Bombay High Court Allows Writ Petition Challenging Interim Stay on Appointment of Administrator in Cooperative Society — Section 77A of Maharashtra Co-operative Societies Act, 1960. Court holds that the appellate authority must record reasons for granting interim relief and cannot stay the appointment of an administrator without considering the statutory scheme.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Prosecution
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Case Note & Summary

The petitioners, members of Taklibhan Vividh Karyakari Seva Sahakari Sanstha Ltd., challenged an order dated 13.6.2016 passed by the Divisional Joint Registrar, Nashik Division, Nashik in Appeal No. 199/2016. The Assistant Registrar had appointed an administrator for the society under Section 77A of the Maharashtra Co-operative Societies Act, 1960 on 24.5.2016. The office bearers of the society appealed against this order, and the Divisional Joint Registrar granted an interim stay on the appointment without recording any reasons. The petitioners contended that the interim stay was granted without considering the statutory scheme and without giving them a hearing. The court observed that the appellate authority must record reasons for granting interim relief and cannot stay the appointment of an administrator without considering the statutory scheme. The court set aside the interim order and directed the appellate authority to decide the appeal afresh after hearing all parties.

Headnote

A) Cooperative Law - Appointment of Administrator - Section 77A of Maharashtra Co-operative Societies Act, 1960 - Interim Stay - The Divisional Joint Registrar granted an interim stay on the appointment of an administrator without recording reasons and without considering the statutory scheme under Section 77A. The High Court held that the appellate authority must record reasons for granting interim relief and cannot stay the appointment of an administrator without considering the statutory scheme. (Paras 1-3)

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Issue of Consideration

Whether the Divisional Joint Registrar could grant an interim stay on the appointment of an administrator under Section 77A of the Maharashtra Co-operative Societies Act, 1960 without recording reasons and without considering the statutory scheme.

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Final Decision

The court allowed the writ petition, set aside the interim order dated 13.6.2016 passed by the Divisional Joint Registrar, and directed the appellate authority to decide the appeal afresh after hearing all parties.

Law Points

  • Interim relief must be granted with reasons
  • Appellate authority must consider statutory scheme before granting stay
  • Section 77A of Maharashtra Co-operative Societies Act
  • 1960 provides for appointment of administrator
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Case Details

2016 LawText (BOM) (08) 60

Writ Petition No. 6221 of 2016 with Civil Application No. 12075 of 2016

2016-08-30

T.V. Nalawade, J.

Mr. R. R. Karpe h/f Mr. S.S. Gangakhedkar for Petitioners, Mr. S.R. Yadav, AGP for respondent/State, Mr. P. P. Khandagale-Patil for respondent No.4, Mr. V. D. Hon Senior Counsel h/f Mr. A.V. Hon for respondent Nos.4 to 11

Rahul S/o Appasaheb Patare and others

The Divisional Joint Registrar, Cooperative Societies, Nashik and others

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Nature of Litigation

Writ petition challenging an interim order passed by the Divisional Joint Registrar in an appeal under the Maharashtra Co-operative Societies Act, 1960.

Remedy Sought

Petitioners sought quashing of the interim stay order dated 13.6.2016 passed by the Divisional Joint Registrar, Nashik.

Filing Reason

The Divisional Joint Registrar granted an interim stay on the appointment of an administrator without recording reasons and without considering the statutory scheme.

Previous Decisions

The Assistant Registrar appointed an administrator on 24.5.2016 under Section 77A of the Act. The office bearers appealed, and the Divisional Joint Registrar granted an interim stay on 13.6.2016.

Issues

Whether the Divisional Joint Registrar could grant an interim stay on the appointment of an administrator under Section 77A of the Maharashtra Co-operative Societies Act, 1960 without recording reasons and without considering the statutory scheme.

Submissions/Arguments

Petitioners argued that the interim stay was granted without hearing them and without recording reasons. Respondents contended that the appellate authority has power to grant interim relief.

Ratio Decidendi

An appellate authority under the Maharashtra Co-operative Societies Act, 1960 must record reasons for granting interim relief and cannot stay the appointment of an administrator under Section 77A without considering the statutory scheme.

Judgment Excerpts

The petition is filed to challenge the order made by Divisional Joint Registrar, Nashik Division, Nashik in appeal No. 199/2016 on 13.6.2016. In the appeal filed by present respondents, office bearers of Taklibhan Vividh Karyakari seva Sahakari Sanstha Ltd., ... the learned Joint Registrar of Cooperative Societies Nashik had granted interim relief, stay to the operation of order made by the learned Registrar Cooperative Societies on 24.5.2016 by which learned Assistant Registrar had appointed administrator on the aforesaid Society as provided under section 77(A) of Maharashtra Co-operative Societies Act, 1960.

Procedural History

The Assistant Registrar appointed an administrator on 24.5.2016 under Section 77A of the Act. The office bearers appealed to the Divisional Joint Registrar, who granted an interim stay on 13.6.2016. The petitioners filed a writ petition challenging the interim stay order.

Acts & Sections

  • Maharashtra Co-operative Societies Act, 1960: 77A
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