Bombay High Court Allows Revision Petitioner's Challenge to Rejection of Revision for Non-Deposit of 50% Dues. Pre-deposit under Section 154(2A) of Maharashtra Co-operative Societies Act, 1960 not required for considering condonation of delay application.

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

The petitioner, Mr. Dilawar Hakim Shah, challenged an order dated 22.2.2005 passed by the Divisional Joint Registrar, Co-operative Societies, Konkan Division, refusing to accept his revision application against a recovery certificate issued on 30.8.2003 by the Chiplun Urban Cooperative Bank Ltd. The revision was filed beyond the limitation period of two months, and the petitioner applied for condonation of delay. However, the Divisional Joint Registrar rejected the revision solely on the ground that the petitioner had not deposited 50% of the total recoverable dues as required under Section 154(2A) of the Maharashtra Co-operative Societies Act, 1960, without considering the application for condonation of delay. The High Court examined whether the mandatory pre-deposit under Section 154(2A) applies even at the stage of considering the condonation of delay. The Court noted that Section 154(2A) states that no application for revision shall be entertained unless the applicant deposits 50% of the recoverable dues. The Court interpreted the word 'entertained' to mean 'proceeded to consider on merits' and not 'received or filed'. Relying on the principle that procedural provisions should not be construed to defeat the right of appeal or revision, the Court held that the bar of pre-deposit applies only to the hearing of the revision on merits, not to the preliminary stage of considering condonation of delay. Therefore, the Divisional Joint Registrar ought to have first considered the application for condonation of delay without insisting on the pre-deposit. If the delay is condoned, then the revision can be entertained only after the petitioner makes the required deposit. The Court set aside the impugned order and directed the Divisional Joint Registrar to consider the application for condonation of delay afresh, without requiring the pre-deposit at that stage.

Headnote

A) Co-operative Law - Revision - Pre-deposit - Section 154(2A) Maharashtra Co-operative Societies Act, 1960 - The question was whether the mandatory pre-deposit of 50% of recoverable dues under Section 154(2A) is required before considering an application for condonation of delay in filing a revision against a recovery certificate. The Court held that the bar under Section 154(2A) applies only to entertaining the revision application on merits, not to considering the application for condonation of delay. The revision application can be considered for condonation of delay without pre-deposit, but once delay is condoned, the revision can be entertained only after the pre-deposit is made. (Paras 4-6)

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Issue of Consideration

Whether the bar of pre-deposit of 50% of recoverable dues under Section 154(2A) of the Maharashtra Co-operative Societies Act, 1960 applies even for considering an application for condonation of delay in filing a revision application against a recovery certificate.

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Final Decision

The impugned order dated 22.2.2005 is set aside. The Divisional Joint Registrar is directed to consider the application for condonation of delay afresh, without requiring the pre-deposit of 50% of the recoverable dues at that stage. If the delay is condoned, the revision application shall be entertained only after the petitioner makes the required deposit under Section 154(2A). Rule made absolute accordingly.

Law Points

  • Pre-deposit under Section 154(2A) is mandatory for entertaining revision application on merits
  • but not for considering application for condonation of delay
  • Revision application can be considered for condonation of delay without pre-deposit
  • Once delay is condoned
  • revision can be entertained only after pre-deposit
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Case Details

2005 LawText (BOM) (10) 4

Writ Petition No.2440 of 2005

2005-10-25

S.A. Bobde, J

Mr. Sachin Punde for the petitioner, Mr. S.M. Railkar for respondent nos.1 & 2, Mr. A.H. Palekar, Asstt. Govt. Pleader for respondent no.3

Mr. Dilawar Hakim Shah

Special Recovery Officer, Chiplun Urban Cooperative Bank Ltd. & Ors.

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Nature of Litigation

Writ petition challenging order of Divisional Joint Registrar refusing to accept revision application for non-deposit of 50% dues under Section 154(2A) of the Maharashtra Co-operative Societies Act, 1960.

Remedy Sought

Petitioner sought setting aside of the order dated 22.2.2005 and direction to consider the revision application and condonation of delay application without insisting on pre-deposit.

Filing Reason

The Divisional Joint Registrar rejected the revision application solely on the ground that the petitioner had not deposited 50% of the recoverable dues as required under Section 154(2A), without considering the application for condonation of delay.

Previous Decisions

Recovery certificate was issued on 30.8.2003. The petitioner filed revision on 22.2.2005, beyond the limitation period of two months. The Divisional Joint Registrar passed the impugned order on 22.2.2005 rejecting the revision for non-deposit.

Issues

Whether the bar of pre-deposit under Section 154(2A) of the Maharashtra Co-operative Societies Act, 1960 applies even for considering an application for condonation of delay in filing a revision application against a recovery certificate.

Submissions/Arguments

Petitioner argued that the Divisional Joint Registrar ought to have first considered the application for condonation of delay before insisting on the pre-deposit. Respondents argued that the pre-deposit is mandatory and the revision cannot be entertained without it.

Ratio Decidendi

The word 'entertained' in Section 154(2A) means 'proceeded to consider on merits' and not 'received or filed'. Therefore, the bar of pre-deposit applies only to the hearing of the revision on merits, not to the preliminary stage of considering an application for condonation of delay. The revision application can be considered for condonation of delay without pre-deposit, but once delay is condoned, the revision can be entertained only after the pre-deposit is made.

Judgment Excerpts

The question that arises for consideration is whether the bar of sub-section (2A) that no application for revision shall be entertained against the recovery certificate unless the applicant deposits with the concerned society, 50% amount of the total amount of recoverable dues applies even for considering the application for condonation of delay for such revision. In my view, the word 'entertained' means 'proceeded to consider on merits' and not 'received or filed'. The revision application can be considered for condonation of delay without pre-deposit, but once delay is condoned, the revision can be entertained only after the pre-deposit is made.

Procedural History

Recovery certificate issued on 30.8.2003. Petitioner filed revision on 22.2.2005 beyond limitation period of two months, along with application for condonation of delay. Divisional Joint Registrar passed order on 22.2.2005 rejecting revision for non-deposit of 50% dues under Section 154(2A) without considering condonation application. Petitioner filed Writ Petition No.2440 of 2005 in Bombay High Court challenging that order.

Acts & Sections

  • Maharashtra Co-operative Societies Act, 1960: Section 154, Section 154(2A)
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