Case Note & Summary
The petitioner, Saili Durgadas Acharya, challenged an order dated 16 May 2016 passed by the Deputy Registrar, Co-operative Societies, G/N Ward, Mumbai, under Section 79(2) of the Maharashtra Co-operative Societies Act, 1960 (MCS Act). The order directed the Nandan Co-operative Housing Society Limited (Respondent No.1) to cancel the membership and share certificate issued to the petitioner, restore water supply to the flat, and return car parking space to Respondent No.2. The dispute pertained to Flat No. A/4 in the society's building. Balmukund Acharya claimed ownership of the flat, and the society had issued a share certificate in his sole name. He permitted his brother Dattakumar to reside in the flat, and the society added Dattakumar's name as a joint/nominal member on 18 October 1981. Balmukund protested this addition. In April 1997, Balmukund filed a suit in the Small Causes Court for eviction of Dattakumar and deletion of his name from the records. The suit was initially returned for want of jurisdiction but was restored on appeal. The legal issues were whether the Deputy Registrar had jurisdiction under Section 79(2) to issue such directives and whether the dispute should have been adjudicated under Section 91 of the MCS Act. The petitioner argued that the Deputy Registrar exceeded his jurisdiction and that the dispute was a 'dispute touching the business of the society' under Section 91. The respondents contended that the Deputy Registrar acted within his powers. The Court analyzed that Section 79(2) empowers the Registrar to issue directives for ensuring compliance with the Act, rules, and by-laws, but not to adjudicate disputes regarding membership and share certificates. Such disputes fall under Section 91, which provides for reference to the Co-operative Court. The Court also noted that the order was passed without giving the petitioner an opportunity of hearing, violating natural justice. The Court allowed the petition, quashed the Deputy Registrar's order, and directed that any dispute regarding membership be resolved under Section 91.
Headnote
A) Co-operative Law - Jurisdiction of Deputy Registrar - Section 79(2) of Maharashtra Co-operative Societies Act, 1960 - Scope of Directives - The Deputy Registrar issued directives under Section 79(2) for cancellation of membership and share certificate, restoration of water supply, and return of car parking space. The Court held that such directives were beyond the scope of Section 79(2), which is meant for ensuring compliance with the Act and rules, not for adjudicating disputes regarding membership and share certificates. Disputes of this nature must be resolved under Section 91 of the MCS Act. (Paras 2, 6-8) B) Co-operative Law - Membership Dispute - Section 91 of Maharashtra Co-operative Societies Act, 1960 - Proper Forum - The dispute between the petitioner and the society regarding membership and share certificate was a dispute touching the business of the society, which falls within the exclusive jurisdiction of the Co-operative Court under Section 91. The Deputy Registrar's directives under Section 79(2) were without jurisdiction. (Paras 6-8) C) Co-operative Law - Natural Justice - Section 79(2) of MCS Act - Summary Proceedings - The Deputy Registrar's order was passed without giving the petitioner an opportunity of hearing, violating principles of natural justice. The Court set aside the order on this ground as well. (Para 7)
Issue of Consideration
Whether the Deputy Registrar, Co-operative Societies, had jurisdiction under Section 79(2) of the Maharashtra Co-operative Societies Act, 1960 to issue directives for cancellation of membership, restoration of water supply, and return of car parking space in a dispute over membership and share certificate.
Final Decision
The Court allowed the writ petition, quashed and set aside the order dated 16 May 2016 passed by the Deputy Registrar, Co-operative Societies, G/N Ward, Mumbai. The Court directed that any dispute regarding membership of the petitioner be resolved by the appropriate forum under Section 91 of the MCS Act.
Law Points
- Section 79(2) of the Maharashtra Co-operative Societies Act
- 1960 cannot be used to adjudicate disputes regarding membership and share certificates
- such disputes must be resolved under Section 91 of the MCS Act
- Deputy Registrar exceeded jurisdiction by issuing directives under Section 79(2) for cancellation of membership and restoration of amenities.
