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2021 Supreme(Mad) 3111
IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.M. SUBRAMANIAM, J.
The National Engineering Multi Purpose Cooperative Housing Society Ltd. - Petitioner
Versus
The Government of Tamil Nadu, represented by Secretary to Government, Commercial Taxes and Registration Department & Ors. - Respondents
W.P. Nos. 6618, 2169, 923 to 925, 1297, 1908, 25723, 25724, 28271, 28581, 29022 of 2014 and 30009 to 30011 of 2013 and M.P. Nos.1, 1, 1, 1, 1, 1, 1, 1, 1, 1, and 2, 2, 2, 2, 2, 2, 2, 2, 2, 2, 2 of 2014 and M.P. No.1 of 2015
Decided On : 29-10-2021
For the Petitioner: Mr. S. Arivazhagan, Mr. V. Raghavachari.
For the Respondents:Mr. K.M.D. Muhilan, Government Advocate.
Headnote:
Multi State Cooperative Societies Act, 2002 – Section 7,8 and 9 - Tamil Nadu Registration of Cooperative Societies Act, 1983 – Stamp duty - Seeking exemption of payment of stamp duty - Writ petitions are filed for purpose of seeking exemption of payment of stamp duty on registration of documents under provisions of Tamil Nadu Registration Act - Stamp duty exemption for registering documents before Sub Registrars in the State of Tamil Nadu - Facts regarding registration of the petitioners' Society under provisions of Multi State Cooperative Societies Act, 2002, is not in dispute - All the petitioners Societies have produced Certificate of Registration, which would reveal that registration of Societies are done under the Multi State Cooperative Societies Act, 2002, which is the Central Act 39 of 2002 - Whether exemption from payment of stamp duty on registration of documents in Sub Registrar Office in State of Tamil Nadu can be granted to Multi State Cooperative Societies registered under Multi State Cooperative Societies Act, which is a Central Act – Held, Even power to grant exemption under Section 51 of Tamil Nadu Cooperative Societies Act, unambiguously states that Government may grant exemption - It is the discretion of Government to grant exemption from payment of stamp duty and such discretion is exercised by State Government in present case only in respect of Cooperative Societies registered under the Tamil Nadu Cooperative Societies Act - State Government further clarified that it is not intended for Cooperative Societies registered under Multi-State Cooperative Societies Act -This being the factum and the stand of State Government, Central Cooperative Societies registered under Central Act, cannot seek such a concession of exemption from payment of stamp duty based on State Government Order passed under provisions of Tamil Nadu Cooperative Societies Act - As far as Government of Tamil Nadu is concerned, various schemes are implemented through Cooperative Societies registered under Tamil Nadu Cooperative Societies Act and Multi State Cooperative Societies cannot implement all such schemes - Powers for grant of exemption invoked by State of Tamil Nadu under Tamil Nadu Cooperative Societies Act for granting exemption to Cooperative Societies registered under Tamil Nadu Cooperative Societies Act - Said benefit cannot be extended at any circumstances in favour of Multi State Cooperative Societies registered under Central Act - In view of discussions made in the aforementioned, petitioner has not established even a semblance of legal right for purpose of considering the relief as such sought for in all these writ petitions - Accordingly, all writ petitions are dismissed - Consequently, connected miscellaneous petitions are closed.
ORDER :
The writ petitions are filed for the purpose of seeking exemption of payment of stamp duty on registration of documents under the provisions of the Tamil Nadu Registration Act. Stamp duty exemption for registering the documents before the Sub Registrars in the State of Tamil Nadu.
2. The facts regarding registration of the petitioners' Society under the provisions of the Multi State Cooperative Societies Act, 2002, is not in dispute. All the petitioners Societies have produced Certificate of Registration, which would reveal that the registration of Societies are done under the Multi State Cooperative Societies Act, 2002, which is the Central Act 39 of 2002.
3. The question arises whether exemption from payment of stamp duty on registration of documents in Sub Registrars Office in the State of Tamil Nadu can be granted to the Multi State Cooperative Societies registered under the Multi State Cooperative Societies Act, which is a Central Act.
4. Let us examine the provisions of the Multi-State Cooperative Societies Act. Chapter II of the Act, enumerates 'Central Registrar and Registration of Multi-State Cooperative Societies'. Under Section 7 of the Act, registrations are to be done and the Registration Certificate is to be issued under Section 8 of the Act. Multi-State Cooperative Society to be body corporate under Section 9 of the Act. The bye-laws are to be approved by the Central Registrars. The registration and functions of Federal Cooperatives are also enumerated, direction and management of Multi-State Cooperative Societies, privileges of Multi-State Cooperative Societies, properties and funds of Multi-State Cooperative Societies, audit, inquiry, inspection and surcharge and settlement of disputes, winding up of Multi-Sate Cooperative Society, execution of decrees, orders and decisions, appeals and review are provided under the provisions of the Multi-State Cooperative Societies Act, which is a comprehensive Act. Thus, any Society registered under the Multi-State Cooperative Societies Act [hereinafter referred to as the 'Central Act', in short], functioning under the control of the Central Act. The Central Registrar under the Central Act is competent to conduct inspection, enquiry, audit etc. The Central Registrar is empowered to initiate all actions in respect of the affairs of the Multi-State Cooperative Societies Act under the Central Act. Thus, the Registration of Cooperative Societies under the Central Act, cannot be compared with the Registration of Cooperative Societies under the Tamil Nadu Registration of Cooperative Societies Act, 1983.
5. The Tamil Nadu Cooperative Societies Act, which is a State Legislation provides powers and functions of the Registrar of Cooperative Societies in the State. The State Authorities are empowered to exercise control over the affairs of the Cooperative Societies. The Constitution of Cooperative Societies, its registration exercising control over the affairs of the Cooperative Societies are well enumerated under the Tamil Nadu Cooperative Societies Act [hereinafter referred to as the 'State Act', in short]. The State Act provides provisions for the purpose of exercise of control over the affairs of the Cooperative Societies. However, every registered Society has got a right to administer its own affairs and only in certain circumstances, under the provisions of the Act, the State Authority, Registrar of Cooperative Societies is empowered to interfere with the administration of registered Societies.
6. More clearly a Cooperative Society registered under the State Act or the Central Act is an independent entity. Every Cooperative Society has got its own bye-laws. It is not necessary that the bye-laws must be on the same line. Each Cooperative Society has got different purposes and objects. The Cooperative Society may be registered for the purpose of grant of jewel loan, banking transactions, agriculture loan, agriculture activities and each Cooperative Society has got its own object
