IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
BHARGAV D. KARIA, J.
Dahod Jilla Dudh Utpadak Sahakari Sangh Ltd. – Petitioner
Versus
State Of Gujarat – Respondent
R/Special Civil Application No. 18759 Of 2019
Decided On : 22-02-2023
Cooperative Society - Registration - Gujarat Cooperative Societies Act 1961 - Section 9, 153, 155, 4 - The court discussed the provisions of Section 4 of the Act 1961 and the judgment in SCA 15560 of 2003, highlighting the procedure for registration and the criteria for granting registration to a cooperative society.
Fact of the Case:
The Petitioner, a District Cooperative Union for milk producers, challenged the cancellation of its registration under the Gujarat Cooperative Societies Act 1961. The Respondent objected to the registration, citing non-compliance with the Act and previous court judgment.
Finding of the Court:
The court found that the authorities rightly considered the judgment in SCA 15560 of 2003 and Section 4 of the Act 1961 in canceling the registration. It directed the Petitioner to reapply for registration, emphasizing compliance with the prescribed procedure and Section 4 of the Act 1961.
Issues: Interpretation of the registration procedure under the Gujarat Cooperative Societies Act 1961 and the applicability of previous court judgments to the formation of cooperative societies.
Ratio Decidendi: The court emphasized the importance of following the prescribed procedure and criteria under Section 4 of the Act 1961 for registration of cooperative societies.
Final Decision: The petition was disposed of, and the Petitioner was directed to reapply for registration, ensuring compliance with the procedure prescribed by the court in SCA 15560 of 2003 and Section 4 of the Act 1961.
JUDGMENT :
1. By this Petition under Article 226 of the Constitution of India, the Petitioner – Dahod Jilla Dudh Utpadak Sahakari Sangh Ltd. has challenged the judgment and order dated 4.10.2019 passed by the Deputy Secretary (Appeals) in Revision Application No. 98 of 2015 and the order passed by the Additional Registrar (Appeals) dated 14.8.2015.
2. The brief facts of the case are as under.
2.1 The Petitioner is a District Cooperative Union for the producers of milk in Dahod District.
2.2 The Petitioner made an application for registration of its society under the Provisions of the Gujarat Cooperative Societies Act 1961 on 07 (for short “the Act 1961”).
2.3 The District Registrar of Cooperative Societies, Dahod issued the registration certificate under Section 9 of the Act 1961 on 07.06.2014.
2.4 The Respondent No.4 – Panchmahals District Cooperative Milk Producers Union Limited being aggrieved by the registration granted to the Petitioner, preferred an Appeal under Section 153 of the Act 1961 before the Additional Registrar (Appeals) Cooperative Societies Gujarat State.
2.5 After considering the submissions of the petitioner and the Respondent No.4 the Additional Registrar (Appeals) by order dated 14.08.2015 quashed and set aside the order dated 7.6.2014 cancelling the registration of the petitioner on the ground that the modalities prescribed by this Court in the judgment and order rendered in Special Civil Application No. 15560 of 2003 (for short “SCA 15560 of 2003”) were not followed by the District Registrar. It is also observed in the said order that the provisions of Section 4 of the Act 1961 are also not taken into consideration while granting the registration to the petitioner society.
2.6 Being aggrieved, the Petitioner preferred a revision application before the Deputy Secretary (Appeals) under Section 155 of the Act 1961, which was also dismissed by order dated 4.10.2019. The Deputy Secretary (Appeals) reiterated what is considered by the Additional Registrar (Appeals) while cancelling the registration of the petitioner.
3. Learned Advocate Ms. B.M.Mangukiya submitted that on bifurcation of the Panchmahal District into three Districts i.e. Panchmahal, Dahod and Mahisagar Districts, the petitioner formed Cooperative Society of the Milk Producers for the Dahod District as it is generally done in cases of bifurcation of different Districts of the State of Gujarat.
3.1 It was submitted that the Additional Registrar (Appeals) considering the precedents of registration of the District Level Milk Producers Union on bifurcation of a District in the State ought to have granted registration to the petitioner.
3.2 It was submitted that Respondent No.4 – The Panchmahals District Cooperative Milk Producers Union who was already in existence prior to the bifurcation of the Panchmahals District into three Districts namely Mahisagar, Panchmahals and Dahod, and therefore, as there should be District Level Milk Producers Limited of each of the Districts, the petitioner was granted registration.
3.3 It was therefore submitted that the procedure prescribed by this Court in the judgment rendered in SCA 15560 of 2003 is not applicable to the District Level Milk Producers Union as it would be relevant for the purpose of registration of the primary level cooperative societies.
3.4 Learned Advocate Mr. Mangukiya therefore submitted that both the authorities below have committed an error in cancelling the registration of the Petitioner by misinterpreting the decision of this Court in SCA 15560 of 2003.
3.5 It was also submitted that Section 4 of the Act 1961 would also be of no consequence for formation of the District Level Milk Producers Co-operative Society is concerned inasmuch as such activities of the petitioner is confined to the activities of the Milk Producers of the Dahod District only whereas Respondent No.4 which is formed for the erstwhile Panchmahal District cannot raise any objection for formation of the Milk Producers Union for Dahod Di
AI
Compliance with the prescribed procedure and criteria under Section 4 of the Gujarat Cooperative Societies Act 1961 is essential for the registration of cooperative societies.
The main legal point established in the judgment is the requirement for a proper inquiry under relevant sections of the Gujarat Co-operative Societies Act, 1961 before cancelling the registration of ....
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 registra....
Deregistration under Section 21A of the Act can only be based on specified statutory grounds and not on extraneous considerations. The right to form association cannot be jeopardized based on non-sta....
Previous sanction under Section 71 of the Gujarat Co-operative Societies Act, 1961 is a prerequisite for cooperative societies' investments, and post facto approval cannot be validated.
Point of Law - The principle to be applied is that there must be a injuria sine damnum and not the damnum sine injuria for taking a legal action and a legal recourse. A damage suffered has to be coup....
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