Case Note & Summary
The writ petitions before the Aurangabad Bench of the Bombay High Court challenged the order dated 02.11.2022 passed by the Hon'ble Minister for Co-operation in Appeal No.246 of 2022, which confirmed the Commissioner for Co-operation's order dated 08.04.2022. The petitioners were various Dhanya Adhikosh Seva Sahakari Sanstha (grain repository co-operative societies) registered under the Maharashtra Co-operative Societies Act, 1960. They were classified as Resource Societies with sub-classification as Service Societies under Rule 10(8)(c) of the Maharashtra Cooperative Societies Rules, 1961. This classification entitled them to participate in elections to Agricultural Produce Market Committees under Section 13 of the Maharashtra Agricultural Produce Market (Development and Regulation) Act, 1963, and to vote for and contest elections to the Parbhani District Central Co-operative Bank. The Commissioner for Co-operation constituted a committee to review registration criteria for Dhanya Adhikosh Societies. Based on its recommendations, the Commissioner issued order dated 08.04.2022, stating that these societies did not provide loans to members and only provided services, hence classification as Resource Society/Credit Resource Society was contrary to the MCS Rules, 1961. The Commissioner further directed that the word 'Adhikosh' could not be used without Reserve Bank of India permission under Section 7 of the Banking Regulation Act, and directed amendment of bye-laws under Section 14 of the Maharashtra Co-operative Societies Act, 1960. The Divisional Joint Registrar instructed District Deputy Registrar to implement the order, who in turn instructed Assistant Registrars to amend bye-laws. Petitioners appealed to the Minister for Co-operation; interim stay was granted on 22.06.2022, but the appeal was dismissed on 02.11.2022. Petitioners then filed the present writ petitions, contending that they had operated as Dhanya Adhikosh Societies for over ten years, their classification could not be altered, and the order was omnibus and could not be applied to them. The provided judgment excerpt ends at the submissions and does not include the court's analysis, reasoning, or final decision.
Headnote
A) Co-operative Law - Classification of Societies - Resource Society vs General Society - Maharashtra Co-operative Societies Act, 1960 Section 12(1); Maharashtra Cooperative Societies Rules, 1961 Rule 10(8)(c) - Petitioners registered as Resource Society with sub-classification Service Society; Commissioner's order reclassified them as General Society citing no loan object; legality challenged (Paras 3-5).
B) Banking Regulation - Use of term 'Adhikosh' - Section 7 Banking Regulation Act, 1949 - Commissioner directed that word 'Adhikosh' cannot be used without RBI permission; direction to correct society names (Para 5).
C) Co-operative Law - Amendment of Bye-laws - Section 14 Maharashtra Co-operative Societies Act, 1960 - Directions to amend bye-laws; challenge to omnibus order (Paras 5-8).
D) Election Law - Eligibility to Contest APMC Elections - Section 13 Maharashtra Agricultural Produce Market (Development and Regulation) Act, 1963 - Petitioners' eligibility affected by reclassification; voters from Managing Committees of Agricultural Credit Societies and Multi-purpose Co-operative Societies (Para 4).
E) Administrative Law - Appellate Order - Minister for Co-operation Order dated 02.11.2022 - Appeal dismissed; writ petitions challenge (Paras 7-8).
Issue of Consideration
Whether the Commissioner for Co-operation's order dated 08.04.2022 and Minister's appellate order dated 02.11.2022 correctly reclassified Dhanya Adhikosh Societies from Resource Society to General Society and directed amendment of bye-laws, and whether such directions are lawful.
Final Decision
Not mentioned in the provided judgment excerpt; the text ends at the submissions and does not include the final order.
Law Points
- Classification of co-operative societies under Maharashtra Co-operative Societies Act
- 1960
- Resource Society and Service Society classification under Maharashtra Cooperative Societies Rules
- 1961
- Use of word 'Adhikosh' requires RBI permission under Section 7 Banking Regulation Act
- 1949
- Amendment of bye-laws under Section 14 Maharashtra Co-operative Societies Act
- Eligibility to contest APMC elections under Section 13 Maharashtra Agricultural Produce Market (Development and Regulation) Act
- 1963
- Voting rights in District Central Co-operative Bank
Case Details
2023 LawText (BOM) (03) 19
WRIT PETITION NO.11921 OF 2022 WITH WRIT PETITION NO.11906 OF 2022, WRIT PETITION NO.11907 OF 2022, WRIT PETITION NO.11910 OF 2022
R.N. Dhorde, V.R. Dhorde, D.R. Kale, V.D. Salunke, M.V. Nagargoje, V.D. Hon, P.D. Bachate, Mahesh S. Deshmukh, Umesh B. Gite, S.B. Ghatol Patil, Manish P. Tripathi
Mauli Sai Samarth Dhanya Adhikosh Seva Sahakari Sanstha Maryadit, Shahapur, Tq. & Dist. Parbhani Through its Chairman Prakash s/o. Kishanrao Pardhi; Sarangpur Shetkari Dhanya Adhikosh Seva Sahakari Sanstha Ltd., Sarangpur Tq. Manvat, Dist. Parbhani through its Chairman Smt.Sumanbai Panditrao Chokhat and Secretary Shri Gulab Pralhadrao Chokhat; Gurukrupa Shetkari Dhanaya Adhikosh Seva Sahakari Sanstha Ltd. Chudava, Tq. Purna, Dist. Parbhani through Authorized person and Chairman Shri Balaji s/o. Ramrao Desai; Kohinoor Shetkari Samuha Krushi Sahitya Purvatha Va Dhanya Godam Sahakari Sanstha Maryadit, Pathri, Tq. Pathri, District-Parbhani through its Chairman Abdulla Khan Latif Khan Durrani
The State of Maharashtra through Principal Secretary Co-operation, Marketing and Textile Department; Hon'ble Minister for Co-operation; Commissioner for Co-operation and Registrar; Divisional Joint Registrar; District Deputy Registrar; Assistant Registrars; Vividh Karyakari Seva Sahakari Sanstha Ltd. Dhanor-Motya; Parbhani District Central Cooperative Bank Ltd.
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Nature of Litigation
Writ petitions under Article 226 of the Constitution challenging the appellate order of the Minister for Co-operation confirming the Commissioner's directions to reclassify Dhanya Adhikosh Societies and amend their bye-laws.
Remedy Sought
Petitioners sought to quash and set aside the order dated 02.11.2022 passed by the Hon'ble Minister for Co-operation in Appeal No.246 of 2022 and the consequential order dated 08.04.2022 of the Commissioner for Co-operation, and to protect their classification as Resource Society.
Filing Reason
The Commissioner for Co-operation issued order dated 08.04.2022 directing that Dhanya Adhikosh Societies be reclassified from Resource Society to General Society, that the word 'Adhikosh' could not be used without RBI permission under Section 7 of the Banking Regulation Act, and that bye-laws be amended under Section 14 of the Maharashtra Co-operative Societies Act, 1960. The Minister dismissed the appeal against this order on 02.11.2022.
Previous Decisions
Commissioner for Co-operation order dated 08.04.2022; Divisional Joint Registrar instructions to implement; Minister granted stay on 22.06.2022; Minister dismissed appeal by order dated 02.11.2022 in Appeal No.246 of 2022.
Issues
Whether the Commissioner's order dated 08.04.2022 is lawful in reclassifying Dhanya Adhikosh Societies from Resource Society to General Society.
Whether use of word 'Adhikosh' in society name requires RBI permission under Section 7 of Banking Regulation Act, 1949.
Whether directions to amend bye-laws under Section 14 of Maharashtra Co-operative Societies Act, 1960 are valid.
Whether the Minister's appellate order dated 02.11.2022 dismissing the appeal is sustainable.
Whether reclassification impacts petitioners' eligibility to vote and contest elections under APMC Act and DCCB bye-laws.
Submissions/Arguments
Petitioners argued that they were classified as Dhanya Adhikosh Societies based on the objects in their bye-laws and had conducted business for over ten years.
Petitioners contended that their classification from service society could not be altered to general society.
Petitioners submitted that the order dated 08.04.2022 was omnibus and general in nature and could not be implemented against the present petitioners.
Ratio Decidendi
Not mentioned in the provided excerpt.
Judgment Excerpts
The petitioners are challenging the impugned order dated 02.11.2022 passed by the Hon’ble Minister for Co-operation in Appeal No.246 of 2022.
the Commissioner for Co-operation has issued Circular / Order dated 08.04.2022 observing therein that the ‘Dhanya Adhikosh Societies’ do not have object of providing loan to the members of ‘Dhanya Adhikosh Societies’ and the only object of the societies is to provide services to its members, therefore, the classification given to such society as a Resource Society and Sub Classification as Credit Resource Society is contrary to the MCS Rules, 1961.
the word ‘Adhikosh’ cannot be used in the name / title of the ‘Dhanya Adhikosh Societies’ without permission of Reserve Bank of India as per Section 7 of the Banking Regulation Act
Procedural History
Commissioner for Co-operation constituted a Committee for discussing criteria of registration as Dhanya Adhikosh Societies. The Committee made recommendations; Commissioner issued Circular/Order dated 08.04.2022. Divisional Joint Registrar instructed District Deputy Registrar to implement the order, who in turn instructed Assistant Registrars. Petitioners filed appeals before Hon'ble Minister; stay granted on 22.06.2022. Minister dismissed appeal by final order dated 02.11.2022. Petitioners filed writ petitions challenging order dated 02.11.2022.
Acts & Sections
- Maharashtra Co-operative Societies Act, 1960: Section 12(1), Section 14
- Maharashtra Cooperative Societies Rules, 1961: Rule 10(8)(c)
- Maharashtra Agricultural Produce Market (Development and Regulation) Act, 1963: Section 13
- Banking Regulation Act, 1949: Section 7
