Appellate Authority rejects Fertilizer Dept appeal

In a case that came up after more than 14 years of the actual event, the Appellate Authority rejected an appeal made by Department of Fertilizers, Union of India challenging passing of amendments of IFFCO byelaws by the Central Registrar way back in 2002.

The Appellate Authority rejected the appeal saying “It is clear that on technical grounds, the appeal is completely deficient as it fails to meet the requirements of any of the sub-section of Section 99 of the MSCS Act, 2002,” under which the appeal was filed. Indian Cooperative has a copy of the Order.

In its Order the Appellate Authority notes—an appeal dated 04.08.2017 has been filed by the Appellant before this Authority under Section 99 of the Multi-State Cooperative Societies Act, 2002, against the amendments to the bye-laws of IFFCO registered by Central Registrar of Cooperative Societies (CRCS) vide certi?cate of registration dated 26.12.2002.

Prayers of the Fertilizer Dept (Appellant) before the Authority were

(i) to pass an order to nullify the amendments registered on 26.12.2002 and to revert to the situation as it existed prior to the above referred amendments; and

(ii) to pass an order to revert back repatriated Government equity and restore the status as it existed prior to 31.03.2002.

The judgment observed that all the reliefs prayed for in the appeal are against IFFCO, but IFFCO has not been impleaded as a party.

After hearing oral arguments and after examining the documents including additional affdavit, written arguments, records, the Authority found that the appeal is liable to be dismissed on technical grounds.

“There is no provision for filing of an appeal in the MSCS Act, 2002, or rules made there under, in instances where the proposal for amendment of bye laws of a multi-State cooperative society has been accepted by the CRCS”, the order notes.

The Authority also questioned the locus standi of the Fertilizer Dept in the case. The order reads “Firstly, the cause of grievance should arise by refusal to register an amendment and secondly, the multi-State cooperative society, being aggrieved with the action of the Central Registrar, should file the appeal. However, in the present case neither of the above mentioned two conditions have been met and thus this Authority is of the opinion that Department of Fertilizers has no locus standi in filing instant appeal.

Read the order given in PDF format below

Appellate Authority Order