Case Note & Summary
The petitioners, Prerana Nagari Sahakari Bank Ltd. through its Chairman and CEO, filed a writ petition challenging an order dated 10.11.2021 passed by the Divisional Joint Registrar, Co-operative Societies, Aurangabad in Revision Application No. 20 of 2021. The dispute arose from the admission of 1666 new members by the petitioner society through a resolution of the managing committee on 22.03.2018. Respondent Nos. 4 to 7, who were aggrieved by this admission, approached the Assistant Registrar, Co-operative Societies, who held that the issue of validity of the resolution was not within his jurisdiction and advised them to file a dispute under Section 91 of the Maharashtra Co-operative Societies Act, 1960. This view was upheld by the District Deputy Registrar, Co-operative Societies, in appeal. However, the Divisional Joint Registrar, in revision, partly allowed the revision and remanded the matter to the District Deputy Registrar for fresh decision on the membership of the 1666 members. The petitioners challenged this remand order. The High Court held that the Registrar's jurisdiction under Section 22 of the Act is limited to verifying procedural compliance for membership admission and does not extend to adjudicating the validity of such admission. The court noted that the Assistant Registrar and District Deputy Registrar had correctly held that the issue was beyond their jurisdiction and that the proper remedy was to file a dispute under Section 91 before the Co-operative Court. The revisional authority under Section 154 could not assume jurisdiction that the original authority did not possess. Consequently, the High Court allowed the writ petition, quashed the order of the Divisional Joint Registrar, and restored the order of the District Deputy Registrar, leaving it open to respondent Nos. 4 to 7 to pursue their remedy before the Co-operative Court under Section 91.
Headnote
A) Co-operative Law - Jurisdiction of Registrar - Section 22 of Maharashtra Co-operative Societies Act, 1960 - The Registrar's power under Section 22 is limited to verifying procedural compliance for membership admission and does not extend to adjudicating the validity of such admission. The dispute regarding validity of membership admission must be raised before the Co-operative Court under Section 91 of the Act. (Paras 4-6) B) Co-operative Law - Revision - Section 154 of Maharashtra Co-operative Societies Act, 1960 - The revisional authority under Section 154 cannot assume jurisdiction that the original authority did not possess. The Divisional Joint Registrar erred in remanding the matter to the District Deputy Registrar for deciding the validity of membership admission, as the District Deputy Registrar had correctly held that such issue was beyond his jurisdiction. (Paras 5-6) C) Co-operative Law - Membership Admission - Section 22 of Maharashtra Co-operative Societies Act, 1960 - The Assistant Registrar and District Deputy Registrar had correctly held that the issue of validity of resolution admitting 1666 members was not within their jurisdiction and advised the aggrieved parties to file a dispute under Section 91. The revisional authority's order remanding the matter for fresh decision on membership was without jurisdiction and unsustainable. (Paras 2-6)
Issue of Consideration
Whether the Divisional Joint Registrar, Co-operative Societies, had jurisdiction under Section 22 of the Maharashtra Co-operative Societies Act, 1960 to decide the validity of admission of 1666 members by the petitioner society, or whether such dispute must be adjudicated by the Co-operative Court under Section 91 of the Act.
Final Decision
The High Court allowed the writ petition, quashed the order dated 10.11.2021 passed by the Divisional Joint Registrar in Revision Application No. 20 of 2021, and restored the order of the District Deputy Registrar. It left it open to respondent Nos. 4 to 7 to pursue their remedy before the Co-operative Court under Section 91 of the Maharashtra Co-operative Societies Act, 1960.
Law Points
- Jurisdiction of Registrar under Section 22 of Maharashtra Co-operative Societies Act
- 1960 is limited to verification of procedural compliance and does not extend to adjudicating validity of membership admission
- which falls within the exclusive jurisdiction of the Co-operative Court under Section 91 of the Act
- Remand by revisional authority without jurisdiction is unsustainable
