IN THE HIGH COURT OF MADHYA PRADESH
Vivek Agarwal, J.
Banwar Machhua Sahkari Samiti Ltd. Banwar Block Jabera, District Damoh v. Machhua Sahkari Samiti Parswaha and Others
Writ Petition No. 19394 of 2019 (Jabalpur): against the order dated 14.6.2019 passed in Appeal No. 136/2016 by the State Cooperative Tribunal, Bhopal; Decided on 2.12.2024.
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Cooperative Societies Act, 1960 (M. P.) -- Ss. 9(1), proviso and S. 12 (1) & 12 (2) -- validity of registration -- petitioner society already registered as Machhua Sahkari Samiti -- respondent Machhua Sahkari Society registered in working area Parswaha of petitioner society without examining that registration of another society will not have adverse impact upon existing society, without notice, without providing hearing opportunity to petitioner society and without apinion of apex federal society -- all four limbs of law not fulfilled -- impugned order passed in violation of law -- set aside -- seal of approval cannot be given to such order. [Para 7 & 8
ORDER
1. Petitioner/Banwar Machhua Sahkari Samiti Limited is aggrieved of order dated 6.10.2016 passed by the Joint Registrar, Cooperative Societies, Sagar Division Sagar in Case No.78-41/2015 rejecting the appeal filed by the petitioner/Society against the change of its area of operation. Petitioner/Society is also aggrieved of order dated 14.6.2019 passed by the State Cooperative Tribunal, Bhopal in Second Appeal No.136/2016.
2. Learned counsel for the petitioner/Society submits that the petitioner/Society was registered in the year 2000. Its area of operation was Village-Banwar & Village-Parswaha. Later on, without issuing any notice under Section 12(1) of the M.P.Cooperative Societies Act, 1960 (for short "Act of 1960"), that area of operation was altered by the Officers of the Cooperative Societies and Village-Parswaha was withdrawn from the area of operation of the petitioner/Society so to cause undue benefit to the private respondent/Society. Neither any notice under section 12(1) of the Act of 1960 was issued to the petitioner/Society nor there is any notice brought on record by the respondents to show that any notice was issued in compliance of section 12(1) of the Act of 1960.
3. Learned Panel Lawyer for the State admits that no such notice is available on record.
4. I have heard learned counsel for the parties and gone through the record.
5. It is evident that the petitioner/Society was registered as a Cooperative Fisherman Society. Section 9 of the Act of 1960 deals with registration of a Society. Proviso to section 9(1) of the Act of 1960 provides that "no Society shall be registered, if in the opinion of the Registrar, it is likely to be economically unsound or is likely to have an adverse effect upon any other Society".
6. There is no material brought on record to show that the provisions as contained in the first proviso to section 9(1) of the Act of 1960 were ever considered by the competent authority. Section 12(1) of the Act of 1960 provides that "Notwithstanding anything contained in this Act, or the rules or byelaws, on the request of more than fifty percent of the members of the Society or if the Registrar considers that an amendment of the byelaws of the Society is necessary or desirable in the interest of such Society, he may, by an order in writing to be served on the Society in the prescribed manner, require the Society to make the amendment within sixty days". Sub-Section (2) of section 12 of the Act of 1960 provides that "If the Society fails to make the amendment within the time specified by the Registrar, the Registrar may after giving the Society an opportunity of being heard and after soliciting the opinion of such Apex Federal Society, as may be notified by the State Government, register such amendment and issue a certified copy thereof to such Society".
7. Thus, certain facts are clear; [1] as per the first proviso to section 9(1) of the Act of 1960, the Registrar is duty bound to examine that registration of another Society will not have an adverse impact upon the existing Society. [2] section 12(1) of the Act of 1960 provides that if the Registrar considers that an amendment of the byelaws of the Society is necessary or desirable in the interest of such Society, he may, by an order in writing to be served on the Society in the prescribed manner, require the Society to make the amendment within sixty days. The requirement is that if the said Society fails to carry out the amendment then after giving an opportunity of being heard and after soliciting the opinion of such Apex Federal Society, as may be notified by the State Government, register such amendment and issue a certified copy thereof to such Society. The respondents have not produced any material on record to show that the competent authority had examined the validity of the amendment and its impact on the health of the petitioner/Society. Admittedly, there is no notice in terms of the requirement of section 12(1) of the Act of 1960. [3] Th
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 ....
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....
Members of a cooperative society must be given an opportunity to voice objections to proposed amendments to bye-laws, ensuring procedural fairness in governance.
An appeal under Section 152 of the Maharashtra Cooperative Societies Act is maintainable against an order of registration made under Section 9, as the registration process is governed by the MCS Act.
A competing co-operative society lacks locus standi to challenge another's registration unless it suffers a legal wrong, underscoring the principle that competition must be encouraged.
The principles of natural justice are situational and must ensure substantial injury is assessed in each case.
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