Case Note & Summary
The petitioner, Akola Municipal Corporation, had deposited Rs. 1,31,00,000 with the respondent no.1 Bank in a fixed deposit for 31 days at 9.5% interest. The Bank did not refund the amount, leading the petitioner to file a complaint before the National Consumer Disputes Redressal Commission. Meanwhile, an Official Liquidator was appointed for the Bank. The petitioner sought leave under Section 107 of the Maharashtra Cooperative Societies Act, 1960 to join the Liquidator as a party respondent. The Divisional Joint Registrar rejected the application on the ground that the Liquidator was not heard. The petitioner challenged this order by way of a writ petition under Articles 226 and 227 of the Constitution of India. The High Court held that Section 107 does not require notice to the Liquidator before granting leave to sue; leave can be granted ex parte. The court set aside the order of the Divisional Joint Registrar and directed that the application for leave be reconsidered in accordance with law.
Headnote
A) Cooperative Societies - Leave to Sue - Section 107 of the Maharashtra Cooperative Societies Act, 1960 - The court held that Section 107 does not require notice to the Liquidator before granting leave to sue. The leave can be granted ex parte, and the Liquidator is not a necessary party at that stage. The order of the Divisional Joint Registrar rejecting the application for leave to join the Liquidator was set aside. (Paras 2-5)
Issue of Consideration
Whether the Divisional Joint Registrar was justified in rejecting the petitioner's application for leave to join the Liquidator as a party respondent in the proceedings before the National Consumer Disputes Redressal Commission, on the ground that the Liquidator was not heard before granting such leave.
Final Decision
The High Court allowed the writ petition, set aside the order dated 30/12/2010 passed by the Divisional Joint Registrar, and directed the Divisional Joint Registrar to reconsider the application for leave in accordance with law.
Law Points
- Section 107 of the Maharashtra Cooperative Societies Act
- 1960
- does not require notice to the Liquidator before granting leave to sue
- Leave to sue can be granted ex parte
- The Liquidator is not a necessary party at the stage of grant of leave
- The order of the Divisional Joint Registrar rejecting the application for leave to join Liquidator was set aside
Case Details
2011 LawText (BOM) (08) 116
Writ Petition No.2222 of 2011
C.A. Joshi for petitioner, N.A. Gaikwad for respondent no.1, A.D. Sonak for respondent nos.2 and 3
Akola Municipal Corporation
The Vidarbha Urban Cooperative Bank Ltd., Divisional Joint Registrar, Cooperative Societies, State of Maharashtra, Registrar, National Consumer Disputes Redressal Commission
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Nature of Litigation
Writ petition challenging order of Divisional Joint Registrar rejecting application for leave to join Liquidator as party in consumer complaint proceedings.
Remedy Sought
Petitioner sought setting aside of the order dated 30/12/2010 passed by the Divisional Joint Registrar and direction to reconsider the application for leave.
Filing Reason
The Divisional Joint Registrar rejected the petitioner's application for leave under Section 107 of the Maharashtra Cooperative Societies Act, 1960 to join the Liquidator as a party respondent, on the ground that the Liquidator was not heard.
Previous Decisions
The Divisional Joint Registrar, Cooperative Societies, Amravati, passed an order on 30/12/2010 rejecting the petitioner's application for leave to join the Liquidator.
Issues
Whether the Divisional Joint Registrar was justified in rejecting the application for leave to join the Liquidator on the ground that the Liquidator was not heard.
Submissions/Arguments
Petitioner argued that Section 107 of the Maharashtra Cooperative Societies Act, 1960 does not require notice to the Liquidator before granting leave to sue.
Respondents argued that the Liquidator should have been heard before granting leave.
Ratio Decidendi
Section 107 of the Maharashtra Cooperative Societies Act, 1960 does not require notice to the Liquidator before granting leave to sue. The leave can be granted ex parte, and the Liquidator is not a necessary party at the stage of grant of leave.
Judgment Excerpts
The above petition filed under Articles 226 and 227 of the Constitution of India takes exception to the order dated 30/12/2010 passed by the Divisional Joint Registrar, Cooperative Societies, Amravati whereby the Application filed by the petitioner for grant of leave under Section 107 of the Maharashtra Cooperative Societies Act, 1960 for joining the Liquidator as a party respondent to the proceedings filed by the petitioner before the National Consumer Disputes Redressal Commission came to be rejected.
The learned Counsel for the petitioner would contend that Section 107 of the Maharashtra Cooperative Societies Act, 1960 does not require any notice to be given to the Liquidator before granting leave to sue.
Procedural History
The petitioner filed a complaint before the National Consumer Disputes Redressal Commission. An Official Liquidator was appointed for the respondent Bank. The petitioner filed an application under Section 107 of the Maharashtra Cooperative Societies Act, 1960 for leave to join the Liquidator as a party. The Divisional Joint Registrar rejected the application on 30/12/2010. The petitioner then filed the present writ petition under Articles 226 and 227 of the Constitution of India.
Acts & Sections
- Maharashtra Cooperative Societies Act, 1960: 107
- Constitution of India: 226, 227
