Bombay High Court Dismisses Petition Challenging Appointment of Administrator to Cooperative Bank Under Section 77 of MCS Act — Alternative Remedy of Revision Under Section 154 Not Exhausted. Court Held That Writ Petition Is Not Maintainable When Statutory Remedy Is Available and No Exceptional Circumstances Exist.

High Court: Bombay High Court Bench: NAGPUR
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Case Note & Summary

The petitioners, thirteen individuals who are agriculturists and members of the Amravati District Central Cooperative Bank Ltd., filed a writ petition under Article 226 of the Constitution of India before the Bombay High Court, Nagpur Bench. They challenged the appointment of an administrator for the bank by the State Government under Section 77 of the Maharashtra Cooperative Societies Act, 1960. The petitioners contended that the appointment was arbitrary and without jurisdiction. However, the court noted that the petitioners had not availed the alternative remedy of revision under Section 154 of the Act, which provides for a statutory remedy before the State Government against the order appointing the administrator. The court observed that the existence of an efficacious alternative remedy is a bar to the maintainability of a writ petition unless exceptional circumstances are shown. The petitioners failed to demonstrate any such circumstances. Consequently, the court dismissed the writ petition as not maintainable, granting the petitioners liberty to file a revision petition under Section 154 within four weeks. The court clarified that it had not expressed any opinion on the merits of the case and that the revision authority would decide the matter in accordance with law.

Headnote

A) Cooperative Law - Appointment of Administrator - Section 77 of Maharashtra Cooperative Societies Act, 1960 - Alternative Remedy - Petitioners challenged appointment of administrator for Amravati District Central Cooperative Bank Ltd. without exhausting statutory remedy of revision under Section 154 of the Act - Court held that writ petition is not maintainable as efficacious alternative remedy exists - Dismissed petition with liberty to file revision (Paras 1-12).

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Issue of Consideration

Whether the writ petition challenging the appointment of an administrator under Section 77 of the Maharashtra Cooperative Societies Act, 1960 is maintainable when the petitioners have not availed the alternative remedy of revision under Section 154 of the said Act.

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Final Decision

The writ petition is dismissed as not maintainable. Petitioners are granted liberty to file a revision petition under Section 154 of the Maharashtra Cooperative Societies Act, 1960 within four weeks. The court has not expressed any opinion on the merits of the case.

Law Points

  • Exhaustion of alternative remedy
  • Maintainability of writ petition
  • Appointment of administrator under Section 77 of MCS Act
  • 1960
  • Revision under Section 154 of MCS Act
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Case Details

2022 LawText (BOM) (07) 125

Writ Petition No.6086/2017

2022-07-11

Aniruddha Subhanrao Deshmukh and 12 others

The State of Maharashtra and 5 others

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India challenging the appointment of an administrator for a cooperative bank.

Remedy Sought

Petitioners sought quashing of the appointment of an administrator for the Amravati District Central Cooperative Bank Ltd.

Filing Reason

Petitioners alleged that the appointment of administrator under Section 77 of the Maharashtra Cooperative Societies Act, 1960 was arbitrary and without jurisdiction.

Issues

Whether the writ petition is maintainable when the petitioners have not exhausted the alternative remedy of revision under Section 154 of the Maharashtra Cooperative Societies Act, 1960.

Submissions/Arguments

Petitioners argued that the appointment of administrator was arbitrary and without jurisdiction. Respondents contended that the petition is not maintainable as the petitioners have an efficacious alternative remedy of revision under Section 154 of the Act.

Ratio Decidendi

A writ petition under Article 226 is not maintainable when an efficacious alternative statutory remedy is available and the petitioner has not exhausted it, unless exceptional circumstances are shown. The existence of a remedy under Section 154 of the Maharashtra Cooperative Societies Act, 1960 bars the maintainability of the writ petition.

Judgment Excerpts

The petitioners have not availed the alternative remedy of revision under Section 154 of the Maharashtra Cooperative Societies Act, 1960. The writ petition is dismissed as not maintainable.

Procedural History

The petitioners filed Writ Petition No.6086/2017 before the Bombay High Court, Nagpur Bench, challenging the appointment of an administrator for the Amravati District Central Cooperative Bank Ltd. The court heard the matter and dismissed the petition on 11 July 2022.

Acts & Sections

  • Maharashtra Cooperative Societies Act, 1960: 77, 154
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