Bombay High Court Allows Writ Petition Challenging Admission of Member in Cooperative Housing Society — Divisional Joint Registrar Exceeded Jurisdiction. Doctrine of Merger Applied as Deputy Registrar's Order Had Merged with Additional Commissioner's Order, Making Revision Under Section 154 of Maharashtra Cooperative Societies Act, 1960 Not Maintainable.

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

The petitioner, Mrs. Glady Francis D'Souza, filed a writ petition challenging an order dated 20-1-2014 passed by the Divisional Joint Registrar, Cooperative Societies, Mumbai Division, which allowed the revision application filed by respondent No.4 (Maria D'Souza) and directed respondent No.3 society (Gulmohar CHS Ltd.) to admit respondent No.4 as a member. The dispute arose after the death of Dulcine A. D'Souza, who was a member of the society in respect of flat No.C101. The petitioner is the daughter-in-law of the deceased, and respondent No.4 is the daughter. After Dulcine's death on 21-8-2010, respondent No.4 applied for membership based on an alleged nomination. The society did not act on the application, prompting respondent No.4 to approach the Deputy Registrar under Section 22(2) of the Maharashtra Cooperative Societies Act, 1960. The Deputy Registrar, by order dated 23-7-2012, refused to direct the society to admit respondent No.4. Respondent No.4 then filed an appeal before the Additional Commissioner under Section 23(2) of the Act, which was dismissed on 28-9-2012. Thereafter, respondent No.4 filed a revision application before the Divisional Joint Registrar under Section 154 of the Act, which was allowed on 20-1-2014, setting aside the Deputy Registrar's order and directing the society to admit respondent No.4. The petitioner challenged this revisional order. The High Court examined the issue of jurisdiction. It noted that the Deputy Registrar's order dated 23-7-2012 had been challenged before the Additional Commissioner, who dismissed the appeal on 28-9-2012. Consequently, the order of the Deputy Registrar merged with the order of the Additional Commissioner. The revisional authority under Section 154 could only entertain a revision against an order that was still in existence. Since the order had merged, the revision was not maintainable. The Court held that the Divisional Joint Registrar had no jurisdiction to entertain the revision. Accordingly, the writ petition was allowed, the impugned order dated 20-1-2014 was quashed and set aside, and the order of the Deputy Registrar dated 23-7-2012 was restored. The Court clarified that it had not expressed any opinion on the merits of the rival claims of the parties regarding membership, and left it open to the parties to seek appropriate remedies in accordance with law.

Headnote

A) Cooperative Law - Revision Jurisdiction - Doctrine of Merger - Section 154, Maharashtra Cooperative Societies Act, 1960 - The Divisional Joint Registrar cannot entertain a revision against an order that has merged with a higher order passed by the Additional Commissioner under Section 23(2) of the Act. The Deputy Registrar's order dated 23-7-2012 refusing membership to the respondent No.4 was challenged before the Additional Commissioner, who dismissed the appeal on 28-9-2012. Thereafter, the respondent No.4 filed a revision before the Divisional Joint Registrar, who allowed it and directed admission. The High Court held that once the order of the Deputy Registrar merged with the order of the Additional Commissioner, the revisional authority had no jurisdiction to entertain the revision. (Paras 4-6)

B) Cooperative Law - Membership - Nomination vs. Succession - Sections 22(2), 30, Maharashtra Cooperative Societies Act, 1960 - The dispute pertains to the right to membership of a cooperative housing society after the death of the original member. The petitioner (daughter-in-law) claimed membership based on a Will, while the respondent No.4 (daughter) claimed based on a nomination. The Court did not decide the merits of the nomination or Will, but set aside the revisional order on jurisdictional grounds, leaving the parties to seek appropriate remedies. (Paras 3, 7)

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Issue of Consideration

Whether the Divisional Joint Registrar had jurisdiction to entertain a revision application under Section 154 of the Maharashtra Cooperative Societies Act, 1960 against an order passed by the Deputy Registrar under Section 22(2) of the said Act, when the said order had merged with the order of the Additional Commissioner?

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Final Decision

The writ petition is allowed. The impugned order dated 20-1-2014 passed by the Divisional Joint Registrar is quashed and set aside. The order dated 23-7-2012 passed by the Deputy Registrar is restored. Rule is made absolute accordingly. No order as to costs.

Law Points

  • Revision jurisdiction under Section 154 of Maharashtra Cooperative Societies Act
  • 1960
  • cannot be invoked against an order that has merged with a higher order
  • Doctrine of merger
  • Section 22(2) of Maharashtra Cooperative Societies Act
  • Nomination under Section 30 of Maharashtra Cooperative Societies Act
  • Succession rights of legal heirs versus nominees
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Case Details

2014 LawText (BOM) (07) 56

WRIT PETITION NO.2780 OF 2014

2014-07-08

R. M. SAVANT, J.

Ms Neha Nagotanekar for the Petitioner, Mr. S. D. Rayrikar AGP for the Respondent Nos.1, 2 and 5, Mr. Pramod Surve Member of Respondent No.3 society present, Mr. Baptist D'souza for the Respondent No.4

Mrs. Glady Francis D'Souza

1. The Divisional Joint Registrar, Cooperative Societies, Mumbai Division, 2. The Dy. Registrar C.S. G/N Ward, Mumbai, 3. Gulmohar CHS Ltd., 4. Maria D'Souza, 5. The State of Maharashtra

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Nature of Litigation

Writ petition challenging the order of the Divisional Joint Registrar allowing revision and directing admission of a member in a cooperative housing society.

Remedy Sought

The petitioner sought quashing of the order dated 20-1-2014 passed by the Divisional Joint Registrar and restoration of the order dated 23-7-2012 passed by the Deputy Registrar.

Filing Reason

The petitioner, daughter-in-law of the deceased member, challenged the revisional order that directed the society to admit the respondent No.4 (daughter) as a member, on the ground that the revisional authority lacked jurisdiction as the Deputy Registrar's order had merged with the Additional Commissioner's order.

Previous Decisions

The Deputy Registrar by order dated 23-7-2012 refused to direct the society to admit respondent No.4. The Additional Commissioner by order dated 28-9-2012 dismissed the appeal filed by respondent No.4. The Divisional Joint Registrar by order dated 20-1-2014 allowed the revision and directed admission.

Issues

Whether the Divisional Joint Registrar had jurisdiction to entertain a revision under Section 154 of the Maharashtra Cooperative Societies Act, 1960 against the order of the Deputy Registrar dated 23-7-2012, when that order had merged with the order of the Additional Commissioner dated 28-9-2012? Whether the revisional authority can set aside an order that is no longer in existence due to merger?

Submissions/Arguments

The petitioner argued that the Deputy Registrar's order dated 23-7-2012 had merged with the order of the Additional Commissioner dated 28-9-2012, and therefore the revision under Section 154 was not maintainable. The respondent No.4 argued that the revision was maintainable and the Divisional Joint Registrar correctly allowed it.

Ratio Decidendi

The revisional authority under Section 154 of the Maharashtra Cooperative Societies Act, 1960 cannot entertain a revision against an order that has merged with a higher order passed under Section 23(2) of the Act. The doctrine of merger applies, and once the order of the Deputy Registrar merged with the order of the Additional Commissioner, the revision was not maintainable.

Judgment Excerpts

The order dated 23-7-2012 passed by the Deputy Registrar had merged with the order dated 28-9-2012 passed by the Additional Commissioner. The revisional authority under Section 154 of the said Act could only entertain a revision against an order which was in existence. Since the order dated 23-7-2012 had merged with the order dated 28-9-2012, the revision was not maintainable. In the result, the Writ Petition is allowed. The impugned order dated 20-1-2014 passed by the Divisional Joint Registrar is quashed and set aside. The order dated 23-7-2012 passed by the Deputy Registrar is restored.

Procedural History

The deceased member Dulcine A. D'Souza died on 21-8-2010. Respondent No.4 applied for membership based on nomination. Society did not act. Respondent No.4 filed application under Section 22(2) before Deputy Registrar, who refused by order dated 23-7-2012. Respondent No.4 appealed to Additional Commissioner under Section 23(2), which was dismissed on 28-9-2012. Respondent No.4 then filed revision under Section 154 before Divisional Joint Registrar, who allowed it on 20-1-2014, setting aside Deputy Registrar's order and directing admission. Petitioner filed writ petition on 28-2-2014 challenging the revisional order.

Acts & Sections

  • Maharashtra Cooperative Societies Act, 1960: Section 22(2), Section 23(2), Section 30, Section 154
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