ORAL JUDGMENT: (B.H. Marlapalle, J.)

Both these petitions have a common challenge namely the validity of the circular dated 11th November 1996 issued by the Government of Maharashtra through the Department of Cooperation and Textiles in exercise of the powers conferred by Section 81(1)(a) of the Maharashtra Cooperative Societies Act, 1960 (`the Act’ for short). The first petition has been filed by the Association of Certified Auditors and Chartered Accountants, whereas the second petition has been filed by the Credit Cooperative Societies of the employees from two different companies viz. Kirloskan Oil Engines Private Limited and M/s.Sudarshan Chemicals Limited.

2. Section 81(1) of the Act reads as under :

“81. Audit. (1)(a) The Registrar shall audit, or cause to be audited, at least once in each cooperative year, by a person authorised by him by general or special order in writing in this behalf the accounts of every society which has been given financial assistance including guarantee by the State Government or Government undertakings, from time to time, and the accounts of the apex societies, State and District Level Federal Societies, District Central Cooperative Ban