[Cites 6, Cited by 0]
Bombay High Court
Ambernath Sahakari Samudayik Shetki ... vs The State Of Maharashtra Thru. G.P. And ... on 5 January, 2026
Author: Amit Borkar
Bench: Amit Borkar
2026:BHC-AS:75
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MPBalekar
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO. 14114 OF 2025
Ambernath Sahakari Samudayik Shetki
Soc. Ltd, Ambernath Eash, Thane ... Petitioner
V/s.
The State of Maharashtra and Ors. ... Respondents
Mr. Kunal Damle along with Mr. Rupesh R. Lanjekar for
petitioner.
Mr. P.G. Sawant, AGP for the State - Respondent Nos. 1
& 2.
Mr. Dattaram Dindikar for Respondent No.3.
CORAM : AMIT BORKAR, J.
DATED : JANUARY 5, 2026
P.C.:
1. The petitioner has questioned the legality of the order dated
8 October 2025 passed by respondent No.2 in exercise of powers
under Section 79(1) of the Maharashtra Co-operative Societies Act,
1960. The petitioner has also challenged the notice issued to the
society under Section 73CA of the said Act, which has been issued
as a consequential step pursuant to the impugned order.
2. Respondent No.3 had moved an application before
respondent No.2 under Section 79(1) of the MCS Act seeking
supply of various documents, as reflected from the impugned
order. By order dated 4 September 2025, respondent No.2 directed
the petitioner society to furnish documents mentioned at serial
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numbers 1 to 17 in the said order. On account of alleged non-
compliance of this direction, a show cause notice under Section
73CA of the MCS Act came to be issued. The petitioner has,
therefore, assailed both the order passed under Section 79(1) and
the consequential show cause notice under Section 73CA.
3. The grievance of the petitioner is founded on the judgment
of this Court in Aniruddha Subhanrao Deshmukh vs State of
Maharashtra and others, reported in 2023(1) Mh.L.J. It is
contended that the powers conferred upon the Registrar under
Section 79 are confined only to the situations expressly
contemplated under Section 79(1). According to the petitioner, the
said provision does not authorise the Registrar to issue directions
to furnish documents to a member. It is urged that such power is
traceable only to Section 32 of the MCS Act, which can be
exercised only upon fulfillment of the statutory conditions
prescribed therein. On this premise, it is contended that the
impugned order passed under Section 79(1) travels beyond the
scope of the powers vested in the Registrar.
4. On the other hand, the learned Assistant Government
Pleader and the learned Advocate appearing for respondent No.3
have supported the impugned order. It is contended that Section
79(1) empowers the Registrar to enforce compliance with the
provisions of the Act, the Rules, and the bye-laws. In exercise of
such supervisory and enforcement powers, the Registrar is
competent to direct the society to furnish documents sought by a
member for ensuring due compliance with statutory obligations.
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5. In order to appreciate the rival submissions and to adjudicate
the controversy between the parties, it becomes necessary to
advert to the scheme and scope of Section 79(1) and (2) of the
MCS Act, which reads as under :-
"79 (1) The Registrar may direct any society or class
of societies, to keep proper books of accounts 4 [in
such form, including electronic or any other form, as
may be prescribed] with respect to all sums of money
received and expended by the society, and the matters
in respect of which the receipt and expenditure take
place, all sales and purchases of goods by the society,
and the assets and liabilities of the society, and to
furnish such statements and returns and to produce
such records as he may require from time to time ; and
the officer or officers of the society shall be bound to
comply with his order within the period specified
therein.] 5
[(1-1A)] The Registrar may direct any society or
class of societies to take action to comply with the
provisions of this Act, rules made thereunder, by-
laws of the society or any order passed by the
Registrar under this Act; and the officer or officers
of the society shall be bound to comply with order
within the period specified therein.
(1A) Every society shall file returns within six
months of the close of every financial year to which
such accounts relate, to the Registrar or to the
person authorised by him. The returns shall contain
the following matters, namely :--
(a) annual report of its activities ;
(b) its audited statement of accounts ; (
(c) plans for disposal of surplus funds as
approved by the general body of the
society ;
(d) list of amendments to the by-laws of
the society, if any ;
(e) declaration regarding date of holding
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of its general body meeting and conduct of
elections when due ;
(f) any other information required by the
Registrar in pursuance of any of the
provisions of this Act.
(1B) Every society shall also file a return regarding the
name of the auditor or auditing firm from a panel
approved by a State Government in this behalf,
appointed in the general body meeting together with
his written consent, within a period of one month from
the date of annual general body meeting.]
(2) Where any society is required to take any action 1
[including filing of returns] under this Act, the rules or
the bye-laws, or to comply with an order made under
the 2 [foregoing sub-sections] and such action is not
taken--
(a) within the time provided in this Act, the rules or
the bye-laws, or the order, as the case may, or
(b) where no time is so provided, within such time,
having regard to the nature and extent of the action to
be taken, as the Registrar may specify by notice in
writing,
the Registrar may himself, or through a person
authorised by him, take such action, at the expense
of the society ; and such expense shall be
recoverable from the society as if it were an arrear
of land revenue. "
6. Section 79(1) empowers the Registrar to direct societies to
maintain proper books of accounts, to furnish statements and
returns, and to produce records as may be required from time to
time. Sub-section (1A) casts an obligation on societies to file
prescribed returns within the stipulated period, containing
specified information, including audited accounts and other
statutory disclosures. Sub-section (1B) further mandates filing of
details regarding appointment of auditors. Sub-section (2)
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provides that where a society fails to take action required under
the Act, the Rules, the bye-laws, or an order passed under the
preceding sub-sections, the Registrar is empowered to take such
action himself or through an authorised person at the cost of the
society, with recovery of expenses as arrears of land revenue.
7. This Court in the case of Aniruddha Subhanrao Deshmukh
Vs. State of Maharashtra and Ors. has considered the scheme of
Section 79 (1) in paragraph No. 14 of the said judgment.
8. On the facts placed on record, the grievance raised by
respondent No.3 is essentially a grievance relating to supply of
documents. The Act makes a clear provision for such a situation
under Section 32 of the MCS Act. However, the power under
Section 32 is not automatic. It can be exercised only when the
statutory requirements of that provision are satisfied. Only on
fulfillment of those conditions does a member acquire a right to
demand the documents referred to in Section 32.
9. There is a clear and material distinction between the power
under Section 32 and the power under Section 79(1). Section 32
specifically deals with a member's right to inspect and obtain
documents, subject to conditions laid down by the statute. Section
79(1), on the other hand, confers supervisory and regulatory
power on the Registrar to ensure that societies maintain proper
records and comply with the Act, the Rules, and the bye-laws. The
scope, purpose, and operation of these two provisions are
different. They function in separate fields and cannot be used
interchangeably.
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10. In the present case, the record does not show that the
statutory conditions required for invoking Section 32 were
examined or satisfied. Instead, directions were issued under
Section 79(1) to furnish documents to a member. Such an
approach is not supported by the scheme of the Act. When Topics
related to supply of documents to a member are specifically
governed by Section 32, the Registrar must act within that
provision and not by extending the scope of Section 79(1).
11. In these circumstances, the proper course available to
respondent No.3 was to file an appropriate application under
Section 32 of the MCS Act. Upon such application, and after
examining whether the conditions of Section 32 are fulfilled, the
Registrar would be competent to issue necessary directions to the
society in accordance with law.
12. Accordingly, while allowing the petition, the right of
respondent No.3 to seek documents under Section 32 of the MCS
Act is kept expressly open.
13. The Rule is made absolute in terms of prayer clause (a).
14. This order shall not prevent respondent No.3 from filing a
proper application under Section 32, and if such application is
filed, respondent No.2 shall decide the same strictly in accordance
with law.
15. The writ petition stands disposed of.
(AMIT BORKAR, J.)
