Case Note & Summary
The petitioners, Jeevan Niwas Co-operative Housing Society Ltd. and its Secretary, challenged an order dated 8/11/2010 passed by the Minister for Cooperation, Marketing and Textiles, Maharashtra State, under Article 227 of the Constitution of India. The Minister had set aside the order dated 15/1/2009 of the Divisional Joint Registrar of Co-operative Societies, thereby upholding the challenge by the fourth respondent, Bhupender Pamnani, to the certificate of registration of the petitioner society. The petitioner society was registered under the Maharashtra Co-operative Societies Act, 1960 on 16/1/1987. The building comprised 14 units, of which 10 were sold to purchasers who joined the society, and 4 unsold units were held by the developer, M/s. Jeevan Development Corporation, which held share certificates. The fourth respondent was a partner of the developer. The society had obtained a certificate under Section 101 of the Act in 1997. The fourth respondent sought de-registration of the society, alleging that the registration was invalid as the application was not signed by the requisite number of persons as required under Section 6 of the Act. The Divisional Joint Registrar had dismissed the challenge, but the Minister reversed that decision. The High Court examined the facts and found that the application for registration was signed by only 9 persons, whereas Section 6 requires at least 10 persons to form a society. The court held that the Minister's order was correct and that the society's registration was invalid ab initio. The court also noted that the certificate under Section 101 did not cure the defect in registration. The petition was dismissed, and the Minister's order was upheld.
Headnote
A) Co-operative Law - Registration of Society - Section 6 of Maharashtra Co-operative Societies Act, 1960 - Challenge to Registration - The court considered whether the Minister's order setting aside the registration of the society was valid. The court held that the Minister had correctly found that the society was not validly registered as it did not comply with Section 6 of the Act, which requires at least 10 persons to form a society, and the application for registration was not signed by the requisite number of persons. (Paras 1-10) B) Co-operative Law - Revisionary Powers - Section 154 of Maharashtra Co-operative Societies Act, 1960 - Scope of Revision - The court examined the scope of the Minister's revisional powers under Section 154. It held that the Minister could examine the legality and propriety of the order of registration and set it aside if found to be illegal. (Paras 11-15) C) Co-operative Law - Certificate under Section 101 - Maharashtra Co-operative Societies Act, 1960 - Effect of Certificate - The court noted that the certificate under Section 101 granted to the society in 1997 was not conclusive of the validity of registration, as the challenge to registration was on the ground of non-compliance with Section 6 at the time of formation. (Paras 16-20)
Issue of Consideration
Whether the order passed by the Minister for Cooperation under Section 154 of the Maharashtra Co-operative Societies Act, 1960, setting aside the registration of the petitioner society, is sustainable in law.
Final Decision
The High Court dismissed the writ petition and upheld the order of the Minister for Cooperation dated 8/11/2010, thereby confirming that the registration of the petitioner society was invalid.
Law Points
- Article 227 of the Constitution of India
- Section 6 of the Maharashtra Co-operative Societies Act
- 1960
- Section 101 of the Maharashtra Co-operative Societies Act
- Rule 7 of the Maharashtra Co-operative Societies Rules
- 1961
