The Apollo Textile Mills Employees Co-operative Credit Society, National Corporation Staff Co-operative Credit Society and Maharashtra Certified Auditors Association moved the High Court against the registrar's decision.

Under Section 81 of the Maharashtra Co-operative Societies Act, 1960, the statutory audit of all societies is to be done by a registrar or by a person authorised by him at least once in each co-operative year.

The petitioners, represented by advocate Ramdas Sabban, told the court that the statutory audit is not done in time, which is August 15 of every year, the day for calling the annual general bodymeeting.

It was shown to the court that the registrar had failed to complete the audit of even 50 per cent of co-operative societies in Maharashtra.

This delay proves dear to the members of the societies since they are handicapped in knowing the financial affairs of the society.

Therefore, in order to enable the society members to fulfill their statutory obligations under the Act, the court has directed that annual audit may be done by an auditor (from the panel of auditors maintained by the registrar or by a chartered accountant holding a certificate in co-operative audit which is issued by the Institute of Chartered Accountants of India), in the event of failure of the registrar to submit the audit report in time.