Case Note & Summary
The petitioner, a Co-operative Housing Society registered under the Maharashtra Co-operative Societies Act, 1960, sought to challenge the orders of the Joint Additional Registrar and the Secretary of the Co-operation Department which set aside the society's resolution expelling the respondent no.1 from membership. The society had passed a resolution on 11.07.1993 expelling the respondent for non-payment of a development contribution of Rs.12,000/- and for non-cooperation. The Taluka Deputy Registrar confirmed the expulsion on 11.08.1994. However, on appeal by the respondent, the Joint Additional Registrar set aside the resolution, finding that the society had not complied with the mandatory procedure under Rule 29 of the Maharashtra Co-operative Societies Rules, 1961. The revision filed by the society was dismissed by the Secretary. The society then filed a writ petition before the Bombay High Court. The court examined Section 35 of the MCS Act and Rules 28 and 29 of the MCS Rules. It noted that Rule 29 requires that a member proposed for expulsion must be given a written notice of at least one month containing the agenda of expulsion and calling upon him to show cause. The court found that the record did not show that such a notice was served on the respondent. The court relied on its earlier decision in Aderabad Co-Operative Housing Society Ltd. v. Divisional Joint Registrar, Co-Operative Societies & Ors., which held that the procedure under Rule 29 is mandatory and non-compliance is fatal. The court concluded that the appellate and revisional authorities were justified in setting aside the expulsion resolution. Consequently, the writ petition was dismissed and the rule was discharged.
Headnote
A) Co-operative Law - Expulsion of Member - Mandatory Notice - Section 35, Maharashtra Co-operative Societies Act, 1960; Rule 29, Maharashtra Co-operative Societies Rules, 1961 - The court considered whether the expulsion of a member was valid when the society failed to serve a notice of at least one month with the agenda of expulsion. The court held that the procedure under Rule 29 is mandatory and non-compliance renders the resolution invalid. The society must give the member an opportunity to show cause and the Registrar must conduct an inquiry before approval. (Paras 6-11) B) Co-operative Law - Expulsion of Member - Opportunity of Hearing - Section 35, Maharashtra Co-operative Societies Act, 1960; Rule 29, Maharashtra Co-operative Societies Rules, 1961 - The court held that the proviso to Section 35 requires that the member be given an opportunity of representing his case to the general body. The notice must contain the agenda of expulsion and be served at least one month in advance. Failure to do so violates natural justice and the resolution cannot be sustained. (Paras 6-9) C) Co-operative Law - Expulsion of Member - Registrar's Approval - Section 35, Maharashtra Co-operative Societies Act, 1960; Rule 29, Maharashtra Co-operative Societies Rules, 1961 - The court held that the Registrar must conduct a due inquiry and give reasonable opportunity of being heard to the member before approving the expulsion resolution. The inquiry is not a mechanical formality. (Paras 8, 11)
Issue of Consideration
Whether the expulsion of a member by a co-operative housing society was valid when the society failed to serve a notice of at least one month with the agenda of expulsion as required under Rule 29 of the Maharashtra Co-operative Societies Rules, 1961.
Final Decision
Writ Petition dismissed; rule discharged.
Law Points
- Expulsion of member requires strict compliance with Section 35 of MCS Act
- 1960 and Rule 29 of MCS Rules
- 1961
- mandatory notice of at least one month with agenda of expulsion must be served
- opportunity of hearing to member is essential
- Registrar must conduct inquiry before approval
- non-compliance renders resolution invalid.
