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2022 Supreme(Guj) 159

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
BHARGAV D. KARIA, J.
Boriyavi Milk Producers Co-Operative Mandali Ltd. - Appellant
Versus
State of Gujarat and Ors. - Respondents
R/Special Civil Application No. 19174 of 2017
Decided on : 03-02-2022

Advocate Appeared:
For the Appellant :Pankaj S. Chaudhary, Advocate.
For the Respondents:Dhawan Jayswal, AGP and Dipen Desai, Advocates.

Headnote:

Constitution of India, 1950 - Article 227, 226, 19, 14 - Gujarat Co-operative Societies Act, 1961 - Section 153, 155, 4 - Collection of Milk from Farmers - Registration - Petitioner society collects milk from its members and sales same to District Milk Union - It is case of petitioner that family members of respondent No. 5-society formed one society viz. Milk Producers Cooperative Societies Limited - However, said society was not granted registration by respondent No. 4-Registrar and therefore it was closed down – Held, It is clear that a society which has its object promotion of economic interests or general welfare of its members in accordance with co-operative principles which may be registered under Act provided that it shall not be registered if in opinion of Registrar, it is economically unsound or its registration may have an adverse effect upon any other society or it is opposed to, or its working is likely to be in contravention of public policy - From facts emerging from record respondent No. 5-society is not found to be economically unsound since it is recorded by respondent No. 4-Registrar while granting registration to at such society has balance of Rs. 6,58,000/- on date of passing order - Moreover, there are about 200 female members of society - Respondent No. 5-Society has also submitted in reply that there are about 925 members of petitioner-society on date of filing of reply showing that members of petitioner-society has increased over a period of time meaning thereby that there was no adverse effect of working of respondent No. 5-Society upon petitioner-Society - This fact is not disputed by petitioner that members of petitioner-society has increased after registration of respondent No. 5-society - In such circumstances, it cannot be said that registration of respondent No. 5-society is having any adverse effect on petitioner-society in any manner – Petition dismissed.

JUDGMENT :

Bhargav D. Karia, J.

1. Heard learned advocate Mr. Pankaj Chaudhary for the petitioner, learned Assistant Government Pleader Mr. Dhawan Jayswal for the respondent-State and learned advocate Mr. Dipen Desai for respondent No.5 through video conference.

2. By this petition under Article 227 of the Constitution of India, the petitioner has prayed for quashing and setting aside the order dated 29.07.2017 passed by the Deputy Secretary (Appeal), Co-operation, Agriculture, Farmer and Co-operation Department in Revision Application No. 35 of 2016 whereby, the order dated 24.02.2016 passed by the respondent No. 2, Additional Registrar Co-operative Department (Appeal) in Appeal No. 32 of 15 and order dated 02.02.2015 of the District Registrar granting registration to respondent No. 5-society are upheld.

3. The petitioner society is registered under the Gujarat Co-operative Societies Act, 1961 (For short 'the Act, 1961') for the benefit of its members, residents of the Boriyavi village since 1963.

3.1. The petitioner society collects the milk from its members and sales the same to the District Milk Union.

3.2. It is the case of the petitioner that the family members of the respondent No. 5-society formed one society viz. Panchshil [Boriyavi] Milk Producers Cooperative Societies Limited in the year 2005. However, the said society was not granted registration by the respondent No. 4-Registrar and therefore it was closed down. The petitioner has also filed writ petition being Special Civil Application No. 373 of 2008 before this Court against the said society.

3.3. It is the case of the petitioner that after failing to register the aforesaid society, respondent No. 5-society was formed and applied for registration on 07.01.2015. The petitioner raised objections against registration of the respondent No. 5-society pointing out that the registration of respondent No. 5-society would be contrary to the Government policy to the effect that only one society in a town should be permitted to be registered for the purpose of collection of the milk from the farmers.

3.4. The petitioner raised six objections before the respondent No. 4-Registrar for denying the registration to respondent No. 5-society. The petitioner contended that respondent No. 5-society was just 150 meters away from the petitioner-society and only the male members are conducting the affairs of the respondent No. 5-society though the same is female society. It was also pointed out that respondent No. 5-society is formed only for the purpose of taking the benefit of Government policies. It was also contended that the respondent No. 5-society was earlier formed in the year 2005 and this Court did not permit such society to operate without registration. The petitioner also pointed out that there are more than 700 members of the petitioner society consisting of more than 400 female members and therefore, the petitioner would suffer economic loss if the respondent No. 5-society is allowed to be registered.

3.5. The petitioner also offered to accommodate 50% women employees in the management of the petitioner-society.

3.6. However, the respondent No. 4-Registrar, by order dated 02.02.2015 after considering the submissions made on behalf of the petitioner, granted registration to the respondent No. 5-society considering the fact that respondent No. 5-society has more than 200 female members and there is a positive report received from the Office of the Assistant Registrar of Co-operatives Societies. It was also considered the fact that as per the Government Policy of the year 2014, women were required to be promoted. It was also verified by respondent No. 4-Registrar that none of the members of the respondent No. 5-society is a member of another co-operative society. Respondent No. 4 also considered that about 1300 liters of milk was purchased by respondent No. 5-society in 10 days and there was a balance of Rs. 6,58,000/- as on 05.01.2015 and in the Boriyavi town consisting of more tha

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