High Court
Facts
WP 3951 23.odtIN THE HIGH COURT OF JUDICATURE AT BOMBAYBENCH AT AURANGABADWRIT PETITION NO. 3951 OF 2023 1)Gangakhed Taluka Shetkari Dhanya Adhikosh SevaSahkari Sanstha Maryadit, Gangakhed Taluka Gangakhed. Through its ChairmanBhagwan Dnyanoba Sanap2) Gangakhed Shetkari Dhanya Adhikosh Seva SahkariSanstha Maryadit, Gangakhed Taluka Gangakhed.Through its Chairman Arjun Narayanrao Phad.3)Jijaju Mahila Shetkari Dhanya Adhikosh Seva SahkariSanstha Maryadit, Tandalwadi, Taluka Gangakhed.Through its Chairman Sau. Prabhawati Ananta Tandale4)Savitribai Phule Mahila Shetkari Dhanya Adhikos SevaSahkari Sanstha Maryadit, Waghdari,Taluka Gangakhed.Through its Chairman Sau. Sharda Deepk Munde 5)Ganeshpuri Shetkari Dhanya Adhikosh Seva SahkariSanstha Maryadit, Kodri Taluka Gangakhed, Dist. ParbhaniThrough its Chairman Deepak Tukaram Latpate6) Dongargaon Shetkari Samuh Krishi Sahitya Purvathava Dhanya Godam Seva Sahkari Sanstha Dongargaon Taluka Gangakhed, Dist. Parbhani Through its Chairman Namdev Pandurang Sodgir.7) Sainath Shetkari Dhanya Adhikosh Seva Sahkari SansthaMaryadit, Borda Taluka Gangakhed, Dist. Parbhani Through its Chairman Dilip Venkyatrao Latpate.8) Balumama Vasti Shetkari Samuha Krishi Sahitya PurvathaVa Dhanya Godam Seva Sahkari Sanstha Pokharni Valke Taluka Gangakhed, Dist. Parbhani Through its Chairman Vitthal Haribhau Devkate 9) Tandulwadi Vasti Shetkari Samuha Krishi Sahitya PurvathaVa Dhanya Godam Seva Sahkari Sanstha Tandulwadi Taluka Gangakhed, Dist. Parbhani Through its Chairman Nivrutti Maruti Murkute. 1/9
Legal Reasoning
WP 3951 23.odt37] The Authorities constituted under the MCS Act are atliberty to issue notice to the individual Dhanya AdhikoshSocieties for re-classification of society under Section 12 of theMCS Act, 1960 and only on being satisfied that, the society iswrongly classified, based upon its principal object, bye-laws andfunctions undertaken by the society, may re-classify theindividual society.38] When the society has multiple objects, the Registrar,should ascertain the principal object of the society forclassification and sub-classification of the society. The Registrarmay ascertain the principal object on the basis of bye-laws of thesociety and the functions undertaken by the society. There canbe no direction to change the object of the 'Dhanya AdhikoshSociety' as it would violate Article 19 (1) (c) of the Constitutionof India of the members forming the society. In the event thesociety does not function as per its object and / or its bye-laws,steps can be taken to de- register the society but there can be nodirection to change the object of the society unless the societyvoluntaries to change its object and bye-law of the society.39] As regards violation of Section 7 of the BombayBanking Regulation Act is concerned, prima facie translation ofthe word 'Adhikosh', in english would be 'storage' or a 'bank'.The petitioner societies names are mentioned as 'DhanyaAdhikosh Societies' which would mean 'food/grains storage'societies. Since I am quashing the entire action initiated by theCommissioner of Co- operation qua the petitioners, by itsgeneral order dated 08.04.2022, I am not expressing finalopinion on the usage of word "Adhikosh" by the petitioner-societies. Liberty is granted to the appropriate authority to issuefresh notice to the petitioners / societies for change of use of theword 'Adhikosh' in their name / title and after considering thereply of the petitioners / societies, final orders can be passed,subject to the right of the petitioners to challenge the same asmay be available in law.” We are in complete agreement with the reasoning resorted to by thelearned esteemed single judge.6.For the self same reasons the writ petition is partly allowed.7.The instructions/order dated 08.04.2022 (Exh. I), issued by8/9 WP 3951 23.odtrespondent no. 2-Commissioner of Cooperation and Registrar Co-operativeSocieties and the consequential letters issued by respondent nos. 5 to 7 theAssistant Registrars of Cooperative Societies of Gangakhed, Purna and Selu,District Parbhani, are quashed and set aside. They shall be at liberty to issuespecific notices to each of these petitioners for reclassification under Section12 of the Act 1960, and it is only after they arrive at a conclusion of theirclassification being incorrect, based upon the principal object, by-laws andfunctions being undertaken by them, may reclassify individual society. ( SHAILESH P. BRAHME, J.) (MANGESH S. PATIL, J.)mkd/-9/9
Arguments
WP 3951 23.odt10)Kodri Shetkari Samuha Krishi Sahitya Purvatha Va DhanyaGodam Seva Sahkari Sanstha Maryadit Kodri Taluka Gangakhed, Dist. Parbhani Through its Chairman Niluba Bhanudas Mundhe. 11) Vasantrao Naik Shetkari Dhanya Adhikosh Seva SahkariSanstha Maryadit Godavari Tanda Taluka Gangakhed, Dist. Parbhani, Through its Chairman Satnarayan Baburao Ade.12) Kadyachiwadi Shetkari Samuha Krishi Sahitya PurvathaVa Dhnya Godam Seva Sahkari Sanstha MaryaditKadyachiwadi Taluka Gangakhed, Dist. Parbhani.Through its Chairman Mahadev Limbaji Phad.13. Sai Shetkari Dhanya Adhikosh Seva Sahkari SansthaMaryadit Pimpaldari Taluka Gangakhed, Dist. Parbhani.Through its Chairman Vasant Ramrao Mundhe14. Badwani Shetkari Dhanya Adhikosh Seva Sahkari SansthaMaryadit Badwani Taluka Gangakhed, Dist. Parbhani.Through its Chairman Madhav Datrao Mundhe15. Hanumant Vasti Shetkari Samuha Krishi Sahitya PurvathaVa Dhanya Godam Seva Sahkari Sanstha WaghdariTaluka Gangakhed, Dist. Parbhani Through its ChairmanAnant Vithal Mundhe 16. Yashashri Shetkari Dhanya Adhikosh Seva Sahkari SansthaMaryadit Pisewadi Taluka Gangakhed, Dist. Parbhani.Through its Chairman Maroti Vithal Murkute17. Venkyatesh Shetkari Dhanya Adhikosh Seva Sahkari SansthaMaryadit Ukali Taluka Gangakhed, Dist. Parbhani.Through its Chairman18. Sai Prabhu Shetkari Dhanya Adhikosh Seva SahkariSanstha Maryadit Katkarwadi Taluka Gangakhed, Dist. Parbhani. Through its Chairman Kiranshor Prabhu Katkade19.Swami Samarth Shetkari Dhanya Adhikosh Seva SahkariSanstha Maryadit Kodri Taluka Gangakhed, Dist. Parbhani.Through its Chairman Vasant Bhanudas Mundhe.20. Omkesh Shetkari Dhanya Adhikosh Seva Sahkari SansthaMaryadit Tandalwadi Taluka Gangakhed, Dist. Parbhani.2/9 WP 3951 23.odtThrough its Chairman Satyabhama Ramrao Tandale21.Sai Shyam Shetkari Dhanya Adhikosh Seva Sahkari SansthaMaryadit Badwani Taluka Gangakhed, Dist. Parbhani.Through its Chairman Balaji Subhash Mundhe22.Antarveli Shetkari Samuha Krishi Sahitya Purvatha VaDhanya Godam Seva Sahkari Sanstha Antarveli Taluka Gangakhed, Dist. Parbhani, Through its Chairman Padmakar Balaji Mundhe23.Sant Balumama Shetkari Dhanya Adhikosh Seva SahakariSanstha Maryadit, Anandnagar, Tq. Gangakhed, Dist.Parbhani, through its Chairman Vijnath Narhari Mundhe.24. Pimpaldari Shetkari Samuha Krishi Sahitya PurvathaVa Chanya Godam Seva Sahkari Sanstha Maryadit Pimpaldari, Taluka Gangakhed, Dist. Parbhani Through its Chairman Gopinath Santuba Mundhe 25. Waghdari Shetkari Samuha Krishi Sahitya PurvathaVa Dhanya Godam Seva Sahkari Sanstha Maryadit Waghdari Taluka Gangakhed, Dist. ParbhaniThrough its Chairman Deepak Rajkumar Mundhe.26. Sant Janabai Shetkari Samuha Krishi Sahitya PurvathaVa Dhanya Godam Seva Sahkari Sanstha Maryadit Gangakhed Taluka Gangakhed, Dist. Parbhani Through its Chairman Yashashri Bhagwan Sanap 27. Sant Bhagwan Baba Shetkari Samuha Krishi SahityaPurvatha Va Dhanya Godam Seva Sahkari Sanstha Maryadit Waghdewadi Taluka Gangakhed, Dist. Parbhani Through its Chairman Keshav Prabhakar Nagargoje.28. Shiv Parvati Mahila Shetkari Dhanya Adhikosh SevaSahkari Sanstha Maryadit Waghdari Taluka Gangakhed,Dist. Parbhani. Through its Chairman Jyoti Deepak Mundhe 29. Jay Bhadra Shetkari Dhanya Adhikosh Seva Sahkari SansthaMaryadit Taluka Gangakhed, Dist. Parbhani. Through its Chairman Govind Ramprabhu Pawar. 30. Gajramai Mahila Shetkari Dhanya Adhikosh Seva SahkariSanstha Maryadit Pimpaldari Taluka Gangakhed, Dist.Parbhani. Through its Chairman Mandodari Achyutrao 3/9 WP 3951 23.odtMundhe. 31. Kranti Shetkari Samuha Krishi Sahitya Purvatha VaDhanya Godam Seva Sahkari Sanstha Maryadit Pokharni (Va)Taluka Gangakhed, Dist. Parbhani Through its ChairmanBalu Vithal Deokate32. Pisewadi Shetkari Samuha Krishi Sahitya Purvatha VaDhanya Godam Seva Sahkari Sanstha Maryadit PisewadiTaluka Gangakhed, Dist. Parbhani Through its ChairmanLaxman Maroti Murkute33. Anandwadi Shetkari Samuha Krishi Sahitya Purvatha VaDhanya Godam Seva Sahkari Sanstha MaryaditAnandwadi Taluka Gangakhed, Dist. ParbhaniThrough its Chairman Vithal Sambhaji Sathe34. Shelmoha Shetkari Samuha Krishi Sahitya Purvatha VaDhanya Godam Seva Sahkari Sanstha Maryadit Shelmoha Taluka Gangakhed, Dist. Parbhani Through its Chairman Prakash Laxman Mundhe.35. Banpimpla Shetkari Samuha Krishi Sahitya Purvatha VaDhanya Godam Seva Sahkari Sanstha Maryadit BanpimplaTaluka Gangakhed, Dist. Parbhani Through its Chairman Govind Uttamrao Gutte.36. Mahatma Phule Shetkari Dhanya Adhikosh Seva SahkariSanstha Maryadit Pokharni Valke Tanda Taluka Gangakhed, Dist. Parbhani, Through its ChairmanUttam Govindrao Ade37. Waghdara Shetkari Dhanya Adhikosh Seva SahkariSanstha Maryadit Waghdara Taluka Gangakhed, Dist.Parbhani, Through its Chairman Santosh Uttamrao Sanap 38. Mauli Shetkari Dhanya Adhikosh Seva Sahkari SansthaMaryadit Waghdari Taluka Gangakhed, Dist. Parbhani.Through its Chairman Sumit Tukaram Sanap 39. Venkyatesh Shetkari Dhanya Adhikosh Seva Sahkari SansthaMaryadit Deokatwadi Tanda Taluka Gangakhed,Dist. Parbhani. Through its Chairman Ravi Shankar Pawar4/9 WP 3951 23.odt40.Shakuntala Shetkari Dhanya Adhikosh Seva Sahkari Sanstha Maryadit Shirsam Taluka Gangakhed, Dist. Parbhani. Through its Chairman Sambhaji Antram Murkute ..PETITIONERSVERSUS1. The State of Maharashtra Through its Principal Secretary,Cooperation, Textiles and Marketing Department Government of Maharashtra, Mantalaya, Mumbai.2. The Commissioner for Cooperation and Registrar,Cooperative Societies Maharashtra State Pune, New Central Building, BJ Road, Pune.3.Divisional Joint Registrar, Cooperative Societies,Aurangabad Anjuman Banglow, Adalat road, Kranti Chowk, Aurangabad. 4. The District Dy. Registrar, Cooperative Societies, Parbhani, Station Road, Near Shivaji Statute Parbhani, Tq. & Dist. Parbhani. 5. The Assistant Registrar, Cooperative Societies,Gangakhed, Tq. Gangakhed, Dist. Parbhani.6. The Assistant Registrar, Cooperative Societies,Purna, Tq.Purna, Dist. Parbhani.7. The Assistant Registrar, Cooperative Societies,Selu Tq. Selu, Dist. Parbhani. 8.The State Cooperative Election Authority Maharashtra,Pune Through its Secretary, Old Central Administrative Building, 5 BJ Road Pune.9. The District Cooperative Election Officer and DistrictDeputy Registrar, Cooperative Societies, Parbhani Near Chhatrapati Maharaj Statue Station Road, Parbhani. … RESPONDENTS…Advocate for Petitioners : Mr. S.B. Ghatol PatilA.G.P. for Respondent nos. 1 to 7 : Mrs. P.J. BharadAdvocate for Respondent nos. 8 & 9 : Mr. S.K. KadamCORAM: MANGESH S. PATIL & SHAILESH P. BRAHME, JJ.5/9 WP 3951 23.odtRESERVED ONPRONOUNCED ON :: 19.09.2024 25.09.2024ORDER : (MANGESH S. PATIL, J.)We have heard both the sides finally at the stage of admission.2.The petitioners are societies duly registered under the MaharashtraCo-operative Societies Act, 1960 (Act of 1960) with a classification as‘Resource Societies’ and sub classification as ‘Service Societies’, underSection 12(1) of the Act and Rule 10(8)(c) of the Maharashtra Co-operativeSocieties Rules, 1961 (Rules of 1961).3.Respondent no. 2-the Commissioner of Co-operation, pursuant to thesuggestions of a committee constituted by him for discussing criteria forregistration of societies as ‘Dhanya Adhikosh Societies’, issued a generalcircular/order dated 08.04.2022, inter alia observing that ‘Dhanya AdhikoshSocieties’ do not have any object of providing loan to its members and theonly object of these societies is to provide services to its members andtherefore classifying them as ‘Resource Societies’ and further sub classifyingthem as ‘Credit Resource Societies’ was contrary to the Rules of 1961. It alsodirected not to use word ‘Adhikosh’ in the nomenclature of the societies inthe light of Section 7 of the Banking Regulation Act. It directed necessarycorrections to be made in the classification and nomenclature and tocategorize them as ‘general societies’ with sub classification as ‘other generalsocieties’. It also directed amendments to be carried in the bye laws.4.Pursuant to such general directions, the Divisional Joint Registrar ofCo-operative Societies instructed respondent no.3-District Deputy Registrarsof the Co-operative Societies, of Aurangabad, Jalna, Parbhani and Hingoli, toimplement the directions contained in the order/circular dated 08.04.2022.Accordingly respondent nos. 5 to 7-Assistant Registrars Co-operativeSocieties, by issuing notices under Section 14 (1) of the Act of 1960 and6/9 WP 3951 23.odtRule 13(1) of Rules of 1961 dated 04.11.2022, sought to implement thesedirections. Hence this petition.5.It is to be noted that, faced with a similar fait some of the societieshad resorted to the appropriate quasi judicial remedy by preferring appeal tothe State Government and the Hon’ble Minister dismissed the appeals ofthose societies, who challenged the decision in Writ Petition no. 11921/2022(Mauli Sai Samarth Dhanya Adhikosh Seva Sahakari Sanstha Maryadit,Shahapur, Tq. & Dist. Parbhani Vs. State of Maharashtra and others, andconnected matters. The learned single judge, by a common judgment andorder dated 08.03.2023, for the elaborate reasons discussed therein, allowedthe petitions partly, inter alia holding that any such change in theclassification and sub classification and even amendment to the bye lawscould be resorted to by extending suitable opportunity to each of thosesocieties and the decisions cannot be lopsided. The relevant observationscan be found in paragraph no. 34 onwards, which read as under:“34] The formation of a society for a particular purpose is aright of each member of the society and covered within thescope under Article 19 (1) (c) of the Constitution of India andthere can be no direction to change the nature or purpose of theassociation.35] In the instant case after unilateral re-classification ofthe petitioner - societies under Section 12 [2] of the MCS Act,1960, subsequent action under Section 14 of the MCS Act, 1960for adoption of model bye-laws is initiated. The unilateral re-classification of the societies under Section 12 of the MCS Act,1961 which I have held to be bad in law, forms basis for actionfor adoption of model bye-laws under Section 14 of the MCSAct, 1960 is, thus, also bad in law.36] In view of the same, the order dated 08.04.2022 issued bythe Commissioner for Co-operation, directing re- classification ofthe petitioners, 'Dhanya Adhikosh societies' to the 'Generalsociety' is bad in law. Further direction to change the bye lawsbased on the re-classification of society would also be notapplicable to the petitioners societies.7/9