Case Note & Summary
The Petitioner, Talbeed Vividh Karyakari Seva (V.K.S.) Sanstha Ltd., challenged the order of the Minister of State Cooperation, Marketing and Textile dated 17th September 2009, which allowed the appeal of Respondent No.1 and directed the Deputy Registrar to register Respondent No.1 as a society. The dispute arose from a circular dated 5th March 2007 issued by the Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra State, Pune, instructing subordinate officers not to forward proposals for opening bank accounts and name reservation. Respondent No.1's application for name reservation and bank account opening was rejected by the Deputy Registrar based on this circular. Respondent No.1 initially filed an appeal before the Divisional Joint Registrar, Kolhapur, but withdrew it on 28th July 2009, stating that only the Government had power to sanction registration, and then filed an appeal before the State Government under Section 152 of the Maharashtra Cooperative Societies Act, 1960. The Petitioner opposed the appeal on grounds of maintainability. The Minister allowed the appeal and directed registration. The High Court held that the appeal under Section 152 was not maintainable because the rejection of name reservation and bank account opening was not an order passed under the Act or Rules, and the circular could not override statutory provisions. The court quashed the Minister's order and allowed the writ petition.
Headnote
A) Cooperative Law - Registration of Society - Maintainability of Appeal - Section 152 Maharashtra Cooperative Societies Act, 1960 - Appeal under Section 152 lies only against orders passed under the Act or Rules, not against rejection of name reservation and bank account opening which are not statutory orders - Held that the Minister's order directing registration was without jurisdiction as the appeal was not maintainable (Paras 4-6).
Issue of Consideration
Whether the appeal under Section 152 of the Maharashtra Cooperative Societies Act, 1960 was maintainable against the rejection of an application for name reservation and opening of bank account, and whether the Minister's order directing registration was valid.
Final Decision
The High Court allowed the writ petition, quashed the Minister's order dated 17th September 2009, and held that the appeal under Section 152 was not maintainable.
Law Points
- Circular cannot override statutory provisions
- Appeal under Section 152 not maintainable against rejection of name reservation and bank account opening
- Minister's order without jurisdiction
Case Details
2011 LawText (BOM) (12) 37
WRIT PETITION NO.8510 OF 2009
Mr. Amit Borkar for Petitioner, Mr. Dhawal Patil i/b M/s. S.K. Legal Associates for Respondent No.1, Ms. P.S. Cardozo, AGP for Respondent Nos.2 to 4
Talbeed Vividh Karyakari Seva (V.K.S.) Sanstha Ltd.
Prop. Shri Chandrasen Vividh Karyakari Seva Sanstha Ltd., Deputy Registrar, Cooperative Societies, Karad, Commissioner for Cooperation & Registrar of Cooperative Societies, Maharashtra State, Pune, The State of Maharashtra
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Nature of Litigation
Writ Petition challenging the order of the Minister of State Cooperation allowing an appeal and directing registration of a cooperative society.
Remedy Sought
Petitioner sought quashing of the Minister's order dated 17th September 2009.
Filing Reason
The Minister allowed an appeal under Section 152 of the Maharashtra Cooperative Societies Act, 1960, which the Petitioner contended was not maintainable.
Previous Decisions
The Deputy Registrar rejected Respondent No.1's application for name reservation and bank account opening based on a circular. Respondent No.1 filed an appeal before the Divisional Joint Registrar which was withdrawn, and then filed an appeal before the State Government under Section 152, which was allowed by the Minister.
Issues
Whether the appeal under Section 152 of the Maharashtra Cooperative Societies Act, 1960 was maintainable against the rejection of an application for name reservation and opening of bank account.
Whether the Minister's order directing registration of the society was valid.
Submissions/Arguments
Petitioner argued that the appeal under Section 152 was not maintainable as the rejection was not an order under the Act or Rules.
Respondent No.1 contended that the appeal was maintainable and the Minister had jurisdiction.
Ratio Decidendi
An appeal under Section 152 of the Maharashtra Cooperative Societies Act, 1960 lies only against orders passed under the Act or Rules. Rejection of an application for name reservation and opening of bank account is not such an order, and a circular cannot override statutory provisions. Hence, the Minister's order was without jurisdiction.
Judgment Excerpts
The Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra State, Pune had issued circular dated 5th March, 2007 thereby informing all the subordinate Officers not to forward any proposals for opening of bank account and name reservation.
By Judgment and Order dated 17th September, 2009, the Hon'ble Minister of State Cooperation, Marketing and Textile allowed the said Appeal filed by Respondent No.1 and the Deputy Registrar was directed to register the Respondent No.1 Society.
Procedural History
Respondent No.1 applied for name reservation and bank account opening; Deputy Registrar rejected based on circular; Respondent No.1 filed appeal before Divisional Joint Registrar which was withdrawn; then filed appeal before State Government under Section 152; Minister allowed appeal on 17th September 2009; Petitioner filed Writ Petition in High Court challenging the order.
Acts & Sections
- Maharashtra Cooperative Societies Act, 1960: 152
