Case Note & Summary
The petitioners, who were managing committee members of New Shantivan Cooperative Housing Society Ltd., challenged an order dated 25 September 2014 passed by Respondent No.1 (the Ministry of Cooperation and DeAddiction Activities, Government of Maharashtra) under Section 154 of the Maharashtra Cooperative Societies Act, 1960. That order allowed a revision application filed by Respondent Nos. 4,5,6,8 and 11 and set aside an earlier order dated 10 April 2012 passed by Respondent No.3 (the Deputy Registrar, Cooperative Societies, Thane). The Deputy Registrar's order had appointed the petitioners as managing committee members. The petitioners argued that the revisional authority exceeded its jurisdiction and that the appointment was valid. The respondents contended that the appointment was made without holding elections as required by the society's bye-laws. The court examined the scope of Section 154 and found that the revisional authority has the power to examine the legality and propriety of orders. The court noted that the Deputy Registrar's order appointing the petitioners was passed without following the proper election process, and thus the revisional authority correctly set it aside. The court dismissed the writ petition, upholding the revision order.
Headnote
A) Cooperative Societies - Revision under Section 154 - Scope of Revisional Powers - The revisional authority under Section 154 of the Maharashtra Cooperative Societies Act, 1960 has the power to examine the legality and propriety of orders passed by subordinate authorities. The order dated 10 April 2012 appointing the petitioners as managing committee members was set aside as it was passed without following the proper election process under the bye-laws. (Paras 1-5)
B) Cooperative Societies - Appointment of Managing Committee - Validity - Appointment of managing committee members without holding elections as per the bye-laws of the society is illegal and liable to be set aside. The revisional authority correctly held that the Deputy Registrar's order appointing the petitioners was without jurisdiction. (Paras 3-5)
Issue of Consideration
Whether the order dated 25 September 2014 passed by Respondent No.1 under Section 154 of the Maharashtra Cooperative Societies Act, 1960, setting aside the order dated 10 April 2012 passed by Respondent No.3, is legal and proper.
Final Decision
The writ petition is dismissed. The order dated 25 September 2014 passed by Respondent No.1 under Section 154 of the Maharashtra Cooperative Societies Act, 1960 is upheld.
Law Points
- Revision under Section 154 of MCS Act
- 1960
- scope of revisional jurisdiction
- legality of appointment of managing committee members
- requirement of election under bye-laws
Case Details
2015 LawText (BOM) (02) 99
WRIT PETITION (STAMP) NO. 1547 OF 2015
Mr. J.A. Udaipuri i/by Udaipuri & Co. for the Petitioners, Ms. M.S. Bane for Respondent Nos. 1 to 3, Mr. Kishor S. Patil for Respondent Nos. 4 to 6 and 8
Mr. Alimiya Umar Chougule and others
The Ministry of Cooperation and DeAddiction Activities, Government of Maharashtra and others
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Nature of Litigation
Writ petition challenging revisional order under Section 154 of Maharashtra Cooperative Societies Act, 1960
Remedy Sought
Petitioners sought to quash the order dated 25 September 2014 passed by Respondent No.1 allowing revision and setting aside the order dated 10 April 2012 of Respondent No.3
Filing Reason
Petitioners were appointed as managing committee members by order dated 10 April 2012 of Deputy Registrar; that order was set aside in revision by Respondent No.1
Previous Decisions
Order dated 10 April 2012 of Respondent No.3 (Deputy Registrar) appointing petitioners as managing committee members; order dated 25 September 2014 of Respondent No.1 allowing revision and setting aside the earlier order
Issues
Whether the revisional authority under Section 154 of the MCS Act has the power to set aside the order of the Deputy Registrar appointing managing committee members?
Whether the appointment of managing committee members without holding elections as per bye-laws is valid?
Submissions/Arguments
Petitioners argued that the revisional authority exceeded its jurisdiction and that the appointment was valid.
Respondents contended that the appointment was made without following the election process under the bye-laws and was therefore illegal.
Ratio Decidendi
The revisional authority under Section 154 of the Maharashtra Cooperative Societies Act, 1960 has the power to examine the legality and propriety of orders passed by subordinate authorities. An appointment of managing committee members without holding elections as per the bye-laws is illegal and liable to be set aside.
Judgment Excerpts
The Petitioners have challenged order dated 25 September 2014 passed by Respondent No.1 under Section 154 of the Maharashtra Cooperative Societies Act, 1960...
The revisional authority has the power to examine the legality and propriety of orders passed by subordinate authorities.
Procedural History
The Deputy Registrar passed an order on 10 April 2012 appointing the petitioners as managing committee members. Respondent Nos. 4,5,6,8 and 11 filed a revision application under Section 154 of the MCS Act before Respondent No.1. Respondent No.1 allowed the revision on 25 September 2014, setting aside the Deputy Registrar's order. The petitioners then filed the present writ petition before the Bombay High Court.
Acts & Sections
- Maharashtra Cooperative Societies Act, 1960: 154
