1 IN IN IN THE HIGH COURT OF JUDICATURE OF BOMBAY THE HIGH COURT OF JUDICATURE OF BOMBAY THE HIGH COURT OF JUDICATURE OF BOMBAY ORDINARY ORDINARY ORDINARY ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION WRIT PETITION NO.733 OF 2009 Dilip Gobind Jhangiani. ..Petitioner V/s. State of Maharashtra & Ors. ..Respondents. Mr.Rajiv Narula a/w. D.D.Mehta i/b. D.M.Legal Associates for Petitioner. Mr.Bharat Mehta, AGP for Respondent Nos. 1 to 3. Mr.C.P.Deogirikar for Respondent Nos. 4 to 8 & 10. CORAM: CORAM: CORAM: A.M.KHANWILKAR,J A.M.KHANWILKAR,J A.M.KHANWILKAR,J DATE DATE DATE : APRIL 29, 2009. : APRIL 29, 2009. : APRIL 29, 2009. P.C. P.C. P.C. : : : 1. Heard Counsel for the parties. 2. Rule. Rule made returnable forthwith by consent. Mr. Mehta, AGP waives notice for respondent Nos. 1 to 3. Mr.Deogirikar waives notice for Respondent Nos.4 to 8 & 10. 3. This Petition takes exception to the Judgment and Order dated 30th March, 2009 passed by the Divisional Joint Registrar, Co-op.Societies Mumbai Division, Mumbai, in Appeal No.106 of 2008. The Petitioner had made representation to the Deputy 2 Registrar alleging that the members of the Managing Committee had failed to file affidavit of indemnity, as was required in terms of Section 73(1AB) of the Act. 4. The Deputy Registrar initially issued show-cause notice dated 18th January, 2008. However, later on, dropped the proceedings on the specious reasoning that the validity and legality of the stamp papers, on which the purported affidavit of indemnity was executed by the members of the Managing Committee, was subjudice before the Police Authority and the Metropolitan Magistrate Court. This is the sole reason, which weighed with the Deputy Registrar to drop the show cause notice, as noted in the Order dated 19th March, 2008. Even the Appellate Authority has affirmed the said view in terms of the impugned decision. The fact that the issue regarding validity and legality of the stamp papers utilised by the members of the Managing Committee for executing purported affidavit of indemnity bond, which is subjudice before the Police Authority or the Metropolitan Magistrate Court does not preclude the Deputy Registrar from examining the basic question as to whether Stamp papers were admissible and could be taken into account as valid affidavit of indemnity executed by the members of the Managing Committee. 3 That is an issue, which has to be incidentally answered by the Deputy Registrar in the proceedings initiated for non-compliance of mandatory requirement of section 73(1AB) of the Act. If the stamp paper, on which the said affidavit of indemnity is executed is inadmissible, it would necessarily follow that in law no affidavit of indemnity has been filed by the members of the Managing Committee. As a result of which, consequential directions will have to be issued, so as to comply with the rigours of section 73(1AB) of the Act. In the circumstances, the impugned decisions of the Divisional Joint Registrar as well as of the Deputy Registrar are set aside. Instead the show cause notice dated 18th January, 2008 is restored and the Deputy Registrar is directed to proceed with the said show cause notice in accordance with the law. All questions are left open to be decided on its own merits. 5. The Deputy Registrar shall pass final order on the said show cause notice within two weeks from today. 6. It is brought to my notice that the term of the present Managing Committee has already expired. If it is so, the competent authority may issue appropriate direction, as may be required, so as to 4 ensure that newly elected Managing Committee is constituted in accordance with the law. 7. Petition is disposed of on the above terms. (A.M.KHANWILKAR,J) (A.M.KHANWILKAR,J) (A.M.KHANWILKAR,J)