Case Note & Summary
The petitioner, Sunil Sitaram Mahajan, filed a writ petition under Article 227 of the Constitution of India challenging an order dated 1st February 2017 passed by the learned Divisional Registrar, Co-operative Societies, Kolhapur Division, in Revision Application Nos.373, 374, 409, and 420 of 2016. The petitioner was a member of the respondent no.7 society, Shahu Corner Nagari Sahakari Pat Sanstha Maryadit. The respondent no.4, Pooja Annaso Jadhav, had obtained a loan from the society, and the petitioner stood as a surety/guarantor. The society initiated recovery proceedings under Section 101 of the Maharashtra Co-operative Societies Act, 1960, and attached the petitioner's property without issuing any notice or affording him an opportunity of hearing. The petitioner challenged the recovery certificate and attachment before the Divisional Registrar in revision under Section 154 of the Act. The Divisional Registrar dismissed the revision applications, confirming the recovery proceedings. The petitioner contended that the impugned order was passed in gross violation of principles of natural justice. The court held that the recovery proceedings under Section 101 must comply with natural justice, and the failure to give a hearing vitiated the attachment order. The court also held that the revisional authority ought to have set aside the ex-parte order and remanded the matter for fresh consideration. Consequently, the court allowed the writ petition, set aside the impugned order, and remanded the matter to the Divisional Registrar for fresh hearing after giving an opportunity to the petitioner.
Headnote
A) Co-operative Law - Recovery of Dues - Natural Justice - Section 101, Maharashtra Co-operative Societies Act, 1960 - Petitioner's property attached without notice or opportunity of hearing - Held that recovery proceedings under Section 101 must comply with principles of natural justice; failure to give hearing vitiates the attachment order (Paras 1-10).
B) Co-operative Law - Revision - Maintainability - Section 154, Maharashtra Co-operative Societies Act, 1960 - Divisional Registrar dismissed revision applications on merits without considering the petitioner's grievance of no hearing - Held that the revisional authority ought to have set aside the ex-parte order and remanded the matter for fresh consideration after hearing the petitioner (Paras 11-15).
Issue of Consideration
Whether the impugned order passed by the Divisional Registrar in revision applications, confirming the recovery proceedings initiated by the respondent-society against the petitioner, is sustainable in law when the petitioner was not afforded an opportunity of hearing before the attachment of his property.
Final Decision
The writ petition is allowed. The impugned order dated 1st February 2017 passed by the Divisional Registrar, Co-operative Societies, Kolhapur Division, in Revision Application Nos.373, 374, 409, and 420 of 2016 is quashed and set aside. The matter is remanded to the Divisional Registrar for fresh hearing after giving an opportunity of hearing to the petitioner. Rule is made absolute accordingly. No order as to costs.
Law Points
- Natural justice
- Right to be heard
- Co-operative Societies Act
- 1960
- Section 101
- Section 154
- Recovery of dues
- Attachment of property
- Revision application
- Writ jurisdiction under Article 227
Case Details
2018 LawText (BOM) (06) 54
WRIT PETITION NO.6778 OF 2017
Mr.Amit B. Borkar for the Petitioner, Mr.Girish R. Agrawal for the Respondent No.1, Mr.S.H. Kankal, A.G.P. for the State – Respondent Nos.2 and 5, Mr.Pradeep D. Dalvi for the Respondent Nos.4 and 7, Mr.N.J. Patil i/b Mr.Amey N. Patil for the Respondent No.6
Shri Sunil Sitaram Mahajan
Suryakant Pandurang Badave, District Deputy Registrar Co-operative Societies Kolhapur, Recovery Officer Shahu Corner Nagari Sahakari Path Sanstha Maryadit, Sou.Pooja Annaso Jadhav, Joint Registrar Co-operative Societies Kolhapur, Shivaji Dhondiram Powar, Shahu Corner Nagari Sahakari Pat Sanstha Maryadit
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Nature of Litigation
Writ petition under Article 227 of the Constitution of India challenging an order passed by the Divisional Registrar, Co-operative Societies, in revision applications confirming recovery proceedings initiated by a co-operative society against the petitioner.
Remedy Sought
The petitioner sought to quash and set aside the order dated 1st February 2017 passed by the Divisional Registrar in Revision Application Nos.373, 374, 409, and 420 of 2016, and to set aside the recovery proceedings and attachment of his property.
Filing Reason
The petitioner's property was attached by the respondent-society in recovery proceedings under Section 101 of the Maharashtra Co-operative Societies Act, 1960, without issuing any notice or affording him an opportunity of hearing, in violation of principles of natural justice.
Previous Decisions
The Divisional Registrar dismissed the revision applications filed by the petitioner against the recovery certificate and attachment, confirming the recovery proceedings.
Issues
Whether the impugned order passed by the Divisional Registrar in revision applications is sustainable when the petitioner was not given an opportunity of hearing before attachment of his property.
Whether the recovery proceedings under Section 101 of the Maharashtra Co-operative Societies Act, 1960 must comply with principles of natural justice.
Submissions/Arguments
The petitioner argued that the recovery proceedings and attachment were initiated without any notice or opportunity of hearing, violating natural justice.
The respondents contended that the recovery was validly initiated under the Act and the revisional authority correctly dismissed the revision applications.
Ratio Decidendi
Recovery proceedings under Section 101 of the Maharashtra Co-operative Societies Act, 1960 must comply with principles of natural justice. Failure to give an opportunity of hearing to the person whose property is sought to be attached vitiates the attachment order. The revisional authority under Section 154 ought to set aside such ex-parte orders and remand the matter for fresh consideration after hearing the affected party.
Judgment Excerpts
By this petition filed under Article 227 of the Constitution of India, the petitioner has impugned the order and judgment dated 1st February, 2017 passed by the learned Divisional Registrar, Co-operative Societies, Kolhapur Division, Kolhapur in Revision Application Nos.373 and 374 of 2016 and the Revision Application Nos.409 and 420 of 2016.
The respondent no.4 had obtained a loan from the respondent no.7 society and the petitioner stood as a surety/guarantor.
The society initiated recovery proceedings under Section 101 of the Maharashtra Co-operative Societies Act, 1960 and attached the petitioner's property without issuing any notice or affording him an opportunity of hearing.
The court held that the recovery proceedings under Section 101 must comply with natural justice, and the failure to give a hearing vitiated the attachment order.
Procedural History
The respondent no.4 obtained a loan from the respondent no.7 society, with the petitioner as surety. The society initiated recovery proceedings under Section 101 of the Maharashtra Co-operative Societies Act, 1960 and attached the petitioner's property without notice. The petitioner filed revision applications under Section 154 before the Divisional Registrar, who dismissed them on 1st February 2017. The petitioner then filed the present writ petition under Article 227 of the Constitution of India before the Bombay High Court, which was heard and finally disposed of on 13th June 2018.
Acts & Sections
- Maharashtra Co-operative Societies Act, 1960: 101, 154
- Constitution of India: 227
