Case Note & Summary
The petitioner, T.J.S.B. Sahakari Bank Ltd., originally registered as Sadguru Jangli Maharaj Sahakari Bank Ltd. under the Maharashtra Co-operative Societies Act, 1960, was later converted into a multi-state co-operative society under the Multi-State Co-operative Societies Act, 2002. The bank had granted a loan to respondent no.1, a proprietary concern of Vasudeo Khachermal Agarwal, with respondents 2 and 3 as guarantors. Upon default, the bank filed a Recovery Application dated 24 September 2003 under Section 101 of the Multi-State Co-operative Societies Act, 2002 before the Deputy Registrar (Respondent No.4). The Deputy Registrar, by order dated 31 October 2008, allowed the application and issued a recovery certificate. Respondent no.2 filed a Revision Application No.312 of 2009 before the Divisional Joint Registrar (Respondent No.5), who by order dated 23 January 2014 set aside the Deputy Registrar's order and returned the Recovery Application, directing the bank to file it under Section 91 of the Maharashtra Co-operative Societies Act, 1960 before the Co-operative Court. The bank challenged this revisional order in the High Court. The High Court allowed the writ petition, holding that upon conversion to a multi-state co-operative society, the provisions of the Multi-State Co-operative Societies Act, 2002 apply. The Recovery Application under Section 101 of the 2002 Act was maintainable before the Registrar, and the Co-operative Court under the 1960 Act had no jurisdiction. The court set aside the revisional order and restored the Deputy Registrar's order dated 31 October 2008.
Headnote
A) Co-operative Law - Jurisdiction - Recovery of Dues - Sections 101, 103 Multi-State Co-operative Societies Act, 2002 - The petitioner bank, originally registered under the Maharashtra Co-operative Societies Act, 1960 and later converted to a multi-state co-operative society under the Multi-State Co-operative Societies Act, 2002, filed a Recovery Application under Section 101 of the 2002 Act before the Deputy Registrar. The Divisional Joint Registrar (Respondent No.5) returned the application holding that the dispute must be filed under Section 91 of the 1960 Act before the Co-operative Court. The High Court held that upon conversion, the provisions of the 2002 Act apply, and the Recovery Application under Section 101 was maintainable before the Registrar. The court set aside the revisional order and restored the Deputy Registrar's order. (Paras 2-10) B) Co-operative Law - Conversion of Society - Applicability of Act - Section 24 Multi-State Co-operative Societies Act, 2002 - The court held that once a society is converted into a multi-state co-operative society, the provisions of the Multi-State Co-operative Societies Act, 2002 apply to all its affairs, including recovery of dues. The Registrar under the 2002 Act has jurisdiction to entertain recovery applications under Section 101, and the Co-operative Court under the 1960 Act has no jurisdiction. (Paras 5-9) C) Co-operative Law - Recovery Certificate - Execution - Section 103 Multi-State Co-operative Societies Act, 2002 - The court noted that the Registrar has the power to execute a recovery certificate under Section 103 of the 2002 Act, which is a complete code for recovery of dues by multi-state co-operative societies. The revisional authority erred in holding that the recovery application should be filed under the 1960 Act. (Paras 8-10)
Issue of Consideration
Whether the Recovery Application filed by the petitioner under Section 101 of the Multi-State Co-operative Societies Act, 2002 was maintainable before the Deputy Registrar (Respondent No.4) or ought to have been filed under Section 91 of the Maharashtra Co-operative Societies Act, 1960 before the Co-operative Court.
Final Decision
The High Court allowed the writ petition, set aside the order dated 23 January 2014 passed by Respondent No.5, and restored the order dated 31 October 2008 passed by Respondent No.4. Rule made absolute.
Law Points
- Jurisdiction of Registrar under Multi-State Co-operative Societies Act
- 2002
- Section 101 prevails over Maharashtra Co-operative Societies Act
- 1960
- Section 91 for recovery of dues by multi-state co-operative bank
- Conversion of society from state act to multi-state act does not affect pending recovery proceedings
- Registrar has power to execute recovery certificate under Section 103 of Multi-State Co-operative Societies Act
