Bombay High Court Directs Expeditious Decision on Deregistration of Cooperative Society Seeking to Be Governed Solely by Public Trust Act. Proposal for Deregistration Under Section 21 of Maharashtra Cooperative Societies Act, 1960 Held Maintainable and Must Be Decided Within Three Months.

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

The petitioner, Pachora Taluka Cooperative Education Society Ltd., is a cooperative society registered in 1936 under the Bombay Cooperative Societies Act, 1925, and also registered under the Bombay Public Trust Act, 1950 in 1954. It runs schools and colleges in Pachora taluka, Jalgaon district. The society found it difficult to be governed by both the Maharashtra Cooperative Societies Act, 1960 and the Maharashtra Public Trust Act simultaneously. In a managing committee meeting on 12.03.2012, it resolved to be governed solely by the Maharashtra Public Trust Act and to seek deregistration under the Cooperative Societies Act. On 20.04.2012, it submitted a proposal for deregistration to the District Deputy Registrar, Cooperative Societies, Jalgaon. However, the proposal was not decided, leading to the filing of a writ petition seeking quashing of a communication dated 19.08.2016 from the Divisional Joint Registrar, Nashik, and directions to the Commissioner for Cooperation and the Divisional Joint Registrar to decide the proposal expeditiously. The court considered the maintainability of the proposal and the duty of the authorities to decide it. The court held that the proposal is maintainable and directed the respondents to decide it within three months from the date of the order, on its own merits.

Headnote

A) Cooperative Law - Deregistration of Society - Maintainability of Proposal - Section 21 Maharashtra Cooperative Societies Act, 1960 - The petitioner, a cooperative society also registered as a public trust, sought deregistration under the Cooperative Societies Act to be governed solely by the Maharashtra Public Trust Act. The court held that the proposal for deregistration is maintainable and the Registrar must decide it on its own merits within a stipulated time. (Paras 1-3)

B) Cooperative Law - Duty of Registrar - Expeditious Decision - Section 21 Maharashtra Cooperative Societies Act, 1960 - The court directed the respondents to decide the petitioner's deregistration proposal within three months from the date of the order, as the proposal had been pending since 2012. (Para 3)

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Issue of Consideration

Whether the proposal for deregistration of the petitioner society under the Maharashtra Cooperative Societies Act, 1960 is maintainable and whether the respondents are obliged to decide it expeditiously.

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Final Decision

The court directed the respondents to decide the petitioner's proposal for deregistration within three months from the date of the order, on its own merits.

Law Points

  • Deregistration of cooperative society
  • Maintainability of proposal
  • Duty of Registrar to decide expeditiously
  • Section 21 Maharashtra Cooperative Societies Act
  • 1960
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Case Details

2017 LawText (BOM) (09) 10

Writ Petition No. 10087 of 2016

2017-09-15

R. M. Borde, A. M. Dhavale

Shri. Vijaysinh A. Thorat, Sr. Advocate i/b Shri. M. S. Deshmukh for petitioner; Mrs M. A. Despande, AGP for respondents No. 1 to 5; Shri. M. M. Joshi for respondent No.6/Intervenor

Pachora Taluka Cooperative Education Society Ltd.

State of Maharashtra, Commissioner for Cooperation and Registrar for Cooperative Societies, Divisional Joint Registrar, District Deputy Registrar, Assistant Registrar, Sahebrao Gajmal Patil

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Nature of Litigation

Writ petition seeking quashing of communication and directions for expeditious decision on deregistration proposal.

Remedy Sought

Petitioner seeks quashing of communication dated 19.08.2016 and directions to respondents No. 2 and 3 to decide the proposal for deregistration expeditiously.

Filing Reason

The petitioner's proposal for deregistration under the Maharashtra Cooperative Societies Act, 1960 was not being decided by the authorities.

Issues

Whether the proposal for deregistration of the petitioner society is maintainable. Whether the respondents are obliged to decide the proposal expeditiously.

Submissions/Arguments

Petitioner argued that it is difficult to be governed by two enactments and sought deregistration to be governed solely by the Maharashtra Public Trust Act. Respondents did not oppose the maintainability but the proposal remained pending.

Ratio Decidendi

The proposal for deregistration under Section 21 of the Maharashtra Cooperative Societies Act, 1960 is maintainable and the Registrar has a duty to decide it expeditiously.

Judgment Excerpts

By this writ petition, the petitioner-Educational Institution seeks quashing of communication dt. 19.08.2016, sent by Divisional Joint Registrar, Cooperative Societies, Nashik and directions to Commissioner for Cooperation, Cooperative Societies, Pune and Divisional Joint Registrar, Cooperative Societies, Nashik Division, Nashik, the respondents No. 2 and 3 herein, to expeditiously decide the proposal for deregistration of society under the provisions of Maharashtra Cooperative Societies Act, 1960. The petitioner found it difficult to be governed by two different enactments viz. Bombay Public Trust Act as well as Maharashtra Cooperative Societies Act, simultaneously.

Procedural History

The petitioner submitted a proposal for deregistration on 20.04.2012. The proposal was not decided, leading to the filing of the writ petition in 2016. The court reserved judgment on 01.08.2017 and pronounced on 15.09.2017.

Acts & Sections

  • Maharashtra Cooperative Societies Act, 1960: Section 21
  • Bombay Cooperative Societies Act, 1925:
  • Bombay Public Trust Act, 1950:
  • Maharashtra Public Trust Act:
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