Bombay High Court Dismisses Letters Patent Appeal in Cooperative Society Dispute — Upholds Order Under Section 88(1) of MCS Act for Recovery of Damages from Delinquent Promoters. The court affirmed the power of the Registrar to assess damages under Section 88(1) of the Maharashtra Cooperative Societies Act, 1960, and found no ground to interfere with the concurrent findings.

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

The appellant, Ramdas Yashwant Mandlik (deceased) through his legal heirs, filed a Letters Patent Appeal against the judgment and order dated 28 July 2006 of the learned Single Judge dismissing Writ Petition No. 6911 of 2004. The writ petition had challenged a common order dated 3 February 2003 passed by respondent no. 1, the Authorized Officer and Assistant Registrar, Cooperative Societies, under Section 88(1) of the Maharashtra Cooperative Societies Act, 1960 (MCS Act). That order, as confirmed by appellate/revisional authorities, directed recovery of damages from the appellant and others. The learned Single Judge dismissed the writ petition along with a batch of similar petitions. The Division Bench of the Bombay High Court, comprising Justices G.S. Kulkarni and Aarti Sath, heard the appeal. The appellant was represented by Mr. N.N. Bhadrashete and Ms. Priyanka N. Bhadrashete, while the State was represented by Mr. Ketan Joshi, 'B' Panel Counsel. The court considered the submissions and found no merit in the appeal. The court held that the order under Section 88(1) was valid and the writ court had rightly declined to interfere. The appeal was dismissed, confirming the order for recovery of damages.

Headnote

A) Cooperative Societies - Section 88(1) MCS Act - Damages against delinquent promoters - The Registrar has power to assess damages against delinquent promoters under Section 88(1) of the Maharashtra Cooperative Societies Act, 1960. The order passed by the Authorized Officer was challenged in writ petition, which was dismissed by the learned Single Judge. The Letters Patent Appeal against that dismissal was also dismissed, upholding the order for recovery of damages. (Paras 1-2)

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Issue of Consideration

Whether the order passed under Section 88(1) of the Maharashtra Cooperative Societies Act, 1960 by the Authorized Officer and Assistant Registrar, Cooperative Societies, as confirmed by appellate/revisional authorities, was liable to be set aside in writ jurisdiction.

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Final Decision

The Letters Patent Appeal is dismissed. The order of the learned Single Judge dated 28 July 2006 dismissing Writ Petition No. 6911 of 2004 is confirmed.

Law Points

  • Section 88(1) of Maharashtra Cooperative Societies Act
  • 1960
  • Power of Registrar to assess damages
  • Letters Patent Appeal against dismissal of writ petition
  • Scope of judicial review under Article 226
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Case Details

2025 LawText (BOM) (10) 61

Letters Patent Appeal No. 219 of 2006 in Writ Petition No. 6911 of 2004

2025-10-17

G.S. Kulkarni, Aarti Sath

Mr. N.N. Bhadrashete a/w. Ms. Priyanka N. Bhadrashete for the appellant, Mr. Ketan Joshi, ‘B’ Panel Counsel for the State

Ramdas Yashwant Mandlik (Deceased) through Legal heirs Manoj Ramdas Mandlik & Anr.

B.Y. Pagare, Authorised officer and Assistant Registrar, Co-op. Societies & Ors.

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Nature of Litigation

Letters Patent Appeal against dismissal of writ petition challenging order under Section 88(1) of MCS Act for recovery of damages.

Remedy Sought

Appellant sought to set aside the order dated 3 February 2003 passed by respondent no. 1 under Section 88(1) of MCS Act and the subsequent dismissal of his writ petition.

Filing Reason

Appellant was aggrieved by the order of the Authorized Officer and Assistant Registrar, Cooperative Societies, directing recovery of damages, which was upheld by appellate/revisional authorities and the learned Single Judge.

Previous Decisions

The learned Single Judge dismissed Writ Petition No. 6911 of 2004 on 28 July 2006, upholding the order under Section 88(1) of MCS Act.

Issues

Whether the order under Section 88(1) of the Maharashtra Cooperative Societies Act, 1960 was valid and warranted interference in writ jurisdiction.

Submissions/Arguments

Appellant argued that the order under Section 88(1) was erroneous and should be set aside. Respondent/State supported the order and the dismissal of the writ petition.

Ratio Decidendi

The Registrar has power under Section 88(1) of the Maharashtra Cooperative Societies Act, 1960 to assess damages against delinquent promoters. The writ court correctly declined to interfere with the order as there was no error apparent on the face of the record.

Judgment Excerpts

This Letters Patent Appeal is directed against the judgment and order dated 28 July, 2006 passed by the learned Single Judge whereby Writ Petition No. 6911 of 2004 filed by the appellant/petitioner came to be dismissed. The impugned order was rendered on a batch of writ petitions. The appellant’s writ petition was one of such petitions.

Procedural History

The appellant filed Writ Petition No. 6911 of 2004 challenging the order dated 3 February 2003 under Section 88(1) of MCS Act. The learned Single Judge dismissed the writ petition on 28 July 2006. The appellant then filed Letters Patent Appeal No. 219 of 2006, which was heard and dismissed on 17 October 2025.

Acts & Sections

  • Maharashtra Cooperative Societies Act, 1960: Section 88(1)
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