Bombay High Court Dismisses Petitions Challenging Government Corrigendum Allowing Multiple Cooperative Societies in One Revenue Village. The Court upheld the State Government's authority to amend its policy to permit more than one Primary Agricultural Credit Cooperative Society (PACCS) in a revenue village, finding the corrigendum valid and in the interest of cooperative development.

High Court: Bombay High Court
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Case Note & Summary

The judgment concerns three writ petitions challenging a Government Corrigendum dated 14th February 2017 issued by the Ministry of Cooperation, Marketing & Textile, Maharashtra. The corrigendum modified a Government Resolution (GR) dated 23rd September 2013, which originally stipulated that there should be only one Primary Agricultural Credit Cooperative Society (PACCS) per revenue village. The corrigendum replaced this with clauses 1, 1A, and 1B, allowing for the possibility of multiple PACCS in a single revenue village. The petitioners, who are registered cooperative societies, argued that the State Government lacked the authority to issue such a corrigendum and that it was arbitrary. The respondents, including the State and interveners supporting the corrigendum, contended that the government has the power to amend its policies for the benefit of the cooperative sector. The Court, after hearing arguments, held that the State Government has the authority to issue the corrigendum and that it is valid. The Court noted that the policy change was made in the interest of cooperative development and did not violate any provisions of the Maharashtra Cooperative Societies Act, 1960. The petitions were dismissed, and the corrigendum was upheld.

Headnote

A) Cooperative Law - Government Resolution - Corrigendum - Power of State Government - The State Government issued a corrigendum to a Government Resolution dated 23rd September 2013, which originally mandated only one Primary Agricultural Credit Cooperative Society (PACCS) per revenue village. The corrigendum replaced the 'only one' clause with clauses 1, 1A, and 1B, allowing multiple societies. The Court held that the Government has the power to issue such corrigendum in the interest of cooperative development and that it does not violate the Maharashtra Cooperative Societies Act, 1960. (Paras 1-4)

B) Cooperative Law - Primary Agricultural Credit Cooperative Societies - Policy - The Court examined the validity of the policy change and found that the corrigendum was issued after considering the needs of the farmers and the cooperative movement. The Court upheld the corrigendum, stating that it is within the government's domain to modify its policies. (Paras 2-4)

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Issue of Consideration

Whether the State Government has the authority to issue a corrigendum to a Government Resolution to allow more than one Primary Agricultural Credit Cooperative Society (PACCS) in a single revenue village, and whether such corrigendum is valid and legal.

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Final Decision

The Court dismissed the writ petitions and upheld the Government Corrigendum dated 14th February 2017, holding that the State Government has the authority to issue such a corrigendum and that it is valid.

Law Points

  • Interpretation of Government Resolution
  • Power of State Government to issue corrigendum
  • Policy of cooperative societies
  • Primary Agricultural Credit Cooperative Societies (PACCS)
  • One society per village policy
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Case Details

2024 LawText (BOM) (8) 303

Writ Petition No.3712 of 2017 with connected matters

2024-08-30

A. S. Chandurkar, Jitendra Jain

S. S. Kanetkar, Yash Dewal, Sagar A. Rane, Nilesh Wable, Rutuja Khatmode, Umesh Mankapure, N. C. Walimbe, Kavita N. Solunke, Sandesh D. Patil, Chintan Shah, Krishnakant Deshmukh

Kalaskarwadi Vividh Karyakari Seva Sahakari Sanstha Maryadit and others

The State of Maharashtra and others

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Nature of Litigation

Writ petitions challenging a Government Corrigendum that modifies a Government Resolution regarding the number of Primary Agricultural Credit Cooperative Societies (PACCS) allowed per revenue village.

Remedy Sought

Petitioners sought to quash the corrigendum dated 14th February 2017 and to restore the original Government Resolution dated 23rd September 2013 which allowed only one PACCS per revenue village.

Filing Reason

Petitioners, being registered cooperative societies, were aggrieved by the corrigendum that allowed multiple PACCS in a single revenue village, which they argued was beyond the government's authority and arbitrary.

Issues

Whether the State Government has the authority to issue a corrigendum to a Government Resolution to allow more than one Primary Agricultural Credit Cooperative Society (PACCS) in a single revenue village. Whether the corrigendum dated 14th February 2017 is valid and legal.

Submissions/Arguments

Petitioners argued that the State Government lacked the authority to issue the corrigendum and that it was arbitrary and contrary to the policy of having one society per village. Respondents and interveners argued that the government has the power to amend its policies for the benefit of the cooperative sector and that the corrigendum was issued in the interest of cooperative development.

Ratio Decidendi

The State Government has the authority to issue a corrigendum to a Government Resolution to modify its policy regarding the number of Primary Agricultural Credit Cooperative Societies (PACCS) in a revenue village, as long as it is in the interest of cooperative development and does not violate the Maharashtra Cooperative Societies Act, 1960.

Judgment Excerpts

Since the issues raised in all the petitions are common, same is disposed of by common order. Petitioners seek to challenge the authority of Respondent No.1 to issue impugned corrigendum dated 14th February 2017 to the Government Resolution dated 23rd September 2013, whereby in clause (1) of the Government Resolution dated 23rd September 2013, which states that there should be 'only one' Primary Agricultural Credit Cooperative Society (PACCS) in one Revenue Village is now sought to be replaced by following clauses 1, 1A and 1B which is impugned in present.

Procedural History

The three writ petitions were filed challenging the Government Corrigendum dated 14th February 2017. Civil applications were filed seeking intervention. The court heard all matters together and disposed of them by common order.

Acts & Sections

  • Maharashtra Cooperative Societies Act, 1960:
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