2025 Supreme(SC) 2005

SUPREME COURT OF INDIA
Pamidighantam Sri Narasimha, Atul S. Chandurkar, JJ.
Adarsh Sahkari Grih Nirman Swawlambi Society Ltd. – Appellant
Versus
The State Of Jharkhand & Ors. – Respondents
Civil Appeal No. 14585 of 2025 Arising Out of SLP (C) No. 35475 of 2025 Diary No. 7678 of 2024
Decided On : 05-12-2025

IMPORTANT POINT
Registration of cooperative society – Once a cooperative society is registered and certificate is issued, it conclusive proof of its existence and continuation as a body corporate – When certificate serves the purpose, additional requirement is unnecessary.

Headnote:

(A) Indian Stamp Act, 1899 – Sections 9 and 5(7) – Indian Stamp (Bihar Amendment) Act, 1988 – Section 9A – Registration of cooperative society – Once a cooperative society is registered and certificate is issued, Section 5(7) of Act declares it to be conclusive proof of its existence and continuation as a body corporate – When certificate serves the purpose, additional requirement is unnecessary – Memo requiring recommendation from Assistant Registrar, Cooperative Society is based on irrelevant considerations and it does not offer any value addition to integrity of transaction as alleged – Indian Stamp Act is a fiscal enactment, primary object of which is to raise and collect revenue for State – Power of State to impose and collect stamp duty and prevent evasion also extends to reducing, remitting or compounding duties, if State is of the opinion that such a measure is necessary – Requirement of recommendation by Assistant Registrar, Cooperative Society as a pre-condition for registering an instrument transferring premises of a cooperative society in favour of its members without stamp duty to prevent fake cooperative societies from claiming benefit of Section 9A is an irrelevant consideration leading to illegality in action – Such a pre-condition is clearly superfluous and in fact, unnecessary – State and its instrumentalities are bound by this certification and no further question should arise about existence or authenticity of cooperative society – Certificate is a recognition and a declaration of State that cooperative society is continuing on statutorily maintained roll – Impugned Memo issued by Principal Secretary, Department of Registration set aside on the ground of illegality, as it seeks to rely on a superfluous and redundant requirement. (Paras 2, 10, 12, 13 and 14)

(B) Administrative Law – Judicial Review – Judicial review of administrative action on the ground of illegality would then require consideration of provision of statute, rules or regulations, or even a policy empowering exercise of such power or discretion – This process may seem to be a simple case of interpretation of laws, however as judicial review is in realm of public law, constitutional courts have duty to ensure that power or discretion is exercised in furtherance of purpose and object of statute, rule or regulation, or implementation of a policy – In this process while accounting for relevant and irrelevant considerations that may influence the decision, court also takes into account broader principles of rule of law and good governance – Irrelevant consideration includes insistence or performance of acts or submission of documents, which neither have relevance nor are value additions to the purpose or object of law or policy in place – Instead, they are demonstrably superfluous and unnecessary, consuming limited time and human resource – This also has a direct bearing on efficiency and good governance. (Para 9)

Facts of the case:

Simplicity in public transactions is good governance. Constitutional courts uphold this virtue to strengthen rule of law and ensure access to justice. In administrative law, simplicity means laws, regulations, and procedures should be clear, straightforward, and easy to understand, allowing for effortless compliance. Administrative procedures should avoid complexity, redundant requirements, and unnecessary burdens, which waste time, expense, and disturb peace of mind.

Findings of Court:

In lieu of the certificate granted by the Registrar, Cooperative Society, which certificate would necessarily be enclosed with the instrument presented for registration by the cooperative society for registration, the further requirement of a recommendation by the Assistant Registrar, Cooperative Society is superfluous and unnecessary. This requirement, in our opinion, is disruptive of ease of transaction, without any value addition to the integrity of the transaction. Such question would not arise in the teeth of the statutory declaration under Section 5(7), wherein a certification of the cooperative society by the Registrar, Cooperative Society is a conclusive proof.

Result : Appeal allowed.