Bombay High Court Quashes Revisional Order in Cooperative Societies Dispute for Non-Compliance of Section 154(2A) — Directs Reconsideration of Delay Condonation Application. The court held that since the petitioner had deposited 50% of the certificate amount, there was compliance of Section 154(2A) of the Maharashtra Cooperative Societies Act, 1960, and the revisional authority erred in rejecting the revision on that ground without first deciding the pending delay condonation application.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
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Case Note & Summary

The petitioners, Sukhdeo Mahadu Chaudhari, Ashok Sukdeo Choudhari, and Anil Sukdeo Choudhary, filed a writ petition before the Bombay High Court, Bench at Aurangabad, challenging the judgment and order passed by the Divisional Joint Registrar, Cooperative Societies, Nashik, in revision application No. R Nil/2009. The revision application was filed by the petitioners challenging a certificate issued under Section 101 of the Maharashtra Cooperative Societies Act, 1960, by the competent authority for an amount of Rs.5,35,430 along with expenses of Rs.2,360 and interest. The revision was filed after an inordinate delay, accompanied by an application for condonation of delay. The revisional authority, however, rejected the revision application on the ground of non-compliance of Section 154(2A) of the Act, without deciding the pending delay condonation application. The petitioners contended that they had deposited 50% of the certificate amount at the time of filing the revision, which was accepted by the respondent-bank's counsel. The High Court observed that since there was compliance of Section 154(2A), the impugned order was liable to be quashed and set aside. The court directed the Divisional Joint Registrar to decide the delay condonation application after hearing the parties within two months from the date of appearance, and thereafter to consider the revision application on merits. The writ petition was allowed in those terms.

Headnote

A) Cooperative Societies - Revision - Section 154(2A) of the Maharashtra Cooperative Societies Act, 1960 - Pre-deposit Requirement - The revisional authority rejected the revision application on the ground of non-compliance of Section 154(2A) despite the petitioner having deposited 50% of the certificate amount. The High Court held that since there was compliance of Section 154(2A), the order impugned was liable to be quashed and set aside, and the revisional authority was directed to first decide the pending delay condonation application and then consider the revision on merits (Paras 3-5).

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Issue of Consideration

Whether the revisional authority could reject a revision application on the ground of non-compliance of Section 154(2A) of the Maharashtra Cooperative Societies Act, 1960, when the petitioner had already deposited 50% of the certificate amount and the delay condonation application was pending.

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Final Decision

The writ petition is allowed. The impugned order of the Divisional Joint Registrar is quashed and set aside. The Divisional Joint Registrar is directed to decide the application seeking condonation of delay in filing the revision application, after hearing the parties, within a period of two months from the date of appearance of the parties. The parties shall appear before the Divisional Joint Registrar on 1st February, 2010.

Law Points

  • Section 154(2A) of the Maharashtra Cooperative Societies Act
  • 1960
  • compliance with pre-deposit requirement
  • revisional authority's duty to decide delay condonation application before rejecting revision on merits
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Case Details

2010 LawText (BOM) (01) 14

Writ Petition No.8113 of 2009

2010-01-13

S. B. Deshmukh

M.M. Avhad for petitioners, V.B. Patil for respondent No.1, S.D. Shelke (AGP) for respondents 2 and 3

Sukhdeo Mahadu Chaudhari, Ashok Sukdeo Choudhari, Anil Sukdeo Choudhary

Dadasaheb Dr. N.M. Kabre Nagari Sahakari Bank Ltd., Assistant Registrar, Cooperative Societies, Divisional Joint Registrar, Cooperative Societies

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Nature of Litigation

Writ petition challenging the order of the Divisional Joint Registrar, Cooperative Societies, rejecting a revision application on the ground of non-compliance of Section 154(2A) of the Maharashtra Cooperative Societies Act, 1960.

Remedy Sought

The petitioners sought quashing of the revisional order and a direction to the revisional authority to decide the delay condonation application and the revision on merits.

Filing Reason

The revisional authority rejected the revision application without deciding the pending delay condonation application, on the ground that the petitioners had not complied with Section 154(2A) of the Act, despite the petitioners having deposited 50% of the certificate amount.

Previous Decisions

The Assistant Registrar issued a certificate under Section 101 of the Maharashtra Cooperative Societies Act, 1960, for Rs.5,35,430 plus expenses and interest. The petitioners filed a revision before the Divisional Joint Registrar, which was rejected on the ground of non-compliance of Section 154(2A).

Issues

Whether the revisional authority could reject the revision application on the ground of non-compliance of Section 154(2A) when the petitioner had deposited 50% of the certificate amount? Whether the revisional authority should have first decided the pending delay condonation application before rejecting the revision on merits?

Submissions/Arguments

Petitioners' counsel submitted that the petitioners had deposited 50% of the certificate amount at the time of filing the revision, thus complying with Section 154(2A) of the Act. Respondent No.1's counsel submitted that the delay condonation application was still pending and needed to be decided before the revision could be considered on merits.

Ratio Decidendi

The revisional authority cannot reject a revision application on the ground of non-compliance of Section 154(2A) of the Maharashtra Cooperative Societies Act, 1960, when the petitioner has deposited 50% of the certificate amount, as that constitutes compliance. The authority must first decide the pending delay condonation application before considering the revision on merits.

Judgment Excerpts

In my view, order impugned needs to be quashed and set aside since there is compliance of section under section 154 (2A) of the Maharashtra Cooperative Societies Act, 1960. Learned Divisional Joint Registrar Cooperative Societies Nashik is directed to decide the application seeking condonation of delay occurred in filing revision application by the present petitioners, after hearing the parties, within a period of two months from the date of appearance of the parties.

Procedural History

The Assistant Registrar issued a certificate under Section 101 of the Maharashtra Cooperative Societies Act, 1960, against the petitioners. The petitioners filed a revision application before the Divisional Joint Registrar, Cooperative Societies, Nashik, along with an application for condonation of delay. The revisional authority rejected the revision application on the ground of non-compliance of Section 154(2A) of the Act, without deciding the delay condonation application. The petitioners then filed the present writ petition before the Bombay High Court.

Acts & Sections

  • Maharashtra Cooperative Societies Act, 1960: 101, 154(2A)
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