Bombay High Court Holds Secretary Cannot Hear Appeals Under Section 152 of Maharashtra Co-operative Societies Act, 1960 — Rules Cannot Override Statute. Statutory appeals under Section 152 must be heard by the State Government or its delegated authority, not by the Secretary, as rules cannot override the Act.

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

The case involved a reference made by a learned single judge (G.S. Godbole, J.) regarding the power of the Secretary in the Co-operation Department of the State of Maharashtra to hear appeals under Section 152 of the Maharashtra Co-operative Societies Act, 1960 (MCS Act). The petitioners had filed statutory appeals under Section 152 before the State Government against orders passed by the Regional Joint Director (Sugar) and Joint Registrar, Co-operative Societies under Sections 11 and 25A of the MCS Act. The Secretary issued notices to the petitioners to appear before him for hearing of the appeals. The petitioners challenged this action, relying on a previous judgment of another learned single judge (R.M.S. Khandeparkar, J.) in Shri Ravindra V. Gaikwad v. The State of Maharashtra and others, which held that the Secretary has no power to hear such appeals because the statute vests appellate jurisdiction in the State Government, and rules cannot override the Act. The court considered the contention that Rule 105 of the Maharashtra Co-operative Societies Rules, 1961 might authorize the Secretary to hear appeals. However, the court held that rules framed under the Act cannot override the statutory provisions. Since Section 152 specifically provides that appeals lie to the State Government, they must be heard and decided by the State Government or by an authority to which the State Government delegates its power under the Act. The Secretary, not being the State Government or a delegated authority under the Act, has no power to hear the appeals. The court answered the reference accordingly, affirming that the Secretary cannot hear appeals under Section 152.

Headnote

A) Co-operative Law - Appellate Jurisdiction - Section 152 Maharashtra Co-operative Societies Act, 1960 - Rule 105 Maharashtra Co-operative Societies Rules, 1961 - The issue was whether the Secretary in the Co-operation Department could hear appeals under Section 152 of the MCS Act. The court held that when the statute specifically provides that appeals lie to the State Government, they must be heard and decided by the State Government or by the authority to which the State Government delegates its power under the Act. Rules framed under the Act cannot override the statutory provisions. The Secretary, not being the State Government or a delegated authority under the Act, has no power to hear such appeals. (Paras 2-3)

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Issue of Consideration

Whether the Secretary in the Co-operation Department of the State of Maharashtra has the power to hear appeals under Section 152 of the Maharashtra Co-operative Societies Act, 1960, in view of Rule 105 of the Maharashtra Co-operative Societies Rules, 1961.

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Final Decision

The court answered the reference holding that the Secretary has no power to hear appeals under Section 152 of the Maharashtra Co-operative Societies Act, 1960. Rules framed under the Act cannot override the statutory provisions. The appeals must be heard and decided by the State Government or by the authority to which the State Government delegates its power under the Act.

Law Points

  • Statutory appeal must be heard by State Government or authorized authority
  • Rules cannot override Act
  • Section 152 MCS Act
  • Rule 105 of Maharashtra Co-operative Societies Rules
  • 1961
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Case Details

2012 LawText (BOM) (05) 25

Writ Petition No. 1800 of 2012, 1801 of 2012, 1802 of 2012, 1803 of 2012

2012-05-03

Mohit S. Shah, C.J., N.M. Jamdar, J.

Mr. Amit Borkar for the petitioner, Mr. S.S. Patwardhar with Mr. V.B. Rajure for the respondents, Ms. P.S. Cardozo, Assistant Government Pleader for State

Sadashivrao Mandalik Kagal Taluka Sahakari Sakhar Karkhana Ltd. and others

Regional Jt. Director (Sugar), Kolhapur Region, Kolhapur and others

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Nature of Litigation

Reference regarding the power of the Secretary to hear appeals under Section 152 of the MCS Act.

Remedy Sought

Petitioners sought to quash notices issued by the Secretary to appear before him for hearing of their statutory appeals.

Filing Reason

The Secretary issued notices to the petitioners to appear before him for hearing of appeals under Section 152, which the petitioners contended was without authority.

Previous Decisions

A learned single judge (R.M.S. Khandeparkar, J.) in Shri Ravindra V. Gaikwad v. The State of Maharashtra and others held that the Secretary has no power to hear appeals under Section 152.

Issues

Whether the Secretary in the Co-operation Department has the power to hear appeals under Section 152 of the Maharashtra Co-operative Societies Act, 1960.

Submissions/Arguments

Petitioners argued that the Secretary has no power to hear appeals under Section 152, relying on the judgment in Shri Ravindra V. Gaikwad v. The State of Maharashtra and others. Respondents contended that Rule 105 of the Maharashtra Co-operative Societies Rules, 1961 authorizes the Secretary to hear appeals.

Ratio Decidendi

When a statute specifically provides that appeals lie to the State Government, they must be heard and decided by the State Government or by an authority to which the State Government delegates its power under the Act. Rules framed under the Act cannot override the statutory provisions. The Secretary, not being the State Government or a delegated authority under the Act, has no power to hear such appeals.

Judgment Excerpts

It is well established that the rules framed under the Act cannot override the statutory provisions in the Act. When the statute specifically provides that the appeals lie to the State Government, they are necessarily to be heard and decided by the State Government or by the authority to which the State Government delegates its power under the Act.

Procedural History

The petitions were filed before a learned single judge (G.S. Godbole, J.) who made a reference to a larger bench regarding the power of the Secretary to hear appeals under Section 152. The reference was heard by a Division Bench (Mohit S. Shah, C.J. and N.M. Jamdar, J.) which delivered the judgment on 3 May 2012.

Acts & Sections

  • Maharashtra Co-operative Societies Act, 1960: Section 11, Section 25A, Section 152
  • Maharashtra Co-operative Societies Rules, 1961: Rule 105
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