Bombay High Court Quashes Revisional Authority's Order in Cooperative Society Dispute Due to Undue Delay in Pronouncement. Pronouncement of Judgment More Than One Year After Hearing Held Unreasonable and Vitiates Order Under Article 226, Following Supreme Court Guidelines in Anil Rai v. State of Bihar.

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

The writ petition under Article 226 of the Constitution of India was filed by the petitioners against the order dated 3-3-2009 passed by the Divisional Joint Registrar in Revision Applications Nos. 140 of 2006 to 145 of 2006. These revision applications arose out of certificates issued under Section 101 of the Maharashtra Cooperative Societies Act, 1960 by the respondent No.4 credit society due to alleged default in loan repayment. The core grievance was that the revisional authority had concluded hearing towards the end of 2007 but pronounced the order more than a year later, on 3-3-2009. The petitioners contended that such inordinate delay vitiated the order. They relied on the Supreme Court judgment in Anil Rai v. State of Bihar (2001) 7 SCC 318, which held that pronouncement of judgment in civil cases should not exceed two months. The respondents argued that the provisions of the Civil Procedure Code, particularly Order 20 Rule 1, were not strictly applicable to the revisional authority. The court, however, observed that even without the CPC’s strict application, a judgment must be pronounced within a reasonable time, and a delay of over one year is patently unreasonable. Drawing from Supreme Court precedents, including R.C. Sharma v. Union of India (1976) 3 SCC 574 and Bhagwandas Fatechand Daswani v. H.P.A. International (2000) 2 SCC 13, the court emphasized that justice must not only be done but manifestly appear to be done, and delay breeds unnecessary speculation. The High Court found that the impugned order was not in conformity with these principles. Consequently, the order was set aside and the revision applications were remanded for de novo consideration. The revisional authority was directed to hear and decide the matter within three months, with the parties directed to appear on 11-2-2013. All contentions were kept open, and the costs were to be borne by respective parties. The rule was made absolute accordingly.

Headnote

A) Civil Procedure - Delay in Pronouncement of Judgment - Unreasonable Delay Vitiates Order - Constitution of India, Article 226; Maharashtra Cooperative Societies Act, 1960, Section 101 - The Divisional Joint Registrar passed an order in revision more than one year after arguments concluded. The High Court held such delay unreasonable and set aside the order, relying on Anil Rai v. State of Bihar (2001) 7 SCC 318, R.C. Sharma v. Union of India (1976) 3 SCC 574, and Bhagwandas Fatechand Daswani v. H.P.A. International (2000) 2 SCC 13. The matter was remitted for de novo consideration within three months. Held that delay of over one year without exceptional circumstances vitiates the judicial order, and authorities must pronounce judgments promptly to maintain public confidence in the judicial process (Paras 2-5).

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Issue of Consideration

Whether the revisional authority's order passed more than one year after conclusion of arguments is vitiated by undue delay, and whether the High Court under Article 226 should set it aside.

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Final Decision

The High Court set aside the revisional order dated 3-3-2009 due to unreasonable delay in pronouncement and remanded the revision applications for de novo consideration by the revisional authority within three months. The parties were directed to appear on 11-2-2013, and costs were to be borne by respective parties. All contentions were kept open.

Law Points

  • unreasonable delay in pronouncement of judgment vitiates order unless exceptional circumstances explained
  • pronouncement of judgment within reasonable time essential for maintaining confidence in litigation
  • delay gives rise to unnecessary speculation
  • pronouncement of judgment in civil cases should not exceed two months
  • authorities exercising quasi-judicial powers must deliver judgments promptly
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Case Details

2013 LawText (BOM) (01) 31

Writ Petition No.1052 of 2011

2013-01-31

R. M. Savant, J.

Swapnil Bangur, Ajay Basutkar, Sampat Pawar, Uma Palsule Desai

Raghavji Gala & Ors.

The Divisional Joint Registrar Cooperative Societies & Ors

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India challenging revisional order of Divisional Joint Registrar passed after inordinate delay.

Remedy Sought

Petitioners sought setting aside of the revisional order dated 3-3-2009 and de novo consideration of the revision applications.

Filing Reason

The revisional authority passed the order more than one year after conclusion of arguments, which the petitioners contended vitiated the order due to unreasonable delay.

Previous Decisions

The Divisional Joint Registrar had passed the impugned order on 3-3-2009 in Revision Applications Nos. 140-145 of 2006 arising from certificates under Section 101 of the Maharashtra Cooperative Societies Act, 1960, after hearing arguments in late 2007.

Issues

Whether the revisional authority's order passed more than one year after conclusion of arguments is vitiated by undue delay.

Submissions/Arguments

Petitioners argued that the delay of over one year in delivering judgment vitiates the order, relying on Supreme Court judgment in Anil Rai v. State of Bihar. Respondents argued that Order 20 Rule 1 of CPC is not strictly applicable to proceedings before the revisional authority, but the court held that even so, judgment must be pronounced within a reasonable time.

Ratio Decidendi

Unreasonable delay in pronouncement of judgment after hearing arguments, unless explained by exceptional circumstances, vitiates the order. Justice must not only be done but manifestly appear to be done. Delay gives rise to unnecessary speculation, and authorities must pronounce judgments promptly to maintain public confidence in the judicial process.

Judgment Excerpts

the pronouncement of Judgment in civil cases should not be permitted to go beyond two months. an unreasonable delay between hearing of arguments and delivery of a judgment unless explained by exceptional or extraordinary circumstances, is highly undesirable. Justice, as we have often observed, must not only be done but must manifestly appear to be done. a long delay in delivery of the judgment gives rise to unnecessary speculation in the minds of parties to a case.

Procedural History

The petitioners obtained loans from respondent no.4 credit society and defaulted, leading to issuance of recovery certificates under Section 101 of the Maharashtra Cooperative Societies Act, 1960. The petitioners filed revision applications before the Divisional Joint Registrar, which were heard and arguments concluded towards the end of 2007. The revisional authority passed the impugned order on 3-3-2009, after more than one year. Aggrieved by the delay, the petitioners filed the present writ petition under Article 226 of the Constitution in the High Court, which was heard and allowed on 31-01-2013.

Acts & Sections

  • Maharashtra Cooperative Societies Act, 1960: 101
  • Constitution of India: 226
  • Code of Civil Procedure, 1908: Order 20 Rule 1
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