Case Note & Summary
The petitioner, Mira Bhayander Mahanagarpalika Shramik Sahakari Karmachari Sahakari Patsanstha Limited, an employees' society registered under the Maharashtra Cooperative Societies Act, 1960, challenged an order passed by the Minister (Cooperation) in Revision Application No.8 of 2020. The Minister had upheld an order dated 19 December 2019 passed by the Divisional Joint Registrar, Konkan Division, in Appeal No.49 of 2018, which allowed the appeal of respondent No.3 society and directed the deregistration of the petitioner society under Section 21A of the Act. The petitioner contended that Section 21A does not confer power to deregister a society; such power is only under Section 22. Additionally, the revision under Section 154 could not be invoked against an order under Section 21A as it is not a quasi-judicial order. The High Court agreed, holding that Section 21A only empowers the Registrar to direct a society to take certain steps or to take over its management, but not to order deregistration. The power to cancel registration is exclusively under Section 22. The Court further held that the revisional power under Section 154 can be exercised only against quasi-judicial orders, and an order under Section 21A is administrative in nature. Therefore, the Minister lacked jurisdiction. The Court also noted that even if Section 21A were applicable, the order was passed without affording an opportunity of hearing, violating natural justice. The petition was allowed, the impugned orders were quashed, and the rule was made absolute with no order as to costs.
Headnote
A) Cooperative Law - Deregistration of Society - Section 21A, 22, 154 Maharashtra Cooperative Societies Act, 1960 - Jurisdiction of Minister - The Minister (Cooperation) in revision under Section 154 upheld the order of the Divisional Joint Registrar directing deregistration of the petitioner society under Section 21A. The High Court held that Section 21A does not empower the Registrar to order deregistration; such power is exclusively under Section 22. Consequently, the revision order was without jurisdiction and set aside. (Paras 10-15)
B) Cooperative Law - Revision under Section 154 - Scope - Section 154 Maharashtra Cooperative Societies Act, 1960 - The revisional power under Section 154 can be exercised only against quasi-judicial orders. An order under Section 21A is not a quasi-judicial order but an administrative direction. Therefore, the Minister could not entertain a revision against such an order. (Paras 12-14)
C) Cooperative Law - Principles of Natural Justice - Section 21A Maharashtra Cooperative Societies Act, 1960 - Even if Section 21A were applicable, the order directing deregistration was passed without affording an opportunity of hearing to the petitioner society, violating principles of natural justice. (Para 16)
Issue of Consideration
Whether the Minister (Cooperation) had jurisdiction under Section 21A read with Section 154 of the Maharashtra Cooperative Societies Act, 1960, to order deregistration of a society, and whether the order was sustainable in law.
Final Decision
The High Court allowed the writ petition, quashed the order dated 19 December 2019 passed by the Divisional Joint Registrar in Appeal No.49 of 2018 and the order dated 3 May 2023 passed by the Minister in Revision Application No.8 of 2020. Rule made absolute with no order as to costs.
Law Points
- Section 21A of Maharashtra Cooperative Societies Act
- 1960
- does not confer power to order deregistration of a society
- such power is only under Section 22
- revision under Section 154 cannot be exercised against an order under Section 21A as it is not a quasi-judicial order
- principles of natural justice must be followed before passing adverse orders.
Case Details
2023 LawText (BOM) (05) 44
Writ Petition No. 650 of 2022
Mr. Sandesh Patil i/b Mr. Prithviraj Gole for Petitioner; Mr. Kishor Patil a/w Mr. Shantanu Raktale and Saurav Katkar i/b Mr. Amar Parsekar for Respondent No.3; Mr. P. P. Pujari, AGP for State/Respondent Nos.1,2 & 4
Mira Bhayander Mahanagarpalika Shramik Sahakari Karmachari Sahakari Patsanstha Limited
The Divisional Joint Registrar, Konkan Division, Navi Mumbai & Ors.
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Nature of Litigation
Writ petition under Article 227 of the Constitution of India challenging the order of the Minister (Cooperation) upholding deregistration of the petitioner society under Section 21A of the Maharashtra Cooperative Societies Act, 1960.
Remedy Sought
Quashing of the order dated 19 December 2019 passed by the Divisional Joint Registrar in Appeal No.49 of 2018 and the order dated 3 May 2023 passed by the Minister in Revision Application No.8 of 2020.
Filing Reason
The petitioner society was ordered to be deregistered under Section 21A of the Act, which the petitioner contended was without jurisdiction and in violation of natural justice.
Previous Decisions
The Divisional Joint Registrar allowed the appeal of respondent No.3 and ordered deregistration of the petitioner society under Section 21A. The Minister upheld that order in revision.
Issues
Whether Section 21A of the Maharashtra Cooperative Societies Act, 1960, empowers the Registrar to order deregistration of a society?
Whether the revisional power under Section 154 of the Act can be exercised against an order under Section 21A?
Whether the impugned orders were passed in violation of principles of natural justice?
Submissions/Arguments
Petitioner argued that Section 21A does not confer power to deregister a society; such power is only under Section 22. The revision under Section 154 is not maintainable against an administrative order under Section 21A.
Respondent No.3 argued that the orders were valid and within jurisdiction.
Ratio Decidendi
Section 21A of the Maharashtra Cooperative Societies Act, 1960, does not empower the Registrar to order deregistration of a society; such power is exclusively under Section 22. The revisional power under Section 154 can be exercised only against quasi-judicial orders, and an order under Section 21A is administrative in nature. Therefore, the Minister lacked jurisdiction to entertain the revision. Additionally, the order was passed without affording an opportunity of hearing, violating principles of natural justice.
Judgment Excerpts
Section 21A of the Act, 1960 does not empower the Registrar to order deregistration of a society. The power to cancel the registration of a society is conferred by Section 22 of the Act.
The revisional power under Section 154 of the Act can be exercised only against quasi-judicial orders. An order under Section 21A is not a quasi-judicial order but an administrative direction.
Even if Section 21A were applicable, the order directing deregistration was passed without affording an opportunity of hearing to the petitioner society, violating principles of natural justice.
Procedural History
The petitioner society was registered under the Maharashtra Cooperative Societies Act, 1960. Respondent No.3 society filed an appeal before the Divisional Joint Registrar, who by order dated 19 December 2019 allowed the appeal and directed deregistration of the petitioner under Section 21A. The petitioner filed a revision before the Minister (Cooperation), who by order dated 3 May 2023 upheld the Registrar's order. The petitioner then filed the present writ petition under Article 227 of the Constitution of India.
Acts & Sections
- Maharashtra Cooperative Societies Act, 1960: 21A, 22, 154
- Constitution of India: 227
