Case Note & Summary
The Supreme Court considered a batch of appeals arising from a common order of the Bombay High Court dated 05.01.2024, which allowed writ petitions filed by respondent no. 6 and others, setting aside orders of the State of Maharashtra directing registration of the appellant-societies under the Maharashtra Cooperative Societies Act, 1960. The factual background of the lead case (SLP (C) No. 4090 of 2024) involved the appellant-society filing an application on 13.01.2023 before the Assistant Registrar for permission to register as a cooperative society. The Assistant Registrar granted permission, but the High Court quashed the registration, holding that the Registrar's power under Section 9 of the Act is ministerial and that prior approval of existing societies was required. The legal issues before the Supreme Court were whether the Registrar's power under Section 9 is discretionary or ministerial, and whether the High Court was justified in interfering with the registration orders. The appellants argued that the High Court erred in interpreting Section 9 and that the Registrar has discretionary power to register societies after considering objections. The respondents contended that the Registrar's power is ministerial and that registration without consent of existing societies would lead to unhealthy competition. The Supreme Court analyzed Section 9 of the Maharashtra Cooperative Societies Act, 1960, and held that the Registrar's power is discretionary, not ministerial. The Court emphasized that the object of the Act is to promote cooperative movement, and the Registrar must exercise discretion judiciously. The Court further held that existing societies have no vested right to object to registration of new societies, and the High Court exceeded its jurisdiction under Article 226 by substituting its own opinion for that of the Registrar. The Supreme Court allowed the appeals, set aside the High Court's order, and restored the registration of the appellant-societies, directing the Registrar to proceed with registration in accordance with law.
Headnote
A) Cooperative Societies - Registration - Section 9 of the Maharashtra Cooperative Societies Act, 1960 - The Registrar has discretionary power to register a cooperative society after considering the application and objections, if any. The High Court erred in holding that the Registrar's power is ministerial and that prior approval of existing societies is required. The Court held that the object of the Act is to promote cooperative movement, and the Registrar must exercise discretion judiciously, not arbitrarily. (Paras 1-28) B) Writ Jurisdiction - Interference with Registrar's Order - Article 226 of the Constitution of India - The High Court's interference under Article 226 is limited to cases where the order is illegal, perverse, or procedurally irregular. The High Court cannot substitute its own opinion for that of the Registrar. The Court held that the High Court exceeded its jurisdiction by setting aside the registration orders without finding any illegality. (Paras 20-28) C) Cooperative Societies - Objections by Existing Societies - Section 9 of the Maharashtra Cooperative Societies Act, 1960 - Existing societies have no vested right to object to the registration of a new society. The Registrar must consider objections but is not bound by them. The Court held that the High Court's direction to obtain no-objection certificates from existing societies is contrary to the statutory scheme. (Paras 15-19)
Issue of Consideration
Whether the High Court was justified in setting aside the orders of the State Government directing registration of the appellant-societies under the Maharashtra Cooperative Societies Act, 1960, and whether the Registrar's power under Section 9 of the Act is discretionary or ministerial.
Final Decision
The Supreme Court allowed the appeals, set aside the High Court's common order dated 05.01.2024, and restored the orders of the State Government directing registration of the appellant-societies. The Court directed the Registrar to proceed with registration in accordance with law.
Law Points
- The Supreme Court interpreted the Maharashtra Co-operative Societies Act
- 1960 and its Rules
- emphasizing that the Registrar's discretion under Section 9 must be exercised reasonably and not arbitrarily -- The Court held that the Scrutiny Committee's rejection of registration applications was based on extraneous considerations and procedural irregularities
- violating principles of natural justice -- It was established that financial viability assessments must be based on objective criteria and not on speculative grounds -- The Court reiterated that co-operative societies have a fundamental right to form associations under Article 19(1)(c) of the Constitution
- subject to reasonable restrictions
- Registrar's power to register cooperative societies under Section 9 of the Maharashtra Cooperative Societies Act
- 1960 is discretionary and not ministerial
- High Court's interference under Article 226 is limited to cases of illegality or procedural irregularity
- Object of the Act is to promote cooperative movement and not to restrict registration
- Section 9 does not require prior approval of existing societies before registration
- Registrar must consider objections but is not bound by them
