Case Note & Summary
The appeal was directed against the order of the Madhya Pradesh High Court which set aside the Registrar of Co-operative Societies' order dated 6.3.1997, claiming it was ultra vires. The appellant, Madhya Pradesh Rajya Sahakari Bank Maryadit, contended that the Registrar had full authority under Section 55 of the Madhya Pradesh Co-operative Societies Act, 1960 to amend recruitment rules to include reservations for Scheduled Castes, Scheduled Tribes, and other backward classes. The respondents argued that the Madhya Pradesh Lok Seva Act, 1994 limited such reservations to establishments where the State held more than 51% shareholding. The court analyzed the legislative intent behind both Acts, concluding that while the Registrar could frame rules, he must adhere to the stipulations of the 1994 Act regarding shareholding. The court ultimately dismissed the appeal, affirming the High Court's decision that the Registrar's notification was overly broad and did not distinguish between cooperative societies based on State shareholding. The court emphasized the need for compliance with the legislative framework established by the 1994 Act, thus maintaining the integrity of the reservation policy in public services.
Headnote
A) Cooperative Law - Power of Registrar - Authority to Frame Rules - Madhya Pradesh Co-operative Societies Act, 1960, Section 55 - The Registrar of Co-operative Societies has the authority to frame rules regarding service conditions for cooperative societies, but this power is subject to the provisions of the Madhya Pradesh Lok Seva Act, 1994, which regulates reservations in establishments where the State has more than 51% shareholding. The court held that the Registrar's notification dated 6.3.1997 was too general and did not comply with the specific requirements of the Act of 1994 (Paras 1-5).
Issue of Consideration
Whether the power exercised by the Registrar of Co-operative Societies under Section 55 of the Madhya Pradesh Co-operative Societies Act, 1960 can be sustained in light of the Madhya Pradesh Lok Seva (Anusuchit Jatiyon, Anusuchit Jan Jatiyon Aur Anya Pichhade Vargon Ke Liye Arakshan) Adhiniyam, 1994.
Final Decision
The Supreme Court dismissed the appeal, affirming the High Court's order that the Registrar's notification was overly broad and did not comply with the Madhya Pradesh Lok Seva Act, 1994.
Law Points
- Cooperative Societies
- Reservation
- Constitutional Provisions
- Judicial Review
- Legislative Intent
