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IN THE HIGH COURT OF BOMBAY
UJJAL BHUYAN, J.
Sujeet Suvalal Lodha And Others - Appellant
Versus
Deputy Registrar Pune City-1 And Others - Respondent
Writ Petition No. 11176 of 2019
Decided On : 15-11-2019
Section 83 - Maharashtra Co-operative Societies Act, 1960 - 81(6), 83 - The judgment discusses the legality and validity of the orders passed under Section 83 of the Maharashtra Co-operative Societies Act, 1960. It highlights the conditions precedent for the exercise of powers under Section 83 and the discretionary power of the Registrar to hold an inquiry. The court emphasizes the mandatory nature of the provision in certain situations and the need for the Registrar to exercise discretionary power based on relevant materials, in a judicious manner and in good faith.
Fact of the Case:
The petitioners challenged the legality and validity of the orders passed by respondent No.1 under Section 83 of the Maharashtra Co-operative Societies Act, 1960. The orders were related to the appointment of an auditor and the initiation of an inquiry into the affairs of a co-operative housing society.
Finding of the Court:
The court found that the orders passed by respondent No.1 were valid and in accordance with the provisions of Section 83 of the Act. It emphasized that the Registrar had the discretionary power to hold an inquiry and that the orders were based on relevant materials and did not warrant interference under Articles 226 and 227 of the Constitution of India.
Issues: The issues revolved around the legality and validity of the orders passed under Section 83 of the Maharashtra Co-operative Societies Act, 1960, and the conditions precedent for the exercise of powers under Section 83.
Ratio Decidendi: The court emphasized the mandatory nature of the provision in certain situations and the need for the Registrar to exercise discretionary power based on relevant materials, in a judicious manner and in good faith.
Final Decision: The writ petition challenging the orders passed under Section 83 of the Act was dismissed by the court.
JUDGMENT :
UJJAL BHUYAN, J.
1. Heard Mr. Chetan Patil, learned counsel for the petitioners; Mr. P. V. Nelson Rajan, learned AGP for respondent Nos.1 and 6-State; and Mr. Dhakephalkar, learned Senior Counsel i/b. Mr. Jaydeep Deo, learned counsel for respondent Nos.3 and 4.
2. By this writ petition, petitioners have challenged legality and validity of the order dated 02.07.2019 passed by respondent No.6 in Revision Application No.34 of 2019 and order dated 17.12.2018 passed by respondent No.1 under Section 83 of the Maharashtra Co-operative Societies Act, 1960.
3. Respondent No.2 is a co-operative housing society registered and functioning under the provisions of the Maharashtra Co-operative Societies Act, 1960 (briefly 'the Act' hereinafter). Petitioners are members of respondent No.2.
4. Without entering into the rival contentions in detail at this stage, what is to be noted is that on the basis of a complaint allegedly at the instance of respondent Nos.3 and 4, District Deputy Registrar of Co1/6 operative Societies, Pune passed an order dated 16.11.2017 under Section 81(6) of the Act appointing Smt. S. A. Ranpise, a departmental auditor, to conduct re-audit of the accounts of respondent No.2 for the period from 2012 to 2016.
5. Pursuant to such order, the auditor re-audited the accounts of respondent No.2 for the period from 01.04.2012 to 31.03.2016 and thereafter submitted her report dated 17.04.2018 to the District Deputy Registrar i.e. respondent No.1.
6. Respondent Nos.3 and 4 on 27.06.2018 submitted a complaint before respondent No.1 against the petitioners vis-a-vis their role in the affairs of respondent No.2. On the basis of the complaint and on the basis of the report dated 17.04.2018, respondent No.1 passed an order dated 17.12.2018 appointing respondent No.5 to enquire into the working of respondent No.2 under Section 83 of the Act.
7. Aggrieved by the aforesaid order dated 17.12.2018, petitioners preferred a revision application before respondent No.6 under Section 154 of the Act, which was registered as Revision Application No.343 of 2019. By order dated 02.07.2019, respondent No.6 dismissed the revision application.
8. Aggrieved, present writ petition has been filed under Articles 226 and 227 of the Constitution of India seeking the reliefs as indicated above.
9. This Court vide order dated 18.10.2019 had passed an interim order to the effect that enquiry officer should not proceed further with the enquiry as directed by the Deputy Registrar of Co-operative Societies.
10. Learned counsel for the petitioners submits that the conditions precedent for exercise of powers under Section 83 of the Act were absent and, therefore, respondent No.1 could not have directed initiation of enquiry under Section 83. He submits that there are 3 situations and on the basis of any one of the three situations only, power available under Section 83 can be invoked. In the absence thereof, jurisdiction under Section 83 would not be available which is the case with the impugned order. Therefore, impugned order is nonest in the eye of law.
10.2. In support of his submissions, learned counsel for the petitioners has placed reliance on a Division Bench judgment of this Court reported in, Girijashankar Vs. State of Maharashtra, (2018) 1 MhLJ 615 as well as Single Bench decisions of this Court reported in, Jeevan Niwas CHSL Vs. State of Maharashtra,2016 SCCOnLineBom 3927 and in, Ashok Saha Vs. State of Maharashtra, (2011) 4 MhLJ 432.
11. On the other hand, learned Senior Counsel appearing for respondent Nos.3 and 4, while distinguishing the judgments relied upon by learned counsel for the petitioners, contends that the provisions of Section 83 of the Act would have to be read as a whole and in a meaningful manner. On a reading of the impugned order, it is evident that r
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