The Registrar of Co-operative Societies has the authority to prescribe a higher number of signatories for registration than the statutory minimum, and such Circulars are enforceable.

Judgment :

1) The broad issues that arise for consideration in the present Petition are as under:

(i) Whether it is lawful for the Registrar to prescribe, by way of a Circular, higher number of persons than the one prescribed in sub-section (1) of Section 6 of the Maharashtra Co-operative Societies Act, 1960 (MCS Act), who need to sign an application for registration of a cooperative society?

(ii) If the answer to the above question is in the affirmative, whether the prescribed percentage of flat purchasers in such Circular can be applied in relation to the total number of flats sanctioned and/or completed or whether the same needs to be applied in relation to the total number of flats sold at the time of filing of application for registration of the society?

2) Above questions arise in the light of challenge set up by the Petitioner to order dated 21 August 2024 passed by the Hon’ble Minister (Co-operation) dismissing the Appeal preferred by him and confirming the order dated 8 November 2023 passed by the Divisional Joint Registrar of Co-operative Societies, Konkan Division, Navi Mumbai, allowing Miscellaneous Application No.39 of 2023 filed by Respondent No.4-Developer thereby ordering de-registration of cooperative society formed by the flat purchasers, which was registered vide Certificate dated 26 July 2017.

3) Brief facts leading to the filing of the present Petition are that Respondent No.4-M/s. Jainam Builders has constructed a building named- Harmony Plaza Premises on land bearing Survey No.112/3/1, opposite S.T. stand, Boisar Tarapur Road, Boisar (West), Taluka and District-Palghar. Initially the construction of the building was commenced by another developer, M/s. Harmony Developers, which was a partnership firm and which had completed construction of 25 units in the building. M/s. Harmony Developers entered into development agreement dated 18 August 2008 with Respondent No.4- M/s. Jainam Builders and transferred development rights in the land in favour of Respondent No.4. This is how Respondent No.4 became promoter of the said building and constructed 198 units in the building including the initial 25 units constructed by M/s. Harmony Developers. It appears that by the year 2017, Respondent No.4 had sold 83 units out of total 198 units constructed in the building. The shop purchasers decided to form a cooperative Society and preferred an application for registration thereof before the Assistant Registrar, Co-operative Societies, Palghar Taluka. The Assistant Registrar issued certificate of registration dated 26 July 2017 thereby registering Harmony Plaza Premises Co-operative Society. Respondent No.4 got aggrieved by registration of the Society formed by the unit purchasers and accordingly filed Miscellaneous Application No.39 of 2023 before the Divisional Joint Registrar seeking de- registration of the society under the provisions of Section 21A of the MCS Act. The application was opposed by the Society as well as by the shop purchasers by filing reply. The Divisional Joint Registrar allowed the application preferred by Respondent No.4 by order dated 8 November 2023 and directed de-registration of the society with further direction for appointment of Official Assignee to look after affairs of the society. Petitioner, who was the Chief Promoter of the Society filed appeal before the Hon’ble Minister challenging order dated 8 November 2023. The appeal is however rejected by the Hon’ble Minister by order dated 21 August 2024. Accordingly, Petitioner has filed the present Petition challenging the decisions of the Divisional Joint Registrar and the Hon’ble Minister.

4) Mr. Sarthak Diwan, the learned counsel appearing for the Petitioner would submit that the Divisional Joint Registrar has grossly erred in directing de-registration of the society ignoring the position that Respondent No.4-Developer was deliberately avoiding formation and registration of the society with a view to avoid payment of maintenance in respect of unso