Bombay High Court on Supersession of Cooperative Society Committee: Registrar’s Power Must Be Exercised with Caution.

Headnote:

The Bombay High Court held that the power of the Registrar under Section 78A of the Maharashtra Cooperative Societies Act, 1960 to remove a managing committee must be exercised with great caution and only when there is clear, substantiated evidence of misconduct or failure in functioning. The Court observed that supersession of an elected body is an extraordinary measure and cannot be invoked for minor procedural lapses or administrative disagreements. Authorities must strictly follow due process, including notice, hearing, and consultation with the federal society, before appointing an Administrator.

Background:

• The petitioner, Jijau Cooperative Housing Society Ltd., challenged the order of the Joint Registrar of Cooperative Societies (dated 26 August 2025) upholding the Assistant Registrar’s order (dated 13 February 2025) that removed the managing committee and appointed an Administrator.

• The dispute arose from repairs and painting work approved by the General Body in June and August 2022, where members agreed to contribute ₹10,000 per month for the work.

• Two members (Respondent Nos. 4 and 5) complained to the Registrar, alleging financial irregularities and by-law violations.

• Despite the committee submitting explanations and documents, the Registrar invoked Section 78A to supersede the committee.

• The petitioner’s appeal under Section 152 of the MCS Act was dismissed, prompting the present writ petition.

Court’s Observations:

• The Court emphasized that Section 78A of the MCS Act vests a serious power that affects the democratic functioning of cooperative institutions. Such power must be exercised sparingly and only upon clear, proven grounds.

• Supersession cannot be justified on vague or unsubstantiated allegations. Minor irregularities, internal disputes, or delays in compliance do not amount to misconduct warranting removal.

• The Registrar is obligated to issue notice, grant a fair hearing, and record detailed reasons before invoking Section 78A.

• The Court noted that authorities must also consult the federal society, as mandated by the statute, before appointing an Administrator. Failure to do so renders the action legally defective.

• The Court further clarified that before resorting to supersession, the Registrar should explore less drastic alternatives, such as issuing directions or ordering audits.

• Removal of an elected committee without sufficient justification undermines the democratic autonomy of cooperative societies.

Legal Provisions Discussed:

• Section 78A, Maharashtra Cooperative Societies Act, 1960 – Power to remove a managing committee and appoint an Administrator.

• Section 152, Maharashtra Cooperative Societies Act, 1960 – Appeal against Registrar’s orders.

• Article 226, Constitution of India – Writ jurisdiction of the High Court for judicial review of administrative actions.

Citation: 2025:BHC-AS:47841

Case: Jijau Cooperative Housing Society Ltd. v. State of Maharashtra & Ors.

Court: High Court of Judicature at Bombay

Coram: Justice Amit Borkar

Date of Decision: 11 November 2025

Writ Petition No.: 12871 of 2025