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SC for Multi-State Cooperative Societies Act amendment
The amendment is sought in view of the reservations expressed by Reliance Industries Ltd and their rival Indian Potash Ltd-Indian Labour Cooperative Society combine, reports Satya Prakash.
The Supreme Court on Tuesday asked the Centre to consider amending the Multi-State Cooperative Societies Act in view of the reservations expressed by Reliance Industries Ltd and their rival Indian Potash Ltd-Indian Labour Cooperative Society combine, who have bid for the take over and revival of the ailing cooperative.
A bench headed by Justice BP Singh issued the direction after the counsel for both the prospective buyers said that certain provisions in the Act came in the way of their pumping in money into Super Bazar for its revival.
The court asked the Indian Potash Ltd-Indian Labour Cooperative Society combine to match the Rs 288-crore Reliance bid subject to the amendments in the Act.
Giving four weeks to the Centre and the combine for their response, the Bench fixed February 20 for further hearing.
It also asked the Government to consider making ex-gratia payment to the Super Bazar employees who had not been paid any salary for about three years.
Earlier, Reliance had categorically told the court that it would like to have full control over the management of Super Bazar before it pumps Rs 288 crore into the ailing shopping co-operative for its revival.
In an affidavit filed in the court, RIL had also sought appropriate changes in the relevant Law to allow a company like it to become a member of Super Bazar, which was set up in 1966 with a view to check black marketing and promote co-operative movement.
Such control cannot be taken away by a process of annual general meeting and extra ordinary general meeting, RIL had said.
Petitioner Super Bazar Karamchari Dalit Sangh is opposing the Reliance bid on the ground that it was not in consonance with the provisions of Multi-State Co-operative Socities Act, 2002.
On the other hand, Indian Potash Limited and Indian Labour Co-operative Society, which jointly made a bid of Rs 70 crore and later offered to match the Reliance bid, suggested that the new management of Super Bazar should be compact in accordance with the Act. The workers have favoured IPL/ILC bid on the ground that it took care of their interest.
The bids were invited in May last after the court asked the committee to explore the ways to revive the co-operative having over 75 per cent Government holding and an employee-strength of more than 2,000.
The court is seized of a petition filed by workers' union challenging a Delhi High Court order upholding the 2002 decision to wind up Super Bazar.
Email Satya Prakash: satya.prakash@hindustantimes.com
