Bombay High Court Quashes Divisional Joint Registrar's Order in Cooperative Society Membership Dispute — Upholds Society's Right to Reject Membership Under Section 23(2) of Maharashtra Cooperative Societies Act, 1960. The court held that the Divisional Joint Registrar exceeded revisional jurisdiction by re-appreciating evidence and substituting his own view without finding perversity in the Assistant Registrar's order.

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

The petitioner, Shree Natwar Co-operative Housing Society Ltd., challenged an order dated 23rd May 2017 passed by the Divisional Joint Registrar, Cooperative Societies, Mumbai Division, in Revision Application No.267 of 2014. The Divisional Joint Registrar had allowed the revision filed by respondent Nos.1 and 2 (Lalmohan Ghosh and Subarana Lalmohan Ghosh) and set aside the order dated 30th January 2013 passed by the Assistant Registrar, Cooperative Society, C-Ward, Mumbai, under Section 23(2) of the Maharashtra Cooperative Societies Act, 1960. The Assistant Registrar had rejected the application of respondent Nos.1 and 2 for membership of the petitioner-society. The petitioner contended that the Divisional Joint Registrar exceeded his revisional jurisdiction by re-appreciating the evidence and substituting his own view, without finding that the Assistant Registrar's order was perverse or illegal. The High Court agreed, holding that the revisional power under Section 154 of the Act is limited to correcting errors of law or jurisdiction, and does not permit re-appreciation of evidence. The court quashed the impugned order and restored the Assistant Registrar's order, with no order as to costs.

Headnote

A) Cooperative Societies - Membership Dispute - Section 23(2) of Maharashtra Cooperative Societies Act, 1960 - Revisional Jurisdiction - The Assistant Registrar, after hearing parties, rejected the application for membership. The Divisional Joint Registrar, in revision, set aside that order by re-appreciating evidence. The High Court held that the revisional authority cannot substitute its own view unless the original order is perverse or illegal. The revision was allowed without any finding of perversity, thus exceeding jurisdiction. (Paras 1-7)

B) Cooperative Societies - Revisional Powers - Section 154 of Maharashtra Cooperative Societies Act, 1960 - Scope - The revisional power under Section 154 is akin to that under Section 115 of CPC, limited to correcting errors of law or jurisdiction. The Divisional Joint Registrar's order was quashed as it amounted to re-appreciation of evidence, which is impermissible. (Paras 5-7)

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Issue of Consideration

Whether the Divisional Joint Registrar, in exercise of revisional jurisdiction under Section 154 of the Maharashtra Cooperative Societies Act, 1960, could re-appreciate the evidence and set aside the order of the Assistant Registrar passed under Section 23(2) of the Act, without finding that the order was perverse or illegal.

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Final Decision

The High Court allowed the writ petition, quashed the impugned order dated 23rd May 2017 passed by the Divisional Joint Registrar, and restored the order dated 30th January 2013 passed by the Assistant Registrar. Rule made absolute with no order as to costs.

Law Points

  • Revisional jurisdiction under Section 154 of Maharashtra Cooperative Societies Act
  • 1960 is limited to correcting errors of law or perversity
  • not re-appreciating evidence
  • Section 23(2) of the Act empowers the Assistant Registrar to decide membership disputes after hearing parties
  • The Divisional Joint Registrar cannot substitute his own view for that of the Assistant Registrar unless the order is perverse or illegal
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Case Details

2019 LawText (BOM) (04) 141

Writ Petition No. 4519 of 2018

2019-04-04

N.J. Jamadar

Shri R.A. Thorat, Senior Counsel I/b K.R. Parekh for petitioner; Shri Lalit V. Jain for respondent No.1 and 2; Shri P.P. Pujari, AGP for respondent Nos.3, 4 and 5

Shree Natwar Co.op. Housing Soc. Ltd.

Lalmohan Ghosh, Subarana Lalmohan Ghosh, Assistant Registrar, Cooperative Societies, C-Ward, Mumbai, Divisional Sub-Registrar of Cooperative Societies Mumbai Division, State of Maharashtra

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Nature of Litigation

Writ petition challenging the order of Divisional Joint Registrar in revision under Section 154 of the Maharashtra Cooperative Societies Act, 1960, which set aside the Assistant Registrar's order under Section 23(2) rejecting membership application.

Remedy Sought

Petitioner-society sought quashing of the Divisional Joint Registrar's order dated 23rd May 2017 and restoration of the Assistant Registrar's order dated 30th January 2013.

Filing Reason

The Divisional Joint Registrar allowed the revision of respondent Nos.1 and 2 and set aside the Assistant Registrar's order rejecting their membership application, allegedly exceeding revisional jurisdiction.

Previous Decisions

Assistant Registrar, Cooperative Society, C-Ward, Mumbai passed order dated 30th January 2013 under Section 23(2) of the Act rejecting the membership application of respondent Nos.1 and 2. That order was set aside by the Divisional Joint Registrar on 23rd May 2017 in Revision Application No.267 of 2014.

Issues

Whether the Divisional Joint Registrar exceeded his revisional jurisdiction under Section 154 of the Maharashtra Cooperative Societies Act, 1960 by re-appreciating evidence and substituting his own view without finding the Assistant Registrar's order perverse or illegal.

Submissions/Arguments

Petitioner argued that the revisional authority cannot re-appreciate evidence and must confine to errors of law or jurisdiction. Respondent Nos.1 and 2 supported the Divisional Joint Registrar's order.

Ratio Decidendi

The revisional jurisdiction under Section 154 of the Maharashtra Cooperative Societies Act, 1960 is limited to correcting errors of law or jurisdiction and does not permit re-appreciation of evidence. The revisional authority cannot substitute its own view for that of the original authority unless the original order is perverse or illegal.

Judgment Excerpts

The revisional authority cannot substitute its own view for that of the original authority unless the order is perverse or illegal. The Divisional Joint Registrar exceeded his jurisdiction by re-appreciating the evidence.

Procedural History

The Assistant Registrar passed an order under Section 23(2) of the Act on 30th January 2013 rejecting the membership application of respondent Nos.1 and 2. Respondent Nos.1 and 2 filed Revision Application No.267 of 2014 before the Divisional Joint Registrar, who allowed the revision on 23rd May 2017 and set aside the Assistant Registrar's order. The petitioner-society then filed the present writ petition challenging the revisional order.

Acts & Sections

  • Maharashtra Cooperative Societies Act, 1960: 23(2), 154
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