ADARSH SAHKARI GRIH NIRMAN SWAWLAMBI SOCIETY LTD. versus THE STATE OF JHARKHAND & ORS.

Citation: [2025] 12 S.C.R. 356 · Decided: 05-12-2025 · Supreme Court of India · Bench: PAMIDIGHANTAM SRI NARASIMHA · Disposal: Appeal(s) allowed

Judgment (excerpt)

[2025] 12 S.C.R. 356 : 2025 INSC 1389
Adarsh Sahkari Grih Nirman Swawlambi Society Ltd. 
v. 
The State of Jharkhand & Ors.
(Civil Appeal No. 14585 of 2025)
05 December 2025
[Pamidighantam Sri Narasimha and  
Atul S. Chandurkar, JJ.]
Issue for Consideration
Issue arose whether the impugned Memo issued by the Principal 
Secretary, Department of Registration liable to be set aside on 
the ground of illegality, as it seeks to rely on a superfluous and 
redundant requirement.
Headnotes†
Stamp (Bihar Amendment) Act, 1988 – s.9A – Powers to reduce, 
remit or compound stamp duties – Exempting payment of 
stamp duty on instruments relating to transfer of premises by 
Cooperative Societies to their members – Issuance of Memo 
by the Principal Secretary to the Department of Registration-
respondent no.2 mandating the District Sub-Registrars to 
ensure that exemption u/s.9A will be given only when there 
is a recommendation of the Assistant Registrar, Cooperative 
Society – Legality:
Held: Administrative procedures should avoid complexity, 
redundant requirements, and unnecessary burdens, which waste 
time, expense, and disturb peace of mind – While higher courts 
set aside executive decisions on the grounds of illegality if they 
are not founded on relevant considerations, or even when the 
decisions are based on irrelevant considerations – Executive 
actions that mandate certain unnecessary, excessive requirements, 
must equally be set aside as illegal – Thus, the Memo issued by 
the Principal Secretary, Department of Registration, mandating 
an additional recommendation of Assistant Registrar, Cooperative 
Society of the existence of a Cooperative Society, as a pre-condition 
for registration of a document u/s.9A of the 1988 Act is illegal – 
Once a cooperative society is registered and a certificate is issued, 
s.5(7) declares it to be a conclusive proof of its existence and 
[2025] 12 S.C.R. 
357
Adarsh Sahkari Grih Nirman Swawlambi Society Ltd. v.  
The State of Jharkhand & Ors.
continuation as a body corporate – When the certificate serves 
the purpose, the additional requirement is unnecessary – Memo 
requiring recommendation from Assistant Registrar is based on 
irrelevant considerations and it does not offer any value addition 
to the integrity of the transaction as alleged – Requirement of 
recommendation by the Assistant Registrar as a pre-condition for 
registering an instrument transferring premises of a cooperative 
society in favour of its members without stamp duty to prevent fake 
cooperative societies from claiming benefit of s.9A, an irrelevant 
consideration leading to illegality in action – Impugned Memo issued 
by Principal Secretary, Department of Registration set aside on 
the ground of illegality, as it seeks to rely on a superfluous and 
redundant requirement – Administrative Law. [Paras 2, 2.1, 2.2, 15]
Administrative Law – Judicial review of administrative action 
on the ground of illegality:
Held: Administrative law has recognised the principal of an 
administrative decision becoming unlawful if the decision fails 
to take into account relevant considerations, or even when it 
takes into account irrelevant considerations – Judicial review of 
administrative action on the ground of illegality would then require 
consideration of provision of the statute, rules or regulations, or 
even a policy empowering exercise of such power or discretion – 
This process may seem to be a simple case of interpretation of 
the laws, however as judicial review is in the realm of public law, 
constitutional courts have the duty to ensure that the power or 
discretion is exercised in furtherance of the purpose and object 
of the statute, the rule or the regulation, or for implementation 
of a policy – In this process while accounting for relevant and 
irrelevant considerations that may influence the decision, the court 
also takes into account the broader principles of rule of law and 
good governance – Irrelevant consideration includes insistence or 
performance of acts or submission of documents, which neither 
have relevance nor are value additions to the purpose or object of 
law or policy in place, instead, are demonstrably superfluous and 
unnecessary, consuming limited time and human resource. [Para 9]
List of Acts
Stamp (Bihar Amendment) Act, 1988; Stamp Act, 1899; Jharkhand 
Self-Supporting Cooperative Societies Act, 1996; Constitution of 
India; Registration Act, 1908.
358
[2025] 12 S.C.R.
Supreme Court Repo

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