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Bombay High Court

GHANSHYAM SITARAM BIDAWATKAversusTHE DIVISIONAL JOINT REGISTRAR COOP SOCIETIES AND ORS

Decided
Disposal
Disposed Off

Holding

The order dated 5 August 2026 is set aside as illegal and arbitrary.

Summary

The petitioner challenged the Deputy Registrar’s order dated 5 August 2026 which replaced the certified auditor with a committee that included members who were disqualified under the Maharashtra Co‑operative Societies Act. The petitioner argued that the appointment was illegal, arbitrary, and violated the standing disqualification orders dated 10 February 2022 under sections 75(5) and 79A(3). Although an appeal under section 152 was pending, the court found that the gross illegality justified intervening. The court held that the Deputy Registrar could not appoint disqualified persons to manage the society’s affairs or conduct elections. Consequently, the order of 5 August 2026 was set aside and the Deputy Registrar was directed to appoint a new authorized officer within a week to conduct the elections, and the appeal was closed.

Issues considered

  • Whether the appointment of disqualified persons to the authorized committee under the MCS Act is lawful.
  • Whether a writ petition can be entertained despite a pending appeal under section 152 of the MCS Act.
  • Whether the Deputy Registrar’s order is arbitrary and violative of the disqualification provisions.

Legislation cited

Subjects

  • co-operative societies
  • authorized officer
  • disqualification
  • writ petition
  • arbitrary order
  • election
  • Maharashtra Co-operative Societies Act

Judgment

2026:BHC-AS:34940

              Renuka                                             14-WP-10703-2026.docx


                       IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                 CIVIL APPELLATE JURISDICTION
                                WRIT PETITION NO. 10703 OF 2026
              Ghanshyam Sitaram Bidawatka                         ...Petitioner
                                V/s.

              The Divisional Joint Registrar Co-op              ...Respondents
              Societies And Ors
                                         ________________
              Mr. Niraj Bidawatka for Petitioner.
              Mr. Sachin P. Borhade for Respondent Nos. 3 to 5.
              Mr. Deep Barot (through VC) for Intervenor.
              Mr. A. I. Patel, Addl. G. P. with Ms. S. D.Chipade for Respondent-State.
                                            ________________
                                                      CORAM: SANDEEP V. MARNE, J.
                                                       DATED: 24 AUGUST 2026.


              P.C.:


              1)           The Petition challenges order dated 5 August 2026 passed by
              the Deputy Registrar, Co-operative Societies R South Ward, Mumbai
              (Deputy Registrar), by which the Deputy Registrar has made a partial
              modification in the order dated 21 April 2026 and in place of Mr. Sham
              Darekar, certified auditor, an authorized committee comprising of
              Respondent Nos. 4 to 6 is now appointed to look after day to day affairs
              of the Society and for conduct of elections of the Society.


              2)           The order dated 5 August 2026 is appealable under Section
              152 of the Maharashtra Co-operative Societies Act, 1960 (MCS Act) and

                                               Page No.1 of 4
                                               24 August 2026
Renuka                                           14-WP-10703-2026.docx


the Petitioner has infact filed such Appeal on 10 August 2026. The
Petitioner however complains that when the Appeal was moved before
the Divisional Joint Registrar on 10 August 2026, the next date of hearing
is now fixed on 29 September 2026. It is contended that since the
impugned order dated 5 August 2026 is grossly erroneous, Petitioner
need not to be made to wait for outcome of the Appeal.


3)          Ordinarily, this Court would not have entertained the
present Petition in the light of exercise of statutory remedy of Appeal by
the Petitioner. However, this Court has noticed gross illegalities in the
order dated 5 August 2026, on account of which exercise of alternate
remedy by the Petitioner and pendency of Appeal will have to be ignored
and interference by this Court in the impugned order becomes
warrantable.


4)          My attention is drawn to order dated 10 February 2022
passed under Section 75(5) of the MCS Act under which Respondent Nos.
4 and 5 are disqualified from being committee members for a period of 5
years. The period of disqualification of Respondent Nos. 4 and 5
continues to operate. It appears that one more order is passed on 10
February 2022 under Section 79A(3) of the MCS Act, under which
Respondent Nos. 4 and 5 are disqualified for 6 years. Even this period of
disqualification continues to operate.


5)          By order dated 21 April 2026, the Deputy Registrar had
appointed Shri. Sham Darekar, certified Auditor as the Authorized Officer
for looking after day to day affairs of the society and for conduct of the

                                Page No.2 of 4
                                24 August 2026
Renuka                                             14-WP-10703-2026.docx


elections. It appears that the Authorized Officer Mr. Sham Darekar
submitted his resignation on 29 May 2026. The Deputy Registrar refused
to accept the resignation and directed Mr. Darekar to continue as
Authorized Officer till constitution of new managing committee after
conduct of election. What has happened between 1 June 2026 and 5
August 2026 is unknown. The fact remains that the elections are yet to
be conducted. However, the Deputy Registrar has now changed his mind
and has decided to replace Mr. Darkar from the position of Authorized
Officer. What is more shocking is the fact that the Deputy Registrar has
directed that the Respondent Nos. 4 and 5, who continue to suffer
disqualification, to act as members of authorized committee for looking
after day to day affairs of the society and to conduct the elections. Thus,
persons who are disqualified from managing the affairs of the society by
orders dated 10 February 2022 are permitted to do so in an indirect
manner through the order dated 5 August 2026. The order passed by the
Deputy Registrar thus is grossly arbitrary and illegal. Since Respondent
Nos. 4 and 5 cannot be permitted to look after affairs of the society, their
appointment on the committee is clearly illegal. If Mr. Darekar has a
reservations in acting as an Authorized Officer, the Deputy Registrar
ought to have appointed some other person as the Authorized Officer. He
could not have permitted Respondent Nos. 4 and 5 to gain control over
affairs of the society in an indirect manner by passing the impugned
order dated 5 August 2026.


6)          What also disturbs the Court is that despite passage of four
long months from the date of appointment of Authorized Officer,
elections to the committee are still not held.

                                 Page No.3 of 4
                                 24 August 2026
                          Renuka                                               14-WP-10703-2026.docx




                          7)           Considering this position, instead of directing decision of
                          the Appeal, which is now adjourned to 29 September 2026, it would be
                          apposite to set aside the order dated 5 August 2026 with a direction to
                          Deputy Registrar to appoint some other officer as the Authorized Officer.
                          This would ensure that the elections of the society would be conducted
                          in an expeditious manner.


                          8)           Accordingly, order dated 5 August 2026 is set aside. The
                          Deputy Registrar shall proceed to pass an order appointing the some
                          other officer as the Authorized Officer to took after day to day affairs of
                          the society and for conduct of elections within one week. The Authorized
                          Officer so appointed shall forthwith conduct elections of the society. The
                          Divisional Joint Registrar shall proceed to pass a formal order of closure
                          of the Appeal since the order dated 5 August 2026 is set aside.


                          9)           Writ Petition is allowed in above terms. There shall be no
                          order as to costs.


                                                                           [SANDEEP V. MARNE, J.]




Signed by: Renuka S Thakur
                                                          Page No.4 of 4
Designation: PA To Honourable Judge                       24 August 2026
Date: 25/08/2026 16:32:59


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