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2012 Supreme(Bom) 118

2012(2) AllMR 676
High Court of Judicature at Bombay
G.S. GODBOLE
Pandurang Vividh Karyakakri Sahakari Seva Sanstha Ltd.
Versus
Proposed Shri Chh. Shivaji Maharaj Vividh Karyakari Sahakari Seva Society Ltd. & Others
WRIT PETITION NOS. 2808 OF 2011 & 2809 OF 2011
Decided On : 18-01-2012

Advocates Appeared:
For the Petitioner:Amit Borkar Advocate.
For the Respondents:R1, P.S. Dani with Chetan G. Patil, Advocates, R2 to R4, S.R. Nargolkar, Addl. GP.

Headnote:MAHARASHTRA CO-OPERATIVE CREDIT SOCIETIES ACT, 1961 - Section 4 Proviso - Policy decision of State Government. Circular issued by Commissioner for co- operative is not a Policy Decision of State Government under Proviso to Section 4 of Act, 1961.

JUDGMENT:

1. Heard Mr. Borkar, Advocate for the Petitioner in both the Writ Petitions, Mr. Dani, Advocate instructed by Mr. Patil for the Respondent No.1 in both the Petitions and Mr. S.R. Nargolkar, learned Additional Government Pleader for the Respondent Nos.2 to 4 in both the Petitions.

2. Rule. Rule is made returnable forthwith. Respective Advocates for the Respondents waive service.

3. Since common questions of facts and law are involved in these two Petitions on specific request of all the concerned Advocates, these Petitions are being disposed of by the following common order.

STATUTORY PROVISIONS AND GOVERNMENT POLICIES:

4. The registration of a Cooperative Society is governed by the provisions of Section 4 of the MCS Act, 1960 which reads thus:

“4. Societies which may be registered : A society, which has as its objects the promotion of the economic interests or general welfare of its members, or of the public, in accordance will cooperative principles, or a society established with the object of facilitating the operations of any such society, may be registered under this Act:

Provided that, no society shall be registered if it is likely to be economically unsound, or the registration of which may have an adverse effect on development [of the cooperative movement, or the registration of which may be contrary to the policy directives which the State Government may, from time to time, issue.].”

5. In respect of Multipurpose Service Cooperative Societies, the Government of Maharashtra has issued Government Resolution dated 07.02.2001 thereby containing policy directives in respect of the registration of such society. In both the Petitions the Affidavit-in-Reply has been filed by Sukdeo B. Patil, the Joint Secretary-cum-Officer on Special Duty to the Government of Maharashtra. There is no statement in the said Affidavit to the effect that the policy directives dated 07.02.2001 have been subsequently withdrawn.

6. It appears that the Central Government had appointed a Study Group/Committee presided over by Professor Vaidyanathan for strengthening the Short-term Cooperative Credit Structure (STCCS). The State Government had decided to implement the recommendations of Vaidyanathan Committee and accordingly, a Memorandum of Understanding (MOU) was executed between the Government of India, National Bank for Agriculture and Rural Development (NABARD) and the Government of Maharashtra on 13th November, 2006. Condition No.15 of the said MOU provides as under:

“The State shall take appropriate decision on closure or merger of such Cooperatives as remain ineligible for assistance under the package within six months from such decision being taken by the State Level Implementation Committee (hereinafter referred to as ‘SLIC’ for sake of brevity)”.

7. It appears that the meeting of the SLIC was presided over by the Principal Secretary of Cooperation, Marketing and Textiles Department, Mantralaya, Mumbai on 11th January, 2007 and it was apparently decided not to register new Multipurpose Cooperative Societies. On the basis of the said decision, the Commissioner for Cooperation and the Registrar of Cooperative Societies, Maharashtra State, Pune issued the instructions by Circular dated 05th March, 2007 regarding the decision taken by the SLIC and informing the subordinate authorities not to forward any proposal for new registration permissions of any date to the office of the Commissioner.

BRIEF RESUME OF FACTS

8. Respondent No.1 in W.P. No. 2808/2011 had submitted an Application for registration of a new society in village Dindewadi, Tal.Bhudargad, Dist. Kolhapur. The Respondent No.1 in W.P. No. 2809/2011 had submitted a similar proposal in respect of village Pangire, Tal. Bhudurgad, Dist.Kolhapur on 10.01.2008.

9. The Registration Authority, namely, Assistant Registrar of Cooperative Societies, Bhudargad passed two separate orders dated 04.02.2008 and 11.08.2008 respectively and W.P. Nos. 2808/2011 & 2809/2011 and the registratio




























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