Case Note & Summary
The petitioner, Janakalyan Sahakari Bank Limited, a cooperative bank, filed a writ petition challenging the appointment of an administrator by the District Deputy Registrar (Respondent No. 2) under Section 77A of the Maharashtra Cooperative Societies Act, 1960. The bank contended that the appointment was arbitrary and without jurisdiction, as the board was functioning properly. The respondents, including the State of Maharashtra and the Registrar, argued that the appointment was based on a report indicating irregularities and that the power under Section 77A is subjective. The court examined the scope of Section 77A and held that the Registrar's satisfaction is subjective and not open to judicial review unless mala fides or perversity is shown. The court also held that no prior hearing is required as the power is administrative. The petition was dismissed, and the appointment of the administrator was upheld.
Headnote
A) Cooperative Law - Supersession of Board - Section 77A Maharashtra Cooperative Societies Act, 1960 - Appointment of Administrator - The Registrar's satisfaction regarding supersession of the board is subjective and not open to judicial review unless mala fides or perversity is shown. The court held that the Registrar has the power to appoint an administrator if he is satisfied that the board is not functioning properly or it is necessary in the interest of the society. The petitioner bank challenged the appointment of an administrator, but the court dismissed the petition, finding no grounds for interference. (Paras 1-10) B) Cooperative Law - Natural Justice - Section 77A Maharashtra Cooperative Societies Act, 1960 - Hearing before Supersession - The court held that the power under Section 77A is administrative and not quasi-judicial, and therefore, no prior hearing is required before appointing an administrator. The Registrar's satisfaction is based on the report of the District Deputy Registrar, and the court found that the petitioner had not made out a case of mala fides or perversity. (Paras 5-8)
Issue of Consideration
Whether the appointment of an administrator under Section 77A of the Maharashtra Cooperative Societies Act, 1960, by the Registrar is subject to judicial review on merits, and whether the petitioner bank was entitled to a hearing before such appointment.
Final Decision
The court dismissed the writ petition, upholding the appointment of the administrator.
Law Points
- Subjective satisfaction of Registrar
- Supersession of board
- Appointment of administrator
- Judicial review limited to mala fides or perversity
- Section 77A Maharashtra Cooperative Societies Act
- 1960
