The Bombay High Court, presided over by Justice Sandeep V. Marne, delivered a judgment quashing the order of de‑registration passed against a housing society that had been in existence for forty‑five years. The Court examined whether the society’s alleged provision of inaccurate information after its registration could be treated as misrepresentation attracting the provisions of Section 21A of the Maharashtra Co‑operative Societies Act, 1960.
Section 21A empowers the Registrar of Societies to cancel the registration of a co‑operative society if it is shown that the registration was obtained by fraud, misrepresentation or concealment of material facts. The provision is directed at the stage of registration; it does not apply to subsequent inaccuracies that may arise during the functioning of the society.
The Court observed that the impugned order of de‑registration was based on the contention that the society had furnished inaccurate or incomplete information concerning certain matters after its registration. The authorities had taken the view that such post‑registration inaccuracies amounted to misrepresentation within the meaning of Section 21A and therefore warranted cancellation of the society’s registration.
Justice Marne, after analysing the statutory language and relevant case law and the legislative intent behind Section 21A, concluded that the term “misrepresentation” in this provision refers only to a false statement or concealment made at the time of applying for registration. The Court held that merely giving inaccurate or incomplete information after the society has already been registered does not fall within the ambit of misrepresentation as envisaged by the section.