Pushpa Sureshkumar Nair vs. Sudhir G. Shete

Held

The Court held that the Divisional Joint Registrar failed to record any reasons while dismissing the appeal, which is a crucial procedural lapse. The Court found that the Divisional Joint Registrar did not consider the minutes of the Special General Meeting held on 5 March 2023, where the General Body authorized the Managing Committee to charge Platinum Society common service charges of Rs. 41,637/- plus applicable GST (Rs. 20.4 lakhs for 49 months). The defence of the Petitioners that the MOU was executed in accordance with the authorization given by the General Body was ignored. The Court also noted the vague reason provided in the impugned order regarding the lack of auditor certification. Therefore, the Court decided to remand the appeal to the Divisional Joint Registrar for a fresh adjudication. The Court set aside the order dated 28 February 2026 and remanded Appeal No. 133/2025 for fresh decision, uninfluenced by the observations made in the present order. All contentions on merits were expressly kept open. The Divisional Joint Registrar was directed to decide the appeal expeditiously, preferably within six months.

Facts

The Petitioners, Pushpa Sureshkumar Nair and Anr., challenged an order dated 28 February 2026 passed by the Divisional Joint Registrar, Pune Division, Pune. This order dismissed Appeal No. 133/2025 and confirmed an enquiry report dated 16 October 2025 submitted by an Enquiry Officer under Section 88 of the Maharashtra Co-operative Societies Act, 1960 (MCS Act). The enquiry was initiated at the instance of Respondent No. 4. The High Court noted that the Divisional Joint Registrar's order lacked reasons, merely recording submissions. The dispute involves an alleged illegal waiver of approximately Rs. 74 lakhs payable by Platinum Society, with the Petitioners arguing this waiver was authorized by a General Body Meeting resolution on 5 March 2022, which also specified common service charges and applicable GST. Respondent No. 4 was present and voted in favour of this resolution.

Key Issues

1. Whether the Divisional Joint Registrar erred in dismissing Appeal No. 133/2025 without recording any reasons, thereby violating principles of natural justice, and whether this Court should entertain the writ petition despite the availability of an alternative remedy under Section 154 of the MCS Act? Petitioner's Contention: The Petitioner argued that the writ petition is maintainable because the Divisional Joint Registrar failed to record any reasons in the impugned order, rendering it non-speaking. The Petitioner further contended that the decision to waive the amount payable by Platinum Society was taken by the General Body of the Society, as evidenced by the minutes of the General Body Meeting held on 5 March 2022, which authorized the Managing Committee to charge specific common service charges and applicable GST. Respondent No. 4 was present and voted in favour of this resolution. Revenue/State's Contention: The Respondents (including Respondent No. 3, Respondent No. 4, and Respondent-State) contended that the Petitioners had illegally waived off an amount of about Rs. 74 lakhs payable by Platinum Society, and this decision was unilaterally taken by the Managing Committee. They also argued that before finalizing the compromise amount, it was not certified by the Auditors.