SUHAS UTTAMRAO JADHAVversusTHE STATE OF MAHARASHTRA AND OTHERS

2026:BHC-AUG:12608
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                       IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                  BENCH AT AURANGABAD

                                 WRIT PETITION NO. 4721 OF 2019

                                    SUHAS UTTAMRAO JADHAV
                                            VERSUS
                             THE STATE OF MAHARASHTRA AND OTHERS

                                              …
             Mr. Mahesh S. Deshmukh – Advocate for Petitioner (through V.C.)
             Mr. R.B. Dhaware – AGP for Respondent Nos.1 to 3, State
                                              …

                                    CORAM         : SIDDHESHWAR S. THOMBRE, J.
                                    DATE          : 18.03.2026

             ORDER:
             1.      Heard    learned   Counsel   for   the   petitioner   through    video

             conferencing and learned A.G.P. for respondent Nos.1 to 3, State

             authorities. None appeared for respondent No.4, though served.


             2.      The petitioner is aggrieved by the order dated 22.02.2019 bearing

             Outward No. ARCB/Admn-2/Liquidator/Order/377/2019 passed by the

             learned Assistant Registrar, Co-operative Societies, Bhokardan, District

             Jalna, purportedly under Section 102(i)(c)(ii) and (iv) of the

             Maharashtra Co-operative Societies Act, 1960.


             3.      Learned Counsel for the petitioner, Mr. Mahesh Deshmukh, submits

             that the petitioner is a member of respondent No.4 – Society. Elections of

             the Society were held for the term 2014–2015 to 2019–2020, wherein
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thirteen Directors were duly elected. It is contended that, under political

pressure, respondent No.3, by order dated 26.10.2017, appointed an

Administrator to the Society. The said order was challenged by the

petitioner by filing appeal under Section 152 of the Act; however, the

appeal came to be dismissed, and thereafter, a revision was preferred

before the State Government.


4.    It is further submitted that the Administrator failed to conduct the

affairs of the Society properly and acted with a view to prevent the

elected Board of Directors from functioning. Thereafter, respondent No.3,

purportedly exercising powers under Section 102(i)(c)(ii) and (iv) of the

Act, proceeded to pass the impugned interim order directing winding up

of the Society and appointing a Liquidator under Section 103 of the Act.

Learned Counsel invited attention to the impugned order and submits

that the sole ground mentioned therein is that the Society had ceased

functioning. However, it is contended that the audit report clearly

demonstrates that the Society was functioning and carrying on its

business. It is further submitted that the order was passed without

affording a meaningful opportunity of hearing and is the result of

extraneous political considerations. Hence, the impugned action is

contrary to Section 102 of the Act.


5.    Per contra, learned A.G.P. for respondent Nos.1 to 3 supports the

impugned order and submits that the Society had ceased functioning and,
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therefore, the competent authority rightly exercised powers under the

Act. It is also submitted that the petition has been pending since 2019

and interim relief was granted by this Court on 16.04.2019.


6.    I have considered the rival submissions and perused the record.

Since the petition is pending since 2019, the same is taken up for final

disposal.


7.    It is useful to refer section 102 of the Maharashtra Co-operative

Societies Act, 1960, which reads as under :

       “102. Winding up.—

       (1) If the Registrar;

            (a) after an inquiry has been held under section 83 or an
            inspection has been made under section 84 or on the report
            of the auditor auditing the accounts of the society, or

            (b) on receipt of an application made upon a resolution
            carried by three-fourths of the members of a society present
            at a special general meeting called for the purpose, or

            (c) of his own motion, in the case of a society which-

            (i) Has not commenced working, or
            (ii) Has ceased working, or
            (iii) Possesses shares or members deposits not exceeding five
            hundred rupees, or
            (iv) Has ceased to comply with any conditions as to
            registration and management in this Act or the rules or the
            bye-laws, is of the opinion that a society ought to be wound
            up, he may issue an interim order directing it to be wound
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            up.

       (2) A copy of such order made under sub-section (1) shall
       be communicated, in the prescribed manner, to the society
       calling upon it to submit its explanation to the Registrar
       within a month from the date of the issue of such order, and
       the Registrar, on giving an opportunity to the society of
       being heard, may issue a final order, vacating or conforming
       the interim order.”

8.    The issue involved in the present petition revolves around the

exercise of powers under Section 102 of the Maharashtra Co-operative

Societies Act, 1960, which empowers the Registrar to order winding up of

a Society if it has, inter alia, ceased to function. Upon perusal of the

impugned order, it appears that the conclusion that the Society had

ceased functioning is not supported by any cogent material. The order

merely records such conclusion without reference to any substantive

evidence.


9.    On the contrary, the audit report dated 07.03.2019 (at page 25-A

of the petition) indicates that the Society was functioning and its business

condition was satisfactory. There is no material on record to justify the

drastic action of winding up the Society.


10.   It is well settled that before exercising powers under Section 102 of

the Act, the authority must record clear and cogent reasons based on

material evidence demonstrating that the Society has ceased to function.
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In the absence of such material, the impugned action cannot be

sustained. In the present case, the impugned order appears to have been

passed without sufficient material and without proper application of

mind. Therefore, the same is liable to be quashed and set aside.


11.      In view thereof, the Writ Petition is allowed. The order dated

22.02.2019 passed by the learned Assistant Registrar, Co-operative

Societies, Bhokardan, District Jalna is quashed and set aside.


12.      Pending Civil Applications, if any, stand disposed of.



                                            [ SIDDHESHWAR S. THOMBRE ]
                                                      JUDGE


Pooja Kale/