Case Note & Summary
The petitioner, Airoli Neha Apartment Co-op. Housing Society Ltd., filed a writ petition under Articles 226 and 227 of the Constitution of India challenging an order dated 13 August 2019 passed by the Hon'ble Minister for Cooperation in Revision Application No. 450 of 2018. By that order, the Minister allowed the revision filed by respondent no. 2 (M/s. Yogesh Enterprises) and directed de-registration of the petitioner-society. The land in question was allotted by CIDCO to Smt. Babibai Joshi, and respondent no. 2 was the developer who assigned development rights to respondent no. 3. Construction was completed, but respondent no. 2 failed to form a cooperative society as required under the Maharashtra Apartment Ownership Act, 1970. Consequently, the flat purchasers approached the Deputy Registrar of Cooperative Societies, who granted registration to the petitioner on 14 February 2012. Respondent no. 2, due to disputes with respondent no. 3, challenged the formation of the society by filing a revision under Section 154 of the Maharashtra Cooperative Societies Act, 1960. The Minister allowed the revision and ordered de-registration on the grounds that building permission was not granted and no completion certificate was obtained. The petitioner argued that these reasons were outside the Minister's jurisdiction, as issues of building legality fall within the purview of civil courts or planning authorities. The High Court agreed, holding that the revisional authority under Section 154 cannot decide on matters of building permissions or completion certificates. The impugned order was set aside as without jurisdiction, and the writ petition was allowed.
Headnote
A) Cooperative Societies - De-registration - Jurisdiction of Revisional Authority - Section 154, Maharashtra Cooperative Societies Act, 1960 - The Hon'ble Minister for Cooperation, while allowing a revision under Section 154, ordered de-registration of the petitioner-society on grounds that building permission was not granted and no completion certificate was obtained. The High Court held that such issues concerning legality of construction are beyond the scope of the revisional authority under the Act and can only be adjudicated by a civil court or the competent planning authority. The impugned order was set aside as being without jurisdiction. (Paras 1-6)
B) Cooperative Societies - Formation of Society - Duty of Developer - Maharashtra Apartment Ownership Act, 1970 - The developer failed to form a cooperative society as mandated by law. The flat purchasers approached the Registrar and obtained registration on 14 February 2012. The revisional authority's order de-registering the society was quashed as the grounds were extraneous to the Act. (Paras 2-6)
Issue of Consideration
Whether the Hon'ble Minister for Cooperation, while exercising revisional jurisdiction under Section 154 of the Maharashtra Cooperative Societies Act, 1960, could de-register a cooperative society on grounds relating to legality of building construction, such as absence of building permission and completion certificate
Final Decision
The writ petition is allowed. The impugned order dated 13 August 2019 passed by the Hon'ble Minister for Cooperation in Revision Application No. 450 of 2018 is quashed and set aside.
Law Points
- Jurisdiction of revisional authority under Section 154 of Maharashtra Cooperative Societies Act
- 1960 is limited to matters under the Act
- cannot decide on building permissions or completion certificates which are within the domain of civil courts or planning authorities
Case Details
2023 LawText (BOM) (01) 220
WRIT PETITION NO. 3578 OF 2020
Ms. R.C. Nichani a/w. Mr. A.A. Maniyar for the petitioner; Mr. K.S. Thorat, AGP for the State/Respondent no. 1; Mr. Sharad Bhosale i/b. Mr. Dilip Bodake for respondent no. 2; Mr. Rohit P. Sakhadeo a/w. Mr. Pushkar Nagpurkar for respondent no. 5
Airoli Neha Apartment Co-op. Housing Society Ltd.
The State of Maharashtra & Ors.
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Nature of Litigation
Writ petition under Articles 226 and 227 of the Constitution of India challenging an order of the Hon'ble Minister for Cooperation de-registering the petitioner cooperative society.
Remedy Sought
The petitioner sought quashing of the impugned order dated 13 August 2019 passed by the Hon'ble Minister for Cooperation in Revision Application No. 450 of 2018, which ordered de-registration of the petitioner-society.
Filing Reason
The petitioner-society was formed and registered on 14 February 2012 by the Deputy Registrar of Cooperative Societies after the developer failed to form a society. Respondent no. 2 filed a revision under Section 154 of the Maharashtra Cooperative Societies Act, which was allowed by the Minister on grounds of lack of building permission and completion certificate, leading to de-registration.
Previous Decisions
The Deputy Registrar of Cooperative Societies granted registration to the petitioner on 14 February 2012. The Hon'ble Minister for Cooperation allowed Revision Application No. 450 of 2018 filed by respondent no. 2, ordering de-registration of the petitioner-society.
Issues
Whether the Hon'ble Minister for Cooperation, while exercising revisional jurisdiction under Section 154 of the Maharashtra Cooperative Societies Act, 1960, could de-register a cooperative society on grounds relating to legality of building construction, such as absence of building permission and completion certificate.
Submissions/Arguments
The petitioner argued that the reasons for de-registration (lack of building permission and completion certificate) were completely outside the jurisdiction of the Hon'ble Minister, as such issues can only be decided by a civil court or the competent planning authority. The impugned order was per se without jurisdiction and deserved to be set aside.
Ratio Decidendi
The revisional authority under Section 154 of the Maharashtra Cooperative Societies Act, 1960 cannot decide on matters relating to building permissions or completion certificates, as such issues are beyond the scope of the Act and fall within the jurisdiction of civil courts or competent planning authorities. Therefore, the order de-registering the society on such grounds is without jurisdiction.
Judgment Excerpts
This petition under Articles 226 and 227 of the Constitution of India assails an order dated 13 August, 2019 passed by the Hon’ble Minister for Cooperation in Revision Application No. 450 of 2018 filed on behalf of respondent no. 2 whereby allowing the revision the petitioner-society has been ordered to be de-registered.
She has submitted that the reasons are inter alia that a building permission was not granted to complete the construction and that there was no completion certificate and on such reasons the petitioner-society has been de-registered. She would submit that the Hon’ble Minister could not have delved on such disputed issues on the legality of the construction of the building.
Procedural History
The Deputy Registrar of Cooperative Societies granted registration to the petitioner-society on 14 February 2012. Respondent no. 2 filed Revision Application No. 450 of 2018 before the Hon'ble Minister for Cooperation under Section 154 of the Maharashtra Cooperative Societies Act, 1960. The Minister allowed the revision and ordered de-registration of the petitioner-society on 13 August 2019. The petitioner then filed the present writ petition under Articles 226 and 227 of the Constitution of India before the Bombay High Court, which was allowed on 19 January 2023.
Acts & Sections
- Constitution of India: Articles 226, 227
- Maharashtra Cooperative Societies Act, 1960: Section 154
- Maharashtra Apartment Ownership Act, 1970:
