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2023 Supreme(Bom) 1674

IN THE HIGH COURT OF JUDICATURE AT BOMBAY, BENCH AT AURANGABAD
ARUN R. PEDNEKER, J.
Mateshwari Agro Chemicals, Through its Partner, Shri. Prashant, s/o. Panditrao Pande - Petitioner
Versus
The State of Maharashtra, Through its Additional Chief Secretary, Co-operation and Marketing Department and Ors. - Respondents
Writ Petition No.7062 Of 2022
Decided On : 07-11-2023

Advocates Appeared:
For the Petitioner: Mr. V.D. Sapkal, Sr. Adv. i/b. Mr. S.T. Chilikwar.
For the Respondents: Mr. K.N. Lokhande, AGP, Mr. V.D. Salunke, Adv. holding for Mr. Nitin Jagadale.

The main legal point established in the judgment is that a petitioner must have a legal right and locus standi to challenge an order under the statutory provisions, and a mere interest in the outcome of the proceedings is not sufficient to invoke the writ jurisdiction of the court.

Headnote:

Writ Petition - Challenge to Order of Liquidation - Maharashtra Co-operative Societies Act, Section 102, 104, 152, 154 - The petitioner challenged the order of liquidation of a cooperative society under the Maharashtra Co-operative Societies Act. The court considered the petitioner's right of intervention, locus standi, and the statutory provisions governing appeals and revisions. The court held that the petitioner had no legal right to intervene or challenge the order of liquidation, and thus dismissed the Writ Petition.

Fact of the Case:

The petitioner challenged the order of liquidation of a cooperative society under the Maharashtra Co-operative Societies Act.

Finding of the Court:

The court found that the petitioner had no legal right to intervene or challenge the order of liquidation.

Issues: The issues considered by the court included the petitioner's right of intervention, locus standi, and the statutory provisions governing appeals and revisions.

Ratio Decidendi: The court held that the petitioner did not have the legal right to intervene in the revision petition or challenge the order of liquidation.

Final Decision: The Writ Petition was dismissed by the court.

JUDGMENT :

1. By the present Writ Petition, the petitioner is challenging the order dated 24.05.2022 passed by the Hon’ble Minister of Co-operation and Marketing Department, setting aside the order dated 18.10.2021 passed by the Divisional Joint Registrar of Co-operative Societies directing winding up of the respondent no. 5 society and appointment of Liquidator and consequent letter dated 04.12.2021 of the Liquidator addressed to the respondent no. 5 society for handing over the charge of the society.

Brief facts leading to filing the present Writ Petition can be summarized as under:

2. The respondent no. 5, Sharad Sahakari Misra Khat Karkhana [for short ‘said society’] is registered under the provisions of the Maharashtra Co-operative Societies Act in the year 1995-96. The said society is incorporated to provide quality fertilizers to it’s members. The said society received Rs.13 lacs on 31.03.1998 and Rs.10 lacs on 31.03.1999 totaling to Rs.23 lacs as share capital for erecting a fertilizer factory, from the State of Maharashtra. In the year 2003, the respondent no.5 – co-operative society received permission for production of N.P.K. mixed fertilizer on special consideration. However, the respondent no.5 was unable to start it’s production activity until the year 2010 and was also unable to refund the share capital provided by Government until the year 2010. As such, the respondent no.5 entered into memorandum of understanding with the petitioner for manufacturing contract. The Government, by letter dated 25.08.2009, accorded it’s sanction to the memorandum of understanding for manufacturing contract under the provisions of the Section 20 and 20-A of the Maharashtra Co-operative Societies Act.

3. In pursuance of the sanction letter, manufacturing permission was granted to the petitioner to manufacture NPK mixed fertilizer under the license of respondent no.5 and under BOT agreement. It was agreed under the memorandum of understanding that the petitioner will erect the factory on his own funds on the land of the respondent no.5 and will do the production work for 5 years. The yearly rent was agreed to Rs.3 lacs. In the memorandum of understanding, it is noted that the respondent no.5 is possessing only open land and license to manufacture fertilizers. Under the agreement, the petitioner was required to erect the manufacturing unit and engage the technical staff and labours for manufacturing the mixed fertilizer. The license to manufacture fertilizer expired in the year 2012 and same was not renewed by the respondent no. 5 – society.

4. It is the contention of the petitioner that the petitioner has spent huge amount of money. There are proceedings pending between the petitioner and the respondent no.5 before the Arbitrator and before the Civil Court for recovery and the damages.

5. In an independent proceedings, by letter dated 03.06.2021, the Divisional Joint Registrar, Co-operative Societies sought report from the District Deputy Registrar, Co-operative Societies, Hingoli as regards the functioning of the respondent no.5 – society. In pursuance of the same, the Assistant Registrar, Co-operative Societies carried out the inspection of the respondent no. 5 society and the factory and the Assistant Registrar found several irregularities in the functioning of the Karkhana and submitted it’s report to the District Deputy Registrar. In the report, it was noted that the respondent no.5 society had not returned the total share capital given by the State Government even after passing of 20 years. Considering report of the respondent no. 2 – Assistant Registrar, Co-operative Societies, the Divisional Joint Registrar under the provisions of Section 102 (1) of the Maharashtra Co-operative Societies Act issued interim order for winding up of the society by order dated 26.07.2021. By the same order, the District Joint Registrar appointed respondent no.4 as Liquidator of the society. The District Deputy Registrar called upon explanation from th

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