SAYAJIRAO NARAYAN TAKWANE v. DIVISIONAL JOINT REGISTRAR CO OP. SOC. AND ORS
Maintainability of Revision under Section 154 of the Maharashtra Co-operative Societies Act against Audit Reports and Orders Directing Audits.
Court: Bombay High Court
Citation: 2025:BHC-AS:60a Sawant
Decision Date: 04-02-2025
List of Laws
Maharashtra Co-operative Societies Act, 1960; Section 81 of the Maharashtra Co-operative Societies Act, 1960; Section 154 of the Maharashtra Co-operative Societies Act, 1960; Section 88 of the Maharashtra Co-operative Societies Act, 1960; Section 83 of the Maharashtra Co-operative Societies Act, 1960; Section 152 of the Maharashtra Co-operative Societies Act, 1960
- Facts: A Society, Pargaon Vividh Karyakari Seva Sanstha Ltd., challenged an order by the Divisional Joint Registrar setting aside a re-audit report and directing a fresh re-audit. The re-audit report had assessed losses to the Society at Rs. 33,76,111/- and was acted upon by the Registrar, who appointed an Enquiry Officer. The previous managing committee members filed an appeal against the Enquiry Officer's order, which was dismissed due to the pendency of the Society's writ petition. One of the members then filed a writ petition challenging the rejection of the appeal. The Society contended that a revision is not maintainable against a mere opinion expressed by the Auditor after re-audit.
- Procedural Posture: Two writ petitions were filed: one by the Society (WP No. 12451 of 2024) challenging the Divisional Joint Registrar's order, and another by a member of the previous managing committee (WP No. 544 of 2025) challenging the rejection of their appeal. The High Court heard both petitions together due to interconnected issues.
- Issue: Is a revision application maintainable under Section 154 of the Maharashtra Co-operative Societies Act, 1960, against a re-audit report's findings? Specifically, do the observations and conclusions in a re-audit report constitute a 'decision' capable of being challenged? Also, do orders directing test audit or re-audit constitute a 'decision' that can be challenged?
- Holding: The High Court held that a revision application is not maintainable against the findings and conclusions in a re-audit report. Orders directing test audit or re-audit are administrative orders and cannot be challenged by revision under Section 154 of the Act. The Divisional Joint Registrar's order was set aside, and the revision application was deemed not maintainable. However, the appeal against the Enquiry Officer's order was deemed maintainable and was remanded to the Divisional Joint Registrar for a fresh decision on merits.
- Reasoning: The Court analyzed Chapter VIII of the Maharashtra Co-operative Societies Act, 1960, focusing on audit, inquiry, inspection, and supervision provisions. It differentiated between administrative orders (like directing audits) and quasi-judicial decisions. Citing several precedents, the Court concluded that orders directing test audit or re-audit are administrative and do not adjudicate rights. The Court distinguished the Daulatrao Shankarrao Thakare case, explaining that its holding applied only when the Registrar had already acted on the auditor's report by issuing permission for lodging an FIR. The Court emphasized that mere findings in audit reports do not constitute a 'decision' capable of revision.
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