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Madhya Pradesh High Court · body

2009 DIGILAW 1112 (MP)

Galla Kothar Prathmik Upbhokta Sahkari Bhandar Maryadit, Gwalior v. State of M. P.

2009-09-10

A.P.SHRIVASTAVA, S.SAMVATSAR

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Judgment ( 1. ) Heard finally. ( 2. ) All thsese three petitions are disposed of by this common order since they involved common question of law and facts. ( 3. ) These petitions are filed by different cooperative societies which were registered under section 9 of the Madhya Pradesh Cooperative Societies Act, 1960 in between 1992-1995 in respect of Ward No. 17 which is now renumbered as Ward No. 22, Thatipur, Gwalior. ( 4. ) One Pragya Prathamik Upbhokta Sahakari Bhandar Maryadit, respondent No. 4 in WPs No. 4197/08 and 5055/08 and Chunky Prathmik Upbhokta Sahakari Bhandar, respondent No. 4 in W.P. 5587/08 were also registered in the same ward. Object of these societies was to run fair price shop. Respondent No. 4 societies lodged a report with the Registrar against registration of petitioners societies. On the basis of these complaints, the Joint Registrar, Cooperative Societies, in exercise of the powers under section 80 (k) of the Madhya Pradesh Cooperative Societies Act, 1960 (for brevity the "Act"), passed order Annexure P/2 and directed cancellation of registration of petitioners societies. ( 5. ) The order passed by the Joint Registrar, Cooperative Societies, was challenged by the petitioners by filing revision before the Madhya Pradesh State Cooperative Tribunal, Bhopal. The Tribunal dismissed the said revisions by a common order dated 2/9/2008 (Annexure P/1). Hence, these petitions are filed by the petitioners under Article 227 of the Constitution of India. ( 6. ) The ground on which registration of the societies is cancelled is that the societies were registered without applying mind by the Registering authority to the proviso to section 9 of the Act which 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. The registration of the petitioners societies is cancelled on the second limb of the proviso, i.e. registration of the society is likely to have adverse effect upon any other society. ( 7. The registration of the petitioners societies is cancelled on the second limb of the proviso, i.e. registration of the society is likely to have adverse effect upon any other society. ( 7. ) Single Bench of this Court in the case of Darpan Prathmik Upbhokta Sahkari Bhandar v. State of M.P. and others (WP No. 2430/08 decided on 18/6/2008) has laid down that this proviso is to be considered by the Registrar at the time of registration if objection is submitted by the existing cooperative society at the time of registration of a new society. In such circumstances, Single Bench of this Court in the aforesaid case has held that said objection which was raised after twelve years of the registration of a new society is not tenable. ( 8. ) That apart, from perusal of the order passed by the Tribunal as well as that of Joint Registrar, Cooperative Societies, we find that there is no finding in the present case that how the interest of respondent No. 4 society is adversely affected. Merely raising objection that their rights are affected is not sufficient to hold that the registration was wrongly granted to the petitioners societies. ( 9. ) For cancellation of registration, there is a specific provision in section 18 of of the Act which lays down that the Registrar shall make an order cancelling the registration of a society, if it transfers the whole of its assets and liabilities to another society, or amalgamates with another society, or divides itself into two or more societies or it is de-registered under the provisions of sub-section (1) of section 18-A or it is wound up under section 69. The society, shall from the date of such order or cancellation, be deemed to be dissolved. Thus, under section 18 of the Act, registration of a society can be cancelled in the circumstances enumerated in that section. However, none of the circumstances enumerated in the aforesaid section exists in the case in hand. ( 10. ) In the present case, registration of the petitioners societies is cancelled only on the ground that by registration of the societies, interest of respondent No. 4 society will be adversely affected. ( 11. ) Section 18-A of the Act deals with de-registration of the society. ( 10. ) In the present case, registration of the petitioners societies is cancelled only on the ground that by registration of the societies, interest of respondent No. 4 society will be adversely affected. ( 11. ) Section 18-A of the Act deals with de-registration of the society. As per the said section, if the Registrar is satisfied that any society is registered on misrepresentation made by the applicants, or where the work of the society is completed or the purposes for which the society has been registered are not served, he may de-register the society. None of these conditions exist in the present case, it is not the case that the petitioners societies were registered by misrepresentation or the purpose for which the societies were registered is complete. ( 12. ) Thus, neither the provisions of section 18 nor section 18-A of the Act are applicable in the present case and the powers are exercised under section 80-A of the Act. Section 80-A of the Act reads as under: "Power of Registrar to call for proceedings of subordinate officers and committee of a society and to pass orders thereon -The Registrar, may at any time on his own motion or on the application made by any party, call for and examine the record of any enquiry, or the proceedings by any subordinate officer or a decision of a committee of a society for which Government has contributed to its share capital or has given loans or financial assistance has guaranteed the rapayment of loans granted in any other form for the purpose of satisfying himself as to the legality or propriety of any decision or order passed and as to the regularity of the proceedings of such officer or committee. If in any case, it appears to the Registrar that any decision or order or proceedings so called for should be modified, annulled or reversed, the Registrar, may pass such order thereon as he may deem fit: Provided that no order under this section shall be made to the prejudice of any party unless such party has had an opportunity of being heard: Provided further that the powers conferred on the Registrar under this section, shall not be delegated to any officer below the rank of Joint Registrar." ( 13. ) Thus, as per section 80-A of the Act, the Registrar on his own motion or on the application made by any party call for and examine the record of any proceedings of the subordinate officer for satisfying himself as to legality or propriety of any decision or order passed and as to the regularity of the proceedings of such officer or committee and may modify, annul or reverse such order or proceeding of the subordinate officer. ( 14. ) The only ground of complaint in the instant case is that by registering the petitioners societies, it will have adverse effect on other society i.e. respondent No. 4. In the entire order passed either by the Tribunal or by the Joint Registrar there is no iota of allegation as to how registration of the petitioners societies will adversely affect the interest of respondent No. 4 society. In the absence of any such finding, the impugned orders passed by the Tribunal as well as Joint Registrar cannot be sustained in the eyes of law. ( 15. ) Resultantly, all these three petitions stand allowed. Impugned orders dated 2/9/2008 and 21/5/2008 passed by the Tribunal and the Joint Registrar, Cooperative Societies, are quashed.