Case Note & Summary
The petitioners, Pandurang Vividh Karyakakri Sahakari Seva Sanstha Ltd. and Nagnath Vividh Karyakakri Sahakari Seva Sanstha Ltd., filed writ petitions challenging the orders of the Assistant Registrar and Divisional Joint Registrar refusing registration of their proposed cooperative societies. The sole ground for refusal was that the proposed area of operation overlapped with the area of existing societies, relying on Government policy circulars. The court examined Section 4 of the Maharashtra Cooperative Societies Act, 1960, which allows registration of societies for promotion of economic interests or general welfare, with a proviso that no society shall be registered if it is likely to be economically unsound. The court also considered Rule 6 of the MCS Rules, 1961, which requires the Registrar to consider whether the proposed society is likely to be economically sound and whether its registration will be in the interest of cooperative movement. The court held that the policy circulars relied upon by the authorities were not issued under any statutory power and cannot override the statutory provisions. The court quashed the impugned orders and directed the Assistant Registrar to consider the applications afresh without reference to the policy circulars, in accordance with Section 4 and Rule 6.
Headnote
A) Cooperative Societies - Registration - Overlap of Area - Section 4 of Maharashtra Cooperative Societies Act, 1960 - The court held that Section 4 does not prohibit registration of a society merely because its proposed area of operation overlaps with an existing society. The proviso to Section 4 only requires that the society is not likely to be economically unsound. Government policy circulars cannot override the statutory provisions. The impugned orders were quashed and the Assistant Registrar was directed to consider the applications afresh without reference to the policy circulars. (Paras 4-10) B) Cooperative Societies - Government Policy - Validity - Section 4 of MCS Act, 1960 and Rule 6 of MCS Rules, 1961 - The court observed that the policy circulars relied upon by the authorities were not issued under any statutory power and cannot be used to refuse registration. The Registrar must apply his mind independently to the requirements of Section 4 and Rule 6. (Paras 7-9)
Issue of Consideration
Whether the Assistant Registrar and Divisional Joint Registrar were justified in refusing registration of the proposed cooperative societies solely on the ground that their proposed area of operation overlaps with the area of operation of existing societies, relying on Government policy circulars.
Final Decision
The court allowed the writ petitions, quashed the impugned orders of the Assistant Registrar and Divisional Joint Registrar, and directed the Assistant Registrar to consider the applications for registration afresh without reference to the policy circulars, in accordance with Section 4 of the MCS Act, 1960 and Rule 6 of the MCS Rules, 1961.
Law Points
- Registration of cooperative societies
- Overlap of area of operation
- Government policy vs statutory provisions
- Section 4 MCS Act 1960
- Rule 6 MCS Rules 1961
