Writ Maintainable Against Co-op Society If Termination Follows Registrar's Order: Uttarakhand High Court

In a significant ruling regarding the limits of judicial intervention in the affairs of co-operative societies, the Uttarakhand High Court has clarified the scope of writ jurisdiction. A Division Bench comprising Chief Justice Shri Manoj Kumar Gupta and Justice Shri Subhash Upadhyay held that when an employee’s termination from a co-operative society is mandated by the Registrar through statutory powers, the society’s private nature does not shield the decision from judicial review.

Case Background The appellant, Sudhir Chaudhary, served as an Assistant at the Bahuudheshiya Chudiyala Sadhan Sehkari Samiti Limited. His employment was cut short on October 31, 2022, following a directive issued on July 20, 2022, by the District Assistant Registrar of Cooperative Societies, Haridwar.

The Registrar’s order was based on an inquiry committee report alleging procedural irregularities in the hiring of several employees, including the appellant, which allegedly violated norms set by the Registrar in a 2013 communication. When the appellant initially challenged his termination through a writ petition, the Single Judge dismissed it, citing the Supreme Court’s precedent in S.S. Rana Vs. Registrar, Co-operative Societies , and held that a primary co-operative society does not fall under the definition of "State" per Article 12 of the Constitution, thus rendering the petition not maintainable.

Arguments on Appeal The appellant contended that the lower court erred in its narrow application of the law. Counsel argued that because the termination was not a standalone administrative decision of the society but a direct result of an order issued by a statutory authority (the Registrar) functioning under the Uttarakhand Co-operative Societies Act, 2003, the action was inherently reviewable.

The State’s counsel did not dispute that the termination order was issued under the purported exercise of statutory power by the Registrar. The bench found that the core issue was whether the Registrar acted within the scope of his authority—a question that demands scrutiny by the High Court sitting in its writ jurisdiction.

Legal Analysis The Court distinguished this case from scenarios where a co-operative society acts entirely independently of government control. The High Court reasoned that once a government statutory authority issues a directive that compels an private entity to terminate an employee, the legality of that directive itself becomes the central point of legal contention.

By setting aside the Single Judge’s order, the High Court emphasized that the writ court cannot decline to hear a case solely because of the nature of the employer, particularly when that employer acts under the umbrella of a Registrar's statutory mandate.

Key Observations The judgment clarifies the intersection of statutory oversight and judicial review:

  • On the reach of the Court: "The said aspect can definitely be examined by the writ court and in such an event the writ petition could not be said to be directed only against the action taken by respondent no.4."
  • On the maintainability factor: "The appellant had challenged essentially the order of respondent no.3 by which he directed respondent no.4 to cancel the appointments of the appellant."
  • On the validity of the Act: "The services of the appellant came to be terminated on the basis of the directions issued by respondent no.3 i.e. District Assistant Registrar purportedly exercising powers of the Registrar Co-operative Societies."

The Court's Decision The Division Bench allowed the appeal, set aside the order dated May 7, 2026, and restored the original writ petition to the docket. The High Court has directed that the matter be decided on its own merits, treating the petition as maintainable.

This ruling serves as a vital precedent for employees of cooperative societies, ensuring that they are not left without legal recourse when their employment is jeopardized by the intervention of statutory authorities. It reinforces the principle that judicial review is not restricted by corporate character when a government functionary exercises legal authority over an individual’s livelihood.