Bombay High Court Dismisses Writ Petitions Challenging Co-operative Society Recovery Proceedings — Petitioner Failed to Exhaust Statutory Remedy of Appeal Under Section 154 of Maharashtra Co-operative Societies Act, 1960. The court held that writ jurisdiction under Article 226 is not ordinarily exercisable when an alternative statutory remedy is available and no exceptional circumstances exist.

High Court: Bombay High Court Bench: BOMBAY
  • 12
Judgement Image
Font size:
Print

Case Note & Summary

The petitioner, Manisha Bijal Shah, filed two writ petitions under Article 226 of the Constitution of India challenging recovery proceedings initiated by Shri Gahininath Nagrik Sahakari Patsanstha Maryadit, a co-operative society, and the recovery certificate issued by the Assistant Registrar of Co-operative Societies. The petitioner had taken loans from the society and defaulted, leading to the society initiating recovery proceedings under the Maharashtra Co-operative Societies Act, 1960. The Assistant Registrar issued a recovery certificate, and the Special Recovery Officer attached the petitioner's property. The petitioner contended that the recovery proceedings were illegal and without jurisdiction. The respondents argued that the petitioner had an alternative statutory remedy of appeal under Section 154 of the Act, which she failed to exhaust. The court examined the maintainability of the writ petitions in light of the availability of an alternative remedy. The court held that the existence of an alternative remedy does not bar the High Court's jurisdiction under Article 226, but the court ordinarily refrains from exercising such jurisdiction when an efficacious alternative remedy exists. The petitioner did not demonstrate any exceptional circumstances warranting interference. The court also noted that the period of limitation for filing an appeal had expired, but the petitioner could seek condonation of delay before the appellate authority. Consequently, the court dismissed both writ petitions, granting the petitioner liberty to file an appeal under Section 154 within a specified period, and directed the appellate authority to consider the appeal on merits without being influenced by the dismissal of the writ petitions.

Headnote

A) Constitutional Law - Alternative Remedy - Maintainability of Writ Petition - Article 226 of the Constitution of India - The court held that when a statutory remedy of appeal is available under Section 154 of the Maharashtra Co-operative Societies Act, 1960, a writ petition under Article 226 is not maintainable unless exceptional circumstances are shown. The petitioner failed to demonstrate any such circumstances. (Paras 1-10)

B) Co-operative Law - Recovery Proceedings - Section 154 of the Maharashtra Co-operative Societies Act, 1960 - The petitioner challenged the recovery certificate issued by the Assistant Registrar and the subsequent recovery proceedings. The court held that the petitioner ought to have availed the remedy of appeal under Section 154 before approaching the High Court. (Paras 1-10)

C) Co-operative Law - Limitation - Appeal under Section 154 - The court noted that the period of limitation for filing an appeal under Section 154 had expired, but the petitioner could seek condonation of delay before the appellate authority. (Paras 1-10)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether a writ petition under Article 226 of the Constitution of India is maintainable when the petitioner has an alternative statutory remedy of appeal under Section 154 of the Maharashtra Co-operative Societies Act, 1960, and whether the recovery proceedings initiated by the co-operative society against the petitioner were valid.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

Both writ petitions are dismissed. The petitioner is granted liberty to file an appeal under Section 154 of the Maharashtra Co-operative Societies Act, 1960 within four weeks from the date of the judgment. If such appeal is filed, the appellate authority shall consider it on merits without being influenced by the dismissal of the writ petitions. Rule is discharged. No order as to costs.

Law Points

  • Exhaustion of alternative remedy
  • Maintainability of writ petition
  • Co-operative society recovery proceedings
  • Section 154 Maharashtra Co-operative Societies Act
  • 1960
Subscribe to unlock Law Points Subscribe Now

Case Details

2018 LawText (BOM) (03) 37

Writ Petition No.1965 of 2013 and Writ Petition No.2126 of 2013

2018-03-07

R.D. Dhanuka, J.

Mr.Girish S. Godbole i/b Mr.Chetan G. Patil for the Petitioner, Mr.Surel S. Shah i/b Mr.Anand S. Patil for the Respondent No.1, Mr.S.H. Kankal, A.G.P. for the State – Respondent Nos.2 and 3, Mr.V.V. Salunke for the Respondent Nos.4 and 5

Manisha Bijal Shah

Shankar Laxman Sutar, Assistant Registrar, Co-operative Societies, Divisional Joint Registrar, Co-operative Societies, Shri Gahininath Nagrik Sahakari Patsanstha Maryadit, Special Recovery Officer

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Writ petitions under Article 226 of the Constitution of India challenging recovery proceedings initiated by a co-operative society and the recovery certificate issued by the Assistant Registrar.

Remedy Sought

The petitioner sought quashing of the recovery certificate and recovery proceedings, and release of attached property.

Filing Reason

The petitioner defaulted on loans taken from the co-operative society, leading to recovery proceedings and attachment of property.

Previous Decisions

The Assistant Registrar issued a recovery certificate, and the Special Recovery Officer attached the petitioner's property. No appeal was filed under Section 154 of the Maharashtra Co-operative Societies Act, 1960.

Issues

Whether the writ petitions are maintainable in view of the alternative statutory remedy of appeal under Section 154 of the Maharashtra Co-operative Societies Act, 1960. Whether the recovery proceedings and recovery certificate are valid.

Submissions/Arguments

Petitioner argued that the recovery proceedings were illegal and without jurisdiction, and that the writ petition is maintainable despite alternative remedy. Respondents argued that the petitioner has an efficacious alternative remedy of appeal under Section 154 of the Act, which she failed to exhaust, and therefore the writ petitions should be dismissed.

Ratio Decidendi

The existence of an alternative statutory remedy does not bar the High Court's jurisdiction under Article 226, but the court ordinarily refrains from exercising such jurisdiction when an efficacious alternative remedy exists. The petitioner failed to demonstrate any exceptional circumstances to warrant interference under Article 226.

Judgment Excerpts

Rule. Mr.Surel S. Shah, learned counsel for the respondent no.1 waives services. Both the writ petitions are dismissed.

Procedural History

The petitioner filed two writ petitions under Article 226 of the Constitution of India challenging recovery proceedings initiated by the co-operative society and the recovery certificate issued by the Assistant Registrar. The respondents appeared and argued that the petitioner had an alternative remedy of appeal under Section 154 of the Maharashtra Co-operative Societies Act, 1960. The court heard the matter and reserved judgment on 14th February 2018, pronouncing it on 7th March 2018.

Acts & Sections

  • Maharashtra Co-operative Societies Act, 1960: Section 154
  • Constitution of India: Article 226
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Allows Writ Petitions Challenging Recovery Proceedings Under Maharashtra Co-operative Societies Act, 1961 — Petitioners Not Given Opportunity of Hearing Before Attachment of Property. Failure to Provide Notice Under Section 101 of...
Related Judgement
High Court Gujarat High Court Quashes Reassessment Notice in Income Tax Case Due to Non-Application of Mind by AO. Section 148 Notice for AY 2014-15 Set Aside as Reasons Recorded Were Mechanical and Lacked Independent Satisfaction.