During a detailed hearing in New Delhi, the Supreme Court on Thursday set aside a 2009 memo issued by the Jharkhand Registration Department, calling it an “illegal” hurdle that served no purpose except to delay legitimate property transfers by housing cooperative societies.
The bench of Justices Pamidighantam Sri Narasimha and Atul S. Chandurkar emphasised that public administration should improve lives - not burden people with meaningless paperwork.
Background
The dispute began when the Principal Secretary of Jharkhand’s Registration Department issued a memo in 2009, directing that stamp duty exemption under Section 9A of the Indian Stamp (Bihar Amendment) Act, 1988 could only be granted if an Assistant Registrar of Cooperative Societies recommended the transaction.
This meant societies registered under law already certified as genuine by the State itself were forced to chase an additional approval before transferring property to their members.
The Adarsh Sahkari Grih Nirman Swawlambi Society challenged the instruction, arguing that it created unnecessary delays and violated their statutory rights.
Both the Single and Division Benches of Jharkhand High Court, however, refused relief.
Court’s Observations
The Supreme Court saw the issue more sharply. It said the memo reflected an “irrelevant consideration” - preventing fictitious cooperative societies - when the State already had a foolproof safeguard: the certificate of registration issued under law.
The bench observed that simplicity in governance ensures better rule of law and reduces harassment of ordinary citizens. It remarked:
“Administrative instructions must not become obstacles… unnecessary, excessive requirements must equally be set aside as illegal.”
Highlighting Section 5(7) of the 1996 Cooperative Societies Act, the Court stressed that the official certificate is conclusive proof of a society’s existence.
“When the certificate serves the purpose, the additional requirement is unnecessary.”
The judges noted that every redundant office visit adds to “waste of time, expense and peace of mind”, which goes against the very idea of good governance.
Court’s Decision
Concluding that the memo was both needless and disruptive, the Supreme Court struck it down:
The impugned Memo… “is set aside on the ground of illegality, as it seeks to rely on a superfluous and redundant requirement.”
The appeal was allowed, overturning the Jharkhand High Court judgment.
Case Title:- Adarsh Sahkari Grih Nirman Swawlambi Society Ltd. vs. The State of Jharkhand & Others