into the picture of classifying individual societies into any particular class specified in Appendix III. No such power is vested in them. The society falls under a particular classification once it satisfies the conditions mentioned in column 3 of Appendix III. It is for the society to decide the category in which it falls with reference to those conditions. Neither the Act nor the Rules provide for any prior approval of the Registrar or the Government before the society is classified in a particular slot. Any decision of the society that it falls in a particular class will no doubt, be open to recission by the Registrar in exercise of his powers under R.176, if he is not satisfied that the working capital/ outstandings/ investments--turnover, as the case may be, of the society are such as to bring it within a particular class. It will always be open to him to examine whether the society in question does satisfy the conditions prescribed in Appendix III regarding its working capital, loan outstandings and the like, which as mentioned earlier, and as mentioned in my judgment in O.P.No.10078 of 1985, are the only matters made relevant in the matter of classification of a society. The resolutions passed by the societies involved in these cases that they fall in particular classes cannot therefore be branded as illegal or otherwise liable to be cancelled. I must mention here that the respondents have no case that based on their working capital, loan outstandings or the like, the societies concerned will not fall within the classes into which they wanted to be placed by the resolutions in question.
