IN THE HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT AURANGABAD
Bharati H. Dangre, J.
M/s Shrideep Associates through, Proprietor and Others – Appellants
Versus
The State of Maharashtra and Others – Respondents
Writ Petition No. 5128 of 2021 and Writ Petition No. 5129 of 2021 And Writ Petition No. 5153 OF 2021
Decided On : 09-02-2022
MCS Act - Refusal to entertain revision applications due to non-compliance with statutory requirements - Summary of Acts and Sections: Maharashtra Co-operative Societies Act, 1961 (MCS Act) - Section 101, Section 154(2-A) - The court discussed the implications of non-compliance with statutory requirements under section 154(2-A) of the MCS Act and the application for condonation of delay. The court referred to relevant case law and emphasized the distinction between proceedings for condonation of delay and the entertainment of the revision itself. The court also highlighted the purpose of section 154(2-A) and the consequences of non-compliance with the statutory deposit requirement.
Fact of the Case:
The borrowers obtained a loan from a cooperative society and failed to repay it. The society filed for recovery under section 101 of the MCS Act. The borrowers filed revision applications, but their applications were refused due to non-compliance with statutory requirements.
Finding of the Court:
The court found that the refusal to entertain the revision applications was due to the petitioners' failure to comply with the objections notified by the Divisional Registrar within the stipulated period. The court emphasized the distinction between proceedings for condonation of delay and the entertainment of the revision itself.
Issues: The main issue was whether the refusal to entertain the revision applications was due to non-compliance with the statutory requirements under section 154(2-A) of the MCS Act.
Ratio Decidendi: The court held that the applications for condonation of delay before entertaining the revision applications under section 154 of the MCS Act were not barred in the absence of the statutory deposit as contemplated under sub-section (2-A). The court also emphasized the importance of removing office objections before the revision applications could be registered.
Final Decision: The court quashed and set aside the impugned orders, subject to each petitioner paying a cost to the bank and taking steps to remove the office objections. The Divisional Joint Registrar was directed to grant registration of the revision application and proceed to hear the application for condonation of delay, ensuring compliance with the statutory mandate prescribed under section 154(2-A) of the MCS Act.
JUDGMENT :
1. The three writ petitions revolve around a similar challenge and hence, they were heard together and disposed of by this common order.
2. The petitioners are the borrowers, who had obtained loan from respondent No. 4 - Samta Nagari Sahakari Patsanstha Ltd. Kopergaon on mortgaging property. Unable to repay the loan the Patsanstha preferred an application under section 101 of Maharashtra Co-operative Societies Act, 1961 (‘MCS Act’ for short) for recovery of the amount before the Assistant Registrar, Ahmednagar. Certificate came to be issued against the respective the petitioners and guarantors on distinct dates and being aggrieved by the same, the distinct revision applications came to be filed before the Divisional Joint Registrar Nashik. The orders passed on these revisions are assailed in the present writ petitions.
3. When the impugned orders passed by the Divisional Joint Registrar are carefully read, it conclusively record that since there was a failure on the part of revision petitioners to comply with the objections notified by the Divisional Registrar within a period stipulated, a conclusion is derived to the effect that they are not interested in prosecuting the applications and therefore, the respective applications came to be filed.
4. The learned Assistant Government Pleader vehemently argued that this did not result in termination of the proceedings, but the proceedings are merely filed. But when asked about what are the consequences of filing of the applications, he is unable to take his arguments further to show that on compliance being done the application can again be revived.
5. The record and proceedings would reveal that the revision applications preferred by the petitioners by invoking section 154 (2-A) of MCS Act and along with the revision applications, there are separate applications filed, seeking condonation of delay of 122 days.
On the revision applications being preferred to the Divisional Joint Registrar, the petitioners were notified about the objections and directions were issued to comply the said objections before registering the revision applications. Along with the affidavit filed by respondent No. 2 the objections which were notified and brought to the notice of the petitioners are annexed at Exh. R-1. The notified objections reads as under :-
(ii) Synopsis not annexed.
(iii) Present application is not attested.
(iv) Proper stamp fee is not affixed to the application.
(v) For the purpose of issuing notice envelop affixed with proper postage is not supplied.
(vi) The documents which are mentioned in the application are not enlisted with their true copies.
(vii) The application for condonation of delay is not affixed with proper Court fee stamp.
(viii) There is no compliance of provision of section 154(2-A) of MCS Act which contemplate depositing 50% of recoverable dues amount.
(ix) The impugned order has not been annexed.
6. The petitioners were notified of aforesaid objections to be removed, before registration of Revisions, and on failure to do so, the applications filed shall be closed/filed. The petitioners were reminded of the objections and about its removal within the period stipulated, by two distinct letters issued by the Divisional Joint Registrar, Cooperative Societies dated 17.8.2020 and 17.11.2020. These letters are also placed on record.
The petitioners however chose to ignore and no steps were taken for removing the office objections. The nature of office objections pointed out by the Divisional Joint Registrar constrained the authority to file the proceedings by recording that the revision petitioners are not interested in prosecuting the applications and the applications tendered by them came to be filed. This is what the impugned order dated 9.2.2021 narrates.
7. The dispute between the parties is whether the refusal to entertain the revision applications is on account of non compliance of the statutory requirements under section 154 (2
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