various authorities constituted under the Act and in order to deal with the problems faced by them. The objects of the petitioner Association as disclosed in the object-clause of the Constitution Annexure D are as under :3 Objects: the objects of the Association shall be as follows: 1 promote the well-being of the practice of Co-operative Law. 2 make suitable representations before the appropriate authorities as and when necessary. 3. To watch the progress and development of co-operative movement and law and to make suggestions to appropriate bodies and authorities with a view to realise aforesaid objects. 4 be generally useful to the members of the Association. 5 To undertake such activities as may be necessary in view of the aforesaid objects. There is no manner of doubt that the petitioner Association i. not carrying on any business activity or trading activity of a commercial nature with profit as its goal. Under the circumstances the respondents had no legal right to call upon the petitioner Association to refrain from carrying on its activities under the name and style of Co-operative Bar Association. ( 3 ) THE petition is therefore allowed. It is declared that the petitinner Association is not guilty of any contravention of sec. 146 (1) of the Gujarat Co-operative Societies Act 1951 and the respondents are restrained from taking any action against the petitioner Society or its members for carrying on its activities under the name and style of Co-operative Bar Association so long as the petitioner Association does not indulge in any business or trading activities. Rule is made absolute. There will be no order regarding costs. Petition allowed. .