Decision cited:

In Ms. Eera v. State (Govt, of NCT of Delhi) & others: AIR2017SC3457 the Supreme Court has held that, ...."Of course it is true that the words used, even in their literal sense, are the primary, and ordinarily the most reliable, source of interpreting the meaning of any writing: be it a statute, a contract, or anything else. But it is one of the surest indexes of a mature and developed jurisprudence not to make a fortress out of the dictionary; but to remember that statutes always have some purpose or object to accomplish, whose sympathetic and imaginative discovery is the surest guide to their meaning."

In any event, nowadays the shift towards purposive interpretation is not in doubt. The qualification is that the degree of liberality permitted is influenced by the context, e.g. social welfare legislation and tax statutes may have to be approached somewhat differently....

In Kissan Vikas Ginning Pressing Ltd. v. State of Maharashtra & Others 2001 2 Mh.L.J. 458 High of Mumbai has held that, "the existence of a Co-operative Society can come to an end either by cancellation of its registration under Section 21 or its registration underSection 21-A of the Act.....”

Issues before High Court:

Whether de-registration of society can be done as per section 21A of Maharashtra Co-operative Societies Act, 1960?

High Court’s Verdict:

It was held that the proposal of petitioner for de-registration of society squarely falls under section 21 and 21A of Maharashtra Cooperative society Act, 1960

If any inquire is pending against the member of the management- committee, those shall be continued even after the de-registration of the society

Acelegal Analysis:

The above decision is based on provision of section 21 and 21A of Maharashtra Co-operative Societies Act, 1960 as per which Co-operative society can be de-registered.

In order to de-register Co-operative society member of the society shall pass appropriate resolution for same. And if member of the co-operative society are willing to convert said society into public they shall pass appropriate resolution for transferring the reserve funds of the society to the public trust and also to transfer the personal interest of the member of the society to the public trust, for which they have to seek permission of the Registrar in this regards.

Facts of the case:

The petitioner is a Co-operative Society registered in 1936 under the Bombay Co-operative Societies Act, 1925 and is running schools and colleges in Pachora taluka, Dist. Jalgaon. After enactment of Bombay Public Trust Act, 1950 the petitioner was also registered under the said Act in 1954. On introduction of Maharashtra Co-operative Societies Act, 1960, the petitioner was deemed to be registered under the new Act. The petitioner found it difficult to be governed by two different enactments viz. Bombay Public Trust Act as well as Maharashtra Co-operative Societies Act, simultaneously. The petitioner felt it necessary to be governed by Maharashtra Public Trust Act only. The petitioner in a meeting of Managing Committee dated 12/03/2012, resolved to be governed by Maharashtra Public Trust Act alone and got itself de-registered under the Maharashtra Cooperative Societies Act.

Accordingly on 20/04/2012 proposal was submitted petitioner for de-registration of society before District Dy. Registrar, Co-operative Societies (“respondent No.4”), same was not considered respondent no.4 and vide letter dated 18/05/2012 respondent no.4 informed petitioner that “the proposal could not be considered since the issue of de-registration was under consideration of Law & Judiciary Department.”

As a result, a writ petition was filed by petitioner before High Court of Mumbai, wherein the High Court considering the writ petition directed Commissioner for Co-operative Society (“respondent No.2”) to consider the application dated 20/06/2013 presented by the petitioner , as expeditiously as possible and preferably within period of 3 months. On 26/08/2013 written argument was submitted by the petitioner before respondent no.2 and by letter dated 01/10/2013 respondent no.2 asked respondent no.4 to adopt appropriate procedure with regards to de-registration of society and submit compliance report.

Meanwhile proposal in favour of de-registration was submitted by respondent no. 4 before Divisional Joint Registrar (“respondent No.3”) in favour of de-registration of society under newly amended section 21A(5) of Maharashtra Co-operative Societies Act, 1960. Whereas, respondent no.3 made an impugned vide order dated 19/08/2016 without giving any hearing to the parties for proposal rejected the proposal on the ground that it was not falling within the Maharashtra Co-operative Societies Act, 1960. Thereafter this writ petition is filed by petitioner before High Court of Mumbai.