High Court Allows Writ Petition by Cooperative Society Against Ministerial Order Halting Inquiry Under Maharashtra Cooperative Societies Act - Restores Statutory Inquiry into Financial Irregularities by Former Directors

Sub Category: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The High Court allowed a writ petition filed by Petitioner challenging an order passed by the Minister for Cooperation that halted a statutory inquiry into alleged financial irregularities by former directors. The petitioner society had initiated inquiry proceedings based on a Special Report from the Statutory Auditor under Section 81(5B) of the Maharashtra Cooperative Societies Act 1960, leading to the Additional Registrar ordering an inquiry under Section 88 of the Act. The Minister, exercising revisionary powers under Section 154, set aside both the inquiry order and the Special Report. The Court found that the revisional authority exceeded its jurisdiction, as the inquiry under Section 88 was administrative in nature and merely set in motion statutory mechanisms without adjudicating rights. The Court restored the inquiry proceedings, emphasizing that statutory processes should not be arbitrarily interrupted.

Headnote

The High Court of Judicature at Bombay -- Civil Appellate Jurisdiction -- Writ Petition -- Petitioner challenged order dated 17 December 2025 passed by Minister for Cooperation in Revision Application No. 629 of 2024 -- The revisional authority set aside order dated 12 September 2024 passed by Additional Registrar directing inquiry under Section 88 of Maharashtra Cooperative Societies Act 1960 -- The revisional authority annulled Special Report dated 14 August 2024 submitted by Statutory Auditor under Section 81(5B) of the Act -- The Court examined jurisdictional limits of revisionary powers under Section 154 of Maharashtra Cooperative Societies Act 1960 -- The Court held inquiry under Section 88 is administrative not adjudicatory -- The Court found revisional authority interfered with statutory process without justification -- The Court quashed impugned order and restored inquiry proceedings

Issue of Consideration: The Issue of Consideration mentioned in the Judgement is whether the revisional authority under Section 154 of the Maharashtra Cooperative Societies Act 1960 acted within jurisdiction in setting aside the inquiry order under Section 88 of the Act

Final Decision

The Court allowed the writ petition -- The Court quashed the order dated 17 December 2025 passed by Minister for Cooperation -- The Court restored the inquiry proceedings under Section 88 of Maharashtra Cooperative Societies Act 1960

2026 LawText (BOM) (02) 111

Writ Petition No. 676 of 2026

2026-02-24

Amit Borkar J.

2026:BHC-AS:9333

Mr. Kirit Hakani, Mr. Rahul Hakani, Ms. Niyati Hakani, Ms. Bhavana Ahire, Ms. Priyanka Singh for petitioner, Mr. Shahaji Shinde 'B' Panel, Mr. S. L. Babar AGP for State respondents, Mr. Shantanu Raktate, Mr. Amar Parsekar, Mr. Ajinkya Desai for respondent Nos. 6, 7, 14, Mr. Anil Sakhare for respondent Nos. 8 to 13

Shivkrupa Sahakari Patpedhi Limited

State of Maharashtra, The Minister for Cooperation, Additional Registrar Cooperative Societies, R.R. Pingale, Dr. Avinash, Krishna T. Shelar, Vasant K. Chavan, Bhimrao D. Borade, Pandhrinath T. Bhosale, Jaywant G. Khamkar, Ashok D. Tupe, Baban A. Kate, Shivaji R. Varude, Ashok T. Shinde, Dipak S. Sakpal, Pandurang V. Ghadge, Aparna Ashok Shinde, Varsha Dilip Kalambe

Nature of Litigation: Writ Petition challenging ministerial order in cooperative society matter

Remedy Sought

Petitioner sought quashing of order dated 17 December 2025 passed by Minister for Cooperation that halted statutory inquiry

Filing Reason

Ministerial interference with statutory inquiry process under Maharashtra Cooperative Societies Act 1960

Previous Decisions

General Body resolution dated 13 September 2023 directed inquiry -- Inquiry Officer report dated 25 July 2024 found financial irregularities -- Statutory Auditor Special Report dated 14 August 2024 under Section 81(5B) -- Additional Registrar order dated 12 September 2024 directing inquiry under Section 88 -- Ministerial order dated 17 December 2025 setting aside inquiry

Issues

Whether revisional authority under Section 154 of Maharashtra Cooperative Societies Act 1960 acted within jurisdiction in setting aside inquiry order under Section 88 Whether inquiry under Section 88 of Maharashtra Cooperative Societies Act 1960 is administrative or adjudicatory in character

Submissions/Arguments

Petitioner argued impugned order illegal and without jurisdiction halting statutory inquiry -- Petitioner contended inquiry under Section 88 is administrative not adjudicatory -- Respondents likely defended ministerial order as proper exercise of revisionary powers

Ratio Decidendi

Revisionary jurisdiction under Section 154 of Maharashtra Cooperative Societies Act 1960 must be exercised judiciously not arbitrarily -- Inquiry under Section 88 of Maharashtra Cooperative Societies Act 1960 is administrative in character merely setting in motion statutory mechanisms -- Ministerial interference with statutory inquiry process requires proper jurisdictional justification

Judgment Excerpts

The petitioner asserts that the impugned order is illegal and without jurisdiction, inasmuch as it brings to a halt a statutory inquiry concerning serious allegations of financial irregularities and misappropriation attributed to respondent Nos. 6 to 18 -- According to the petitioner, the said order is administrative in character and merely sets in motion the statutory mechanism without adjudicating upon any rights or liabilities of the parties

Procedural History

General Body Meeting 13 September 2023 passed resolution for inquiry -- Inquiry Officer report 25 July 2024 -- Statutory Auditor Special Report 14 August 2024 under Section 81(5B) -- Additional Registrar order 12 September 2024 directing inquiry under Section 88 -- Ministerial order 17 December 2025 in Revision Application No. 629 of 2024 setting aside inquiry -- Writ Petition No. 676 of 2026 filed challenging ministerial order

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