Bombay High Court Allows Appeal in Cooperative Society Dispute Over Member Access to Documents. Right of Members to Inspect and Obtain Copies of Society Records Under Section 147 of Maharashtra Cooperative Societies Act, 1960 is a Statutory Right Not Subject to Unreasonable Restrictions.

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

The appellant, Sadashivrao Mandlik Kagal Taluka Sahakari Sakhar Karkhana Ltd., a specified cooperative society engaged in sugar manufacturing, appealed against the judgment of a learned Single Judge of the Bombay High Court. The Single Judge had allowed a writ petition filed by respondent Nos.2 to 6, who were members of the appellant society, and set aside an order of remand passed by respondent No.7, the appellate authority under Section 152(a) of the Maharashtra Cooperative Societies Act, 1960. The factual background is that respondent Nos.2 to 6 applied to the appellant on 7 July 2010 for a list of its members, and on 26 July 2010 for certified copies of agenda and minutes of board meetings from 1 April 2008 to 30 June 2010. The appellant did not supply these documents. The Regional Joint Director (Sugar) (respondent No.1) directed the appellant to supply the list of members after receiving copying charges, but the documents were still not provided. Respondent Nos.2 to 6 then approached the appellate authority, which by order dated 30 December 2010 remanded the matter back to respondent No.1 for reconsideration. The appellant challenged this remand order before the High Court in Writ Petition No.1133 of 2011. The learned Single Judge allowed the writ petition and set aside the remand order. The appellant then filed the present Letters Patent Appeal. The Division Bench of the Bombay High Court, consisting of Justices P.B. Majmudar and A.A. Sayed, heard the appeal. The court noted that the appellate authority had not finally decided the issue but had only remanded the matter for reconsideration. The court held that the Single Judge ought not to have interfered with the remand order at that stage. The court observed that the members have a statutory right under Section 147 of the Act to inspect and obtain copies of the society's records, and the society cannot unreasonably deny such access. The court allowed the appeal, set aside the judgment of the Single Judge, and restored the order of remand passed by the appellate authority. The court directed respondent No.1 to decide the matter afresh in accordance with law, after giving an opportunity of hearing to all concerned parties.

Headnote

A) Cooperative Law - Right of Members to Inspect Records - Section 147 Maharashtra Cooperative Societies Act, 1960 - Members have a statutory right to inspect and obtain copies of the list of members and minutes of board meetings. The society cannot unreasonably deny access. The appellate authority's remand order for reconsideration was proper and the Single Judge ought not to have interfered. (Paras 1-10)

B) Appellate Authority - Remand Power - Section 152(a) Maharashtra Cooperative Societies Act, 1960 - The appellate authority has the power to remand the matter for fresh consideration. The Single Judge's interference with the remand order was not justified as the appellate authority had not finally decided the issue but only remanded for reconsideration. (Paras 5-10)

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Issue of Consideration

Whether the learned Single Judge was justified in setting aside the order of remand passed by the appellate authority under Section 152(a) of the Maharashtra Cooperative Societies Act, 1960, which had remanded the matter back to the Regional Joint Director (Sugar) for reconsideration of the issue of supply of documents to the members.

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Final Decision

The appeal is allowed. The judgment and order of the learned Single Judge dated 28th June 2011 in Writ Petition No.1133 of 2011 is set aside. The order of remand passed by respondent No.7 (appellate authority) is restored. Respondent No.1 is directed to decide the matter afresh in accordance with law, after giving an opportunity of hearing to all concerned parties.

Law Points

  • Right of members to inspect and obtain copies of society records
  • Section 147 Maharashtra Cooperative Societies Act
  • 1960
  • Statutory right
  • Unreasonable restrictions
  • Appellate authority's power under Section 152(a)
  • Remand order
  • Writ jurisdiction
  • Interference with remand order
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Case Details

2011:BHC-AS:13730-DB

Letters Patent Appeal No.148 of 2011 in Writ Petition No.1133 of 2011 with Civil Application No.181 of 2011

2011-06-28

P.B. Majmudar, A.A. Sayed

2011:BHC-AS:13730-DB

Mr.A.A.Kumbhakoni i/by Mr.Amit B. Borkar for appellant; Mr.Y.S.Jahagirdar, Senior Advocate i/by Mr.S.S.Kulkarni for respondent Nos.2 to 6; Mr.R.M.Patne, AGP for respondent Nos.1 and 7

Sadashivrao Mandlik Kagal Taluka Sahakari Sakhar Karkhana Ltd.

The Regional Jt. Director (Sugar) & Ors.

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Nature of Litigation

Appeal against judgment of Single Judge setting aside remand order of appellate authority under Section 152(a) of Maharashtra Cooperative Societies Act, 1960.

Remedy Sought

Appellant sought to set aside the Single Judge's order and restore the remand order of the appellate authority.

Filing Reason

The appellant society challenged the Single Judge's interference with the remand order passed by the appellate authority.

Previous Decisions

The appellate authority (respondent No.7) had remanded the matter to respondent No.1 for reconsideration. The Single Judge set aside that remand order.

Issues

Whether the learned Single Judge was justified in setting aside the order of remand passed by the appellate authority under Section 152(a) of the Maharashtra Cooperative Societies Act, 1960.

Submissions/Arguments

Appellant argued that the Single Judge erred in interfering with the remand order as the appellate authority had not finally decided the issue. Respondent Nos.2 to 6 argued that the Single Judge correctly set aside the remand order as the appellate authority had no power to remand.

Ratio Decidendi

The appellate authority under Section 152(a) of the Maharashtra Cooperative Societies Act, 1960 has the power to remand the matter for reconsideration. The Single Judge ought not to have interfered with such a remand order at the interlocutory stage. Members have a statutory right under Section 147 of the Act to inspect and obtain copies of society records, and the society cannot unreasonably deny such access.

Judgment Excerpts

This appeal is directed against the judgment and order passed by the learned Single Judge in Writ Petition No.1133 of 2011, by which the learned Single Judge allowed the writ petition filed by respondent Nos.2 to 6 herein and set aside the order of remand passed by the respondent No.7. The appellate authority had not finally decided the issue but had only remanded the matter for reconsideration. The Single Judge ought not to have interfered with the remand order at that stage.

Procedural History

Respondent Nos.2 to 6 applied for documents on 7 July 2010 and 26 July 2010. Documents not supplied. Respondent No.1 directed supply. Still not supplied. Respondent Nos.2 to 6 approached appellate authority under Section 152(a). Appellate authority remanded matter to respondent No.1 on 30 December 2010. Appellant filed Writ Petition No.1133 of 2011. Single Judge allowed writ petition and set aside remand order on 28 June 2011. Appellant filed Letters Patent Appeal No.148 of 2011. Division Bench allowed appeal and restored remand order.

Acts & Sections

  • Maharashtra Cooperative Societies Act, 1960: Section 147, Section 152(a)
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