Chikkakoratti Milk Producers Co-operative Society Limited and Others vs Department of Co-operation and Dinne Koratti Milk Producers Co-operative Society Limited

K. Sreedhar Rao

The 1st petitioner is a Milk Producers Co-operative Society Limited registered in the year 1986 with the area of operation of Chikkakoratti. Respondent No. 2 has registered Respondent No. 3 - Dinne Koratti Milk Producers Co-operative Society Limited, whose objects are similar to the petitioner-Society and cover the same area of operation. The Respondent No. 3 is named as Dinne Koratti Milk Producers Co-operative Society Limited. The Tahsildar has filed an affidavit to the effect that Chikkakoratti and Dinnekoratti are part of Koratti village and constitute different localities in the same village.

The contention of the petitioners is that Respondent No. 2 should have been given opportunity to the petitioners who is already operating society in the area to file objections for registration of Respondent No. 3. Since there is failure to give opportunity, the registration of Respondent No. 3 is bad in law.

The counsel for Respondent No. 3 on the other hand submitted that Sec.4 of the Karnataka Cooperative Societies Act does not contemplate any opportunity to the existing society operating in the area before registering another society in the same area. The Registrar has however can go into the question regarding economic viability and its social utility for the development of co-operative movement while registering the society.

In the instant case, the Respondent No. 2 has dealt with both aspects in his order and found that the Respondent No. 3 is having larger volume of business and that it is economically viable. The Respondent No. 2 also did not find any material that registration of Respondent No. 3 would adversely affect the co-operative movement of the area. In that view of the matter, it is held that the registration of Respondent. No. 3 is sound and proper.

It may be generally necessary for the authorities under the Co-operative Societies Act before registering the society to give an opportunity to the society which is already functioning in the area. Section 4 of the Co-operative Societies Act reads thus:- 4. Societies which may be registered.

Subject to the provisions of this Act, a Co-operative Society which has as its objects the promotion of the economic interests or general welfare of its members, or of the public, in accordance with co-operative principles, or a Cooperative Society established with the object of facilitating the operations of such a society, may be registered under this Act.

Provided that no Co-operative Society shall be registered if it is likely to be economically unsound, or the registration of which may have an adverse effect on development of the co-operative movement.

It is the contention of the petitioners that there is no opportunity given. It may be that Respondent No. 2 has not given opportunity, however the Respondent No. 2 in his order while permitting registration has dealt with requirement of Sec.4 of the Act and it is found that it is economically viable and that registration of society is useful for the people of the village. Merely because there is denial of opportunity, it is not necessary that the registration is to be set aside. The petitioners have not produced any material before this court that the registration of Respondent No. 3 would be adverse to the co-operative movement and that it is not viable. Merely because there is denial of opportunity, only on that ground the registration cannot be quashed. The provisions of Co-operative Societies Act only prohibits dual membership. There is no prohibition for constituting more co-operative societies with similar object in the same area however subject to requirement as per provisions of Sec.4 of the Act. In that view, writ petition is dismissed.