MAHARASHTRA CERTIFIED AUDITORS ASSOCIATION Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) Both these petitions have a common challenge namely the validity of the circular dated 11th November 1996 issued by the Government of Maharashtra through the Department of Cooperation and Textiles in exercise of the powers conferred by Section 81(1)(a) of the Maharashtra Cooperative Societies Act, 1960 ( 'the Act' for short). The first petition has been filed by the Association of Certified Auditors and Chartered Accountants, whereas the second petition has been filed by the Credit Cooperative Societies of the employees from two different companies viz. Kirloskan Oil Engines Private Limited and M/s. Sudarshan Chemicals Limited.

(2.) Section 81(1) of the Act reads as under:

(3.) The State Government claims to have invoked its powers under Section 81(1)(a) of the Act and issued the impugned circular. Mr. Sabban, the Learned Counsel for the petitioners submitted that the circular has been issued to give a go by to the order of this Court passed in Writ Petition No. 4900 of 1995 on 1st February 1996. Section 81(1) has two parts and the first part in Clause (a) deals with the Cooperative Societies which receives financial assistance including guarantee from the State Government and the second part in terms of Clause (b) consists of those societies other than the societies covered in Clause (a). As per Mr. Sabban, if the impugned circular is allowed to hold the field, Clause (b) becomes redundant and the scheme of Section 81(1) of the Act could not be amended by issuing a circular. Legislative powers cannot be exercised by issuing administrative circulars, which proposition cannot be disputed.