VidhiSangh

Supreme Court of India · 01/04/2025

SHRI. MASAIDEVI VIVIDH KARYAKARI SAHAKARI SEVA SANSTHA MARYADIT WAREWADI versus THE STATE OF MAHARASHTRA & ORS.

[2025] 5 S.C.R. 409 · 2025 INSC 436

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Summary

A Scrutiny Committee constituted under Maharashtra Government Resolutions rejected proposals to register new primary agricultural credit co-operative societies as not economically viable; the Minister for Co-operatives allowed the promoters' appeals under Section 152 and directed registration, relaxing the Rs. 5 lakh share-capital requirement on an undertaking. The Bombay High Court set the State's orders aside and the Supreme Court affirmed: economic viability is a statutory pre-requisite under the proviso to Section 4 read with Section 6 of the Maharashtra Co-operative Societies Act, 1960, the State cannot in appeal depart from eligibility criteria it has itself laid down by Government Resolution, and the objector's lack of locus does not prevent a court from correcting a patently illegal order.

Issues

  1. Whether economic viability is a pre-requisite for registration of a co-operative society under the Maharashtra Co-operative Societies Act, 1960 and the Government Resolutions dated 23.09.2013 and 14.02.2017.
  2. Whether the State, in an appeal under Section 152 of the 1960 Act, could ignore the Scrutiny Committee's findings on financial viability and relax the minimum share-capital condition on the applicant's undertaking.
  3. Whether an individual member of an existing society lacking locus standi could maintain a writ petition against the State's order directing registration.

Provisions considered

Held

Result

Appeals dismissed; the High Court's common order dated 05.01.2024 setting aside the State's orders directing registration of the appellant-societies is upheld. Pending applications disposed of; no order as to costs.

Judgment PDF: Supreme Court of India, [2025] 5 S.C.R. 409.