Bombay High Court Quashes Recovery Certificate in Cooperative Society Dispute for Violation of Natural Justice. Recovery Certificate under Section 101 of Maharashtra Co-operative Societies Act, 1960 set aside as no proper procedure under Rules 86A to 86F was followed and no opportunity of hearing was given.

High Court: Bombay High Court Bench: NAGPUR In Favour of Accused
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Case Note & Summary

The petitioners filed two writ petitions challenging an order passed by the Assistant Registrar, Co-operative Societies, Umrer, which issued a recovery certificate under Section 101 of the Maharashtra Co-operative Societies Act, 1960. The petitioners argued that no procedure under Rules 86A to 86F was followed, no case was registered on an application by respondent No.2, and although a notice was issued for appearance on 15.09.2023, the Assistant Registrar was absent and no opportunity was given to the petitioner to file a reply or contest the proceedings. The impugned order was passed mechanically without application of mind, lacking a case number, date of order, or details of who appeared. The learned AGP sought time for instructions. The court, after hearing the parties, found that the procedure under Rules 86A to 86F was not followed and the principles of natural justice were violated. The court set aside the impugned order and remitted the matter back to the Assistant Registrar for fresh consideration, directing that an opportunity of hearing be given to the petitioners before passing any order. The court also directed the Assistant Registrar to pass a reasoned order after hearing all parties.

Headnote

A) Cooperative Law - Recovery Certificate - Natural Justice - Section 101 Maharashtra Co-operative Societies Act, 1960, Rules 86A to 86F - The Assistant Registrar issued a recovery certificate without following the prescribed procedure under Rules 86A to 86F and without giving the petitioner an opportunity to file a reply or contest the proceedings. The order was passed mechanically and did not show a case number, date of order, or details of appearance. Held that the impugned order is set aside and the matter is remitted back for fresh consideration after giving an opportunity of hearing. (Paras 4-8)

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Issue of Consideration

Whether the recovery certificate issued under Section 101 of the Maharashtra Co-operative Societies Act, 1960 is valid when the procedure under Rules 86A to 86F was not followed and no opportunity of hearing was given to the petitioner.

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Final Decision

The impugned order passed by the Assistant Registrar, Co-operative Societies, Umrer is set aside. The matter is remitted back to the Assistant Registrar for fresh consideration after giving an opportunity of hearing to the petitioners. The Assistant Registrar is directed to pass a reasoned order after hearing all parties.

Law Points

  • Natural justice
  • Opportunity of hearing
  • Recovery certificate
  • Cooperative societies
  • Section 101 Maharashtra Co-operative Societies Act
  • 1960
  • Rules 86A to 86F
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Case Details

2024 LawText (BOM) (03) 170

Writ Petition No.1132 of 2024 and Writ Petition No.1136 of 2024

2024-03-20

Bharat P. Deshpande, J.

2024:BHC-NAG:3568

Mr. R. K. Thakkar for Petitioners, Mr. A. V. Palshikar, AGP for Respondent No.1/State, Mr. Nitin Bhishikar for Respondent No.2

Vidhi W/o Manoj Pandit and Manoj S/o Vishprasad Pandit (in WP 1132/2024); Manoj S/o Vishprasad Pandit (in WP 1136/2024)

State of Maharashtra, Recovery Officer, Bhagatsingh Nagri Pat Sanstha, and The President, Bhagatsingh Nagri Pat Sanstha

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Nature of Litigation

Writ petitions challenging a recovery certificate issued under Section 101 of the Maharashtra Co-operative Societies Act, 1960.

Remedy Sought

Petitioners sought quashing of the recovery certificate and a direction for fresh consideration after giving an opportunity of hearing.

Filing Reason

The recovery certificate was issued without following the procedure under Rules 86A to 86F and without giving the petitioners an opportunity to be heard.

Issues

Whether the recovery certificate under Section 101 of the Maharashtra Co-operative Societies Act, 1960 was validly issued without following the procedure under Rules 86A to 86F. Whether the principles of natural justice were violated as no opportunity of hearing was given to the petitioners.

Submissions/Arguments

Petitioners argued that no procedure under Rules 86A to 86F was followed, no case was registered, and the order was passed mechanically without application of mind. Learned AGP submitted that instructions were awaited and sought postponement.

Ratio Decidendi

A recovery certificate under Section 101 of the Maharashtra Co-operative Societies Act, 1960 cannot be issued without following the procedure under Rules 86A to 86F and without giving the affected party an opportunity of hearing, as it violates principles of natural justice.

Judgment Excerpts

Both these matters are filed challenging the order passed by the Assistant Registrar, Co-operative Societies, Umrer Taluka against the petitioner thereby issuing the recovery certificate under Section 101 of the Maharashtra Co-operative Societies Act, 1960. The learned counsel for the petitioner would submit that first of all no procedure has been followed as provided under Rule 86A to 86F and that no case is registered on an application filed by respondent No.2. The impugned order is passed mechanically and without application of mind and more specifically such order nowhere show a case number, the date of order or the person who appeared before him on the day when the matter was fixed.

Procedural History

The petitioners filed writ petitions challenging the recovery certificate issued by the Assistant Registrar. The court heard the parties and set aside the order, remitting the matter for fresh consideration.

Acts & Sections

  • Maharashtra Co-operative Societies Act, 1960: Section 101
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