Searching Case Laws & Precedent on Legal Query.....!
Scanned Judgements…!
Searching Case Laws & Precedent on Legal Query.....!
Scanned Judgements…!
The courts have consistently reiterated that disputes involving Cooperative Societies should be addressed through the mechanisms provided in their respective Acts and that any attempt to treat these societies as securities under the Securities Act would be contrary to the statutory framework ["J.p.mishra vs State Of Chhattisgarh - Chhattisgarh"].
Analysis and Conclusion:
References:- ["J.p.mishra vs State Of Chhattisgarh - Chhattisgarh"]- ["Vivek Dixit vs The State Of Madhya Pradesh - Madhya Pradesh"]- ["OM PARWAL VS DELHI ADMINISTRATION - Delhi"]- ["P.K.RAGESH vs KERAL STATE COPERATIVE BANK LTD - Kerala"]- ["A.LOGAMBAL vs THE PRESIDING OFFICER - Madras"]- ["J.p.mishra vs State Of Chhattisgarh - Chhattisgarh"]- ["J.p.mishra vs State Of Chhattisgarh - Chhattisgarh"]
In the complex world of Indian financial law, questions about jurisdiction often arise, especially for entities like cooperative societies. A common query is: Do cooperative societies come under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act)? This issue pits central banking regulations against state cooperative laws, with significant implications for debt recovery.
This blog post breaks down the legal position, drawing from landmark judgments and statutory provisions. Note that this is general information based on established precedents and should not be taken as specific legal advice. Consult a qualified lawyer for your situation.
Generally, cooperative societies engaged in banking—known as cooperative banks—are covered under the SARFAESI Act for recovering dues, a core banking function under Entry 45 of List I, Seventh Schedule to the Constitution. This stems from Section 2(1)(c) of the SARFAESI Act, notifications specifying cooperative banks, and Section 56(a) of the Banking Regulation Act, 1949 (BR Act), which subjects their banking operations to central laws despite state oversight of incorporation under Entry 32 of List IIPANDURANG GANPATI CHAUGULE VS VISHWASRAO PATIL MURGUD SAHAKARI BANK LIMITED - 2020 0 Supreme(SC) 358.
Pure cooperative societies not involved in banking do not fall under the SARFAESI Act. For instance, state cooperative laws like the Maharashtra Cooperative Societies Act govern non-banking aspects such as management and winding up PANDURANG GANPATI CHAUGULE VS VISHWASRAO PATIL MURGUD SAHAKARI BANK LIMITED - 2020 0 Supreme(SC) 358.
The SARFAESI Act's validity for cooperative banks hinges on the pith and substance doctrine. Recovery is integral to banking (Entry 45, List I), not encroaching on state cooperative regulation (Entry 32, List II). As held: The concept of regulating non-banking affairs of society and regulating the banking business of society are two different aspects and are covered under different Entries, i.e., Entry 32 of List II and Entry 45 of List I, respectively. The law dealing with regulation of banking is traceable to Entry 45 of List I and only the Parliament is competent to legislate. PANDURANG GANPATI CHAUGULE VS VISHWASRAO PATIL MURGUD SAHAKARI BANK LIMITED - 2020 0 Supreme(SC) 358
This distinguishes cases like service regulations upheld as incidental under state lists, affirming SARFAESI's application PANDURANG GANPATI CHAUGULE VS VISHWASRAO PATIL MURGUD SAHAKARI BANK LIMITED - 2020 0 Supreme(SC) 358. State acts, such as the U.P. Cooperative Societies Act or Kerala Co-operative Societies Act, handle incorporation and disputes like elections or inspections by Registrars SMT SHIVAMMA vs THE STATE OF KARNATAKAV.J. JOSE vs JOINT REGISTRAR OF COPERATIVE SOCIETIES (GENERAL) - 2020 Supreme(Online)(Ker) 49313. However, banking trumps these for recovery.
Under SARFAESI Section 2(1)(c), 'bank' includes 'banking company' from BR Act Section 5(c) via Section 56(a), deeming cooperative banks as such. The term ‘bank’ has been defined in Section 2(1)(c) to mean ‘banking company’... Thus, the definition of ‘banking company’ stands incorporated in Section 2(1)(d) of the SARFAESI Act... Section 56(a) becomes part of Section 5(c). PANDURANG GANPATI CHAUGULE VS VISHWASRAO PATIL MURGUD SAHAKARI BANK LIMITED - 2020 0 Supreme(SC) 358Krishna Trading Company VS Vyavisayik Evam Audhyogik Sahakari Bank Ltd. - Madhya Pradesh (2012)
The Central Government notified cooperative banks under Section 2(1)(c)(v): The Central Government in exercise of powers... u/s 2(1)(c)(v) of the Securitization Act has issued the aforesaid notification... Krishna Trading Company VS Vyavisayik Evam Audhyogik Sahakari Bank Ltd. - Madhya Pradesh (2012). The Supreme Court in Pandurang Ganapati Chaugule confirmed: The cooperative banks under the State legislation and multi-State cooperative banks are banks under Section 2(1)(c) of the Securitisation... The recovery procedure prescribe under Section 13 of the SARFAESI Act... is applicable. Andaman and Nicobar State Cooperative Bank Limited VS Andaman and Nicobar Administration - 2021 0 Supreme(Cal) 336
SARFAESI Sections 34-35 oust other courts: No Civil Court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which a Debt Recovery Tribunal... is empowered... Section 35... shall override other laws. Smt. Laxmibai VS Jalgaon Merchant Co-operative Bank - 2010 0 Supreme(Bom) 1750. Cooperative courts lack jurisdiction, even for post-notice fraud claims.
Contrast with Greater Bombay Coop. Bank on RDDB Act, where coops were excluded for member recoveries, but SARFAESI's notification overrides this NEEL OIL INDUSTRIES PARTNERSHIP FIRM VS UNION OF INDIA - 2015 0 Supreme(Guj) 950. State Registrars handle administrative matters like elections or records under acts like Tamil Nadu Societies Registration Act, but not SARFAESI dues Latin Catholic Fishermens Educational Society, Thoothoor, St. Judes College Campus VS The Inspector General of Registration, Santhome, Chennai – 600 028 - 2007 Supreme(Mad) 1665.
Non-banking cooperatives remain under state laws. For example, primary milk producers or spinning mills disputes go to Registrars or state forums B. Narasimha Reddy VS State of A. P. , rep. by its Secretary to Govt. of A. P. - 2007 Supreme(AP) 505Andhra National Textile Workers Union VS Commissioner of Labour - 1997 Supreme(AP) 1299. State acts like U.P./Maharashtra Cooperative Societies Acts govern non-banking aspects (e.g., management under Sections 28-35), but banking/recovery shifts to central laws. PANDURANG GANPATI CHAUGULE VS VISHWASRAO PATIL MURGUD SAHAKARI BANK LIMITED - 2020 0 Supreme(SC) 358Virendra Pal Singh VS District Assistant Registrar, Co-operative Societies, Etah - 1980 0 Supreme(SC) 250
Societies Registration Act covers charitable or religious groups, but banking elevates them to central regulation Management Board, Windsor Park Residents Welfare Association Through Its VP Viplav Sharma VS State of UP - 2019 Supreme(All) 338Hindu Public VS Rajdhani Puja Samithee - 1999 2 Supreme 107.
Cooperative banks should invoke SARFAESI Section 13 for recovery; aggrieved parties appeal to DRT under Section 17. Verify bank status under BR Act Section 56 and notifications. Challenges to notifications rarely succeed post-PandurangAndaman and Nicobar State Cooperative Bank Limited VS Andaman and Nicobar Administration - 2021 0 Supreme(Cal) 336. Non-banking disputes? Approach cooperative forums.
Understanding this balance helps navigate debt recovery efficiently. For tailored guidance, seek professional legal counsel.
The Registrar, Coperative Societies, Raipur has also issued a letter to the The Registrar, Cooperative Societies, Chhattisgarh, Block-B, State of Chhattisgarh, through the Secretary, Department of Co-operative Societies ... guidelines so far as the confirmation in the Coperative Department is Coperative department of the State Government seeking for the
JOINT REGISTRAR (JUDICIAL) COPERATIVE SOCIETIES DIVISION BHOPAL (MADHYA PRADESH) 3. DY. REGISTRAR COPERATIVE SOCIETIES D BLOCK OLD SACHIVALAY ABOVE COMMISSIONER OFFICE (MADHYA PRADESH) 4. ... Cooperative Societies Act, if so advised. SAN Digitally signed by VINAY KUMAR Accordingly, this petition stands disposed of Certified copy as per rules. (S. A. ... SHRI SUDHAKAR PANDEY COOPERATIVE INSPECTOR ADMINISTRATOR GAURAV GRIH NIRMAN COPERATIVE SOCIETIES D....
If an applicant satisfies the provisions of the Delhi Coperative Societies Act and the Rules framed thereunder then it has a right to seek registration under the said provisions. ... The reason stated in this letter was that no Coperative Group Housing Societies were being registered as there was an administrative ban on new registration of Group Housing Societies. ... There is no provision of the Act or the Rules which can enable the provisions relating to registrat....
The first relief in the writ petition is in respect of the notice issued to the Petitioner under Section 29-C of the Karnataka Co-operative Societies Act, 19591. ... The apprehension of the Petitioners that the records are not available will not come in the way of the Petitioners contesting the proceedings initiated against them in view of the fact the Petitioners would only make a factual assertion ... THE ASST REGISTRAR OF CO-OPERATIVE SOCIETIES CHAMARAJANAGAR SUB DIVISION SPS BUILDING VANIYAR ROA....
THE REGISTRAR/COMMISSIONER COPERATIVE SOCIETIES BHOPAL (MADHYA PRADESH) 3. THE ASSTT. ... After arguing for a while, when learned Government Advocate was countered with the availability of alternative remedy as per Section 55(2) of Madhya Pradesh Cooperative Societies Act, 1960 then learned counsel for the proceedings at an expeditious note. ... COMMISSIONER COPERATIVE DISTRICT GWALIOR (MADHYA PRADESH) 4. ... the submissions, petition is disposed of as withdrawn and needless to say ....
The petitioner has got an effective efficacious alternate remedy before the Co- operative Arbitration Court under Section 69 (2) of the Kerala Co-operative Societies Act, 1969 (for short, ‘KCS Act’). In the light of the dictum laid down in Prakasini v. ... Following the decision in Prakasini's case, the Division Bench, in Raveendran's case (supra), held that, in the light of section 69(2) (d) of the KCS Act, the dispute in connection with the employment of officers and servants of different classes of societies....
by Exts.P14,P15 and P16 notices issued to him consequent to an inspection that was ordered under Section 66(2) of the Kerala Co-operative Societies Act ('the Act' for short). ... SRI.LIJI.J.VADAKEDOM RESPONDENT/S: 1 JOINT REGISTRAR OF COPERATIVE SOCIETIES (GENERAL), OFFICE OF THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL), COLLECTORATE P.O., KOTTAYAM- 686002. ... objections also while passing final orders under Section 66(5) of the Act. ... 2 ASSISTANT REGIS....
As far as the time limit contemplated under the Act and Rues are concerned, the Division Bench of this Court in the case of S.V.K.Sahasramam Vs. Deputy Registrar of Coperative Societies reported in 2008 (8) MLJ 231 held that it is a directory and not mandatory. ... The factual adjudication between the parties came to be concluded and affirmed by three firms namely, the Deputy Registrar of Co- operative Societies under the Act, the learned Principal District Judge under Section 152 of the Act#H....
THIS OP (DEBT RECOVERY TRIBUNAL) HAVING COME UP FOR ADMISSION ON 06.02.2025, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: JUDGMENT This Writ Petition was filed in the year 2016 seeking ... ISSUED BY THE ADVOCATE COMMISSIONER APPOINTED IN CMP NO.1452/2015 BEFORE THE CJM, MANJERI EXHIBIT P3 TRUE COPY OF THE MEMORANDUM OF SECURITATION APPLICATION NO. 28/2016 ALONG WITH I.A NO.174/2016 SEEKING STAY ON PROCEEDINGS, FILED THE DRT-II, ERNAKULAM. ... JUDGE Nsd APPENDIX OF OP (DRT) 81/2016 PETITIONER EXHIBITS EXHIBIT P1 TRUE COPY OF THE C.M.P NO.1452/2015 ....
4 TIRUCHIRAPPALLI COPERATIVE HOUSE, 6 THE SECRETARY, TIRUCHIRAPPALLI COPERATIVE ... 3 THE DEPUTY REGISTRAR OF CO-OPERATIVE SOCIETIES, 2 THE REGISTRAR OF CO OPERATIVE SOCIETIES, 4 THE REGISTRAR OF CO OPERATIVE SOCIETIES, span
The following societies may be registered under this Act:- "Charitable societies the military orphan funds or societies established at the several presidencies of India, societies established for the promotion of Khadi and Village Industry, Panchayat Industry, Rural Development, science literature, or the fine arts for instruction, the diffusion of useful knowledge (the diffusion of political education), the foundation or maintenance of library or reading rooms for a general use among the members open to the public or public museums and galleries of paintings and other work....
In fact, the history of legislation referred to earlier, would indicate that such coming together of groups was recognised by the Acts enacted in that behalf concerning the cooperative movement. We have cooperative societies of religious groups who believe in vegetarianism and abhor non-vegetarian food. It will be impermissible, so long as the law stands as it is, to thrust upon the society of those believing in say, vegetarianism, persons who are regular consumers of non-vegetarian food. Even today, we have womens coperative societies, we have cooperative societies of handicapped ....
As such, the avowed object of bringing in the impugned legislation to restore the 3-tier structure is baseless and classification of the dairy/milk co-operative societies as a separate class on that count has no nexus with the object sought to be achieved. Similar restrictions are in existence in Karnataka and Madhya Pradesh states, since the inception of the new legislations and are not intermediary introductions. There is nothing which debars the formation of primary milk producers co-operative societies, district unions and State Federation with the later two being federations with the pr....
According to the learned counsel for the Society, the words ‘charitable purposes’ used in the Preamble and Sections 1 and 20 of Act 21/1860 do not include ‘religious purposes’. Charitable societies, the military orphan funds orr societies established at the several presdencies of India, societies established for the promotion of science, literature, or the find arts for instructions, the diffusion of useful knowledge, the diffusion of political education, the foundation or maintenance of libraries or reading-rooms for general use among the members or open to the public or public museums....
( 2 ) THIS Writ petition is filed by the President of the Andhra National Textile Workers Union. The Andhra Co-operative Spinning Mills Limited, Guntakal was established in 1950s under the A. P. Coperative Societies Act and had worked upto July, 1991. It has been working under the control of the A. P. Spinning Federation Lay off was declared by the Mill on 29-7-1991 but no lay off compensation or wages were paid to the workmen.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
