Govt told to form body to ensure implementation of Sindh Cooperative Societies Act 2020

The Sindh High Court has directed the chief secretary to constitute a high-level committee to ensure implementation of the Sindh Cooperative Societies Act 2020 in its letter and spirit.

The direction came on an appeal of a cooperative housing society in which a legal question was raised whether the Cooperative Societies Act 1925 and amended in the year 2020 was enacted for the housing schemes.

The court also directed the chairmen of the federal and Sindh higher commissions and the secretary of the board and universities to ensure the introduction of bachelors and masters programs in cooperative societies in all general universities.

The court observed that this initiative should be in line with practices in countries likewise Germany, the United Kingdom, Philippines and India, where these subjects are part of the higher education curriculum.

It further said the committee for implementation of the law shall be comprising prominent economists, agriculturists, philanthropists, bankers and people from the development sector to ensure implementation of the Sindh Cooperative Societies Act 2020 in its letter and spirit.

The court observed that rules shall be amended in order to meet with the main objects, scheme and purposes of the Sindh Cooperative Societies Act, 2020 for the promotion of thrift, self-help and mutual aid amongst the agriculturists, small farmers, labours and poor people with common economic needs so as to bring about better living, better business and better methods of production. It said that preferably the model adopted by the Punjab province shall be taken as an example in the first phase.

A single bench headed by Justice Salahuddin Panhwar, after hearing the arguments of the counsel and amicus curiae with regard to history of cooperative societies, observed that the entire history of legislation speaks that cooperative societies meant to help out agricultural societies and uplift poor people and marginalized segments and this was not meant for housing societies for affluent and influential persons as understood by the department of the Sindh government.

It said the act was not mainly meant for housing schemes, though this was only one aspect, whereby a segment of societies/persons pertaining to the agriculture sector, having low income, were required to be facilitated through former (farmer) organisations and even banks were established for the loaning purpose to uplift them and housing aspects for them were linked with that object and not in isolation.

The court observed that prime aim and object of the Sindh Cooperative Societies Act, 2020 as well as the repealed Cooperative Societies Act, 1925 was to promote the thrift, self-help and mutual aid amongst the agriculturists and poor people with common economic needs so as to bring about better living, better business and better methods of production, but the main aim, object and purpose of the Act, 2020 has been obliterated.

The court further said that housing societies were a small component of societies which qualify to be registered for economic activities, serving lower-income communities.

It said that Section 118 of the Sindh Cooperative Societies Act, 2020 empowers the government to make rules for the whole or any part of the province and for any society or class of societies, make rules to carry out the purposes of the Act, 2020.

The court observed that the establishment of cooperative societies in Pakistan and South Asia, as in many parts of the world, is rooted in the fundamental essence of fostering socio-economic development, community empowerment, and equitable distribution of resources.

It maintained that primary purposes and essence of these cooperatives are for poverty alleviation, empowerment of marginalized communities, agricultural development, rural and urban development, financial inclusion, collective bargaining power, community building and social cohesion, sustainable practices, economic self-reliance and social justice equity.

The court observed that various measures can be taken to achieve the very goals and purposes of cooperative societies, emphasizing economic, social, and community development.