Bombay High Court Quashes State Minister's Order in Cooperative Society Dispute Over Terrace Use Charges — Minister Exceeded Revisional Powers Under Maharashtra Cooperative Societies Act, 1960. The Court held that the Minister acted without jurisdiction by entertaining a revision application against an order that was not passed under the Act, and by directing the society to recover charges from a member without legal basis.

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

The Petitioner, Indrasan Cooperative Housing Society Limited, challenged an order dated 15th July 2013 passed by the State Minister for Cooperation, Maharashtra, which allowed a revision application filed by Respondent No. 4, Dr. Girish Sanghavi, a member of the society. The revision was against an order dated 11th March 2013 of the Divisional Joint Registrar, which had set aside an earlier order dated 9th June 2010 of the Deputy Registrar. The Deputy Registrar's order had directed the society to recover certain charges from Respondent No. 4 for alleged illegal use of the terrace of the building and a penalty for obstruction to repair work. The Minister's order restored the Deputy Registrar's order. The society invoked the writ jurisdiction of the Bombay High Court under Articles 226 and 227 of the Constitution of India. The core legal issue was whether the Minister had jurisdiction under Section 154 of the Maharashtra Cooperative Societies Act, 1960 to entertain a revision against the Deputy Registrar's order, which was not passed under the Act but was an administrative direction. The society argued that the Deputy Registrar's order was not under the Act and thus not revisable. The Minister contended that the order was under the Act. The High Court examined the provisions of the Act, particularly Sections 79A, 83, 88, 91, 101, and 154, and found that the Deputy Registrar's order was not passed under any of these sections but was a mere direction to the society. The court held that the revisional power under Section 154 can only be exercised against orders passed under the Act, and since the Deputy Registrar's order was not such an order, the Minister acted without jurisdiction. The court also noted that the Minister's order was based on a representation made by Respondent No. 4 to the State Government and the Lokayukta, which was referred to the authorities, but this did not confer jurisdiction. The High Court allowed the writ petition, quashed the Minister's order, and restored the Divisional Joint Registrar's order. The court made the rule absolute with no order as to costs.

Headnote

A) Cooperative Law - Revisional Jurisdiction - Section 154 of the Maharashtra Cooperative Societies Act, 1960 - The revisional power under Section 154 can be exercised only against orders passed under the Act, not against administrative directions or letters. The Deputy Registrar's order dated 9th June 2010 was not passed under the Act but was a direction to the society to recover charges from a member; hence, the Minister had no jurisdiction to entertain a revision against it. (Paras 5-7)

B) Cooperative Law - Powers of Deputy Registrar - Sections 79A, 83, 88, 91, 101, 154 of the Maharashtra Cooperative Societies Act, 1960 - The Deputy Registrar's order directing the society to recover charges from a member for alleged illegal use of terrace and penalty for obstruction was not an order under the Act but an administrative direction. The Minister's order setting aside the Divisional Joint Registrar's order and confirming the Deputy Registrar's order was quashed for lack of jurisdiction. (Paras 5-7)

C) Constitutional Law - Writ Jurisdiction - Articles 226 and 227 of the Constitution of India - The High Court can interfere with an order passed without jurisdiction by a statutory authority. The Minister's revisional order was set aside as it was passed without authority under the Act. (Para 8)

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Issue of Consideration

Whether the State Minister for Cooperation had jurisdiction under Section 154 of the Maharashtra Cooperative Societies Act, 1960 to entertain a revision application against an order passed by the Deputy Registrar which was not under the Act but was an administrative direction, and whether the Minister could direct the society to recover charges from a member.

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Final Decision

The High Court allowed the writ petition, quashed the Minister's order dated 15th July 2013, and restored the Divisional Joint Registrar's order dated 11th March 2013. Rule made absolute with no order as to costs.

Law Points

  • Revisional powers under Section 154 of the Maharashtra Cooperative Societies Act
  • 1960 can only be exercised against orders passed under the Act
  • not against administrative directions or letters
  • Minister's order set aside for lack of jurisdiction
  • High Court's writ jurisdiction under Articles 226 and 227 of the Constitution of India invoked against revisional order.
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Case Details

2014 LawText (BOM) (07) 169

WRIT PETITION NO. 9591 OF 2013

2014-07-04

R. M. SAVANT, J.

2014:BHC-AS:14303

Mr. R. V. Govilkar for the Petitioners, Mr. Ramanathan C. Sadashivan for Respondent No. 4, Mr. S. K. Shinde – Government Pleader with Mr. S. D. Rayrikar AGP for Respondent Nos. 1 to 3

Indrasan Cooperative Housing Society Limited

The State of Maharashtra through the Hon'ble Minister for Cooperation, The Divisional Joint Registrar Cooperative Societies, The Deputy Registrar Cooperative Societies 'D' Ward, Dr. Girish Sanghavi

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Nature of Litigation

Writ petition under Articles 226 and 227 of the Constitution of India challenging the order of the State Minister for Cooperation allowing a revision application and restoring the Deputy Registrar's order directing the society to recover charges from a member.

Remedy Sought

The Petitioner society sought quashing of the Minister's order dated 15th July 2013 and restoration of the Divisional Joint Registrar's order dated 11th March 2013.

Filing Reason

The Minister's order was passed without jurisdiction as the Deputy Registrar's order was not under the Maharashtra Cooperative Societies Act, 1960, and thus not revisable under Section 154.

Previous Decisions

Deputy Registrar passed order dated 9th June 2010 directing society to recover charges from Respondent No. 4; Divisional Joint Registrar set aside that order on 11th March 2013; Minister allowed revision and restored Deputy Registrar's order on 15th July 2013.

Issues

Whether the State Minister for Cooperation had jurisdiction under Section 154 of the Maharashtra Cooperative Societies Act, 1960 to entertain a revision against the Deputy Registrar's order dated 9th June 2010. Whether the Deputy Registrar's order was an order under the Act or an administrative direction.

Submissions/Arguments

Petitioner argued that the Deputy Registrar's order was not passed under the Act but was an administrative direction, hence not revisable under Section 154. Respondent No. 4 argued that the Deputy Registrar's order was under the Act and the Minister had jurisdiction.

Ratio Decidendi

The revisional power under Section 154 of the Maharashtra Cooperative Societies Act, 1960 can be exercised only against orders passed under the Act. The Deputy Registrar's order dated 9th June 2010 was not passed under any provision of the Act but was an administrative direction to the society; therefore, the Minister had no jurisdiction to entertain a revision against it. The Minister's order was quashed for lack of jurisdiction.

Judgment Excerpts

The revisional power under Section 154 of the M.C.S. Act can be exercised only against the orders passed under the Act. The order dated 9th June 2010 passed by the Deputy Registrar is not an order passed under the Act but is a direction to the Petitioner Society. The Minister has therefore acted without jurisdiction in entertaining the revision application filed by the Respondent No. 4.

Procedural History

Deputy Registrar passed order on 9th June 2010 directing society to recover charges from Respondent No. 4. Respondent No. 4 filed revision before Divisional Joint Registrar, who set aside the order on 11th March 2013. Respondent No. 4 then filed revision before the State Minister for Cooperation, who allowed the revision and restored the Deputy Registrar's order on 15th July 2013. The society filed the present writ petition on 23rd August 2013 challenging the Minister's order.

Acts & Sections

  • Maharashtra Cooperative Societies Act, 1960: 79A, 83, 88, 91, 101, 154
  • Constitution of India: 226, 227
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