Case Note & Summary
The petitioners, Twin Star Venus Co-operative Housing Society Ltd. and its Secretary, filed a writ petition under Article 226 of the Constitution of India challenging a circular dated 9.3.1995 issued by Respondent No.4 (State of Maharashtra) under Section 79-A of the Maharashtra Cooperative Societies Act, 1960, and the consequential order dated 21.7.2000 passed by Respondent Nos.2 and 3 under Section 97 of the Act. The petitioners contended that the circular was ultra vires, illegal, discriminatory, arbitrary, and unreasonable. The respondent No.1 was a member of the petitioner society. The court heard the learned counsel for both sides. The court noted that at the time of admission of this petition along with other similar petitions, an order was passed to the effect that the petition would be heard on merits. The court examined the provisions of Section 79-A of the Act and found that the circular was within the powers conferred by that section. The court held that the circular was not ultra vires, discriminatory, or arbitrary. Consequently, the court dismissed the petition, upholding the validity of the circular and the consequential order.
Headnote
A) Cooperative Societies - Validity of Circular - Section 79-A Maharashtra Cooperative Societies Act, 1960 - Ultra Vires Challenge - The petitioners challenged a circular dated 9.3.1995 issued by the State Government under Section 79-A of the Act, alleging it was ultra vires, discriminatory, and arbitrary. The court examined the scope of Section 79-A and held that the circular was within the powers conferred by the section and was not discriminatory or arbitrary. The petition was dismissed. (Paras 1-4)
Issue of Consideration
Whether the circular dated 9.3.1995 issued by Respondent No.4 under Section 79-A of the Maharashtra Cooperative Societies Act, 1960 is ultra vires, illegal, and contrary to law, and whether the consequential order dated 21.7.2000 passed under Section 97 of the Act is liable to be quashed.
Final Decision
The petition is dismissed. The circular dated 9.3.1995 and the consequential order dated 21.7.2000 are upheld as valid.
Law Points
- Validity of circular under Section 79-A of Maharashtra Cooperative Societies Act
- 1960
- Ultra vires challenge
- Discrimination
- Arbitrariness
- Section 97 of the Act
Case Details
2005 LawText (BOM) (12) 2
WRIT PETITION NO.560 OF 2001
Mr. M.M. Bagadia for Petitioner, Mr. N.K. Mudnaney with Ms R.V. Bagve for Respondent No.1, Mr. Milind More, AGP for Respondent No.2
Twin Star Venus Co-op. Housing Society Ltd. and Pravinchandra H. Nanavati
G.N. Sainani, The Deputy Registrar, Cooperative Societies Mumbai (A-Ward), The Divisional Joint Registrar C.S. M.d. (Appeals), State of Maharashtra
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Nature of Litigation
Writ petition under Article 226 of Constitution of India challenging a circular and consequential order under the Maharashtra Cooperative Societies Act, 1960.
Remedy Sought
Quashing and setting aside the circular dated 9.3.1995 and the order dated 21.7.2000.
Filing Reason
The petitioners alleged that the circular dated 9.3.1995 issued under Section 79-A of the Maharashtra Cooperative Societies Act, 1960 was ultra vires, illegal, discriminatory, arbitrary, and unreasonable.
Previous Decisions
At the time of admission, an order was passed to the effect that the petition would be heard along with other similar petitions.
Issues
Whether the circular dated 9.3.1995 issued under Section 79-A of the Maharashtra Cooperative Societies Act, 1960 is ultra vires?
Whether the consequential order dated 21.7.2000 passed under Section 97 of the Act is liable to be quashed?
Submissions/Arguments
The petitioners argued that the circular was ex-facie ultra vires, discriminatory, arbitrary, and unreasonable.
The respondents supported the validity of the circular and the order.
Ratio Decidendi
The circular dated 9.3.1995 issued under Section 79-A of the Maharashtra Cooperative Societies Act, 1960 is within the powers conferred by that section and is not ultra vires, discriminatory, or arbitrary.
Judgment Excerpts
This Petition filed Under Article 226 of Constitution of India by the Petitioners impugning the directions issued by Respondent no.4 dated 9.3.1995 by way of Circular submitting that it is ultra vires, illegal and contrary to law and consequently sought quashing and setting aside the impugned Order dated 21.7.2000 passed by the Respondents with regard to the activities of the concerned parties.
The impugned Order/Circular dated 9.3.1995, according to the Petitioner, is ex-facie, ultra vires, discriminatory, arbitrary and unreasonable and therefore, has to be struck down.
Procedural History
The writ petition was filed in 2001. At the time of admission, an order was passed to hear it along with other similar petitions. The court heard the matter and delivered judgment on 5th December 2005.
Acts & Sections
- Maharashtra Cooperative Societies Act, 1960: 79-A, 97
- Constitution of India: Article 226
