Case Note & Summary
The petitioner, a cooperative society registered for the Bhandara district, filed a writ petition under Articles 226 and 227 of the Constitution of India seeking a direction to the Divisional Joint Registrar to exercise powers under Section 79 of the Maharashtra Cooperative Societies Act, 1960 for division of assets. Alternatively, the petitioner sought a direction to the respondent society (Gondia) to hand over assets, or to the State to complete the bifurcation process. The background facts are that earlier Bhandara district comprised two areas which later became separate districts: Bhandara and Gondia. There was a single cooperative society for the undivided district. Upon formation of two revenue districts, a proposal was made to subdivide the society. The proposal was finalized on 12/9/2006, and the State Government issued orders under Section 18C of the 1960 Act on 30th May, 2007 / 2nd June, 2007. Consequently, a new society for Bhandara district was registered on 23/11/2007. The petitioner society, being the new society for Bhandara, filed the petition seeking division of assets. The court considered the legal issue of whether Section 79 of the Act could be invoked for division of assets after bifurcation. The court held that Section 79 applies only to disputes between existing societies, not to division of assets after a new society is registered under Section 18C. The division of assets is governed by Section 18C and the government order. The court found that the petitioner's remedy lies in seeking implementation of the government order, not in invoking Section 79. The court dismissed the petition, holding that the writ jurisdiction cannot be used to enforce a non-existent statutory duty.
Headnote
A) Cooperative Societies - Division of Assets - Section 79 of the Maharashtra Cooperative Societies Act, 1960 - Section 79 applies only to disputes between existing societies, not to division of assets after a new society is registered under Section 18C. The court held that once a new society is registered, the parent society ceases to exist, and Section 79 cannot be invoked. (Paras 1-3) B) Cooperative Societies - Bifurcation - Section 18C of the Maharashtra Cooperative Societies Act, 1960 - The division of assets upon bifurcation of a society is governed by Section 18C and the government order issued thereunder. The court held that the petitioner's remedy lies in seeking implementation of the government order, not in invoking Section 79. (Paras 2-3) C) Constitutional Law - Writ Jurisdiction - Article 226 of the Constitution of India - The court cannot direct a statutory authority to exercise a power that does not exist under the law. The petitioner's prayer for direction under Section 79 was held to be misconceived as the section does not apply to the facts. (Para 1)
Issue of Consideration
Whether the Divisional Joint Registrar can be directed under Section 79 of the Maharashtra Cooperative Societies Act, 1960 to divide assets of a cooperative society after its bifurcation under Section 18C, and whether the petitioner is entitled to any relief under Article 226 of the Constitution of India.
Final Decision
The High Court dismissed the writ petition, holding that Section 79 of the Maharashtra Cooperative Societies Act, 1960 does not apply to division of assets after a new society is registered under Section 18C. The petitioner's remedy lies in seeking implementation of the government order under Section 18C.
Law Points
- Section 79 of the Maharashtra Cooperative Societies Act
- 1960 applies only to disputes between existing societies
- not to division of assets after bifurcation under Section 18C
- Section 18C of the Maharashtra Cooperative Societies Act
- 1960 governs division of assets upon bifurcation of a society
- Article 226 of the Constitution of India cannot be used to enforce a non-existent statutory duty
