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Bombay High Court

CHANDRAKANT MANDAVKAR AND ANRversusTHE DEPUTY REGISTRAR CO-OP SOCIETIES MAHADA MUMBAI AND ORS

Decided
Disposal
Disposed Off

Holding

The order of the Joint Registrar is set aside and the revision application is remanded for fresh adjudication.

Summary

The petitioners, Chandrakant Mandavkar and another, challenged the order dated 12 February 2026 of the Joint Registrar, Co-operative Societies, which rejected their revision application against the Deputy Registrar’s order disqualifying the society’s chairman, secretary and treasurer for five years under Section 75(5) of the Maharashtra Co-operative Societies Act. The Deputy Registrar had found violations of Sections 75(2), 75(2A) and 75(4) for not placing audit rectification reports before the general body meetings for the financial years 2019‑2020 and 2020‑2021. The petitioners contended that the audit reports had been approved by the general body and the government auditor, invoking the supremacy of the general body under Section 72, and argued that the Joint Registrar failed to consider these grounds, amounting to a non‑application of mind. The Court held that the Joint Registrar’s order was unsustainable and set it aside, remanding the revision application for fresh adjudication while maintaining the interim relief. Consequently, the writ petition was partly allowed and disposed of without costs.

Issues considered

  • Whether the Joint Registrar correctly applied mind in rejecting the revision of the Deputy Registrar’s order.
  • Whether there was a violation of Sections 75(2), 75(2A) and 75(4) of the Maharashtra Co‑operative Societies Act by not placing audit rectification reports before the general body.
  • Whether the approval of the audit reports by the general body and the government auditor negates the alleged violation under the Act.

Legislation cited

Subjects

  • Co-operative societies
  • Disqualification of office bearers
  • Audit report compliance
  • Revision of administrative order
  • Non‑application of mind
  • Interim relief

Judgment

2026:BHC-AS:39926

              Renuka Thakur                                            40-WP-4316-2026.docx


                         IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                   CIVIL APPELLATE JURISDICTION
                                  WRIT PETITION NO. 4316 OF 2026
              Chandrakant Mandavkar and Anr.                     ...Petitioners
                                  V/s.

              The Deputy Registrar Co-Op Societies               ...Respondents
              Mahada Mumbai and Ors
                                        ________________
              Mr. Prashant P. Kulkarni a/w Ms. Rachna Mamnani, Ms. Ritika Rajeev for
              Petitioner.
              Mr. R. N. Mulla for Respondent No. 3.
              Mr. A. A. Alaspurkar, AGP for Respondent-State.
                                            ________________
                                                     CORAM: SANDEEP V. MARNE, J.
                                                      DATED: 28 SEPTEMBER 2026.


              P.C.:


              1)              The Petitioner challenges order dated 12 February 2026
              passed by the Joint Registrar, Co-operative Societies, SRA, Mumbai (Joint
              Registrar) rejecting the Revision Application No. 553 of 2023 and
              confirming the order dated 25 October 2023 passed by the Deputy
              Registrar. By order dated 25 October 2023, the Deputy Registrar, in
              exercise of powers under Section 75 (5) of the Maharashtra Co-operative
              Societies Act, 1960 (MCS Act), has disqualified the chairman, secretary
              and treasurer of the society from being members of the managing
              committee and from being elected as members of the managing
              committee for a period of a 5 years.

                                                Page No.1 of 3
                                             28 SEPTEMBER 2026
Renuka Thakur                                                    40-WP-4316-2026.docx


2)              I have heard Mr. Kulkarni, the learned counsel appearing for
the Petitioner, Mr. Mulla, the learned counsel appearing for Respondent
No. 3 and Mr. Alaspurkar, the learned AGP appearing for Respondent-
State and have considered the submissions canvassed by them.


3)              Perusal of the order passed by the Deputy Registrar would
indicate that he has recorded a finding that there is violation of
provisions of Section 75(2), (2A) and (4) of the MCS Act by not placing
before the general body, the audit rectification report while conducting
annual general body meetings for the years 2019-2020 and for the year
2020-2021.


4)              It appears that in the revision filed before the Divisional
Registrar, the Petitioners specifically raised following ground :-
                  j) That, in respect of Annual Report, Balance Sheet of the society
                  for the said period 2019-2020 and 2020-2021, the Ld. Respondent
                  No.1 failed to consider that the General Body of Society as well as
                  the Government Certificate Auditor have acknowledged and
                  approved the balance sheet for the financial years 2019-2020 and
                  2020-2021 without raising any doubt and thus, anything against the
                  said Audit Reports is improper, illegal, bad-in-law and against the
                  supremacy given to the General Body of the Society as per Section 72
                  of the MCS Act, 1960.

5)              Additionally, Petitioners specifically pointed out before the
Joint Registrar that there is no violation of provisions of Section 75 (2)
(2A) and 4 of the MCS Act since all the requisite documents were
produced before the general body meeting. However, it appears that the
Joint Registrar has failed to adjudicate the grounds raised by the
Petitioners. Perusal of the order passed by the Joint Registrar would
indicate that he has merely reproduced provisions of Section 75 of the

                                      Page No.2 of 3
                                   28 SEPTEMBER 2026
                          Renuka Thakur                                                  40-WP-4316-2026.docx


                          MCS Act. There is no application of mind by the Joint Registrar to
                          various grounds raised by the petitioners. The order passed by the Joint
                          Registrar suffers from vice of non-application of mind. The order is
                          therefore unsustainable and deserves to be set aside. In my view
                          therefore, proceedings need to be remanded to the Joint Registrar for
                          fresh adjudication.


                          6)              Petition succeeds in part and I proceed to pass the following
                          order:-
                                           (i) Order dated 12 February 2026 passed by the Joint
                                           Registrar is set aside.


                                           (ii) Revision Application No. 553 of 2023 is remanded to
                                           the Joint Registrar for a fresh adjudication.


                                           (iii) Till the Joint Registrar decides the revision, ad-interim
                                           relief granted by this Court by order dated 7 April 2026
                                           shall continue to operate.


                                           (iv) All contentions of parties on merits are expressly kept
                                           open.


                          7)              With the above directions, Writ Petition is partly allowed
                          and disposed of. There shall be no order as to costs.


                                                                                [SANDEEP V. MARNE, J.]



Signed by: Renuka S Thakur
                                                               Page No.3 of 3
Designation: PA To Honourable Judge                         28 SEPTEMBER 2026
Date: 01/10/2026 10:40:10


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