1 WP 4721-2019.odt IN THE HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT AURANGABAD WRIT PETITION NO. 4721 OF 2019 SUHAS UTTAMRAO JADHAV VERSUS THE STATE OF MAHARASHTRA AND OTHERS … Mr. Mahesh S. Deshmukh – Advocate for Petitioner (through V.C.) Mr. R.B. Dhaware – AGP for Respondent Nos.1 to 3, State … CORAM : SIDDHESHWAR S. THOMBRE, J. DATE : 18.03.2026 O R D E R : 1. Heard learned Counsel for the petitioner through video conferencing and learned A.G.P. for respondent Nos.1 to 3, State authorities. None appeared for respondent No.4, though served. 2. The petitioner is aggrieved by the order dated 22.02.2019 bearing Outward No. ARCB/Admn-2/Liquidator/Order/377/2019 passed by the learned Assistant Registrar, Co-operative Societies, Bhokardan, District Jalna, purportedly under Section 102(i)(c)(ii) and (iv) of the Maharashtra Co-operative Societies Act, 1960. 3. Learned Counsel for the petitioner, Mr. Mahesh Deshmukh, submits that the petitioner is a member of respondent No.4 – Society. Elections of the Society were held for the term 2014–2015 to 2019–2020, wherein 2026:BHC-AUG:12608 2 WP 4721-2019.odt thirteen Directors were duly elected. It is contended that, under political pressure, respondent No.3, by order dated 26.10.2017, appointed an Administrator to the Society. The said order was challenged by the petitioner by filing appeal under Section 152 of the Act; however, the appeal came to be dismissed, and thereafter, a revision was preferred before the State Government. 4. It is further submitted that the Administrator failed to conduct the affairs of the Society properly and acted with a view to prevent the elected Board of Directors from functioning. Thereafter, respondent No.3, purportedly exercising powers under Section 102(i)(c)(ii) and (iv) of the Act, proceeded to pass the impugned interim order directing winding up of the Society and appointing a Liquidator under Section 103 of the Act. Learned Counsel invited attention to the impugned order and submits that the sole ground mentioned therein is that the Society had ceased functioning. However, it is contended that the audit report clearly demonstrates that the Society was functioning and carrying on its business. It is further submitted that the order was passed without affording a meaningful opportunity of hearing and is the result of extraneous political considerations. Hence, the impugned action is contrary to Section 102 of the Act. 5. Per contra, learned A.G.P. for respondent Nos.1 to 3 supports the impugned order and submits that the Society had ceased functioning and, 3 WP 4721-2019.odt therefore, the competent authority rightly exercised powers under the Act. It is also submitted that the petition has been pending since 2019 and interim relief was granted by this Court on 16.04.2019. 6. I have considered the rival submissions and perused the record. Since the petition is pending since 2019, the same is taken up for final disposal. 7. It is useful to refer section 102 of the Maharashtra Co-operative Societies Act, 1960, which reads as under : “102. Winding up.— (1) If the Registrar; (a) after an inquiry has been held under section 83 or an inspection has been made under section 84 or on the report of the auditor auditing the accounts of the society, or (b) on receipt of an application made upon a resolution carried by three-fourths of the members of a society present at a special general meeting called for the purpose, or (c) of his own motion, in the case of a society which- (i) Has not commenced working, or (ii) Has ceased working, or (iii) Possesses shares or members deposits not exceeding five hundred rupees, or (iv) Has ceased to comply with any conditions as to registration and management in this Act or the rules or the bye-laws, is of the opinion that a society ought to be wound up, he may issue an interim order directing it to be wound 4 WP 4721-2019.odt up. (2) A copy of such order made under sub-section (1) shall be communicated, in the prescribed manner, to the society calling upon it to submit its explanation to the Registrar within a month from the date of the issue of such order, and the Registrar, on giving an opportunity to the society of being heard, may issue a final order, vacating or conforming the interim order.” 8. The issue involved in the present petition revolves around the exercise of powers under Section 102 of the Maharashtra Co-operative Societies Act, 1960, which empowers the Registrar to order winding up of a Society if it has, inter alia, ceased to function. Upon perusal of the impugned order, it appears that the conclusion that the Society had ceased functioning is not supported by any cogent material. The order merely records such conclusion without reference to any substantive evidence. 9. On the contrary, the audit report dated 07.03.2019 (at page 25-A of the petition) indicates that the Society was functioning and its business condition was satisfactory. There is no material on record to justify the drastic action of winding up the Society. 10. It is well settled that before exercising powers under Section 102 of the Act, the authority must record clear and cogent reasons based on material evidence demonstrating that the Society has ceased to function. 5 WP 4721-2019.odt In the absence of such material, the impugned action cannot be sustained. In the present case, the impugned order appears to have been passed without sufficient material and without proper application of mind. Therefore, the same is liable to be quashed and set aside. 11. In view thereof, the Writ Petition is allowed. The order dated 22.02.2019 passed by the learned Assistant Registrar, Co-operative Societies, Bhokardan, District Jalna is quashed and set aside. 12. Pending Civil Applications, if any, stand disposed of. [ SIDDHESHWAR S. THOMBRE ] JUDGE Pooja Kale/