Case Note & Summary
The petitioners, Matru Ashish Cooperative Housing Society Ltd. and its member Shashikant R. Doshi, filed a writ petition challenging an order dated 1st August, 2001 issued by the State Government of Maharashtra under Section 79A of the Maharashtra Cooperative Societies Act, 1960. The order directed cooperative housing societies in the state to charge non-occupancy charges on a particular basis. The petitioners argued that the order was prejudicial to the interests of the society. The matter had previously been considered by a Division Bench of the Bombay High Court in Writ Petition No. 2635 of 2001, Mont Blanc Cooperative Housing Society Ltd. v. State of Maharashtra, which by judgment dated 2nd March, 2007 held that the power under Section 79A cannot be exercised so as to be prejudicial to the interest of the society, but the directions issued are binding on the societies. The Division Bench reproduced paragraph 12 of that judgment, which explained that Section 79A empowers the State Government to issue directions to any class of societies generally if satisfied that it is necessary in public interest or for securing proper implementation of cooperative production or for preventing affairs being conducted in a manner detrimental to members' interest, and all societies concerned are bound to comply. Sub-section (2) allows modification or cancellation of such directions. The court in the present petition, following the earlier Division Bench decision, held that the impugned order is binding on the petitioners and dismissed the petition with no order as to costs.
Headnote
A) Cooperative Law - Power of State Government to Issue Directions - Section 79A Maharashtra Cooperative Societies Act, 1960 - The State Government issued an order under Section 79A directing cooperative housing societies to charge non-occupancy charges on a particular basis. The Division Bench in Mont Blanc Cooperative Housing Society Ltd. v. State of Maharashtra held that the power under Section 79A cannot be exercised so as to be prejudicial to the interest of the society, but the directions issued are binding on the societies. The court in the present petition followed that decision and dismissed the petition. (Paras 2-4)
Issue of Consideration
Whether the State Government's order dated 1st August, 2001 under Section 79A of the Maharashtra Cooperative Societies Act, 1960 directing cooperative housing societies to charge non-occupancy charges on a particular basis is valid and binding on the societies
Final Decision
The petition is dismissed. The impugned order dated 1st August, 2001 is binding on the petitioners. No order as to costs.
Law Points
- Section 79A of the Maharashtra Cooperative Societies Act
- 1960 empowers State Government to issue directions to cooperative societies in public interest or for proper implementation of cooperative production or to prevent detrimental conduct
- and such directions are binding on societies
