Co-op Society Seeks Unblocking/Defreezing of Fixed Deposits to Pay Income Tax Dues: Uttarakhand HC Leaves Decision to Registrar [Read Order]

The Petitioner, Garhwal Sainik Sahkari Samiti Ltd. (Garhwal Samiti) is a registered cooperative society based in Uttarakhand which supports army veterans. The cooperative society was established to serve the welfare needs of ex-servicemen or "Sainiks".

The instant petition was filed by Garhwal Samiti against the Secretary - Department of Co-Operative State Of Uttarakhand; Registrar; District Assistant Registrar; and the District Cooperative Bank.

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The petitioner, represented by Harshit Sanwal prayed for directions to unblock or defreeze their fixed deposits held with the 4th respondent District Cooperative Bank to enable themselves to pay their dues to the income tax department.

The plea was made in light of a resolution dated 25 January 2018 passed by the general body of the petitioner society.

The society also sought to quash a letter dated 26 June 2020 issued to the District Cooperative Bank and prayed that the Uttarakhand High Court issue an order regarding the monitoring and disbursement to prevent pilferage of the funds by unwanted elements and the officials of the Cooperative Department, Uttarakhand.

It was contended on behalf of the petitioner that the Executive Committee had decided to donate amounts for certain purposes, which was subsequently ratified by the General Body, however the Registrar failed to grant approval for release of funds. The petitioner counsel further submitted that the District Assistant Registrar had earlier made a recommendation to the Registrar to grant the necessary approval for the release of funds.

Narayan Dutt represented the State while Seema Sah represented the Co-Operative Bank.

The Bench of Justice Manoj Kumar Tiwari, however, declined to entertain the reliefs sought observing that it was solely within the competence of the Registrar to determine whether approval should be granted and the High Court could not direct the Registrar to exercise that discretion in a particular manner.

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The Court thus refused to issue directions compelling the authority to allow the release of funds, albeit with liberty to petitioner to file a representation before the Registrar within three weeks.

If such timely representation is made, the Registrar is to consider the request and render a decision within six months thereafter.

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