Bombay High Court Decides Writ Petitions by District Supervision Cooperative Societies on Legality of Contribution Orders for Cooperative State Cadre Employment Fund; Examined Impact of Section 69A and Model Byelaws.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The matter comprised a group of writ petitions filed by various District Supervision Cooperative Societies and Taluka Supervision Cooperative Societies against the State of Maharashtra and its officers. The petitioners challenged multiple circulars and orders, primarily dated 28th October 2005, 19th October 2005, 17th December 2005, and earlier orders from 1996, which directed District Central Cooperative Banks to contribute to the Cooperative State Cadre Employment Fund. The genesis of the dispute lay in Section 69A of the Maharashtra Co-operative Societies Act, 1960, introduced in 1975 to create a supervision cadre for primary agricultural credit and multipurpose cooperative societies. The State Government, after appointing the Shamrao Kadam Committee, accepted its recommendations via a Government Resolution dated 13th October 1989, leading to the preparation of model byelaws for supervision societies. The petitioners, having adopted these byelaws, objected to the impugned directives. The High Court of Bombay, after hearing the parties, reserved judgment on 17th March 2010 and pronounced it on 22nd April 2010. The court examined the common legal issue in the context of the statutory framework and the earlier government decisions.

Headnote

A) Cooperative Law - Supervision Societies - Section 69A, Maharashtra Co-operative Societies Act, 1960 - The petitioners, District Supervision Cooperative Societies, challenged circulars dated 28.10.2005, 19.10.2005, 17.12.2005 and predecessor orders, which required contributions to the Cooperative State Cadre Employment Fund. The background involved the Shamrao Kadam Committee report of 1989 and the adoption of model byelaws. The court considered the common issue raised in the petitions (Paras 1-5).

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Issue of Consideration

Validity of circulars and orders directing District Central Cooperative Banks to contribute to the Supervision Fund as per Section 69A of the Maharashtra Co-operative Societies Act, 1960.

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Final Decision

Decision not clearly stated

Law Points

  • Legal points not extracted
  • Section 69A
  • Maharashtra Co-operative Societies Act
  • 1960
  • Cooperative State Cadre Employment Fund
  • Model Byelaws for District Cooperative Supervision Societies
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Case Details

2010 LawText (BOM) (04) 35

Writ Petition No.5463 of 1996 along with Writ Petition Nos.119 of 2006, 124 of 2006, 2268 of 2006, 3145 of 2006, 4158 of 2006, 7490 of 2006

2010-04-22

A.M. Khanwilkar, R.M. Savant

Citation not available

G. S. Godbole, Manjiri Parasnis, M. L. Patil, D. R. Talankar, C. R. Sonawane

Solapur District Supervision Coop. Society Ltd., Mangalwedha Taluka Coop. Supervisory Society Limited, Karmala Taluka Coop. Supervisory Society Limited, Malshiras Taluka Coop. Supervisory Society Limited, Akkalkot Taluka Coop. Supervisory Society Limited, Barshi Taluka Coop. Supervisory Society Limited, North Solapur Taluka Coop.Supervisory Society Limited, Kolhapur Zilla Dekhrekh Sahkari Sanstha Maryadit, Thane District Supervision Cooperative Society Limited, Ahmednagar Zilla Dekhrekh Sahakari Sanstha Limited, Sindhudurg Zilla Dekhrekh Sahakari Sanstha Maryadit, Kudal Taluka Dekhrekh Sahakari Sangh Maryadit, Pune District Supervision Cooperative Society, Daund Taluka Supervision Cooperative Society Limited

The State of Maharashtra through its Secretary, Ministry of Cooperative and Textiles; The Registrar of Cooperative Societies and Commissioner of Cooperation, Maharashtra State, Pune; The District Deputy Registrar, Cooperative Societies, Pune; The Divisional Joint Registrar, Cooperative Societies, Pune Division, Pune; and others

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Nature of Litigation

Writ Petitions challenging circulars and orders directing District Central Cooperative Banks to contribute to the Cooperative State Cadre Employment Fund

Remedy Sought

Quashing of impugned circulars and orders

Filing Reason

The impugned orders required contribution to the fund, allegedly contrary to the model byelaws and recommendations of the Shamrao Kadam Committee.

Previous Decisions

Previous decisions not referenced

Issues

Legal issues not identified

Submissions/Arguments

Arguments not extracted

Ratio Decidendi

Ratio not explicitly mentioned

Judgment Excerpts

The above group of Petitions raise a common issue and involve identical facts and therefore, are heard and disposed of together. The genesis of the issue which arises in the above Petitions is in the introduction of Section 69A in the Co operative Societies Act, 1960 which was introduced by way of amendment in the said Act in the year 1975 with a view to provide for proper supervision of the working of the Primary Agricultural Credit Cooperative Societies and Multipurpose Cooperative Societies. The State Government in exercise of the powers conferred under Section 69A(4) of the said Act issued a Notification bearing No.CDR10179/3008 – (21)2C dated 3 rd March, 1979 directing all the District Central Cooperative Banks except the Bombay DCC and the Ahmednagar DCC to contribute to the Supervision Funds.

Procedural History

The writ petitions were heard together by the Division Bench; judgment reserved on 17th March 2010 and pronounced on 22nd April 2010.

Acts & Sections

  • Maharashtra Co-operative Societies Act, 1960: 69A
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High Court Bombay High Court Decides Writ Petitions by District Supervision Cooperative Societies on Legality of Contribution Orders for Cooperative State Cadre Employment Fund; Examined Impact of Section 69A and Model Byelaws.
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