Sunil Gadade & Ors. v. Divisional Joint Registrar & Ors.

High Court of Bombay · 25 Jun 2024
Avinash G. Gharote
Writ Petition No. 7481 of 2022
administrative appeal_allowed Significant

AI Summary

The Bombay High Court held that an appeal under Section 152 of the Maharashtra Cooperative Societies Act is maintainable against the registration order of a cooperative society by the District Deputy Registrar pursuant to directions under MOFA.

Full Text
Translation output
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO. 7481 OF 2022
1. Sunil Gadade
Constituted Attorney of the Flat Purchaser/
Owner in Matoshree Nagar Building No.3, Wing C
Residing at Flat No. 601, Matoshree Nagar, Vimco Naka, Kalyan Badlapur Road, Ambernath (W), Taluka: Ambernath, Dist: Thane.
2. Nikhil Visariya
Constituted Attorney of the Flat purchaser/
Owner in Matoshree Nagar Building No.3 Wing C
Residing at Flat No. 201, Matoshree Nagar, Vimco Naka, Kalyan Badlapur Road, Ambernath (W), Taluka: Ambernath, Dist: Thane. … Petitioners
VERSUS
1. Divisional Joint Registrar, Cooperative Society, Konkan Division, Navi Mumbai.
2. Assistant Registrar, Cooperative Society, Ambernath
Taluka, Navre Arcade Satyam Tower, 2nd
Floor, Shiv Mandir Road, Ambernath-421 201.
3. District Deputy Registrar, Co-operative Society, Gaondevi, Mandai Building, 1st
Floor,Gokale
Road, Thane (W)-401 602.
4. Chief Promoter, Shri. Parshuram
Siddharam Bhupalkar,
A, B, C Cooperative Housing Society Ltd, City Survey No. 5399 to 5526, 5586 to 5597, at Village: Kohoj Khuntavli, Ambernath (W), Dist: Thane-421 501.
5. Matoshree Nagar Building No.3, A, B, C Cooperative Housing Society
Ltd, Matoshree Nagar, Wimco Naka, Ambernath (West).
6. Matoshree Shelters (India) Pvt Ltd.
Matoshree Nagar, Vimco Naka, Kalyan
Badlapur Road, Ambernath (W), Taluka: Ambernath, Dist: Thane. ...Respondents
WITH
WRIT PETITION NO. 7478 OF 2022
Matoshree Shelters (India) Pvt Ltd
Matoshree Nagar, Vimco Naka, Kalyan
Badlapur Road, Ambernath (W), Taluka: Ambernath, Dist: Thane. ...Petitioner
VERSUS
1. Divisional Joint Registrar, Cooperative Society, Konkan Division, Navi Mumbai.
2. Assistant Registrar, Cooperative Society, Ambernath
Taluka, Navre Arcade Satyam Tower, 2nd
Floor, Shiv Mandir Road, Ambernath-421 201.
3. District Deputy Registrar,
Co-operative Society, Gaondevi, Mandai Building, 1st
Floor,Gokale
Road, Thane (W)-401 602.
4. Chief Promoter, Shri. Parshuram
Siddharam Bhupalkar,
A, B, C Cooperative Housing Society Ltd, City Survey No. 5399 to 5526, 5586 to 5597, at Village: Kohoj Khuntavli, Ambernath (W), Dist: Thane-421 501.
5. Matoshree Nagar Building No.3, A, B, C Cooperative Housing Society
Ltd, Matoshree Nagar, Wimco Naka, Ambernath (West). ...Respondents
WITH
WRIT PETITION NO. 7483 OF 2022
1. Salim A Shaikh
Constituted Attorney of the Flat Purchaser/
Owner in Matoshree Nagar Building No.3, Wing A
Residing at Flat No. 102, Matoshree Nagar, Vimco Naka, Kalyan Badlapur Road, Ambernath (W), Taluka: Ambernath, Dist: Thane.
2. Mr. Kailash Lakhamale, Constituted Attorney of the Flat purchaser/
Owner in Matoshree Nagar Building No.3 Wing A
Residing at Flat No. 106, Matoshree Nagar, Vimco Naka, Kalyan Badlapur Road, Ambernath (W), Taluka: Ambernath, Dist: Thane. … Petitioners
1. Divisional Joint Registrar, Cooperative Society, Konkan Division, Navi Mumbai.
2. Assistant Registrar, Cooperative Society, Ambernath
Taluka, Navre Arcade Satyam Tower, 2nd
Floor, Shiv Mandir Road, Ambernath-421 201.
3. District Deputy Registrar, Co-operative Society, Gaondevi, Mandai Building, 1st
Floor,Gokale
Road, Thane (W)-401 602.
4. Chief Promoter, Shri. Parshuram
Siddharam Bhupalkar,
A, B, C Cooperative Housing Society Ltd, City Survey No. 5399 to 5526, 5586 to 5597, at Village: Kohoj Khuntavli, Ambernath (W), Dist: Thane-421 501.
5. Matoshree Nagar Building No.3, A, B, C Cooperative Housing Society
Ltd, Matoshree Nagar, Wimco Naka, Ambernath (West).
6. Matoshree Shelters (India) Pvt Ltd
Matoshree Nagar, Vimco Naka, Kalyan
Badlapur Road, Ambernath (W), Taluka: Ambernath, Dist: Thane ...Respondents
….
Mr Vishal Kanade, with Mr. R.A. Shah & Mr. Mohammed
Lokhandwala, i/b Mansukhlal Hiralal & Co, for the Petitioner in all
Writ Petitions.
Ms. V.S. Nimbalkar, A.G.P. for Respondent Nos. 1 to 3-State.
Mr. D.S. Mhaispurkar, with Nilambari G. Deshmukh, for Respondent
Nos. 4 & 5.
….
CORAM : AVINASH G. GHAROTE, J.
DATE : 25th JUNE 2024
ORAL JUDGMENT

1. Heard learned Advocate Mr. Kanade for the Petitioner, learned AGP for the Respondent Nos. 1 to 3 and learned Counsel Mr. D.S. Mhaispurkar, for the Respondent Nos. 4 & 5.

2. The Petitions question the Order dated 10.03.2022 (page

36) passed by the Divisional Joint Registrar, Cooperative Societies, Konkan Division, holding that the order of the Respondent No.3/District Deputy Registrar (“DDR”) dated 16.9.2021 directing registration of the society, was not assailable in an Appeal under Section 152 of Maharashtra Cooperative Societies Act 1960 (“MCS Act”) on the ground that the original direction to register the society was passed by the Competent Authority under the first proviso to Section 10(1) of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 ( "MOFA").

3. The learned Advocate for the Petitioner contends that once a society was registered in exercise of power under Section 9 of the MCS Act by the DDR, the affairs of such society would be governed by the MCS and not by MOFA, in light of which an Appeal under Section 152 challenging the registration would be maintainable.

4. Learned Advocate Mr. Mhaispurkar for Respondent Nos. 4 and 5 as well as learned AGP for Respondent Nos. 1 to 3 in support of the impugned order contend that the same would amount to a challenge to the order of the Competent Authority under the first proviso to Section 10(1) of the MOFA on account of which only Writ Petitions would be maintainable.

5. Section 10(1) and first proviso to the same of MOFA, which are material are reproduced as under:

“10. Promoter to take steps for formation of co-operative society or company (1) As soon as a minimum number of persons required to form a Co-operative society or a company have taken flats, the promoter shall within the prescribed period submit an application to the Registrar for registration of the organization of persons who take the flats as a co-operative society or, as the case may be, as a company; and the promoter shall join, in respect of the flats which have not
been taken, in such application for membership of a cooperative society or as the case may be, of a company. Nothing in this section shall affect the right of the promoter to dispose of the remaining flats in accordance with the provisions of this Act.” Provided that, if the promoter fail within the prescribed period to submit an application to the Registrar for registration of society in the manner provided in the Maharashtra Co-operative Societies Act, 1960, the Competent Authority may, upon receiving an application from the persons who have taken flats from the said promoter, direct the District Deputy Registrar, Deputy concerned, to register the society: Provided further that, no such direction to register any society under the preceding proviso shall be given to the District Deputy Registrar, Deputy Registrar or, as the case may be, Assistant Registrar, by the Competent Authority without first verifying authenticity of the applicants’ request and giving the concerned promoter a reasonable opportunity of being heard.” Section 10(1) of MOFA indicates that the obligation to form and register a Society/Company of the flat purchasers is that of the promoter, which is to be done as soon as the minimum numbers of persons required to form it have taken flats, which is to be done within the prescribed period of four months from the date on which the minimum number of persons required to form such organization have taken flats as per Rule 8 of the Maharashtra Ownership Flats (Regulation of The Promotion of Construction, Sale, Management And Transfer) Rules 1964. A reading of the first proviso to Section 10(1), above would indicate that if the promoter fails within the prescribed period to submit an application to the Registrar as defined under Section 2(d) of MOFA for registration of the society, in the manner as provided in the MCS Act the competent authority under MOFA upon receiving an application from the persons who have taken flats from the promoter, is to direct the authority under the MCS Act, to register the society. That is the only jurisdiction of the Competent Authority under the first proviso to Section 10(1) of MOFA and nothing else.

6. Sub-section (1) of Section 8 of the MCS Act provides for filing of an application for the purposes of registration of a society, which has to be done in the prescribed form, which is to be accompanied by four copies of the proposed bye-laws of the society; the prescribed registration fees as applicable for the class of society under which registration is sought. Sub-section 2 of Section 8 provides as to how many persons/societies are to sign the application under Section 8(1) for the registration of the society. Section 9 of MCS Act then mandates the satisfaction of the Registrar regarding the compliance with the MCS Act and Rules framed thereunder or any other law for the time being in force or policy directives issued by the State Government and the proposed bye-laws are not contrary thereto, and after recording his sanctification to register the society.

7. Thus once such an order is passed, under Section 9 of the MCS Act, the action of the DDR/Respondent No.3 in registering the society in exercise of his powers under Section 9 of the MCS Act, would be exercise of jurisdiction under the MCS Act and thus would be amenable to a challenge in the manner as provided under the MCS Act and not otherwise.

8. This is also for the reason that the order of the competent authority under MOFA is merely a direction for the registration of the society, however the actual exercise of jurisdiction for registration is exercised by the DDR under Section 9 of the MCS Act.

9. That being the position, the impugned order which holds that an Appeal under Section 152 of the MCS Act is not maintainable cannot be sustained and is hereby quashed and set aside. It is held that an Appeal under Section 152 of the MCS Act against an order under Section 9, directing registration of the society, in pursuance to the directions of the competent authority under the first proviso to Section 10(1) of MOFA would be maintainable before the Respondent No.1.

10. The Petitions are accordingly allowed in the aforesaid terms. No costs.

11. The parties shall appear before Respondent No.1 on 01.07.2024 without any further notice being required to be issued for hearing, who shall decide the Appeal as expeditiously as possible. (AVINASH G. GHAROTE, J.)