Supreme Court Allows Appeal in Cooperative Societies Matter — Clarifies Status Post State Reorganization. The PACSFED is deemed a Multi State Cooperative Society under Section 95 of the Multi-State Cooperative Societies Act, 1984, following the bifurcation of Uttar Pradesh.

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Case Note & Summary

The appeals arose from a judgment of the High Court of Allahabad concerning the status of the PACSFED following the bifurcation of Uttar Pradesh and the creation of Uttaranchal. The PACSFED, registered under the U.P. State Cooperative Societies Act, 1965, was deemed to have become a Multi State Cooperative Society on 09.11.2000, the date of re-organisation, as per Section 95 of the Multi-State Cooperative Societies Act, 1984. The High Court had quashed the registration certificate issued under the Multi-State Act, leading to the present appeals. The appellant argued that the bifurcation extended the PACSFED's area of operation to both states, thus automatically qualifying it as a Multi State Cooperative Society. The respondents contended that the PACSFED should continue to be governed by the U.P. Act until amendments were made to its byelaws. The court analyzed the relevant provisions of the Multi-State Act and the Re-organisation Act, concluding that Section 95 of the Multi-State Act applied directly to the PACSFED, making it a deemed Multi State Cooperative Society. The court rejected the respondents' arguments regarding the applicability of the U.P. Act and upheld the deemed status of the PACSFED. Consequently, the court set aside the High Court's judgment and allowed the appeals.

Headnote

A) Cooperative Societies - Deemed Registration - Status of PACSFED as Multi State Cooperative Society - Multi State Cooperative Societies Act, 1984, Section 95 - The court held that the PACSFED automatically became a deemed Multi State Cooperative Society upon the re-organisation of Uttar Pradesh, as per Section 95 of the Multi-State Act, which provides for such status post re-organisation. The High Court's ruling that the PACSFED remained governed by the U.P. Act was incorrect. (Paras 15-25).

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Issue of Consideration

Whether the PACSFED automatically became a Multi State Cooperative Society after the bifurcation of Uttar Pradesh and the applicability of relevant statutes.

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Final Decision

The Supreme Court allowed the appeals, setting aside the High Court's judgment and confirming that the PACSFED is a deemed Multi State Cooperative Society under Section 95 of the Multi-State Cooperative Societies Act, 1984, effective from the date of re-organisation.

Law Points

  • Multi-State Cooperative Societies
  • deemed registration
  • U.P. State Cooperative Societies Act
  • Re-organisation Act
  • Section 95 applicability
  • cooperative society jurisdiction
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Case Details

2009 LawText (SC) (05) 85

Civil Appeal Nos. 292-294 of 2005

2009-05-06

Dr. Mukundakam Sharma, S.B. Sinha

Naresh Shankar Srivastava

State of U.P. & Ors.

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Nature of Litigation

Appeal against the High Court's decision regarding the status of PACSFED post re-organisation of Uttar Pradesh.

Remedy Sought

The appellant sought to uphold the registration of PACSFED as a Multi State Cooperative Society.

Filing Reason

The High Court quashed the registration certificate issued under the Multi-State Act.

Previous Decisions

The High Court ruled that the PACSFED remained governed by the U.P. Act.

Issues

Whether the PACSFED automatically became a Multi State Cooperative Society after the bifurcation of Uttar Pradesh. The applicability of the Multi-State Cooperative Societies Act versus the U.P. State Cooperative Societies Act.

Submissions/Arguments

The appellant argued that the bifurcation extended the PACSFED's area of operation to both states, thus qualifying it as a Multi State Cooperative Society. The respondents contended that the PACSFED should continue to be governed by the U.P. Act until amendments were made to its byelaws.

Ratio Decidendi

The PACSFED automatically became a deemed Multi State Cooperative Society upon the re-organisation of Uttar Pradesh as per Section 95 of the Multi-State Act, which provides for such status post re-organisation.

Judgment Excerpts

The PACSFED automatically became a multi-state co-operative society on 09.11.2000. Section 95 of the Multi-State Act will be squarely applicable to the case in hand. The finding of the High Court that until the procedure laid down for converting a cooperative society into a multi-State cooperative society is followed, the cooperative society would continue to be a State cooperative society to be governed and regulated by the provisions of U.P. Act, is not correct.

Procedural History

The appeals arose from the High Court's judgment dated 10.11.2004, which quashed the registration of PACSFED under the Multi-State Act. The Supreme Court heard the appeals and issued its judgment on 06.05.2009.

Acts & Sections

  • Multi State Cooperative Societies Act, 1984: Section 7, Section 18, Section 95
  • U.P. State Re-organisation Act, 2000: Section 67, Section 86, Section 93
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