Bombay High Court Dismisses Writ Petition Challenging Cooperative Society Inquiry Under Section 83 of Maharashtra Cooperative Societies Act, 1960. Inquiry ordered by Assistant Registrar was within jurisdiction and not barred by limitation under Section 84 of the Act.

High Court: Bombay High Court Bench: NAGPUR
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Case Note & Summary

The petitioners, Walni Pardi Majoor Kamgar Sahakari Sanstha Limited, a cooperative society, and its members, filed a writ petition in the Bombay High Court challenging an inquiry ordered by the Assistant Registrar, Cooperative Societies (Housing), Saoner, under Section 83 of the Maharashtra Cooperative Societies Act, 1960. The inquiry was initiated based on a complaint by respondent No. 5, Dhanraj Anandrao Aswale, regarding alleged irregularities in the society's affairs. The petitioners contended that the inquiry was barred by limitation under Section 84 of the Act, which prescribes a period of six months for completion of inquiry. They argued that the inquiry was ordered after a delay of several years from the date of the alleged irregularities. The respondents, including the Assistant Registrar and the Divisional Joint Registrar, opposed the petition, submitting that the inquiry was within jurisdiction and that the petitioners had an alternative remedy of appeal under Section 152 of the Act. The court examined the provisions of Sections 83 and 84 of the Act. It noted that Section 83 empowers the Registrar to hold an inquiry into the constitution, working, and financial condition of a society, either suo motu or on an application. Section 84 provides that the inquiry shall be completed within six months, but the period can be extended. The court held that the limitation under Section 84 applies to the completion of the inquiry, not to the initiation. Therefore, the inquiry ordered by the Assistant Registrar was not barred by limitation. The court also observed that the petitioners had an alternative remedy of appeal under Section 152 of the Act, which they had not availed. Consequently, the writ petition was dismissed as not maintainable. The court did not interfere with the inquiry proceedings, leaving it open to the petitioners to raise their objections before the inquiry officer.

Headnote

A) Cooperative Societies - Inquiry under Section 83 - Limitation under Section 84 - The Assistant Registrar ordered an inquiry into the affairs of the petitioner-society under Section 83 of the Maharashtra Cooperative Societies Act, 1960. The petitioners challenged the inquiry on the ground that it was barred by limitation under Section 84 of the Act. The court held that the inquiry was not barred by limitation as the period of limitation under Section 84 applies to the completion of inquiry, not to the initiation. The court also noted that the petitioners had an alternative remedy of appeal under Section 152 of the Act, and therefore, the writ petition was not maintainable. (Paras 1-10)

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Issue of Consideration

Whether the inquiry under Section 83 of the Maharashtra Cooperative Societies Act, 1960, ordered by the Assistant Registrar, Cooperative Societies, was barred by limitation under Section 84 of the Act, and whether the petitioners had an alternative remedy under the Act.

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Final Decision

The writ petition was dismissed. The court held that the inquiry under Section 83 was not barred by limitation under Section 84, and the petitioners had an alternative remedy, hence the petition was not maintainable.

Law Points

  • Cooperative Societies
  • Inquiry
  • Limitation
  • Section 83
  • Section 84
  • Maharashtra Cooperative Societies Act
  • 1960
  • Writ Jurisdiction
  • Alternative Remedy
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Case Details

2015 LawText (BOM) (04) 128

WRIT PETITION NO. 5029 of 2007

0000-00-00

Walni Pardi Majoor Kamgar Sahakari Sanstha Limited and others

Assistant Registrar, Cooperative Societies (Housing), Saoner and others

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Nature of Litigation

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

Remedy Sought

The petitioners sought to quash the inquiry proceedings initiated by the Assistant Registrar.

Filing Reason

The petitioners alleged that the inquiry was barred by limitation under Section 84 of the Act.

Issues

Whether the inquiry under Section 83 of the Maharashtra Cooperative Societies Act, 1960, was barred by limitation under Section 84 of the Act. Whether the writ petition was maintainable in view of the alternative remedy available under the Act.

Submissions/Arguments

Petitioners argued that the inquiry was barred by limitation under Section 84 of the Act as it was initiated after a long delay. Respondents submitted that the inquiry was within jurisdiction and the petitioners had an alternative remedy of appeal under Section 152 of the Act.

Ratio Decidendi

The limitation under Section 84 of the Maharashtra Cooperative Societies Act, 1960, applies to the completion of inquiry, not to its initiation. Therefore, an inquiry ordered under Section 83 is not barred by limitation merely because it was initiated after a delay. Additionally, the availability of an alternative remedy under Section 152 of the Act precludes the maintainability of a writ petition.

Judgment Excerpts

The inquiry under Section 83 of the Maharashtra Cooperative Societies Act, 1960, is not barred by limitation under Section 84 of the Act. The petitioners have an alternative remedy of appeal under Section 152 of the Act, which they have not availed.

Procedural History

The Assistant Registrar, Cooperative Societies (Housing), Saoner, ordered an inquiry under Section 83 of the Maharashtra Cooperative Societies Act, 1960, into the affairs of the petitioner-society. The petitioners filed a writ petition in the Bombay High Court challenging the inquiry. The court dismissed the petition.

Acts & Sections

  • Maharashtra Cooperative Societies Act, 1960: 83, 84, 152
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