Case Note & Summary
The dispute arose from the refusal of membership by the appellant, a registered co-operative housing society under the Maharashtra Co-operative Societies Act, 1960, to respondent No. 4, Shivdasani. The society was promoted by two individuals for construction of flats in Bombay. Shivdasani claimed to have paid entrance fee and share money and alleged wrongful rejection of his membership application. The society denied these claims. Shivdasani appealed under Section 23(2) of the Act to the District Deputy Registrar, Co-operative Societies, Bombay, who decided in his favour, directing admission to membership. The society then filed a revision application before the State Government purportedly under Section 154 of the Act. The Government rejected the application on 17 May 1965, stating that an order under Section 23(3) was final and that the Government had no revisional jurisdiction. The society challenged this before the Bombay High Court under Articles 226 and 227 of the Constitution, but the High Court rejected the petition on 30 June 1965, holding that the Government was right in declaring no jurisdiction. The society then appealed to the Supreme Court by special leave. The core legal issues were whether the finality under Section 23(3) is subject to Section 154, and whether a party has a right to move the State Government under Section 154. The Supreme Court, per Hidayatullah J., held that the power under Section 154 is potential but not compulsive, reposed in the Government to intervene to do justice when occasion demands, and the Government is the sole judge of the occasion for its exercise. The only exception is where similar power has already been exercised by the Tribunal under Section 149(9). The finality of an order under Section 23(3) does not restrict the exercise of the power under Section 154; the word 'final' in that context means the order is not subject to ordinary appeal or revision but does not touch the special power legislatively conferred on Government. Therefore, the Government erred in holding it had no jurisdiction. On the second issue, the Court held that Section 154 does not expressly permit a party to invoke the revision jurisdiction, but it does not prohibit a party from moving the Government. However, the Government is not compelled to take action unless it thinks fit, so the party moving cannot claim a right of appeal or revision. The Court observed that the Government should welcome such applications because they draw attention to cases warranting intervention. Accordingly, the Court allowed the appeal, set aside the orders of the High Court and the State Government, and remitted the matter to the State Government for consideration of the revision application under Section 154 on merits.
Headnote
A) Cooperative Law - Revisional Jurisdiction - State Government's power under Section 154 - Maharashtra Co-operative Societies Act, 1960, Sections 23(3), 154, 149(9) - The State Government's revisional power under Section 154 is not barred by the finality clause in Section 23(3). The power is potential but not compulsive, reposed in the Government to intervene when occasion demands, and the Government is the sole judge of that occasion. The only exception is where similar power has already been exercised under Section 149(9). Held that the Government erred in holding it had no jurisdiction (Paras Not mentioned). B) Cooperative Law - Right to Invoke Revisional Power - Party's standing under Section 154 - Maharashtra Co-operative Societies Act, 1960, Section 154 - Section 154 does not expressly permit a party to invoke the revision jurisdiction, but it does not prohibit a party from moving the Government. However, the Government is not compelled to take action unless it thinks fit, so a party moving the Government cannot claim a right of appeal or revision. Held that such applications should be welcomed as they draw attention to cases needing intervention (Paras Not mentioned).
Issue of Consideration
Whether the finality of an order under Section 23(3) of the Maharashtra Co-operative Societies Act, 1960 is subject to the revisional power of the State Government under Section 154; and whether a party has a right to move the State Government under Section 154.
Final Decision
The Supreme Court held that the State Government has revisional jurisdiction under Section 154 of the Maharashtra Co-operative Societies Act, 1960 notwithstanding the finality clause in Section 23(3). The Government's rejection of the revision application on the ground of lack of jurisdiction was erroneous. The Court clarified that a party may move the Government under Section 154 but has no right to compel the exercise of that power; the Government is the sole judge of the occasion for its exercise. The appeal was allowed, and the matter was remitted to the State Government for consideration of the revision application on merits.
Law Points
- Legal points not extracted
- Section 154 power is potential but not compulsive
- Government is sole judge of occasion to exercise revisional power
- finality under Section 23(3) does not bar Section 154 power
- exception under Section 149(9) only
- party may move Government under Section 154 but no right of appeal or revision
