The Registrar's power to seek enforcement of performance of obligations by the society is limited to the maintenance of books of accounts and does not extend to regulating the disbursement of agricultural loans by Co-operative Banks.

JUDGEMENT :

1. Heard.

2. Rule. Rule made returnable forthwith by consent of the parties.

3. By this Writ Petition under Article 226 of the Constitution of India, the petitioners are challenging common order dated 06.09.2017 passed by respondent No.1 dismissing the Revision Application under Section 154 of the Maharashtra Co-operative Societies Act, 1960 challenging the order of disqualification under Section 73CA, an order imposing fine under section 79(3) and direction under section 79 of the Maharashtra Co-operative Societies Act, 1960.

4. The facts giving rise to the present petition are as under :

Undisputedly, the petitioners are the Managing Committee Members of the District Central Cooperative Bank, who at the relevant time was specified Society under Section 73G of the Maharashtra Co-operative Societies Act, 1960 (hereinafter referred to as ‘the said Act’). There was some litigation in relation to appointment of the Administrator wherein the petitioners got protection from this Court restraining the Authorities from appointing the Administrator.

5. On 30.09.2016, the Divisional Joint Registrar, Co-operative Societies, in the exercise of purported power under Section 79(1) of the said Act, directed the respondent – Bank to comply with various Government Resolutions mentioned in the said order and further directed to disburse loans as contemplated under the Government Resolutions to the agriculturists. The Bank, by reply dated 14.10.2016, furnished an explanation to the Divisional Joint Registrar explaining its inability to comply with the directions considering financial difficulties.

6. The Divisional Joint Registrar, by a notice dated 19/20.10.2016 purportedly under Section 79(3) of the said Act, called upon the petitioners to show cause as to why action under Section 79(3) imposing the fine of Rs.100/- per day shall not be imposed on the petitioners.

7. The petitioners, by rely dated 03.12.2016, pointed out that the provisions of Section 79(1) are not attracted, and the notice under Section 79(1) was without jurisdiction. By order dated 03.12.2016, i.e. on the date of filing of reply itself, the order under Section 79(3) came to be passed against the petitioners directing them to pay an amount of Rs.100/- per day. Curiously, on the same day, i.e. on 03.12.2016, a show cause notice under Section 73CA of the said Act was issued to the petitioners seeking their explanation as to why they should not be disqualified for continuing as a Managing Committee Member of the Bank.

8. Thereafter, in the petitions filed in this Court seeking protection from disqualification and appointment of Administrator, this Court protected petitioners. Ultimately, on 28.12.2016, the Divisional Joint Registrar passed orders of disqualification of petitioners under Section 73CA of the said Act. The petitioners challenged the said order by way of Revision before respondent No.1. By order dated 06.09.2017, the Revision Applications filed by the petitioners were dismissed. The present petition challenges the order of dismissal of Revision.

9. The learned Senior Advocate, on behalf of the petitioners, submitted that the order under Section 79(1) of the said Act passed by the Divisional Joint Registrar was beyond the purview of Section 79(1) as the Registrar had no powers except the powers which are specifically conferred under Section 79(1) of the Maharashtra Co-operative Societies Act, 1960. According to him, Section 79(1) pertains to obligations to file returns and statements as stated in Sub-Section (1) and Sub-Section (1A) of the said Act. According to him, the nature of Registers as contemplated under Sections 79(1) and (1A) are clarified under Rule 65 of the Maharashtra Co-operative Societies Rules, 1961. Therefore, the exercise of powers under Section 79(1) to enforce the Government Resolutions directing the disbursement of loans to agriculturists in a particular manner is beyond the purview of Section 79(1) of the said Act.

10. Per Contra, learned A.