Court affirms Registrar's supervisory powers, sets aside membership cancellation but upholds water and parking directives.
In a landmark decision, the Bombay High Court has set aside an order by the Deputy Registrar of Co-operative Societies that directed the cancellation of membership and share certificate of Saili Durgadas Acharya in the Nandan Co-operative Housing Society. The Court ruled that the Deputy Registrar acted outside his jurisdiction by attempting to resolve a substantive title dispute between the petitioner and respondent, a matter beyond the Registrar's supervisory powers under Section 79(2) of the Maharashtra Cooperative Societies Act, 1960.
The case centered around a long-standing dispute involving Flat No. A/4 in the Nandan Co-operative Housing Society, where the petitioner's grandfather, Balmukund Acharya, originally held the membership. After a series of legal battles and the deaths of key parties involved, the petitioner's membership was challenged by Dattakumar Acharya, whose name had been added to the share certificate in 1981, leading to the Deputy Registrar's contested order.
Justice Sandeep V. Marne emphasized that the Deputy Registrar's role under Section 79(2) is purely supervisory, aimed at ensuring compliance with the Act, Rules, Bye-laws, or previous orders, and does not extend to adjudicating ownership disputes. The Court maintained that any such adjudication requires a competent authority, and the Deputy Registrar's actions in this case were without jurisdiction.
However, the Court upheld the Deputy Registrar's directives concerning the restoration of water supply and parking space for the respondent, as these fell within the Registrar's supervisory jurisdiction under the Act. The Court clarified that the setting aside of the membership cancellation does not impede Respondent No. 2A from seeking redress through appropriate legal channels to address the membership issue.
This decision underscores the limitations of the Registrar's powers in co-operative society disputes and reinforces the necessity of pursuing title and ownership matters through the proper judicial process.
Bottom line:-
Deputy Registrar does not possess adjudicatory powers under Section 79(2) of the Maharashtra Cooperative Societies Act, 1960 to resolve title disputes between parties. Directions issued under this section must pertain to obligations under the Act, Rules, or Bye-laws, or compliance with prior orders of the Registrar.
Statutory provision(s):
Maharashtra Cooperative Societies Act, 1960 Section 79(2); Constitution of India, 1950 Article 227
