2002 Supreme(Bom) 193
R.J.KOCHAR
Om Sai Pratibha Co-op. Hsg. Soc. – Appellant
Versus
State of Maharashtra & others – Respondent
Judgement Key Points
- Builders, having sold flats to purchasers, have no locus standi or role in the registration process of a cooperative housing society and cannot file appeals under Section 152 or revisions under Section 154 as they are not aggrieved parties; such proceedings should be rejected in limine. [4000139520007] (!)
- Jurisdiction of the revisional authority under Section 154 is narrow and limited to cases of error of law apparent on the face of the record, perverse orders, or manifest miscarriage of justice; it must exercise caution and be extremely slow to interfere with orders of the appellate authority, which has broader fact-finding powers. [4000139520006] (!)
- The revisional authority cannot convert a revision into an original proceeding or probe new allegations not substantiated before lower authorities; appellants bear the burden to prove their case at the appellate stage. (!) [4000139520006]
- State authorities under the Act must foster and encourage the cooperative movement, adopting a liberal approach favoring preservation of registrations over pedantic cancellation on flimsy or technical grounds, considering hardships to members in accessing essential services. [4000139520006] (!)
- Registration requires substantial compliance with minimum membership thresholds for economic viability, not strict arithmetic computation; a government circular prescribing 60% of total flat owners was satisfied where 25 out of 41 signed the proposal (exceeding 60% of 41). [4000139520005] (!)
- Vague or unsubstantiated allegations of misconduct by promoters or violations (e.g., relations among members) do not obstruct registration if statutory requirements are met; separate remedies exist for such disputes. [4000139520006]
JUDGMENT - R.J. KOCHAR, J.:---The petitioner is a Co-operative Housing Society. It is aggrieved by the impugned order of the Minister for Co-operation, State of Maharashtra. By the impugned order dated 3rd January, 2002, the Minister was pleased to cancel the orders dated 17th October, 2001 and 3rd November 1999 passed respectively by the Deputy Registrar, Co-operative Societies and the Divisional Joint Registrar of Co-operative Societies, Mumbai by which orders the petitioner society was allowed to be registered as Co-operative Housing Society under section 9 read with sections 4 and 6 of the Maharashtra Co-operative Societies Act, 1960 (hereinafter referred to as "the Act").
2. The petitioner along with its 28 members had submitted a proposal for registration of the petitioner society. The application for the registration complied with all the prescribed requirements and, therefore, by his order dated 3rd November, 1999, the Deputy Registrar had issued registration certificate to the petitioner society. The respondent No. 2 (hereinafter referred to as "the Builders") aggrieved by the aforesaid order of the Deputy Registrar registering the society, filed an appeal under section 152
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