Case Note & Summary
The dispute arose from a prosecution initiated by a District Co-operative Officer against two respondents under Section 147(1)(d) of the Gujarat Cooperative Societies Act, 1961, for breaching Section 71 of the Act. The prosecution was sanctioned by the district Registrar as required under Section 149(3). The respondents challenged the prosecution in the High Court, which ruled that prior hearing was necessary before granting sanction under Section 149(3). The High Court's order stated that the complaint could not proceed until the respondents were heard, although it clarified that other offences could continue. The Supreme Court examined the interpretation of Section 149(3) and concluded that the requirement for prior hearing applied only to offences under Section 147(1)(c) and not to those where the Registrar was the sanctioning authority. The Court emphasized that it could not add or amend legislative provisions and that the interpretation by the High Court was flawed. Consequently, the Supreme Court allowed the appeal and quashed the High Court's direction, affirming that the statutory language did not support the need for a prior hearing in this context.
Headnote
A) Cooperative Societies Law - Prosecution Sanction - Requirement of Prior Hearing - Gujarat Cooperative Societies Act, 1961, Section 149(3) - The High Court's direction for prior hearing before sanctioning prosecution under Section 147(1)(d) was found to be incorrect as the statute does not mandate such a requirement for offences where the Registrar is the sanctioning authority. The Supreme Court held that the interpretation by the High Court was not sustainable and quashed the direction. (Paras 1-3).
Issue of Consideration
Whether prior hearing is required before granting sanction for prosecution under Section 147(1)(d) of the Gujarat Cooperative Societies Act, 1961.
Final Decision
The Supreme Court allowed the appeal and quashed the High Court's direction, ruling that the requirement for prior hearing did not apply to offences where the Registrar was the sanctioning authority under Section 149(3) of the Gujarat Cooperative Societies Act, 1961.
Law Points
- Prosecution sanction
- Prior hearing requirement
- Interpretation of statutes
- Legislative intent
- Judicial activism


