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2025 Supreme(Bom) 1500

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
Amit Borkar, J. 
Shree Jagrutti Cooperative Housing Society Ltd & Anr. - Petitioners
Versus
Shree Jagruti CHS Proposed & Ors. - Respondents
Writ Petition No.11339 of 2025 Interim Application No.13401 of 2025 Writ Petition No.10120 of 2025
Decided On : 24-11-2025

Advocates Appeared:
For the Petitioner: Mr. Karl Tamboly a/w Mr. Nirav Shah, Sharva Patel i/b Little & Company
For the Respondent:Mr. S. L. Babar, AGP with Ms. Savina Crasto, AGP, for Mr. Anil Shakhare, Sr. Advocate a/w Santosh Mali i/b Komal Punjabi

A registration order under the Maharashtra Cooperative Societies Act must be reasoned to ensure accountability and compliance with statutory requirements, enabling effective judicial review.

Headnote:(A) Maharashtra Cooperative Societies Act, 1960 - Sections 9, 154B(2), 154B(3) - Registration of housing societies - The Registrar must issue a reasoned order to ensure compliance with statutory requirements - Mere issuance of a registration certificate without reasons is insufficient and contravenes principles of natural justice - The decision on registration must involve verification of compliance with by-laws, membership, and other specified standards. (Paras 1, 3, 20, 21)

(B) Judicial review - A valid appellate process requires clear reasons for the decisions made by the Registrar - The absence of reasons undermines the integrity of the registration process and denies affected parties the opportunity to challenge the decision effectively. (Paras 4, 12, 22)

Facts of the case:
The Registrar issued a registration certificate for a proposed housing society without providing reasons for his decision, leading to an appeal challenging this validity. The appellate authority set aside the registration due to this defect.

Findings of Court:
The Registrar must provide a clear and reasoned order detailing compliance with the statutory conditions before registration can be upheld.

Issues: Whether the lack of reasons in the registration process violated statutory requirements and principles of natural justice.

Ratio Decidendi: The court found that the issuance of a registration certificate without reasons fails to meet the statutory requirement for a reasoned decision. The Registrar's obligations entail clear assessment and documentation of compliance with statutory conditions.

Result: Registration set aside; proceedings remanded to the Registrar for a decision with due process.

JUDGMENT :

Amit Borkar, J.

1. The petitions arise from proceedings under Section 9 of the Maharashtra Cooperative Societies Act. The record shows that the Registrar issued only a certificate of registration. No reasons were recorded. This omission goes to the root of the matter.

2. For deciding the issue involved in these petitions, it is necessary to place on record the statutory scheme that governs the power of registration. The relevant provisions are Section 9, Section 154B 2, and Section 154B 3 of the Maharashtra Cooperative Societies Act. These provisions must be set out because they show the width of the Registrar’s duty, the conditions to be verified, and the nature of the satisfaction required before a society can be registered. They form the legal foundation on which the question before the Court must be examined.

“9. Registration.—(1) If the Registrar is satisfied that a proposed society has complied with the provisions of this Act and the rules, 108[or any other law for the time being in force, or policy directive's issued by the State Government under Section 4, and that its proposed by-laws are not contrary to this Act or to the rules, he 109[shall, within two months, from the date of receipt of the application register the society and its by-laws.

(2) Where there is a failure on the part of the Registrar to dispose of such application within the period aforesaid, the Registrar shall, within a period of fifteen days from the date of expiration of that period refer the application to the next higher officer and where the Registrar himself is the registering officer, to the State Government, who or which as the case may be, shall dispose of the application within two months from the date of its receipt and on the failure of such higher officer or the State Government, as the case may be, to dispose of the application within that period, the society and its bye-laws shall be deemed to have been registered and thereafter the Registrar shall issue a certificate of registration under his seal and signature within a period of fifteen days.

(3) Where the Registrar refuses to register a proposed society, he shall forthwith communicate his decision, with the reasons therefor, to the person making the application and if there be more than one to the person who has signed first thereon.

(4) The Registrar shall maintain a register of all societies registered, or deemed to be registered, under this Act.

154B-2. Registration of co-operative societies.— (1) No tenant co-partnership housing society shall be registered under this Act, unless it consists of at least five persons (each of such persons being a Member of different family) or at least fifty one per cent. (of total number of flats as per sanctioned plan) flat purchasers or intending Members and who are qualified to become Member under this Act, whichever is higher, joins the registration proposal of housing society to be registered.

(2) No tenant ownership housing society shall be registered under this Act, unless it consists of at least five persons (each of such persons being a Member of different family) or at least fifty-one per cent. (of total number of plots as per proposed or sanctioned lay-out) plot purchasers and who are qualified to become Member under this Act, whichever is higher, joins the registration proposal of housing society to be registered.

(3) No Association of society shall be registered unless it has at least five housing societies as its Members.

(4) No Co-operative Housing Association shall be registered unless it has at least two housing societies or other legal bodies as its Members.

(5) Nothing in this section shall be deemed to affect the registration of any society made before the commencement of the Maharashtra Co-operative Societies (Amendment) Act, 2019 (Mah. XXIII of 2019).

(6) The word “limited” or "unlimited" shall be the last word in the name of every society with limited or unlimited liability, as the case may be, which is registered or deemed

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