2008 (12) TMI 820 - SC - Income Tax

Court upholds dismissal due to failure to meet pre-deposit requirement under Maharashtra Co-operative Societies Act

Shri Arun B. Khanjire Versus The Ichalkaranji Urban Co-op. Bank Ltd. & Ors.

The Court dismissed the Special Leave Petition, upholding the High Court's decision to set aside the Divisional Joint Registrar's order as the petitioner ... - Issues involved:The judgment involves the interpretation of Section 154(2A) of the Maharashtra Co-operative Societies Act, 1960 regarding the pre-deposit requirement for revision applications against recovery certificates issued by the Registrar under Section 101.Details of the Judgment:1. The petitioner had taken loans from the respondent-Bank and disputed the liability, leading to recovery proceedings under Section 101 of the Act. The petitioner filed a revision application under Section 154, which was initially set aside by the Divisional Joint Registrar but later allowed by the High Court.2. The petitioner argued that the revisional powers under Section 154 could be invoked suo motu, and the High Court erred in applying Sub-section (2A) to the case, as the inquiry was initiated based on information received, not a formal application.3. The respondent contended that the revision was not maintainable due to the petitioner's failure to deposit 50% of the recoverable dues as required by Section 154(2A). The Divisional Joint Registrar's decision to entertain the revision was challenged by the respondent in the High Court.4. The respondent emphasized the importance of the pre-deposit condition for entertaining revision applications, citing precedents where timely payment was a prerequisite for considering appeals.5. The Court examined the provisions of Section 154 and Sub-section (2A) and concluded that the petitioner's application, although not in the form of a formal Memorandum of Appeal, did not fulfill the pre-deposit requirement. The Court agreed with the respondent's argument that the revision could not be entertained without complying with the pre-condition of payment.6. The Court dismissed the Special Leave Petition, upholding the High Court's decision to set aside the Divisional Joint Registrar's order, as the petitioner failed to meet the pre-deposit requirement under Section 154(2A).7. The judgment highlighted the importance of complying with statutory requirements, including pre-deposit conditions, for the proper consideration of revision applications under the Maharashtra Co-operative Societies Act, 1960.