High Court Seeks Registrar's Response On Alleged Non-Implementation Of Gujarat Co-operative Societies Act

While hearing a Public Interest Litigation (PIL) filed by the Chamunda Cotton Sales Co-Operative Society Ltd, the Gujarat High Court has directed the Registrar of Co-operative Societies to file an affidavit addressing the issue of alleged non-implementation of the Gujarat Co-operative Societies Act, 1961.

The PIL raised three key issues concerning the implementation of the Act.

The first issue involves the implementation of Section 76 of the Act 1961, which empowers the State Government to provide for qualification, conditions of service, staff schedule, procedure of recruitment for appointment of Manager, Secretary, Accountant or any other officer of employee of all urban cooperative banks, federal societies and specified co-operative societies as referred in Section 74C excluding the societies of the cooperative credit structure.

It was brought to the Court's attention by Senior Counsel Prakash Jani, appearing on behalf of the petitioner society, that there are around 350 specified co-operative societies, 186 Urban Co-operative Societies including others, in total 81,468 Co-operative Societies are operating in the State of Gujarat as on 31.03.2020 wherein approximately 3,00,000 employees are working as on date.

It was submitted that the requirement of Section 76 for providing the qualification etc., is to maintain the standards of the services in such co-operative societies.

It was further submitted that till date, no notification has been issued by the State Government complying with the requirement of Section 76. The result is that different co-operative societies are engaging their staff in an indiscriminate manner, as per their wish and will, resulting in engagement of unqualified and incompetent staff and exercising the unfettered powers in the matter of regulating the conditions of service of such staff.

The second issue pertains to the constitution of the State Co-operative Council as prescribed under Section 156 of the Act, 1961.

Jani invited the attention of the Court to Sub-section (3) of Section 156 to impress upon that the functions of the State Co-operative Council is of significant importance in the matter of regulating the affairs of the Co-operative Societies registered under the Co-operative Societies Act, 1961.

It was submitted that though the constitution of the State Co-operative Council has been notified around 10 to 12 years back, there is no notification of the current constitution of the Council. The senior counsel also raised apprehension about the council, if it exists, holding regular meetings to discharge its functions.

The last issue is with regards to the exercise of power under Section 156 A. It was submitted by the Senior Counsel that though as per the information received by the petitioner, some executive instructions have been issued by the State Government in directing the societies to make purchase by filing an e-tender process, but there is no notification in the official gazette, which would bind all such co-operative societies.

The Division Bench comprising Chief Justice Sunita Agarwal and Justice Pranav Trivedi directed, “The answers to these three issues shall be placed before us by the Registrar, Co-operative namely the Respondent No.3 by filing his personal affidavit in the Court on the next date fixed.”

The matter is now posted on August 30.

Case Title: The Chamunda Cotton Sales Co-Operative Society Ltd. Versus State Of Gujarat & Ors.

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