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Govt. Of Andhra Pradesh And Ors. Etc. Etc vs P. Venku Reddy on 23 September, 2002

4. The matter has been debated before us on behalf of the respondents contending that in view of the provisions of the Tamil Nadu Co-operative Societies Act and the Rules framed thereunder, there is a statutory control which is exercised over all Co-operative Societies which has been detailed in the typed set of papers reproducing the provisions of the Act and the Rules framed thereunder. The same was sought to be supplemented by the argument that the society is taking loans from the Central Co-operative Bank and in turn, the Central Co-operative Bank is aided by the State Government in its financial transactions, therefore, the society in question should also be treated to be a beneficiary of such aid and consequently, would be a society controlled and aided by the State Government. This extended argument is further sought to be substantiated with the aid of two Supreme Court judgments. One in the case of Govt. of Andhra Pradesh and others Vs. P.Venku Reddy reported in (2002) 7 SCC 631. In Page 7 of 23 http://www.judis.nic.in W.A.No.2253 of 2018 the said case, a Supervisor of a Co-operative Society was sought to be prosecuted under the 1988 Act and the Apex Court therein ruled that the employee therein was an employee of a Central Co-operative Bank involved in the sovereign function of banking and therefore, was an authority or a body controlled and aided by the Government. This was not even disputed in the said case.
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