ORAL JUDGMENT :- The petitioner was registered as a Co-operative Housing Society under the Bombay Co-operative Societies' Act, 1925 and is now deemed to have been registered under the Maharashtra Co-operative Societies' Act, 1960. The society is registered as a plot owners' Housing Society, the main object whereof is to constitute a body of persons who would be allotted residential flats on land leased out by the Municipal Corporation. The immovable property of the Society consists of a Housing Complex known as Sindhi Colony situated at Sion (West) in the F-North Ward of the Municipal Corporation. There 'are about 279 Row Houses in the Housing Complex, the owners whereof are allottees of plots and members of the petitioner. Row House 10-B/6 in the complex belonged to (i) Nanik Kishanchand Ahuja, (ii) Gopal Kishanchand Ahuja and (iii) Sajan Kishanchand Ahuja, who were members of the Cooperative Society. In token of their membership, they were allotted five shares. It has been stated that for about 40 years, the Row House was in exclusive possession of one Mansukhlal Rachh, who was a tenant. Mansukhlal Rachh instituted a declaratory suit in the Court of Small Causes at Mumbai, being RAD Suit 1209 of 1996 which is stated to be pending. The fourth respondent claims to have an agreement to sell dated 21st January, 1995 under which he agreed to purchase the aforesaid Row House. On 1st February, 1995, a notice was forwarded to the petitioner indicating the intention of the original member to transfer the shares and the right, title and interest in respect of the Row House in favour of the fourth respondent. The Managing Committee of the Society passed a resolution on 13th February, 1995 recording the refusal of the Society to the proposed transfer of interest in favour of the fourth respondent "since in the larger interest of the Society and its members, it is not desirable to admit Mr. Bhagatraj Gurumukhdas Ahuja as a member of the Society." On 5th March, 1995, a Special General Body Meeting of the Society was held at which, according to the petitioner, the members unanimously decided that "in the larger interest of the petitioner-Society", the fourth respondent should not be admitted as a member.

2. The fourth respondent filed an appeal before the Assistant Registrar of Co-operative Societies, under section 23(2) of the Maharashtra Co-operative Societies' Act, 1960. The petitioner filed an application for deciding as a preliminary issue, the jurisdiction of the Assistant Registrar. It appears that the case of the petitioner was that a dispute (Case No. CC/IIIJ450 of 1995) was filed by some members of the Society which was pending and it was urged that the Assistant Registrar could not entertain or deal with the appeal until the pending dispute was decided by the Co-operative Court. The Assistant Registrar of Cooperative Societies, passed an order on· 12th September, 1996 holding that the resolution passed by the Managing Committee in the Special General Meeting not to admit the Fourth respondent as a member was against the "basic principle of co-operation" and was in contravention of section 23(1) of the Maharashtra Co-operative Societies' Act, 1960. The Assistant Registrar held that the fourth respondent had rightfully acquired the right, title and interest in respect of the Row House under an agreement to sale and that the outgoing members had given their consent for the transfer.

3. The petitioner carried the matter in revision before the Divisional Joint

Registrar. Ground (g) in the revision application was to the following effect:

"That, the applicant have submitted only Application for deciding preliminary issue of jurisdiction. However, respondent No. 2 decided entire Appeal without giving any opportunity to the applicant to argue matter on merits. It is settled legal position that, any order without proper opportunity is illegal, bad-in-law and hence deserves to be quashed and set aside."

The petitioner also submitted that

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