SHIVNARAYAN MOTILAL DARAK Vs. R.A. ZUBAIRY

JUDGEMENT

(1.) BY this petition the petitioners seek direction to the Registrar, Cooperative Societies, Maharashtra State, Poona, asking him to cancel the registration of respondent No. 2, the Rahuri Station Cooperative Housing Society Ltd. under Section 21 of the Maharashtra Co -operative Societies Act, 1960 (hereinafter referred to as the Act). The circumstances in which this petition is filed, briefly stated, are as follows: In 1049 there were heavy floods in the town of Rahuri and as the result thereof a substantial part of the township was washed away. Subsequently at the instance of the State Government, respondent No. 2, Rahuri Station Cooperative Housing Society Ltd. was formed. It received loan from the State Government. The Society was registered under the old Act (Bombay Act VII of 1925). Petitioners Nos. 1 to 9 and 11 to 13 are members of the said Society. Petitioners Nos. 10 and 14 are heirs of deceased members of the said Society. In spite of the laudable objects with which the Society was floated, the Society did not run properly and could not achieve its objects and ultimately winding up order was passed in 1952. That order was challenged and was ultimately set aside. Subsequently in 1953 the Society voluntarily went into liquidation. Unfortunately for reasons, which are not clear to us, the liquidation proceedings dragged on right upto January 26, 1962, when the present Act, viz. the Maharashtra Cooperative Societies Act, 1960, came into force. During the liquidation proceedings, misfeasance proceedings were started against the petitioners. During these proceedings, on August 23, 1969 the petitioners submitted application stating that in view of the provisions of Section 109 read with Section 21 of the Act of 1960, the Society must be held to be defunct and the misfeasance proceedings could not proceed further against them. This application was rejected. The petitioners, therefore, filed the present petition seeking direction, as mentioned above.

(2.) MR . S.N. Naik, who appears for respondents Nos. 1 and 3, i.e. the Registrar, Cooperative Societies and the District Deputy Registrar, Cooperative Societies, points out that the petitioners have not adopted the remedy provided by Section 154 of the Act of 1960. Even according to the petitioners the cause of action for this petition took place on January 26,1965, and the present petition is filed on November 18,1969. Mr. S. N. Naik, therefore, submits that this petition should be rejected on these two grounds. It is doubtful whether the remedy of revision provided by Section 154 can be said to be an efficacious remedy so as to justify our rejecting this petition only on that ground. The ground of delay, however, appears to be a strong one and the petition deserves to be rejected only on that ground, although we propose to express our opinion on merits also.

(3.) BEFORE we part with this petition, we must invite the attention of the State Government to the laxity of the Cooperative Department due to which these liquidation proceedings have dragged on for years. Ascertaining the exact liability of the defaulters and the chances of recovery of the amount found due from them depend upon the diligence with which the liquidation proceedings are carried on. We hope the State Government will issue necessary instructions to the Officers concerned to sec that the misfeasance proceedings in this case are brought to an end as early as possible, so as to leave sufficient period to recover the amounts found due from the defaulters.