Bombay High Court Dismisses Petition Challenging Cooperative Society Inquiry Under Maharashtra Cooperative Societies Act, 1960 — Inquiry Under Section 83 Not Barred by Prior Audit Under Section 81. The Court Held That an Inquiry Under Section 83 Is a Separate and Distinct Proceeding from an Audit Under Section 81, and the Registrar Has Sufficient Powers to Order an Inquiry Even After an Audit.

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

The petitioner, Jijau Cooperative Housing Society Ltd., filed a writ petition under Article 226 of the Constitution of India challenging an order dated 11/11/2025 passed by the Assistant Registrar, Cooperative Societies, CIDCO, appointing a certified auditor as an inquiry officer under Section 83 of the Maharashtra Cooperative Societies Act, 1960. The petitioner contended that an audit under Section 81 had already been conducted and that the inquiry under Section 83 was therefore barred. The respondents, including the State of Maharashtra and the Registrar, opposed the petition, arguing that the inquiry was distinct from the audit and that the Registrar had the power to order it. The court, after hearing arguments, held that an inquiry under Section 83 is a separate proceeding from an audit under Section 81, and the Registrar's power to order an inquiry is independent. The court found no merit in the petition and dismissed it, directing the petitioner to cooperate with the inquiry. The court also noted that the petitioner had an alternative remedy of appeal under the Act.

Headnote

A) Cooperative Law - Inquiry under Section 83 - Distinction from Audit under Section 81 - The court held that an inquiry under Section 83 of the Maharashtra Cooperative Societies Act, 1960 is a separate and distinct proceeding from an audit under Section 81, and the Registrar has the power to order an inquiry even after an audit has been conducted. The inquiry is not barred merely because an audit has already taken place. (Paras 5-7)

B) Cooperative Law - Registrar's Powers - Section 83 Inquiry - The court held that the Registrar has sufficient powers under Section 83 to order an inquiry into the constitution, working, and financial condition of a cooperative society. The inquiry order was valid and the petitioner society was directed to cooperate with the inquiry. (Paras 5-7)

C) Writ Jurisdiction - Maintainability - Challenge to Inquiry Order - The court held that a writ petition challenging an order of inquiry under Section 83 is not maintainable as the petitioner has an alternative remedy of appeal under the Act. The petition was dismissed. (Para 7)

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Issue of Consideration

Whether an inquiry under Section 83 of the Maharashtra Cooperative Societies Act, 1960 can be ordered after an audit under Section 81 of the same Act, and whether the inquiry order is valid.

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Final Decision

The court dismissed the writ petition and directed the petitioner to cooperate with the inquiry under Section 83 of the Maharashtra Cooperative Societies Act, 1960.

Law Points

  • Section 83 inquiry is distinct from Section 81 audit
  • Registrar's power to order inquiry is independent
  • no bar on inquiry after audit
  • cooperative society must cooperate with inquiry
  • writ petition not maintainable against inquiry order
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Case Details

2025:BHC-AS:47841

Writ Petition No.12871 of 2025

2025-11-11

2025:BHC-AS:47841

Mr. Vivek V. Salunke with Mr. Manthan A. Chaudhari for the petitioner, Dr. Dhruti Kapadia, AGP for respondent Nos.1 to 3-State, Mr.B.A. Lawate for respondent Nos.4 and 5

Jijau Cooperative Housing Society Ltd.

State of Maharashtra, Joint Registrar, Cooperative Societies, Assistant Registrar, Cooperative Societies, Balasaheb Narayan Shere, Shatrugna Nanavare, Chandrakant Shirke

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Nature of Litigation

Writ petition challenging an order of inquiry under Section 83 of the Maharashtra Cooperative Societies Act, 1960.

Remedy Sought

The petitioner sought quashing of the inquiry order dated 11/11/2025 passed by the Assistant Registrar.

Filing Reason

The petitioner contended that an audit under Section 81 had already been conducted and that the inquiry under Section 83 was therefore barred.

Issues

Whether an inquiry under Section 83 of the Maharashtra Cooperative Societies Act, 1960 can be ordered after an audit under Section 81 of the same Act. Whether the inquiry order is valid and whether the petitioner is required to cooperate.

Submissions/Arguments

The petitioner argued that an audit under Section 81 had already been conducted and that the inquiry under Section 83 was therefore barred. The respondents argued that the inquiry under Section 83 is a separate and distinct proceeding from an audit under Section 81, and the Registrar has the power to order an inquiry even after an audit.

Ratio Decidendi

An inquiry under Section 83 of the Maharashtra Cooperative Societies Act, 1960 is a separate and distinct proceeding from an audit under Section 81, and the Registrar has the power to order an inquiry even after an audit has been conducted. The inquiry order is valid and the petitioner must cooperate.

Judgment Excerpts

The inquiry under Section 83 is a separate and distinct proceeding from an audit under Section 81. The Registrar has sufficient powers to order an inquiry under Section 83 even after an audit under Section 81.

Procedural History

The petitioner filed a writ petition under Article 226 of the Constitution of India challenging an order dated 11/11/2025 passed by the Assistant Registrar, Cooperative Societies, CIDCO, appointing a certified auditor as an inquiry officer under Section 83 of the Maharashtra Cooperative Societies Act, 1960. The court heard arguments and dismissed the petition on the same day.

Acts & Sections

  • Maharashtra Cooperative Societies Act, 1960: Section 81, Section 83
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