Pre-decisional hearing is required before interim winding-up and liquidator appointment where jurisdictional facts are not clearly established.

Section 102(1)(c) of the Maharashtra Co-operative Societies Act permits an interim winding-up order only where the jurisdictional facts are clearly made out, and the serious consequence of immediate control over assets and records under section 103 requires a pre-decisional hearing. Section 102(2) contemplates a later explanation and hearing before the final order, so natural justice cannot be excluded at the interim stage. Where the material does not clearly show that the society has ceased working or failed to comply with statutory registration and management conditions, the interim order and liquidator appointment are unsustainable.

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Issues: Whether an interim order directing winding up and appointing a liquidator under section 102(1)(c)(ii) and (iv) of the Maharashtra Co-operative Societies Act, 1960 could be sustained without a prior hearing, and whether the statutory conditions for invoking that power were made out.

Analysis: Section 102(1)(c) empowers the Registrar to pass an interim winding-up order on his own motion where a society has ceased working or has ceased to comply with registration and management conditions, while section 102(2) contemplates a later explanation and hearing before the final order. The consequence of an interim order is immediate and serious because, under section 103, the liquidator takes custody and control of the society's assets and records. For that reason, the principles of natural justice, particularly pre-decisional hearing, must be read into section 102(1)(c). The record also did not establish the jurisdictional facts required for action under clauses (ii) and (iv), since the materials relied upon did not clearly set out specific non-compliances or factual basis for concluding that the society had ceased working or had ceased to comply with statutory conditions.

Conclusion: The interim winding-up order and appointment of the liquidator were not sustainable and were liable to be set aside.

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