Bombay High Court
MANGESH PANDURANG PATILversusTHE STATE OF MAHARASHTRA THROUGH PRINCIPAL SECRETARY AND OTHERS
- Disposal
- DISPOSED OFF
Holding
The writ petitions are not maintainable as the petitioners have not exhausted the statutory revision remedy under Section 154 of the Maharashtra Co-operative Societies Act.
Summary
The petitioners, legal representatives of a deceased borrower, challenged the auction and sale of land that had been recovered by a cooperative society under the Maharashtra Co-operative Societies Act after the borrower defaulted on a loan. The society had issued a recovery certificate under Section 101 and confirmed the sale, which was later transferred to a third party. The petitioners filed writ petitions under Article 227 of the Constitution, contending that the sale was illegal, but had not pursued the statutory revision remedy available under Section 154 (or Section 107) of the Act. Citing the Supreme Court’s decision in Adishakti Developers v. State of Maharashtra, the Court held that the wide powers under Section 154 must be exhausted before approaching the High Court. Consequently, the writ petitions were allowed to be withdrawn and dismissed as withdrawn, with the parties’ contentions kept open for future statutory proceedings.
Issues considered
- Whether a writ petition under Article 227 challenging a sale confirmed under the Maharashtra Co-operative Societies Act is maintainable when a statutory revision remedy under Section 154 (or Section 107) is available.
- Whether the powers conferred by Section 154 of the Maharashtra Co-operative Societies Act are wide enough to encompass the legality of the confirmation of sale.
- Whether the petitioners are required to exhaust the statutory remedy before approaching the High Court.
Legislation cited
- Maharashtra Co-operative Societies Act, 1960 — s. 101, 107, 154
Subjects
- loan default
- recovery proceedings
- auction
- sale confirmation
- Section 154 revision
- statutory remedy
- writ petition
- Article 227
- Maharashtra Co-operative Societies Act
Judgment
2026:BHC-AUG:38780
(1) 1 WP 11004 OF 2023
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT AURANGABAD
1 WRIT PETITION NO. 11004 OF 2023
MANGESH PANDURANG PATIL
VERSUS
THE STATE OF MAHARASHTRA THROUGH PRINCIPAL SECRETARY AND
OTHERS
WITH
WRIT PETITION NO. 11005 OF 2023
ARUN DAMODAR CHOUDHARI
VERSUS
THE STATE OF MAHARASHTRA THROUGH PRINCIPAL SECRETARY AND
OTHERS
...
Mr. B. S. Deshmukh, Advocate for the Petitioners
Mr. S. P. Sonpawale, AGP for Respondent-State
Mr. K. B. Jadhav, Advocate for Respondent Nos.4 and 5
…
CORAM : AJIT B. KADETHANKAR, J.
DATE : 24.08.2026
PER COURT :-
. On account of the failure of the petitioners’ father to discharge the
loan liability within the stipulated time, the respondent-Society instituted
recovery proceedings under Section 107 of the Maharashtra Co-operative
Societies Act. An order and recovery certificate under Section 101 of the Act
came to be issued. Subsequently, the land was auctioned, the sale was
confirmed and the sale certificate was also issued. Thereafter, the purchaser
(2) 1 WP 11004 OF 2023
sold the land to a third party. The sale having been confirmed and the
property having been sold to the purchaser.
2. The legal representatives of the deceased borrower found
themselves in difficulty when they came to know about the recovery
proceedings and, therefore immediately approached this Court challenging the
sale proceedings and the auction.
3. Mr. Deshmukh, learned Advocate for the petitioners fairly submits
that the fixation of the upset price was challenged by the petitioners by filing a
revision before the Divisional Joint Registrar. However, the said revision also
came to be rejected during the pendency of the present writ petitions.
4. Learned Advocate for the respondent-Society submits that in the
present petitions, the petitioners are challenging the sale certificate issued
pursuant to the proceedings under Section 101 of the Act. He submits that the
subsequent challenge ought not to be entertained, as the foundation of all the
subsequent proceedings is the certificate issued under Section 101 of the Act.
5. Mr. Deshmukh, learned Advocate for the petitioners sought to rely
upon the judgment and order passed by the Hon'ble Supreme Court in the
case Adishakti Developers Vs. The State of Maharastra and Ors reported in
(2026) 5 SCC 603. He also relied upon the observations made in paragraph 39
(3) 1 WP 11004 OF 2023
thereof, which read thus:
“39. The High Court had dismissed the writ petition against confirmation of sale on
the ground that there is alternative remedy available. No doubt, the High Court
cited Rule 107 as an alternative remedy, but it did not Rule out remedy, if any,
available Under Section 154 of the 1960 Act. The legal representatives of the
defaulter chose to file a revision Under Section 154 which confers wide powers on
the State Government or the Registrar to call for and examine the record of any
inquiry or proceeding of any matter, other than those referred to in Sub-section (9)
of Section 149, where any decision or order has been passed, and against which no
appeal lies, for the purpose of satisfying itself as to the legality or propriety of any
such decision or order, and as to the regularity of such proceeding. Importantly,
revisional powers conferred by the Statute are not subject to any Rules made under
the Statute. Further, remedies available Under Sub-rules (13) and (14) of Rule 107
are not in the nature of an appeal to set aside any decision or order rather it is an
application to set aside sale on grounds specified therein. In our view, therefore, the
revisional power conferred by Section 154 is extremely wide which would include
examining the legality and propriety of a proceeding qua confirmation of sale.
Moreover, such power, in our view, cannot be limited by the Rules framed under the
Statute. Thus, in our view, merely because the applicant had not taken recourse to
the remedy available Under Sub-rules (13) and (14) of Rule 107 of 1961 Rules, the
State Government or the Registrar were not denuded of their power to call for the
records of any enquiry or proceeding of any matter, where any decision or order has
been passed by a subordinate officer, to satisfy themselves as to the legality or
propriety of any such decision or order, and as to the regularity of such proceeding.
Another contention against the maintainability of revision is non-deposit of the
decretal amount, which, in our view, is misconceived as that would be required
Under Sub-section (2A) of Section 154 when revision is against the recovery
certificate. Here, the revision was against the confirmation of sale. Therefore, if the
sale confirmation is void, being in teeth of the provisions of extant 1961 Rules, a
revision to annul the same would not require a pre-deposit as contemplated in Sub-
section (2A) of Section 154 of the 1960 Act. For the aforesaid reasons, we are of the
view that the revision preferred by the legal representatives of the borrower was
maintainable Under Section 154 of the 1960 Act.”
6. The Hon'ble Supreme Court held that the petitioner therein had
taken recourse to Section 154 of the Act. The powers under Section 154 are
wide and would encompass the legality or propriety of the confirmation of
(4) 1 WP 11004 OF 2023
sale. In view thereof, the Hon'ble Supreme Court observed that the revision
petition was maintainable under Section 154 of the Act.
7. Thus in fact it is clear that the petitioners can avail remedy under
Section 154 of the Act even to challenge the auction and sale. In the present
case, the petitioners have not exhausted the revisional remedy under Section
154 of the Act. The auction and sale proceedings have been directly
challenged before this Court under Article 227 of the Constitution of India.
8. in view of the above, I find that the present writ petitions
challenging the auction and sale proceedings directly before this Court
without taking recourse to the statutory remedy either under Section 107 or at
least under Section 154 of the Act may not be maintainable. It is clarified that
a window under Section 154 of the Act remains open to the petitioners even
without taking recourse to the proceedings under Section 107 of the Act.
9. After arguing for some time and noticing the disinclination of this
Court, learned Advocate for the petitioners seeks leave to withdraw the
present writ petitions with liberty to take appropriate proceedings, including
proceedings under Section 154 of the Act. He submits that the period spent in
prosecuting the present writ petitions may be directed to be considered while
deciding the question of delay, if any, in filing such proceedings.
(5) 1 WP 11004 OF 2023
10. In view of the above, the petitioners are permitted to withdraw
the present writ petitions with liberty as prayed for.
11. The writ petitions are dismissed as withdrawn.
12. Needless to mention, all contentions of both the parties are kept
open.
[AJIT B. KADETHANKAR, J.]
PRW
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