Case Note & Summary
The petitioner, Mateshwari Agro Chemicals, a partnership firm and creditor of respondent no.5 society (Sharad Sahakari Misra Khat Karkhana), filed a writ petition challenging the order dated 24.05.2022 passed by the Minister of Co-operation and Marketing, Maharashtra. The Minister had set aside the order dated 18.10.2021 of the Divisional Joint Registrar of Co-operative Societies, Aurangabad, which directed winding up of the society under Section 102 of the Maharashtra Co-operative Societies Act, 1960 and appointed a Liquidator. The society was registered in 1995-96 to provide fertilizers to its members. It received Rs.13 lacs from the petitioner on 31.03.1998 but failed to repay. The petitioner filed a dispute under Section 91 of the Act, which was decreed in its favour. The society did not pay the decretal amount, leading to execution proceedings. The Divisional Joint Registrar, after hearing the society, passed the winding up order. The Minister, in suo motu revision under Section 154, set aside the winding up order without hearing the petitioner or the Liquidator. The High Court held that the Minister exceeded his revisional jurisdiction as the winding up order was not perverse or illegal. The Minister could not substitute his own opinion. The court also held that the petitioner, as a creditor, had locus standi. The Minister's order was quashed, and the winding up order and appointment of Liquidator were restored.
Headnote
A) Co-operative Law - Winding Up - Section 102, Maharashtra Co-operative Societies Act, 1960 - The Divisional Joint Registrar passed an order dated 18.10.2021 directing winding up of the respondent no.5 society and appointing a Liquidator. The Minister of Co-operation and Marketing, in exercise of suo motu revisional powers under Section 154, set aside the winding up order on 24.05.2022 without hearing the petitioner or the Liquidator. The High Court held that the Minister exceeded his jurisdiction as the order was not perverse or illegal, and the Minister could not substitute his own opinion. The Minister's order was quashed and set aside. (Paras 1, 8-10) B) Co-operative Law - Locus Standi - Section 102, Maharashtra Co-operative Societies Act, 1960 - The petitioner, a creditor of the society, challenged the Minister's order setting aside winding up. The court held that the petitioner had locus standi as a creditor and was an aggrieved person. The Minister's order was set aside, restoring the winding up order and appointment of Liquidator. (Paras 5, 10) C) Co-operative Law - Revisional Powers - Section 154, Maharashtra Co-operative Societies Act, 1960 - The Minister's suo motu revisional powers under Section 154 are limited and cannot be exercised to set aside a winding up order without giving opportunity of hearing to affected parties. The Minister's order was without jurisdiction and unsustainable. (Paras 8-10)
Issue of Consideration
Whether the Minister of Co-operation and Marketing had the jurisdiction to set aside the order of winding up passed by the Divisional Joint Registrar under Section 102 of the Maharashtra Co-operative Societies Act, 1960, and whether the petitioner had locus standi to challenge the Minister's order.
Final Decision
The writ petition is allowed. The order dated 24.05.2022 passed by the Minister of Co-operation and Marketing is quashed and set aside. The order dated 18.10.2021 passed by the Divisional Joint Registrar directing winding up of respondent no.5 society and appointment of Liquidator is restored.
Law Points
- Revisional powers under Section 154 of Maharashtra Co-operative Societies Act
- 1960
- cannot be exercised to set aside a winding up order without giving opportunity of hearing
- Minister's order without jurisdiction
- Liquidator's appointment valid
