The Northern Consumer Cooperative Limited Through Its Chairman vs. Union Territory Of J And K And Others (Cooperative Department)

Facts

The petitioner, The Northern Consumer Cooperative Limited, through its Chairman, filed a writ petition before the High Court of Jammu & Kashmir and Ladakh. The petition concerned a representation dated 20.04.2026 submitted by Ghulam Mohammad Sofi, claiming to be the Chairman, to the Registrar, Cooperative Societies, Jammu and Kashmir. This representation alleged acts of omission or commission by the erstwhile management, headed by Khursheed Ahmad Zargar, specifically regarding the appropriation and usurpation of the GST registration meant for the petitioner society. The petitioner contended that the Registrar had not taken any action on this representation. The respondents, Union Territory of J&K and Ors., were represented by no one.

Held

The Court held that the Registrar, Cooperative Societies, Jammu and Kashmir (Respondent No. 2) should inquire into the state of affairs of the administration and management of the petitioner cooperative society, The Northern Consumer Cooperative Limited Baramulla. This inquiry is to be conducted in the context of the representation dated 20.04.2026, which alleged that the erstwhile management, headed by Khursheed Ahmad Zargar, had appropriated and usurped the GST registration belonging to the society. The Court directed the Registrar to examine the grievance set out in the representation and, if found to be legally sustainable, to pass a reasoned order. The Court did not adjudicate on the merits of the allegations themselves but focused on ensuring the grievance is addressed. The Registrar was directed to complete this exercise within 30 days of receiving a copy of the order. The Court also directed the petitioner to serve a copy of the order personally to the Registrar.

Key Issues

1. Whether the Registrar, Cooperative Societies, Jammu and Kashmir, has a legal obligation to inquire into the allegations of misappropriation of GST registration by the erstwhile management of the petitioner cooperative society, as raised in the representation dated 20.04.2026? (Question of law, concerning the powers and duties of the Registrar under relevant cooperative society laws). Petitioner's Contention: The petitioner argued that the Registrar has a statutory duty to investigate such grievances concerning the administration and management of cooperative societies, especially when allegations of financial impropriety and usurpation of essential registrations like GST are made. They relied on the general principles of oversight and accountability expected from a Registrar. Revenue/State's Contention: No arguments were recorded from the respondents.