JUDGMENT - KAMDAR S.U., J.: - These two writ petitions are raising substantially a similar question of law in so far as the audit work undertaken by the Chartered Accountants of the Co-operative Societies is concerned, and since the question of law raised is similar in both the petitions, we propose to dispose off both the petitions by our common judgment.

2.Whilst in Writ Petition No. 2632 of 1996, the circular dated 6-3-1996 is challenged, in other writ petition being Writ Petition No. 8812 of 2003 challenge is to the circular dated 4-6-1992. Both these circulars are issued by the Commissioner for Co-operation, Pune. However, legal challenge to both these circulars are substantially identical. The material facts in the present petitions briefly stated are as under :

3.Writ Petition No. 2632 of 1996 has been filed by an association known as Maharashtra Certified Auditors Association (Regd.) claiming to be the association of Chartered Accountants and Certified Auditors. The members of the petitioners association are engaged in carrying out auditing of co-operative societies. According to the petitioner, their Association has more than 225 members from all over Maharashtra State. The petitioner in the present case earlier filed a writ petition being Writ Petition No. 4900 of 1995 in this Court. In the said writ petition, an order came to be passed restraining the respondent No. 2 namely, the Commissioner and Registrar, Co-operative Societies, Pune from interfering in any way with the statutory audit undertaken by the members of the petitioner covered under section 81(1)(b) without recording reasons in writing. It is the case of the petitioner that thereafter the 2nd respondent has issued a circular dated 6-3-1996. Under the said circular a classification is made of the co-operative societies in various categories as "A", "B" and "C". Under the said circular, the Chartered Accountants and Certified Auditors are classified and are permitted to carry on audit only in one of the categories, namely, "A" or "B" or "C" Grade "A" qualifies those Chartered Accountants and Certified Auditors who have more than 15 years of experience after passing the C.A. Examination and can carry on audit in respect of Multi-state Co-operative Societies and non-credit societies having an annual turn over/working capital of more than Rs. 10 crores and credit societies having an annual turn over/working capital of more than Rs. 100 crores. Under grade "B", the Certified Auditors and Chartered Accountants included are auditors who have more than seven years but less than 15 years practice after passing the C.A. Examination and are entitled to carry on audit of those societies having credit business turn over/working capital of Rs. 10/- to Rs. 100/- crores and also to conduct audit of housing societies having more than 100 members. In respect of grade "C" classification it covers those Chartered Accountants/certified auditors who have less than seven years experience as Chartered Accountants and it provides that they would be entitled to carry on audit of those societies whose annual turn over/working capital is upto R. 10 crores and also all those societies having less than 100 members. Thus, under the circular, a restriction has been placed on Chartered Accountants/certified auditors from carrying on audit work of those societies which do not fall under the respective grade or classification.

4.The challenge to the said circular also pertains to the provision providing for levy of 20% of audit fees under Clause 12 thereof. The said Clause 12 provides that all the those Chartered Accountants/certified auditors carrying on audit work of societies have to pay 20% of the fees out of the fees recovered by them from the Co-opeartive Societies for rendering their services. This 20% fee is required to be paid over to the Registrar, Co-operative Societies. The said circular, inter alia, says that such fee is required by the Registrar, Co-operative Societies on the gr

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