Case Note & Summary
The petitioners, complainants, sought a test audit of respondent No.6 society under Section 81(3)(c) of the Maharashtra Cooperative Societies Act, 1960. The Regional Joint Director (Sugar) appointed respondent No.5 as Special Auditor on 31 October 2023. Respondent No.6 challenged this order before respondent No.1 under Section 154, which granted a stay. The petitioners filed a writ petition challenging the stay. The court examined whether the order under Section 81(3)(c) is quasi-judicial or administrative. It held that such an order is administrative, as it merely directs a test audit without adjudicating rights. Consequently, revision under Section 154, which applies only to quasi-judicial decisions or orders, is not maintainable. The court allowed the petition, quashing the stay order and directing the test audit to proceed.
Headnote
A) Cooperative Law - Test Audit - Administrative Order - Section 81(3)(c) Maharashtra Cooperative Societies Act, 1960 - Order appointing special auditor for test audit is administrative in nature, not quasi-judicial, as it does not adjudicate rights or liabilities but is a step in audit process. (Paras 1-5, 10-11)
B) Cooperative Law - Revision - Maintainability - Section 154 Maharashtra Cooperative Societies Act, 1960 - Revision under Section 154 lies only against quasi-judicial decisions or orders that affect rights and liabilities; administrative orders under Section 81(3)(c) are not subject to revision. (Paras 5, 8-11)
C) Cooperative Law - Revisional Powers - Scope - Section 154 Maharashtra Cooperative Societies Act, 1960 - Revisional authority can examine legality, propriety, and regularity of proceedings only in respect of quasi-judicial orders; cannot quash administrative proceedings. (Paras 7-9)
Issue of Consideration
Whether an order under Section 81(3)(c) of the Maharashtra Cooperative Societies Act, 1960 is quasi-judicial or administrative; if administrative, whether revision under Section 154 is maintainable; and whether the Revisional Authority can quash proceedings under Section 154.
Final Decision
Writ petition allowed. Impugned order dated 31 October 2023 passed by respondent No.1 granting stay is quashed and set aside. The order of respondent No.4 appointing respondent No.5 as Special Auditor is restored. Respondent No.4 to proceed with test audit expeditiously.
Law Points
- Order under Section 81(3)(c) of Maharashtra Cooperative Societies Act
- 1960 is administrative
- not quasi-judicial
- Revision under Section 154 lies only against quasi-judicial decisions or orders
- Revisional authority cannot quash administrative proceedings under guise of examining regularity.
Case Details
2024 Lawtext (BOM) (5) 108
WRIT PETITION NO.3500 OF 2024
Mr. Bhavake (for petitioners), Mr. Shah (for respondent No.6)
Dattatraya Mahadev Ugale Ors.
The State of Maharashtra, Ors.
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Nature of Litigation
Writ petition challenging stay order passed by Revisional Authority under Section 154 of Maharashtra Cooperative Societies Act, 1960, staying appointment of Special Auditor under Section 81(3)(c).
Remedy Sought
Petitioners sought quashing of stay order and direction to proceed with test audit.
Filing Reason
Respondent No.6 society challenged the order appointing Special Auditor before Revisional Authority, which granted stay.
Previous Decisions
Regional Joint Director (Sugar) passed order dated 31 October 2023 appointing Special Auditor under Section 81(3)(c). Respondent No.1 granted stay to that order.
Issues
Whether an order under Section 81(3)(c) of the Maharashtra Cooperative Societies Act, 1960 is quasi-judicial or administrative.
If administrative, whether revision under Section 154 is maintainable.
Whether Revisional Authority under Section 154 can quash proceedings under the Act.
Submissions/Arguments
Petitioners argued that order under Section 81(3)(c) is administrative, so revision under Section 154 is not maintainable.
Respondent No.6 argued that such order is quasi-judicial as it affects rights and liabilities, relying on Chimanbhai Dadubhai Desai v. Chaturbhai P. Patel.
Ratio Decidendi
An order under Section 81(3)(c) of the Maharashtra Cooperative Societies Act, 1960 directing a test audit is an administrative order, not quasi-judicial, as it does not adjudicate rights or liabilities. Revision under Section 154 lies only against quasi-judicial decisions or orders, not administrative orders. The Revisional Authority cannot quash administrative proceedings under Section 154.
Judgment Excerpts
The precise questions which arise for consideration of this Court, based on the submissions made across the bar, may be formulated thus: (i) Whether an order under Section 81(3)(c) of the said Act is a quasi-judicial or administrative order; (ii) if such order is an administrative order, whether recourse to Section 154 of the said Act is available to the aggrieved party; and (iii) Whether Revisional Authority exercising power under Section 154 after examining 'regularity of proceedings' can quash and set aside the ‘proceedings’ under the Act and Rules.
In essence, the provision grants the State Government or the Registrar the authority to revise 'decision or order' made by subordinate officers, ensure their legality and properness, and make necessary modifications or reverse the same while also ensuring that the persons are afforded the opportunity to be heard.
The expression 'decision or order' under Section 154 of the Maharashtra Cooperative Societies Act holds significance in the context of quasi-judicial orders passed under various provisions of the Act.
Procedural History
Petitioners complained to respondent No.2, who directed respondent No.3 to direct respondent No.4 to conduct test audit. Respondent No.4 passed order on 31 October 2023 appointing Special Auditor. Respondent No.6 challenged that order before respondent No.1 under Section 154, which granted stay. Petitioners filed writ petition challenging stay.
Acts & Sections
- Maharashtra Cooperative Societies Act, 1960: 81, 81(3)(c), 82, 152, 153, 154, 154(1), 154(2), 3, 149(9)
