Gujarat High Court

Dahod Jilla Dudh Utpadak Sahakari ... vs State Of Gujarat on 22 February, 2023

Bench: Bhargav D. Karia

     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
==========================================================
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

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.

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.

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

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

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

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

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

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:

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