Quick Summary: The Bombay High Court decided against a recovery certificate issued for over Rs. 49 lakh, pointing out mistakes in the cooperative society's investigation process.
In October 2018, the Deputy Registrar in Mumbai started looking into financial problems at the Amit Darshan Cooperative Housing Society. This investigation covered records from 2012 to 2018. The initial report found financial losses and mistakes.
On February 14, 2022, the original officer in charge of the investigation was replaced because of delays. However, the former officer still submitted a report on March 1, 2022, claiming he didn't know he had been replaced.
"An officer's power starts with their appointment and ends when they are replaced."
Judge Amit Borkar pointed out that once an officer is replaced, they no longer have the power to act. The report submitted by the replaced officer was considered invalid.
The people who brought the case, including Nainesh Sanghvi and others, argued they were wrongly blamed. They noted that some of them were not even part of the committee during the time in question.
The other side argued that the officer didn't know he had been replaced and used previous legal rules to explain the delay in submitting the report.
The court found the report and the recovery certificate to be illegal. It canceled the orders and called for a new investigation by a different officer.
"A report without proper authority cannot be used for further actions."
The court ordered a new hearing, ensuring all parties get a fair chance to present their case. The outcome shows how important it is to follow the rules in legal investigations.
