Synopsis

The petitioner, a co-operative society engaged in milk production and distribution, challenged the applicability of the Maharashtra State Public Services (Reservation) Act, 2001 and the consequential Government Resolution dated 1st April 2004, which sought to enforce reservation policies in its establishment. The State contended that the petitioner fell within the definition of “establishment” under Section 2(c) read with the Explanation, as it had received financial aid, government land at concessional rates, and various subsidies. The High Court held that the plain language of Sections 2(c) and 2(i) of the Act limits its applicability to co-operative societies only where the Government holds share capital. Mere receipt of financial aid, subsidies, or concessional land does not bring a society within the ambit of the Act. An executive instruction (Government Resolution) cannot override the statutory mandate. The petition was allowed, and the impugned GR and consequential orders were quashed.

Court: High Court of Judicature at Bombay, Civil Appellate Jurisdiction

Coram: A. S. Gadkari, J. and Kamal Khata, J.

Date of Judgment: 21st April 2026

Citation: Writ Petition No. 8771 of 2016 (2026:BHC-AS:18812-DB)

Core Law: Maharashtra State Public Services (Reservation for Scheduled Castes, Scheduled Tribes, De-notified Tribes (Vimukta Jatis), Nomadic Tribes, Special Backward Category and Other Backward Classes) Act, 2001 – Sections 2(c) (definition of “establishment”), 2(i) (definition of “public services and posts”); Maharashtra Co-operative Societies Act, 1960

2. Legal Framework

Major laws and provisions involved

• Maharashtra State Public Services (Reservation) Act, 2001 – Section 2(c) (definition of “establishment”); Section 2(i) (definition of “public services and posts”); Section 4(2) (reservation in public services)

• Maharashtra Co-operative Societies Act, 1960 – (reference for status of co-operative societies)

• Government Resolution dated 1st April 2004 – sought to apply reservation policy to the petitioner

Key legal principles applied

Plain meaning of “establishment” under Section 2(c): The term includes any office of the Government, local authority, statutory authority, university, company, corporation, and “a co-operative society in which share capital is held by the Government”. The Explanation expands the definition to include Government-aided institutions, but the main clause specifically requires Government shareholding for co-operative societies.

Section 2(i) (“public services and posts”) reinforces the same: It includes services and posts in a co-operative society only where the Government is a shareholder. This indicates the legislative intent to restrict applicability to societies with Government shareholding.

Executive instruction cannot override statute: A Government Resolution, being an executive instrument, can supplement a s

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