C/SCA/18759/2019 JUDGMENT DATED: 22/02/2023
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 18759 of 2019
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR. JUSTICE BHARGAV D. KARIA
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1 Whether Reporters of Local Papers may be allowed No
to see the judgment ?
2 To be referred to the Reporter or not ? No
3 Whether their Lordships wish to see the fair copy No
of the judgment ?
4 Whether this case involves a substantial question No
of law as to the interpretation of the Constitution
of India or any order made thereunder ?
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DAHOD JILLA DUDH UTPADAK SAHAKARI SANGH LTD.
Versus
STATE OF GUJARAT
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Appearance:
MR BM MANGUKIYA(437) for the Petitioner(s) No. 1
MS BELA A PRAJAPATI(1946) for the Petitioner(s) No. 1
MR. B.S.PATEL, SENIOR ADVOCATE with MS. ASHA D. TIWARI,
ADVOCATE and MR CHIRAG B PATEL(3679) for the Respondent(s) No. 4
MS. MANISHA LAVKUMAR SHAH, GP with MS. SHRUTI PATHAK, AGP for
the Respondent(s) No. 1,2,3
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CORAM:HONOURABLE MR. JUSTICE BHARGAV D. KARIA
Date : 22/02/2023
ORAL JUDGMENT
1. By this Petition under Article 226 of the Constitution of India, the Petitioner - Dahod Jilla Dudh Utpadak Sahakari Sangh Ltd. has Page 1 of 11 Downloaded on : Tue Feb 28 20:32:57 IST 2023 C/SCA/18759/2019 JUDGMENT DATED: 22/02/2023 challenged the judgment and order dated 4.10.2019 passed by the Deputy Secretary (Appeals) in Revision Application No. 98 of 2015 and the order passed by the Additional Registrar (Appeals) dated 14.8.2015.
2. The brief facts of the case are as under. 2.1 The Petitioner is a District Cooperative Union for the producers of milk in Dahod District.
2.2 The Petitioner made an application for registration of its society under the Provisions of the Gujarat Cooperative Societies Act 1961 on 07 (for short "the Act 1961").
2.3 The District Registrar of Cooperative Societies, Dahod issued the registration certificate under Section 9 of the Act 1961 on 07.06.2014.
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C/SCA/18759/2019 JUDGMENT DATED: 22/02/2023 2.4 The Respondent No.4 - Panchmahals District Cooperative Milk Producers Union Limited being aggrieved by the registration granted to the Petitioner, preferred an Appeal under Section 153 of the Act 1961 before the Additional Registrar (Appeals) Cooperative Societies Gujarat State. 2.5 After considering the submissions of the petitioner and the Respondent No.4 the Additional Registrar (Appeals) by order dated 14.08.2015 quashed and set aside the order dated 7.6.2014 cancelling the registration of the petitioner on the ground that the modalities prescribed by this Court in the judgment and order rendered in Special Civil Application No. 15560 of 2003 (for short "SCA 15560 of 2003") were not followed by the District Registrar. It is also observed in the said order that the provisions of Section 4 of the Act 1961 are also not taken into consideration while granting the registration to the petitioner society.
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C/SCA/18759/2019 JUDGMENT DATED: 22/02/2023 2.6 Being aggrieved, the Petitioner preferred a revision application before the Deputy Secretary (Appeals) under Section 155 of the Act 1961, which was also dismissed by order dated 4.10.2019. The Deputy Secretary (Appeals) reiterated what is considered by the Additional Registrar (Appeals) while cancelling the registration of the petitioner.
3. Learned Advocate Ms. B.M.Mangukiya submitted that on bifurcation of the Panchmahal District into three Districts i.e. Panchmahal, Dahod and Mahisagar Districts, the petitioner formed Cooperative Society of the Milk Producers for the Dahod District as it is generally done in cases of bifurcation of different Districts of the State of Gujarat.
3.1 It was submitted that the Additional Registrar (Appeals) considering the precedents of Page 4 of 11 Downloaded on : Tue Feb 28 20:32:57 IST 2023 C/SCA/18759/2019 JUDGMENT DATED: 22/02/2023 registration of the District Level Milk Producers Union on bifurcation of a District in the State ought to have granted registration to the petitioner.
3.2 It was submitted that Respondent No.4 - The Panchmahals District Cooperative Milk Producers Union who was already in existence prior to the bifurcation of the Panchmahals District into three Districts namely Mahisagar, Panchmahals and Dahod, and therefore, as there should be District Level Milk Producers Limited of each of the Districts, the petitioner was granted registration.
3.3 It was therefore submitted that the procedure prescribed by this Court in the judgment rendered in SCA 15560 of 2003 is not applicable to the District Level Milk Producers Union as it would be relevant for the purpose of registration of the primary level cooperative Page 5 of 11 Downloaded on : Tue Feb 28 20:32:57 IST 2023 C/SCA/18759/2019 JUDGMENT DATED: 22/02/2023 societies.
3.4 Learned Advocate Mr. Mangukiya therefore submitted that both the authorities below have committed an error in cancelling the registration of the Petitioner by misinterpreting the decision of this Court in SCA 15560 of 2003.
3.5 It was also submitted that Section 4 of the Act 1961 would also be of no consequence for formation of the District Level Milk Producers Co-operative Society is concerned inasmuch as such activities of the petitioner is confined to the activities of the Milk Producers of the Dahod District only whereas Respondent No.4 which is formed for the erstwhile Panchmahal District cannot raise any objection for formation of the Milk Producers Union for Dahod District. 3.6 It was submitted that on formation of the Botad District, the Botad District Milk Page 6 of 11 Downloaded on : Tue Feb 28 20:32:57 IST 2023 C/SCA/18759/2019 JUDGMENT DATED: 22/02/2023 Producers Co-operative Society was also registered in the year 2013. Similarly on formation of the Gir-Somnath, District Cooperative Milk Producers Society was formed in 2014. It was therefore submitted that similarly, on bifurcation of the Panchmahal District into three Districts, the Petitioner is also required tobe granted registration.
4. On the other hand, learned Senior Advocate Shri B.S.Patel appearing with learned Advocate Ms. Asha D. Tiwari for Respondent No.4 - Panchmahals District Cooperative Milk Producers Union submitted that the Petitioner has no inherent right of formation of District Level Milk Producers Co-operative Society on bifurcation of the Panchmahal District into three Districts, as the provisions of the Act 1961 would be applicable to all the Cooperative Societies, and accordingly, the decision of this Court in SCA 15560 of 2003 as well as the Page 7 of 11 Downloaded on : Tue Feb 28 20:32:57 IST 2023 C/SCA/18759/2019 JUDGMENT DATED: 22/02/2023 provisions of Section 4 of the Act 1961 for registration have very rightly been applied by both the authorities below for cancelling registration of the petitioner society. It was further submitted that there are concurrent findings of facts and therefore no interference may be made by this Hon'ble Court while exercising the extraordinary jurisdiction under Article 227 of the Constitution of India.
5. Having heard the learned Advocates for the respective parties and having gone through the material on record, it appears that both the authorities below have rightly examined the facts of the case in light of the decision of this Court rendered in case of Vanchhol Dudh Utpadak Sahakari Mandli Ltd. v. State of Gujarat rendered in SCA 15560 of 2003 wherein various directions are given to the District Registrar when an application is received under Section 4 of the Act 1961 for registration like to issue a notice Page 8 of 11 Downloaded on : Tue Feb 28 20:32:57 IST 2023 C/SCA/18759/2019 JUDGMENT DATED: 22/02/2023 to the concerned societies as well as to examine the functioning of the societies which has made an application for registration.
6. Similarly, Section 4 of the Act 1961 provides that the registration can be granted to a Co- operative society, if, in the opinion of the Registrar, it is not economically unsound, or its registration may not have an adversely affect upon any other society, or it is not opposed to, or its working is not likely to be in contravention of public policy. The provisions of Section 4 of the Act 1961 reads as under:
"4. A society, which has as its object the promotion of the economic interests or general welfare of its members, or of the public, in accordance with cooperative principles, or a society established with the object of facilitating the operations of any such society, may be registered under this Act:Page 9 of 11 Downloaded on : Tue Feb 28 20:32:57 IST 2023
C/SCA/18759/2019 JUDGMENT DATED: 22/02/2023 Provided that it shall not be registered if, in the opinion of the Registrar, it is economically unsound, or its registration may have an adverse effect upon any other society, or it is opposed to, or its working is likely to be in contravention of public policy."
6.1 In view of the above provision of Section 4 the Act 1961, it is not in dispute that District Registrar has not followed the procedure as laid down by this Court in a judgment rendered in SCA 15560 of 2003 as well as Section 4 of the Act 1961. The petitioner is therefore permitted to make a fresh application for registration under the provisions of the Act 1961.
7. Learned Advocate Mr. Mangukiya submitted that the petitioner shall make an application for registration within a period of four weeks from today under Section 4 of the Act 1961. The Registrar, Cooperative Societies, State of Gujarat is directed to consider such application Page 10 of 11 Downloaded on : Tue Feb 28 20:32:57 IST 2023 C/SCA/18759/2019 JUDGMENT DATED: 22/02/2023 of the petitioner within a period four weeks from the date of receipt thereof after giving opportunity of hearing to the petitioner as well as respondent no.4 and all other concerned persons keeping in mind the procedure prescribed by this Court in the judgment rendered in SCA 15560 of 2003 and the provisions of Section 4 of the Act 1961 in accordance with law.
8. With the aforesaid observations, the petition is disposed of. Notice is discharged.
Direct service is permitted.
(BHARGAV D. KARIA, J) J.N.W Page 11 of 11 Downloaded on : Tue Feb 28 20:32:57 IST 2023