Challenge to the Punjab Undesirable Cooperative Societies (Dissolution) Ordinance, 1992

Before Sh. Riaz Ahmad Raja Afrasiab Khan, Munir A. Shaikh, Tanvir Ahmed Khan and Malik Muhammad Qayyum, JJ

This case, decided on May 25, 1992, involved a challenge to the Punjab Undesirable Cooperative Societies (Dissolution) Ordinance (XX of 1992). The petitioners sought permission to amend their petitions to pray for a writ in the nature of quo warranto, which the High Court allowed given the challenge to the Ordinance and its various provisions. A central issue revolved around whether a statement made before an Inquiry Commission, highlighting mismanagement of a Cooperative Society’s affairs, could serve as an adequate basis for the government to promulgate an Ordinance declaring Cooperative Societies as undesirable. The court noted that an adverse finding by the Commission would not absolve the Provincial Governor or Legislature from adhering to the law and Constitutional division of powers.

The judgment also delved into the constitutional division of powers, asserting that the Provincial Legislature lacks the authority to legislate on any matter in the Federal Legislative List. This highlights the strict constitutional guarding of powers between the Federal and Provincial Governments. The court also commented on the composition of the Cooperative Board created by the Ordinance, stating it was against the Commission’s recommendations, as it conferred wide powers upon the Governor, potentially aggravating the situation rather than remedying it.

Download PDF