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2022 Supreme(Guj) 1360

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
BHARGAV D. KARIA, J.
HITENDRABHAI DHIRUBHAI PATEL – Petitioner
Versus
THE DISTRICT PANCHAYAT, ARAVALLI – Respondent
Special Civil Application No. 21647 of 2019
Decided On : 30-09-2022

Advocates:
Advocate Appeared:
For the Petitioner: DIPEN DESAI.
For the Respondents: ASHISH H. SHAH, MANISH J. PATEL, DHAWAN JAYSWAL.

The central legal point established in the judgment is the application of Section 4 of the Gujarat Cooperative Societies Act, 1961, particularly the proviso, to determine the eligibility for registration of a cooperative society, and the importance of considering objections and complying with procedural requirements.

Headnote:

Cooperative Society - Registration - Gujarat Cooperative Societies Act, 1961, Section 9, 162, 153, 4 - The court discussed the provisions of the Gujarat Cooperative Societies Act, 1961, particularly Section 4, which outlines the conditions for registration of societies. The court highlighted the proviso to Section 4, which prohibits registration if it is economically unsound, may have an adverse effect on any other society, or is opposed to public policy. The court also emphasized the role of the District Panchayat and the District Registrar in the registration process, and the importance of considering objections from relevant parties.

Fact of the Case:

The petitioner, a Chief Promoter of a proposed cooperative society, sought a writ to compel the issuance of a registration certificate by the District Panchayat. The District Panchayat had initially resolved to register the society, but the Assistant District Registrar refused to issue the certificate, citing objections from existing societies and the adverse financial history of the promoters.

Finding of the Court:

The court found that the District Panchayat's resolution to register the society was contrary to the facts and the provisions of the Gujarat Cooperative Societies Act, 1961. It upheld the Assistant District Registrar's decision to refuse the registration certificate, emphasizing the importance of considering objections and the economic soundness of the society.

Issues: The issues revolved around the refusal to issue a registration certificate to the proposed cooperative society, the role of the District Panchayat and the Assistant District Registrar, and the compliance with the provisions of the Gujarat Cooperative Societies Act, 1961.

Ratio Decidendi: The court's decision was based on the interpretation of Section 4 of the Gujarat Cooperative Societies Act, 1961, and the application of the proviso to determine the economic soundness and public policy implications of registering the proposed society. It also emphasized the procedural irregularities in the District Panchayat's resolution and the importance of considering objections from relevant parties.

Final Decision: The petition was dismissed, and the court upheld the refusal to issue the registration certificate to the proposed society, ruling that it was justified based on the provisions of the Gujarat Cooperative Societies Act, 1961 and the irregularities in the District Panchayat's resolution.

JUDGMENT :

BHARGAV D. KARIA, J.

1. Heard learned advocate Mr. Dipen Desai for the petitioner, learned advocate Mr. Manish J. Patel for the respondent nos. 1 and 2, learned advocate Ms. Urmi Raval for learned advocate Mr. Ashish H. Shah for respondent nos. 3 and 4 and learned Assistant Government Pleader Mr. Dhawan Jayswal for the respondent-State.

2. By this petition under Article 226 of the Constitution of India, the petitioner has prayed for the following reliefs:

    “(A) This Hon’ble Court be pleased to issue a writ of mandamus or writ in the nature of mandamus or any other appropriate writ, order or directions, directing the respondents to implement the decision taken by the Production, Co-operation and Irrigation Committee vide Resolution No. 10 of the meeting dated 31.12.2018 and thereby be pleased to direct the respondent No. 2 to issue registration certificate to the proposed society i.e. Sardar Patel Krushi Seva Sahakari Mandali Limited.

(B) Pending admission, hearing and final disposal of the petition, this Hon'ble Court may be pleased to direct the respondent No. 2 to issue registration certificate to the proposed society i.e. Sardar Patel Krushi Seva Sahakari Mandali Limited.

(C) This Hon'ble Court may be pleased to grant such other and further reliefs as deemed just and proper by this Hon'ble Court in the interest of justice.”

3. Brief facts of the case are that the petitioner is a Chief Promoter of proposed Sardar Patel Krushi Seva Sahakari Mandali Limited who had applied to the District Panchayat, Aravalli for registering the society on 01.04.2016 in the prescribed form.

3.1 By way of notification dated 31.08.1981, power to register a cooperative society under section 9 of the Gujarat Cooperative Societies Act, 1961 (For short “the Act 1961”) are delegated to the District Panchayat by way of notification issued under section 162 of the Act, 1961. Accordingly power to register cooperative society were delegated to the District Panchayat by the State Government.

3.2 It is the case of the petitioner that the aforesaid application of the proposed society for registration was returned by respondent no. 2, Assistant District Registrar, Cooperative Societies, District Panchayat, Sabarkantha vide order dated 17.11.2017 on the ground that other societies have objected against the registration of the proposed society.

3.3 The petitioner being aggrieved by the order dated 17.11.2017 preferred Appeal No. 130/2018 before the Additional Registrar (Appeals), Cooperative Societies, Gujarat State under section 153 of the Act, 1961.

3.4 The appeal filed by the petitioner was partly allowed by order dated 14.11.2018 passed by the appellate authority, the order dated 17.11.2017 was set aside and the Assistant District Registrar was directed to consider the application of the proposed society for registration on merits.

3.5 Thereafter, the powers to consider the application for registration were delegated to the Production, Cooperation and Irrigation Committee of the District Panchayat. The said Committee in its meeting held on 31.12.2018 by resolution no. 10 resolved to register the proposed society and rejected the objections submitted by the existing society on the ground that there is no material produced to show that the registration of the proposed society would adversely affect the existing society.

3.6 Along with the proposed society of the petitioner, there are seven other societies which have been registered by the Committee.

3.7 It is the case of the petitioner that on the basis of the aforesaid resolution the respondent no. 2-Assistant District Registrar has to issue the registration certificate which is just a formality and a managerial function.

3.8 Respondent no. 2 issued registration certificates to other seven societies on 27.11.2018 as per the decision taken in the meeting of the Committee on 31.12.2018, but, in the case of the proposed society of the petitioner, registration certificate was not issued. The petitioner therefore, req

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