Bombay High Court Allows Writ Petitions Challenging Minister's Revision Orders in Cooperative Society Registration Dispute — Minister Exceeded Revisional Jurisdiction Under Section 154 of Maharashtra Cooperative Societies Act, 1960. The court held that the revisional authority cannot re-appreciate evidence or substitute its own satisfaction for that of the Registrar under Section 9 of the Act.

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

The judgment arises from a batch of writ petitions filed by individuals challenging orders passed by the Hon'ble Minister for Cooperation, Irrigation & Textile, Government of Maharashtra, who allowed revision applications filed by certain proposed societies against orders of the Deputy Registrar, Cooperative Societies, which had rejected the applications for registration of those societies. The petitioners, who were farmers and residents of Andhalgaon, sought to quash the Minister's orders and restore the Deputy Registrar's decisions. The core legal issue was whether the Minister, in exercise of revisional powers under Section 154 of the Maharashtra Cooperative Societies Act, 1960, could set aside the Deputy Registrar's order by re-appreciating evidence and substituting his own satisfaction, or whether his jurisdiction was limited to examining the legality or propriety of the order. The petitioners argued that the Minister acted beyond his revisional jurisdiction by acting as an appellate authority and that the Deputy Registrar's satisfaction under Section 9(2) regarding the viability of the society was subjective and not open to revision unless perverse. The respondents contended that the Minister had wide powers to correct any illegality or impropriety. The court analyzed the scope of Section 154, noting that it is a revisional power and not an appellate power, and that the revisional authority cannot re-appreciate evidence or substitute its own satisfaction for that of the Registrar. The court held that the Minister exceeded his jurisdiction by re-appreciating the evidence and substituting his own view, and that the impugned orders were also vitiated for violation of natural justice as no hearing was given to the petitioners. Consequently, the court allowed the writ petitions, quashed the Minister's orders, and restored the Deputy Registrar's orders rejecting the registration applications.

Headnote

A) Cooperative Law - Revisional Jurisdiction - Section 154 of Maharashtra Cooperative Societies Act, 1960 - Scope of Revision - The revisional authority under Section 154 can only examine the legality or propriety of the order passed by the subordinate authority and cannot re-appreciate evidence or substitute its own satisfaction for that of the Registrar. Held that the Minister exceeded his jurisdiction by acting as an appellate authority and setting aside the registration order on merits. (Paras 10-15)

B) Cooperative Law - Registration of Society - Section 9 of Maharashtra Cooperative Societies Act, 1960 - Subjective Satisfaction of Registrar - The satisfaction of the Registrar under Section 9(2) regarding the viability and objects of the proposed society is subjective and based on material on record. The revisional authority cannot interfere unless the satisfaction is perverse or based on no evidence. Held that the Minister's order was without jurisdiction as it re-appreciated the evidence and substituted his own view. (Paras 16-20)

C) Cooperative Law - Natural Justice - Opportunity of Hearing - The revisional authority must comply with principles of natural justice before passing adverse orders. In the present case, the Minister did not provide an opportunity of hearing to the petitioners before allowing the revision applications. Held that the impugned orders are vitiated for violation of natural justice. (Paras 21-25)

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Issue of Consideration

Whether the Hon'ble Minister for Cooperation, in exercise of revisional powers under Section 154 of the Maharashtra Cooperative Societies Act, 1960, could set aside the order of the Deputy Registrar registering a society under Section 9 of the said Act, by re-appreciating evidence and substituting his own satisfaction.

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Final Decision

Writ petitions allowed. Impugned orders of the Minister quashed and set aside. Orders of the Deputy Registrar rejecting registration applications restored.

Law Points

  • Revisional jurisdiction under Section 154 of Maharashtra Cooperative Societies Act
  • 1960 is limited to examining legality or propriety of orders
  • not to re-appreciate evidence or substitute subjective satisfaction
  • Minister cannot act as appellate authority
  • registration of cooperative society under Section 9 is a quasi-judicial function
  • satisfaction of Registrar under Section 9(2) is subjective and not amenable to revision unless perverse or illegal.
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Case Details

2017 LawText (BOM) (03) 15

Writ Petition No.1164 of 2017

2017-03-22

R. M. Savant, J.

Mr. D J Khambatta, Senior Advocate a/w Mr. P S Dani, Senior Advocate a/w Dr. Abhinav Chandrachud i/by Mr. Sagar A Rane for the Petitioners; Mr. A Y Sakhare, Senior Advocate a/w Mr. A B Vagyani, Government Pleader a/w Mrs. V S Nimbalkar, AGP for Respondent Nos.1 to 5; Mr. S K Shinde a/w Mr. P H Gaikwad i/by Mr. Omkar G Nagwekar for Respondent No.6

Vijay Kusekar and Mauli Sonawane

State of Maharashtra and others

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Nature of Litigation

Writ petitions challenging orders of the Minister for Cooperation allowing revision applications against Deputy Registrar's orders rejecting registration of proposed societies.

Remedy Sought

Petitioners sought quashing of the Minister's orders and restoration of the Deputy Registrar's orders rejecting registration.

Filing Reason

The Minister exceeded his revisional jurisdiction by re-appreciating evidence and substituting his own satisfaction for that of the Registrar.

Previous Decisions

Deputy Registrar had rejected applications for registration of societies; Minister allowed revision applications and set aside those orders.

Issues

Whether the Minister, in exercise of revisional powers under Section 154 of the Maharashtra Cooperative Societies Act, 1960, could set aside the Deputy Registrar's order by re-appreciating evidence and substituting his own satisfaction. Whether the impugned orders were vitiated for violation of principles of natural justice.

Submissions/Arguments

Petitioners argued that the Minister acted beyond his revisional jurisdiction by acting as an appellate authority and that the Deputy Registrar's satisfaction under Section 9(2) was subjective and not open to revision unless perverse. Respondents contended that the Minister had wide powers to correct any illegality or impropriety and that the orders were within jurisdiction.

Ratio Decidendi

The revisional jurisdiction under Section 154 of the Maharashtra Cooperative Societies Act, 1960 is limited to examining the legality or propriety of the order and does not permit re-appreciation of evidence or substitution of the Registrar's subjective satisfaction. The Minister exceeded his jurisdiction by acting as an appellate authority.

Judgment Excerpts

The revisional authority under Section 154 can only examine the legality or propriety of the order passed by the subordinate authority and cannot re-appreciate evidence or substitute its own satisfaction for that of the Registrar. The satisfaction of the Registrar under Section 9(2) is subjective and based on material on record. The revisional authority cannot interfere unless the satisfaction is perverse or based on no evidence.

Procedural History

Deputy Registrar rejected registration applications; societies filed revision applications before the Minister; Minister allowed revisions; petitioners filed writ petitions in the High Court challenging the Minister's orders.

Acts & Sections

  • Maharashtra Cooperative Societies Act, 1960: Section 9, Section 154
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