Case Note & Summary
The judgment concerns two writ petitions challenging a circular dated 11th November 1996 issued by the Government of Maharashtra under Section 81(1)(a) of the Maharashtra Cooperative Societies Act, 1960. The circular required that the audit of cooperative societies be conducted only by Chartered Accountants or Certified Auditors. The first petition was filed by the Maharashtra Certified Auditors Association and a chartered accountant, while the second petition was filed by two credit cooperative societies of employees of Kirloskar Oil Engines Limited and Sudarshan Chemicals Limited. The petitioners argued that the circular was ultra vires the Act and that it restricted the class of auditors without authority. The court examined Section 81(1)(a), which empowers the Registrar to audit or cause to be audited the accounts of every society by a person authorised by him by general or special order. The court held that the circular was a valid exercise of this power, as the Registrar could prescribe qualifications for auditors. The petitions were dismissed, upholding the circular.
Headnote
A) Cooperative Law - Audit of Cooperative Societies - Section 81(1)(a) Maharashtra Cooperative Societies Act, 1960 - Power of Registrar to prescribe qualifications - The circular dated 11-11-1996 requiring audit only by Chartered Accountants or Certified Auditors is valid as it is within the powers conferred by Section 81(1)(a) which allows the Registrar to authorise persons by general or special order. The circular does not exceed the statutory power and is not ultra vires. (Paras 1-3) B) Cooperative Law - Audit of Cooperative Societies - Section 81(1)(a) Maharashtra Cooperative Societies Act, 1960 - Validity of circular - The petitioners challenged the circular on the ground that it restricts the class of auditors. The court held that the Registrar has the authority to specify qualifications and the circular is a reasonable exercise of that power. (Paras 2-3)
Issue of Consideration
Whether the circular dated 11th November 1996 issued by the Government of Maharashtra under Section 81(1)(a) of the Maharashtra Cooperative Societies Act, 1960, requiring audit of cooperative societies to be conducted only by Chartered Accountants or Certified Auditors, is valid and within the powers of the Registrar.
Final Decision
Both writ petitions are dismissed. The circular dated 11th November 1996 is upheld as valid.
Law Points
- Section 81(1)(a) of Maharashtra Cooperative Societies Act
- 1960
- Audit of cooperative societies
- Qualifications of auditors
- Circular dated 11-11-1996
- Validity of executive instructions
