As per case facts, the Petitioners challenged orders disqualifying them from their society's managing committee and appointing an administrator, alleging political interference through a Member of Legislative Council's complaint. They ...
WP- 5383-26-J.doc
Sayali
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO. 5383 OF 2026
Vishal T. Lathia,
Aged about 42 years, Occ -Service
An adult Indian Inhabitant, Having address
at Cottage No. C- 06, Nensey Cottage
Co-operative Housing Society Ltd,
Sant Dyaneshwar Marg, Borivali (East),
Mumbai – 400 066 and Others …. Petitioners
Vs.
Pratik Pokharkar, Dy. Registrar R- North
Ward, Having its address at – 303,
BMC Godown, Sanskruti 90 ft. Road,
Thakur Complex, Kandivali (East)
Mumbai – 400 101 and Others …. Respondents
Mr. Amogh Singh with Mr. Bhavin Bhatia, Ms. Krutisha
Pandey, and Mr. Nirav Karia, i/b Bhavin Bhatia, for
Petitioners.
Mr. Y. D. Patil, AGP for State-Respondent No.1, 2, and
31.
Ms. Rachana Mamnani, for Respondent no. 9.
Mr. A. Y. Sakhare, Senior Advocate with Mr. Prashant P.
Kulkarni and Subhash Yadav for Respondent No. 12.
Mr. Pratik Pokharkar, Deputy Registrar R/North, Coop.
Society, respondent No.1 is present.
CORAM :AMIT BORKAR, J.
RESERVED ON :APRIL 29, 2026.
PRONOUNCED ON:MAY 7, 2026
1
SAYALI
DEEPAK
UPASANI
Digitally signed by
SAYALI DEEPAK
UPASANI
Date: 2026.05.07
11:52:18 +0530
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JUDGMENT:
1.By the present petition filed under Articles 226 and 227 of
the Constitution of India, the Petitioners have assailed the legality,
correctness, and propriety of the common judgment and order
dated 15th April 2026 passed by Respondent No. 2, namely the
Divisional Joint Registrar, Co-operative Societies, Mumbai, in
Revision Application No. 65 of 2026 and Appeal No. 33 of 2026.
By the said common order, the proceedings initiated by the
Petitioners came to be rejected, and the reliefs sought by them
were declined.
2.The factual matrix giving rise to the present proceedings, as
projected by the Petitioners, may be briefly stated. It is the case of
the Petitioners that Respondent Nos. 4 to 30, acting in concert and
with an oblique and mala fide intention to impede the lawful
redevelopment of Respondent No. 3 Society, approached
Respondent No. 1, namely the Deputy Registrar, Co-operative
Societies, R-North Ward. The said approach was made through
MLC. It is contended that by lodging Complaint No. 6826 dated
26/08/2025 addressed to the Divisional Joint Registrar, Co-
operative Societies, Mumbai Division, MLC sought cancellation of
the Managing Committee of the Society.
3.It is further the case of the Petitioners that Respondent No. 1,
without due consideration of the material placed on record and the
submissions advanced on their behalf, passed the impugned order
dated 27/11/2025 under Section 75(5) of the Maharashtra Co-
operative Societies Act, 1960, on the basis of the complaints
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received. According to the Petitioners, the said order is arbitrary,
suffers from the vice of extraneous considerations, and is the result
of undue external influence, thereby offending the principles of
natural justice. It is stated that thereafter, on 18 December 2025,
Respondent No.1 issued a show cause notice under Section 77A(1)
(b-1) of the said Act proposing appointment of an Administrator or
Authorised Officer. The Petitioners submitted a detailed reply on
30/12/2025 placing on record relevant documents and material in
response thereto. However, without adverting to the said reply and
the supporting documents, Respondent No. 1 proceeded to pass a
further order dated 20/01/2026 under Section 77A(1)(b-1) of the
Act.
4.Being aggrieved by the impugned order dated 27 November
2025 as well as the subsequent show cause notices and order
dated 18 December 2025 and 20 January 2026 respectively, the
Petitioners initially approached this Court by filing Writ Petition
(L) No. 2251 of 2026 along with Interim Application (L) No. 3452
of 2026. By order dated 4 February 2026, this Court granted
liberty to the Petitioners to avail the alternate statutory remedies
by filing appropriate proceedings before the competent authority
and directed that the interim application therein be decided
expeditiously. Pursuant thereto, the Petitioners preferred Revision
Application No. 65 of 2026 along with a stay application
challenging the order dated 27 November 2025 and the show
cause notice dated 18 December 2025. They also preferred Appeal
No. 33 of 2026 assailing the order dated 20 January 2026. It is
their grievance that by the order dated 27 November 2025,
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Respondent No. 1 has disqualified them from holding office in the
Society for a period of two years in a manner which is ex facie
arbitrary and unsustainable in law. Being dissatisfied with the
rejection of their proceedings, the Petitioners have instituted the
present writ petition.
5.The Petitioners sought deletion of Respondent Nos. 7, 20, 21,
and 26 on the ground that service upon them had been refused, as
well as deletion of Respondent Nos. 8, 9, 10, 11, 15, 18, 19, 24, 28
and 29 on the ground that they remained unserved. The said
request was considered and accordingly allowed.
6.Mr. Amogh Singh, learned Advocate appearing on behalf of
the Petitioners, submitted that the present writ petition calls in
question the order dated 27 November 2025 passed by the Deputy
Registrar under Section 75(5) of the Maharashtra Co-operative
Societies Act, 1960 as well as the order dated 20 January 2026
passed in exercise of powers under Section 77A(1)(b-1) of the said
Act appointing an Administrator. He further submitted that the
Petitioners have also impugned the order dated 15 April 2026
passed by the Divisional Joint Registrar in appeal-cum-revision
proceedings, whereby the order of disqualification under Section
75(5) has been upheld with modification by reducing the period of
disqualification from two years to six months, and the order
appointing the Administrator has been confirmed.
7.Learned counsel for the Petitioners further submitted that
the impugned orders are vitiated on account of extra-judicial
interference at the instance of a local Member of Legislative
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Council, who is alleged to have close association with one of the
complainants, Mr. Sudhir Hattangadi, belonging to the same
political party. It is contended that such association is evident from
the banner displayed by Respondent No. 6 and from the fact that
the original complaint dated 2 July 2025 was addressed to the said
MLC. It is further submitted that the MLC addressed a
communication dated 26 August 2025 to the Deputy Registrar and
on the very same day, a show cause notice came to be issued to the
Society by the Deputy Registrar relying upon such communication.
According to the Petitioners, the impugned order itself refers to the
complaint, the communication of the MLC, and the consequent
show cause notice. It is also pointed out that specific pleadings in
that regard have been raised in paragraphs 43 to 47 of the
petition. It is further submitted that the Society had appointed a
developer for redevelopment by securing 85 percent majority of
the members. However, the complainants, instead of pursuing
remedies within the framework of law, approached the said MLC
for intervention, which is reflected in the complaint dated 2 July
2025. It is also submitted that the affidavit filed on behalf of the
State Government relies upon two additional complaints dated 8
May 2025 and 16 May 2025 addressed by certain members to the
Deputy Registrar, and none of the said complaints disclose any
allegation constituting breach of Section 75(5) of the said Act.
8.Inviting attention to the impugned order dated 27 November
2025 passed by the Deputy Registrar under Section 75(5) of the
Act, learned counsel submitted that the said order proceeds on two
grounds. Firstly, that the Society has failed to submit the Audit
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Rectification Reports for the financial years 2022–2023 and 2023–
2024. Secondly, that the accounts for the said years were not
placed before the General Body for approval. It is submitted that
the Deputy Registrar has failed to take into consideration that the
accounts for the financial year 2022–2023 were duly approved in
the General Body Meeting held on 24 September 2023 and that
the report in respect thereof was submitted to the office of the
Deputy Registrar on 20 October 2023. It is further submitted that
for the financial year 2023–2024, the accounts were approved in
the General Body Meeting dated 29 September 2024 and the
report was submitted on 28 October 2024. It is contended that
these aspects were specifically brought to the notice of the
Divisional Joint Registrar in the appellate and revisional
proceedings. However, the Divisional Joint Registrar, while passing
the impugned order, has merely observed that it appears that the
rectification reports were not placed before the General Body
Meetings for the said years and thereby confirmed the findings
recorded by the Deputy Registrar.
9.Per contra, Mr. A. Y. Sakhare, learned Senior Advocate
appearing for Respondent No. 12, submitted that it is incumbent
upon the Petitioners, being members of the Managing Committee,
to ensure preparation, placement, and approval of the Audit
Reports for the financial years 2022–2023 and 2023–2024 in the
respective General Body Meetings. It is submitted that such
approval is mandatory in terms of Bye-law No. 95 read with the
provisions of Sections 75(2), 75(2)(vii), 75(2)(viii), and 75(4) of
the Maharashtra Co-operative Societies Act, 1960.
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10.Learned Senior Counsel further submitted that the
Petitioners have failed to prepare, place, and secure approval of
the Audit Reports in the Annual General Meetings for the said
financial years. It is submitted that under Bye-law No. 153, the
Society is required to prepare an Audit Rectification Report in
Form ‘O’ as prescribed under Rule 73 of the Maharashtra Co-
operative Societies Rules, 1961, and the same is required to be
placed before the Managing Committee for approval and thereafter
before the General Body, and to be submitted to Respondent No. 1
along with the Annual Report within the prescribed time. It is
contended that these mandatory requirements have not been
complied with in respect of the financial years 2022–2023 and
2023–2024. According to the Respondent, such failure amounts to
a violation of Section 75(2)(vii) of the Act and attracts
consequences under Section 75(5), including disqualification. It is
further submitted that such conduct also constitutes an offence
under Section 146 of the Act, rendering the members of the
Managing Committee liable for penal action under Section 147.
11.It is further submitted that as a consequence of the
disqualification of Petitioner Nos. 1 to 4, there arose a vacuum in
the Managing Committee. Out of the total strength of twelve
members, four members stood disqualified, and one member had
resigned, thereby reducing the strength to seven. It is further
contended that Petitioner No. 2, who was co-opted on 7 October
2023, was not validly co-opted and, therefore, cannot be taken
into account, resulting in further reduction of the effective strength
and absence of quorum. It is submitted that in view of such
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situation, the order dated 20 January 2026 passed under Section
77A(1)(b-1) appointing a Board of Administrators was justified. It
is pointed out that the Board of Administrators comprising
Respondents No. 2, 4, and 15 has already assumed charge of the
affairs of the Society and the bank account of the Society has also
been frozen. It is thus contended that the impugned orders have
already been implemented, and the present writ petition has been
rendered infructuous. On these grounds, it is prayed that the writ
petition be dismissed.
12.It is alleged that the Audit Rectification Reports arising out of
the statutory audit, as well as the reports of the Managing
Committee for the financial years 2022–2023 and 2023–2024,
were not placed before the General Body Meetings for
consideration and approval. It is further alleged that the proposed
budget for the ensuing financial year was also not placed before
the General Body. On the basis of the aforesaid omissions, it is
contended that the Managing Committee has acted in breach of
the provisions of Section 75 of the Maharashtra Co-operative
Societies Act, 1960.
REASONS AND ANALYSIS:
13.I have heard the learned advocates for the parties at length
and I have gone through the entire record. The record includes the
complaints, the show cause notices, the inspection report dated 29
August 2025, the minutes of the annual general meetings, the
impugned order dated 27 November 2025 passed under Section
75(5) of the Maharashtra Co-operative Societies Act, 1960, the
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order dated 20 January 2026 passed under Section 77A(1)(b-1),
and the common judgment dated 15/04/2026 passed by the
Divisional Joint Registrar in revision and appeal.
14.Therefore, the first question is whether the petitioners did in
fact place the rectification reports and accounts before the general
body and before the Deputy Registrar in the manner shown by the
record. On this point, the communications dated 25 September
2023 and 10 September 2024 assume importance. These
communications are shown to be specific. They refer in terms to
submission of rectification of audit and accounts for the respective
financial years. It is also seen that these communications were sent
along with annexures, which are part of the record and which give
substance to what is stated in the letters. Most importantly, both
these communications bear acknowledgement and seal of the
office of the Deputy Registrar dated 20 October 2023 and 28
October 2024. When a statutory office receives a document and
puts its seal and acknowledgement, it creates a situation where
receipt cannot be denied. There arises a presumption that such
documents were indeed received in due course of official business.
Therefore, these communications stand on a higher footing than
assertions made in pleadings.
15.The Petitioners had specifically contended that the accounts
for the financial year 2022–2023 were approved in the General
Body Meeting dated 24 September 2023 and the relevant
documents were submitted to the office of the Deputy Registrar on
20 October 2023. Similarly, for the financial year 2023–2024, the
accounts were approved in the General Body Meeting dated 29
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September 2024 and the documents were submitted on 28 October
2024. These factual assertions, supported by documents, were
placed before the appellate and revisional authority. Yet, the
Divisional Joint Registrar has recorded that it “appears” that the
rectification reports were not placed before the General Body,
without undertaking any examination of the minutes of meetings
or the documents evidencing approval. This manner of recording
findings shows absence of application of mind. When civil
consequences such as disqualification are to follow, the authority is
expected to record findings based on material. A mere observation
that something “appears” cannot substitute a finding of fact.
16.The respondents, however, have taken a stand that the
minutes of the Annual General Body Meetings do not reflect
proper placement of rectification reports and annual budget before
the general body. In the present case, the letters dated 25
September 2023 and 10 September 2024, along with annexures
and official acknowledgements, indicate that the petitioners had
placed material on record and had also brought it to the notice of
the Deputy Registrar. These are contemporaneous documents.
They are not created later for the purpose of litigation. Before
recording a finding of violation leading to disqualification, the
authority was required to examine these documents in detail and
then come to a reasoned conclusion. However, the impugned order
does not reflect such careful consideration. It proceeds on a
general assumption that the statutory requirement was not
fulfilled, without adequately dealing with the material produced
by the petitioners. In absence of proper reasoning and analysis, the
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finding appears incomplete. Therefore, the approach adopted by
the authority cannot be said to be in accordance with settled
principles of law, which require consideration of all relevant
material before arriving at a conclusion affecting rights of parties.
17.The petitioners had raised a serious contention before the
authorities that the proceedings, beginning from the issuance of
notices and the order under Section 75(5) were set in motion due
to complaints having political background. They specifically
pointed out that the complaint dated 26 August 2025 was
addressed by a Member of Legislative Council and such
involvement had a direct bearing on the manner in which the
statutory authority proceeded. In this context in is necessary to to
make refrence to the judgment of Supreme Court in
State of M.P. v.
Sanjay Nagayach,
(2013) 7 SCC 25 wherein it is held as under:-
“36. Statutory functionaries like the Registrar/Joint
Registrar of cooperative societies functioning under the
respective Cooperative Act must be above suspicion and
function independently without external pressure. When an
authority invested with the power purports to act on its own
but in substance the power is exercised by external guidance
or pressure, it would amount to non-exercise of power,
statutorily vested. Large number of cases are coming up
before this Court and the High Courts in the country
challenging the orders of supersession and many of them are
being passed by the statutory functionaries due to external
influence ignoring the fact that they are ousting a
democratically elected Board, the consequence of which is
also grave because the members of the Board of Directors
would also stand disqualified in standing for the succeeding
election as well.
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37. The Registrar/Joint Registrar, while exercising powers
of supersession has to form an opinion and that opinion
must be based on some objective criteria, which has nexus
with the final decision. A statutory authority shall not act
with pre-conceived notion and shall not speak his masters'
voice, because the formation of opinion must be his own, not
of somebody else in power, to achieve some ulterior motive.
There may be situations where the Registrar/Joint Registrar
are expected to act in the best interest of the society and its
members, but in such situations, they have to act bona fide
and within the four corners of the statute. In our view, the
impugned order will not fall in that category.
……………………………
42. Further, we are inclined to give the following general
directions in view of the mushrooming of cases in various
courts challenging orders of supersession of elected
Committees:
42.1. Supersession of an elected Managing
Committee/Board is an exception and be resorted to only in
exceptional circumstances and normally elected body be
allowed to complete the term for which it is elected.
42.2. Elected Committee in office be not penalised for
the shortcomings or illegalities committed by the previous
Committee, unless there is any deliberate inaction in
rectifying the illegalities committed by the previous
Committees.
42.3. Elected Committee in office be given sufficient
time, say at least six months, to rectify the defects, if any,
pointed out in the audit report with regard to incidents
which originated when the previous committee was in office.
42.4. The Registrar/Joint Registrar are legally obliged
to comply with all the statutory formalities, including
consultation with the financing banks/controlling banks, etc.
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Only after getting their view, an opinion be formed as to
whether an elected Committee be ousted or not.
42.5. The Registrar/Joint Registrar should always bear
in mind the consequences of an order of supersession which
has the effect of not only ousting the Board out of office, but
also to disqualify them for standing for election in the
succeeding elections. The Registrar/Joint Registrar therefore
is duty-bound to exercise his powers bona fide and not on
the dictation or direction of those who are in power.
42.6. The Registrar/Joint Registrar shall not act under
political pressure or influence and, if they do, be subjected to
disciplinary proceedings and be also held personally liable
for the cost of the legal proceedings.
42.7. Public money is not to be spent by the State
Government or the Registrar for unnecessary litigation
involving disputes between various factions in a cooperative
society. Taxpayers' money is not expected to be spent for
settling those disputes. If found necessary, the same is to be
spent from the funds available with the Bank concerned.”
18.In the light of above observations I have perused impugned
judgment. The submission goes to the root of how the proceedings
have come into existence and in what manner the statutory
authority has been put into motion. It is their clear case that the
complaint which set everything in motion was not addressed to the
authority, but was first made to a Member of Legislative Council.
This may appear as a simple act of representation, but what
follows thereafter assumes significance. A letter dated 26 August
2025 was issued by the said political person to the Deputy
Registrar. On the same day, the authority issued a show cause
notice and commenced action under the statute. The petitioners
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say that such immediacy gives an impression that the statutory
process did not originate from independent application of mind,
but was set into motion because of the said communication. When
events follow in such close sequence, the Court is required to
examine whether the authority acted because it was satisfied on
record, or because it was prompted to act.
19.It is further urged that the timing of the complaint adds
another layer of doubt. At that stage, the society had already
moved forward with redevelopment and had secured approval of
an overwhelming majority of its members. In such a background,
when a complaint surfaces through a political channel and is
immediately acted upon, it creates a reasonable apprehension that
the proceedings may not have been initiated in a neutral manner.
The petitioners rely not merely on the existence of such
communication, but on the continuity of events, the proximity in
time, and the absence of any inquiry. When all these factors are
read together, they indicate that the authority may not have acted
on its own satisfaction.
20.However, it is equally necessary to state that mere
involvement of a political functionary cannot, by itself, vitiate the
proceedings. In actual working, complaints are often made
through elected representatives. Such conduct is not unknown to
law. The difficulty arises when the record shows that the authority
has acted in close alignment with such communication and has not
demonstrated that it examined the matter. If the impugned order
itself refers to such letter, and the subsequent action follows
immediately without any independent scrutiny, then the Court is
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bound to examine whether the discretion exercised has been
influenced.
21.In such a situation, the requirement becomes strict. The
authority must act on its own reasoning. It must record its own
satisfaction based on material placed before it. The order must
show that it has considered the reply submitted by the affected
parties, examined the relevant documents, and applied the
provisions of the statute. If the action appears to be a continuation
of what has been suggested by an external authority, then the
order loses its character as a statutory decision. The authority is
required to speak for itself. It cannot follow the voice of another,
irrespective of position. This requirement goes to the core of
validity.
22.This position is well supported by the law laid down by the
Supreme Court in
Sanjay Nagayach. The principles stated therein
are directly applicable in cases where allegations of external
influence are raised. The Supreme Court has made it clear that
authorities like Registrar and Joint Registrar, though vested with
wide statutory powers, are under a obligation to exercise those
powers independently. The decision must be their own. The law
does not permit them to act under direction or influence of others.
Independence is a condition attached to the exercise of power. The
judgment explains that even if an order appears on paper to have
been passed by the authority, but in reality it is guided by someone
else, then such exercise is no exercise in the eyes of law. This
observation carries serious implication. It means that compliance
with procedure alone is not sufficient. The decision must reflect
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independent thinking. The Supreme Court has also taken note of
increasing instances where elected committees are removed due to
outside influence, without appreciating the seriousness of
consequences. This caution becomes relevant in the present case
where similar concerns are raised.
23.Another aspect which cannot be ignored is the nature of
consequence flowing from such orders. Removal of an elected
managing committee or disqualification of its members directly
interferes with the democratic functioning of the society. It also has
future impact, since such members may be prevented from
contesting elections again. Therefore, the exercise of such power
requires a higher level of scrutiny. The authority must act carefully.
It must ensure that its decision is based on objective material and
free from any external pressure.
24.The Supreme Court has also cautioned that the authority
must not act with a pre-determined mind. It cannot begin with a
conclusion and then look for justification. Nor can it accept
allegations made by one group within the society without proper
examination. In cooperative societies, disputes between groups are
common. One group may attempt to bring action against another.
In such situation, the role of the Registrar is to remain neutral and
examine the matter on its own merits. If the authority acts under
influence or accepts one side without proper scrutiny, then it fails
in discharge of its statutory duty.
25.When these principles are applied to the facts of the present
case, the overall situation does not appear free from doubt. The
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chain of events, beginning from the complaint to the political
functionary, followed by immediate communication and swift
statutory action, creates an impression that the authority has not
have acted with independence. The impugned order does not
indicate that the defence of the petitioners was independently
evaluated.
26.Therefore, though it cannot be stated in absolute terms that
involvement of a political person alone invalidates the
proceedings, the surrounding circumstances in the present matter,
when read with the contents of the impugned order, do not inspire
confidence that the decision was taken with independence. The
statutory authority was expected to act above such influence and
strictly within the limits of the Act. The doctrine of colorable
exercise of power becomes relevant in such situation. It means that
though the authority appears to act within its powers, the real
purpose behind the action is something else. In the present matter,
the cumulative effect of these facts creates a reasonable doubt that
the action was influenced by considerations not confined to the
provisions of the Act. The authorities under the Act are expected to
act with independence, especially when their decisions have
serious civil consequences such as disqualification and takeover of
management. If the process gives an impression that one party has
been favoured through indirect means, then the decision cannot be
sustained. Therefore, this Court finds that the manner in which
powers have been exercised indicates a colorable exercise, which
vitiates the impugned action.
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27.The order dated 20 January 2026 passed under Section
77A(1)(b-1) cannot stand on its own footing and is connected with
the order of disqualification. It appears that the reason for
bringing in Authorized Officers was based on the order that
managing committee had already become disqualified. In other
words, the second order is standing upon the first order. If the first
order is found to be unsustainable, then the second order loses its
base. When the disqualification is taken away, then the entire basis
of vacuum or stalemate in the society becomes unsustainable. If
the base falls, the structure cannot stand. In such circumstances,
the appointment of Authorized Officers cannot be sustained.
28.The scheme of Section 77A indicates that the power given to
the Registrar comes with inbuilt checks. One such check is that
before passing such order, the Registrar is required to put a notice
on the notice board of the society office. By putting such notice, all
members of the society, even those who are not in the managing
committee, come to know that some action is being proposed.
Then, if they want, they can come forward and explain their side.
It also helps the authority to know the situation inside the society,
because sometimes members themselves can explain what is
actually happening.
29.In the present matter, it is seen that the Registrar has used
the proviso to Section 77A and has avoided giving notice by saying
that there was urgency. The proviso does allow this, but only in
rare cases. The authority must show that there was real urgency.
There must be reasons showing that if notice is given and time is
taken, then harm will happen. But in the impugned order, such
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reasons are not shown.
30.Further, the way in which the order has been passed also
creates doubt. The complainant himself has been appointed as
Authorized Officer immediately. This gives a feeling that the
decision may have been already decided in advance. When a
person who is part of dispute, it raises question about fairness. It
gives impression that the aim was to remove the petitioners and
bring in a particular person. If all these things are seen together, it
gives overall impression that the power has not been used in
balanced manner. The process looks hurried and leaning towards
one side. Therefore, the order passed by using proviso cannot be
accepted in law without special reasons.
31.Taking the matter as a whole, I am of the opinion that the
petitioners have succeeded. The finding that there was violation of
Section 75 cannot be sustained. Once that finding falls, the
disqualification under Section 75(5) also falls. The order
appointing Authorized Officers under Section 77A(1)(b-1), being
founded on that disqualification also cannot stand.
32.In the facts of the present case, this Court finds it necessary
to deal with the issue of conduct of the statutory authority in light
of the principles laid down in
State of M.P. v. Sanjay Nagayach. The
record indicates that the initiation and culmination of the
proceedings do not reflect a independent exercise of statutory
power. The sequence of events, beginning from the complaint
addressed to a political functionary, followed by communication
from such office, and the immediate activation of statutory
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machinery, coupled with absence of clear consideration of the
petitioners’ defence, creates a situation where the decision-making
process appears to have been affected by external inputs. The
material is sufficient to hold that the standard of independent
application of mind expected from a statutory authority has not
been satisfied.
33.It is well settled that a Registrar or Joint Registrar, while
exercising powers under the Co-operative law, acts as a statutory
authority and is bound to function within the four corners of the
statute. Such authority cannot act on dictates emanating from
outside the statute. The law requires that the satisfaction must be
of the authority itself. When such satisfaction is seen to be diluted,
even by indirect influence, the legitimacy of the decision stands
impaired. The Supreme Court has cautioned that such conduct, if
established, would invite disciplinary consequences and even
personal liability in appropriate cases.
34.Having regard to the nature of findings recorded herein, this
Court is of the view that the matter cannot be left at mere
quashing of the impugned orders. The manner in which the
proceedings have been conducted raises concerns which require
appropriate action.
35.Accordingly, it is directed that the State Government,
through the Secretary, Co-operation Department, shall examine the
conduct of the concerned Deputy Registrar who passed the
impugned orders dated 27 November .2025 and 20 January 2026.
Such examination shall be undertaken in the light of the
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observations made in this judgment and the principles enunciated
in
State of M.P. v. Sanjay Nagayach, particularly with regard to the
requirement of independent exercise of statutory power and
absence of external influence. The State shall call for an
explanation from the said officer and take an appropriate decision
in accordance with law as whether any disciplinary action is
warranted. It is further directed that the aforesaid exercise shall be
completed within a period of three months from the date of receipt
of this order. The decision taken shall be placed on record of this
Court by way of an affidavit.
36.Before parting, this Court deems it appropriate to reiterate
that statutory authorities entrusted with powers affecting elected
bodies must exercise such powers with independence. Any
deviation from these principles not only affects the parties before
the authority but also erodes confidence in the rule of law. The
direction issued herein is intended to ensure adherence to these
principles.
37.In view of the foregoing discussion and findings recorded
hereinabove, the following order is passed:
(i) The Writ Petition is allowed;
(ii) The order dated 27 November 2025 passed by
Respondent No. 1 under Section 75(5) of the Maharashtra
Co-operative Societies Act, 1960, the order dated 20 January
2026 passed under Section 77A(1)(b-1) of the said Act, and
the common order dated 15 April 2026 passed by
Respondent No. 2 in Revision Application No. 65 of 2026
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and Appeal No. 33 of 2026 are quashed and set aside;
(iii) Consequentially, the disqualification of the Petitioners
stands set aside. The Managing Committee of the Society
shall stand restored to its original position;
(iv) If, pursuant to the impugned orders, any Administrator
or Board of Administrators has taken charge of the affairs of
the Society, such authority shall forthwith hand over charge,
along with all records, documents and accounts, to the
restored Managing Committee;
(v) The operation of the bank account of the Society, if
restricted pursuant to the impugned action, shall be restored
in favour of the Managing Committee in accordance with
law;
(vi) The State Government, through the Secretary, Co-
operation Department, shall examine the conduct of
Respondent No. 1 and 2 in light of the observations recorded
in this judgment and the principles laid down in
State of M.P.
v. Sanjay Nagayach
. The State shall call for an explanation
from the concerned officer and take an appropriate decision
in accordance with law;
(vii) The aforesaid exercise shall be completed within a
period of three months from the date of receipt of this order
and compliance affidavit shall be filed within three months;
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(viii) Rule is made absolute in the above terms. There shall
be no order as to costs.
38.List this writ petition for compliance on 10 August 2026.
39.At this stage, learned Advocate for respondent No.12 seeks
stay of the operation and implementation of the present judgment
and order. However, for the reasons recorded in this judgment,
said request for stay stands rejected.
(AMIT BORKAR, J.)
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