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2015 Supreme(Bom) 805

IN THE HIGH COURT OF BOMBAY AT NAGPUR
B.R. GAVAI & INDIRA K. JAIN, JJ.
Marotrao - Appellant
Versus
The State of Maharashtra, through its Secretary, Department of Co-operation and Marketing Mantralaya & Others - Respondents
Letters Patent Appeal No. 66 of 2002 in Writ Petition No. 1998 of 2002
Decided On : 08-06-2015

Advocates:
Advocate Appeared:
For the Appellant:P.C. Madkholkar, Advocate.
For the Respondents: R1, R2, R4, M.K. Pathan, AGP.

The Registrar's power to modify amendments is limited to specific sections and rules, and must be exercised in accordance with the prescribed procedures.

Headnote:

Amendment - Co-operative Society - Maharashtra Co-operative Societies Act, 1960, Section 13, Section 14, Rule 12, Rule 13

Fact of the Case:

The appeal challenges the order dismissing the petition filed by the petitioner, which sought to increase the number of Directors in a Co-operative Society. The Registrar had modified the proposed amendment, leading to the appeal.

Finding of the Court:

The court found that the Registrar's power to modify amendments is limited to Section 14 and Rule 13, and not applicable under Section 13. The learned Single Judge erred in dismissing the writ petition, and the appeal was allowed.

Issues: Interpretation of the Registrar's powers under Section 13 and Section 14, and the validity of the modification made by the Registrar.

Ratio Decidendi: The Registrar's power to modify amendments is limited to Section 14 and Rule 13, and not applicable under Section 13. The law requires a particular thing to be done in a specific manner.

Final Decision: The order passed by the learned Single Judge, the State Government, and the Divisional Joint Registrar of the Co-operative Societies are quashed and set aside. Rule is made absolute in terms of prayer clause (B).

Judgment

B.R. Gavai, J.

1. Heard the learned counsel for the respective parties.

2. The appeal challenges the order passed by the learned Single Judge of this Court dated 12th of June, 2002 in Writ Petition No.1998/2002 thereby dismissing the petition which is filed by the petitioner.

3. The facts in brief give rise to filing of the present petition are as under:-

That, the respondent no.3-Bank is a specified Co-operative Society, as provided under Section 73G of the Maharashtra Co-operative Societies Act, 1960 (hereinafter referred to as “the said Act”). By a Resolution dated 14th August, 2001 the amendment was approved in the Annual General Meeting of the said bank. As per the said Resolution, the number of Directors which was originally 15 was sought to be increased to 17 as required under the provisions of Section 13 of the said Act. The Competent Authority i.e. respondent no.2 was moved for grant of approval to the amendment of the said bye-laws. The respondent no.2 vide his order dated 27th of November, 2001 directed the amendment of the bye-laws with a modification instead of 17 Directors as proposed, the approval was given to 16 Directors. Being aggrieved thereby, an appeal was preferred before the State Government. The State Government also dismissed the appeal. Being aggrieved thereby, a writ petition came to be filed before the learned Single Judge of this Court. The learned single Judge also dismissed the petition. Hence, this appeal.

4. Shri Madkholkar, the learned counsel appearing on behalf of the appellant, submits that the learned Single Judge has failed to take into consideration that the power under Section 13 of the said Act as is available to the Registrar is only restricted either granting approval to the amendment proposed by the society or refusing the same. He submits that if however the Director feels that the amendment to the byelaws is necessary in the public interest then it can be done only by following the procedure as prescribed under Section 14 read with Rule 13 of the Maharashtra Co-operative Societies Rules, 1961 (hereinafter referred to as “the said Rules”) .

5. Shri Pathan, the learned AGP, on the contrary, submits that modification which was done by the respondent no.2 was in consonance with the public policy of providing only one Director for one Taluka. He submits that, in any event, under sub-rule (5) of Rule 12 of the said Rules, the Registrar has power to grant approval to the amendment with the modification, as are necessary, in the larger public interest.

6. With the assistance of the learned counsel for the parties, we have scrutinized the material on record and also have examined the relevant provisions. For appreciating the rival controversy, it will be necessary to refer to Section 13 and Section 14 of the said Act and Rule 12 and Rule 13 of the said Rules. They read thus:-

“13. AMENDMENT OF BY-LAWS OF SOCIETY.

(1) No amendment of the by-laws of a society shall be valid until registered under this Act. For the purpose of registration of an amendment of the by-laws, a copy of the amendment passed, in the manner prescribed, at a general meeting of the society, shall be forwarded to the Registrar. Every application for registration of an amendment of the by-laws shall, be disposed of by the Registrar within a period of two months from the date of its receipt.

[Provided that, the application for registration of the amendment of by-laws of the co-operative credit structure entity shall be disposed of, by the Registrar within a period of one month from the date of its receipt)

(IA) Where there is a failure on the part of the Registrar to dispose of such application within the period aforesaid, the Registrar shall, within a period of fifteen days from the date of expiration of that period refer the application to the next higher officer and where the Registrar himself is the registering officer, to the State Government, who or which, as the case may be, shall dispose of the application within two

































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