The finality of an order under S. 23 (3) of the Maharashtra Co-operative Societies Act, 1960, does not preclude the exercise of the State Government's power under S. 154 of the Act to call for and examine the record of any inquiry or the proceedings of any other matter of any officer subordinate to it.

Headnote:
CO-OPERATIVE SOCIETIES - REVISION OF ORDERS - JURISDICTION OF STATE GOVERNMENT - FINALITY OF ORDER UNDER S. 23 (3) OF THE MAHARASHTRA CO-OPERATIVE SOCIETIES ACT, 1960 - S. 154 OF THE ACT - INTERPRETATION - RIGHT OF PARTY TO MOVE GOVERNMENT - MANDAMUS.
Fact of the Case:

The appellant, a registered Co-operative Housing Society, promoted by two individuals for the construction of a block of flats in Bombay, rejected the application for membership of respondent 4, who claimed to have paid the entrance fee, share money, and other demands. Respondent 4 filed an appeal under S. 23 (2) of the Maharashtra Co-operative Societies Act, 1960, which was allowed in his favor by the District Deputy Registrar, Co-operative Societies, Bombay. The Society filed an application before the State Government for revision purporting to be under S. 154 of the Act, which was rejected. The Society filed a petition under Arts. 226 and 227 of the Constitution in the High Court of Bombay, which was also rejected.
Finding of the Court:

The High Court erred in overlooking that the Government had denied to itself a jurisdiction which it undoubtedly possessed by considering that the finality of the order under Section 23 (3) precluded action under S. 154. The High Court ought to have issued a mandamus to Government to deal with the application before it within its jurisdiction under S. 154.
Issues: 1. Whether the finality under S. 23 (3) of the Maharashtra Co-operative Societies Act, 1960, is subject to S. 154 of the Act? 2. Whether a party has a right to move the State Government under S. 154 of the Act?
Ratio Decidendi: 1. The finality stated by S. 23 (3) does not affect the power of the State Government under S. 154 to call for and examine the record of any inquiry or the proceedings of any other matter of any officer subordinate to it, except those referred to in sub-s 9 of S. 149, for the purpose of satisfying itself as to the legality or propriety of any decision or order passed. 2. A party has no right to relief as in an appeal or revision under the two Codes, but Government has jurisdiction to deal with the application before it within its jurisdiction under S. 154.
Final Decision: The appeal was allowed with costs, and a mandamus was issued to the Government to deal with the application before it within its jurisdiction under S. 154.

Judgement

HIDAYATULLAH, J.: In this appeal by special leave we are not concerned with the merits of the controversy between the appellant and the fourth respondent, who are the contesting parties, because only two short questions of law arise for our decision. The appellant is a registered Co-operative Housing Society, registered under the Maharashtra Co-operative Societies Act, 1960 (XXIV of 1961). The Society was promoted by two individuals for the construction of a block of flats in Bombay. Shivdasani (respondent 4) claims to have paid the entrance fee, share money and other demands and complains that his membership was wrongly rejected by the Society. The Society denies these statements and the claim. We are not concerned with the details of this dispute. What we are concerned with is this: On being informed of the rejection of his application for membership, Shivdasani filed an appeal under S. 23 (2) of the above Act, which was heard and decided in his favour by the District Deputy Registrar, Co-operative Societies, Bombay. The Society filed an application before the State Government for revision purporting to be under S. 154 of the Act. This application was rejected. The Society was intimated this result by the Under Secretary to the Government of Maharashtra (Agriculture and Co-operative Department) and the communication (CAR/1064/426690/C-42, 17th May 1965) was as follows:-

"Sir,

I am directed to state that following the hearing to you by the Deputy Secretary of this Department on 10th March 1965, in connection with the subject noted above, a note was received in this Department from Shri M. G. Mani, Advocate wherein it was claimed that though an order was final under S. 23 (3) of the Maharashtra Co-operative Societies Act, 1960, Government had inherent revisionary powers under S. 154 of the said Act to entertain in such representations against such an order. I am to inform you that the matter has been examined by Government and to state that in such cases orders given under S. 23 (3) are final and Government has no revisional jurisdiction in such a matter.

Yours faithfully,

Sd./- (D. A. Ekbote),

Under Secretary to Government.

The Society filed a petition under Arts. 226 and 227 of the Constitution in the High Court of Bombay which was also rejected (S.C.A. 1027/65, 30th June 1965). The High Court passed a short and laconic order which reads:

"Government right in declaring no jurisdiction. It is wrong to say that respondent had withdrawn the application voluntarily. Attitude of the Society unjust. Admittedly the promoters were members of Everest Co. and they wanted Rs. 3,000 from each one for themselves.

Societies are not meant for self aggrandizement.

No ground to interfere.

REJECTED. .

It is against the last order that the present appeal has been brought and the first question is whether the Government is right in law in declining to interfere because it has "no revisional jurisdiction in such a matter The answer to this question depends upon the construction of S. 154 of the Act but before we attempt it, we shall say something about the Act and the provisions applicable to this case.

2. The Maharashtra Co-operative Societies Act, which replaced the Bombay Cooperative Societies Act, 1925 was passed to provided for the orderly development of the co-operative movement in the State of Maharashtra. It deals, among others, with housing societies, the object of which is to provide their members with dwelling houses. Every society having as its objects the promotion of the economic interests or general welfare of its members, or of the public, in accordance with co-operative principles and which is economically sound may register under the Act. This entitles the societies to obtain certain benefits. The State Government appoints a Registrar of Co-operative Societies, who has numerous powers under the Act, and may appoint one or more persons to assist him and may confer all or any of the power of the Registrar upon them. Chapter I

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1966 Supreme(SC) 23

Cases Referred (1)