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On 23.11,2001, the Secretary, Department of Animal Husbandry and Fisheries, Government of Jharkhand, issued an order under Sections 41 and 42 of the Bihar Re-organisation Act, 2000, declaring the Federation (COMFED) as the property of the State of Jharkhand. By virtue of this order, the Chief Executive Officer of the Federation was directed to function under the control of the Department of Animal Husbandry, Government of Jharkhand with immediate effect.
On coming to know this, the Managing Director, COMFED, informed the Secretary, Department of Animal Husbandry, that the COMFED, after re-organisation of the State, has become Multi State Co-operative Society and therefore, the order passed on 23.11.2001 was not in accordance with law and requested the Secretary to recall the said order. Despite that, the Government of Jharkhand issued a resolution taking over the Federation to the Government. This was challenged in the writ petition before the Division Bench of this Court in W.P. (C) No. 3201/2002.
In this case, one of the issues raised is that "Whether, after re-organisation of the State, the COMFED, a Co-operative Society, shall be deemed to be a multi State Co-operative Society under Section 95(1) of the Multi State Co-operative Societies Act, 1984 or not?
This issue was raised because of the claim and counter-claim of the parties. According to the Federation, after re-organisation, the Federation has become Multi State Cooperative Society and the Government has no control; on the other hand, it is the claim of the State of Jharkhand that it is under the control of the Government.
Ultimately, the Division Bench, by the order dated 26.6.2003, held in favour of the COMFED, the Federation, to the effect that COMFED shall be deemed to be a Multi State Co-operative Society under Sub-section (1) of Section 95 of Multi State Co-operative Societies Act, 1984, since the date of re-organisation of State of Bihar, i.e. with effect from 15.11.2000 and set aside the order of the Secretary of the Government dated 23.11.2001 and the order of the Registrar, Co-operative Societies dated 5.11.2002. While deciding the aforesaid issue, the Division Bench of this Court observed as follows:
...COMFED, which is deemed to be a Multi State Co-operative Society under Sub-section (1) of Section 95 of M.S. Co-Operative Societies Act, 1984, since the date of re-organisation of State of Bihar i.e. with effect from 15th November, 2000.
In view of finding aforesaid, the order No. 52 dated 23rd November, 2001 (An-nexure-1) and the resolution No. 444 dated 4th June, 2002, (Annexure-5) issued by the authorities or by Government of Jharkhand and the order dated 5th November, 2002, passed by the Registrar, Co-operative Society, communicated vide letter No. L-11016/ 9/2002--L & M dated 4th December, 2002, are set aside.