High Court of Bombay at Goa Quashes Disqualification of Director in Co-operative Society for Violation of Natural Justice. Assistant Registrar's order set aside as petitioner was not given opportunity of hearing before disqualification under Section 27 of the Goa Co-operative Societies Act, 2001.

High Court: Bombay High Court Bench: GOA In Favour of Accused
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Case Note & Summary

The petitioner, Mrs. Noella Fernandes, was a Director and Secretary of the Infinity Enclave Co-operative Housing Maintenance Society Ltd. (respondent No.2). The Assistant Registrar of Co-operative Societies (respondent No.1) passed an order dated 06/07/2023 disqualifying the petitioner for a period of 4 years from being chosen as a Director and held her ineligible to continue as Secretary. A corrigendum was issued on 08/08/2023. The petitioner challenged these orders by way of a writ petition. The main contention of the petitioner was that the impugned order was passed without any show cause notice or opportunity of hearing, violating principles of natural justice. The court examined the impugned order and found that it did not mention any notice or hearing given to the petitioner. The court held that the order was in gross violation of natural justice and could not be sustained. Consequently, the court quashed and set aside the impugned order dated 06/07/2023 and the corrigendum dated 08/08/2023. The court also set aside the appointment of the Administrator as it was consequential to the disqualification order. The writ petition was allowed with no order as to costs.

Headnote

A) Administrative Law - Natural Justice - Right of Hearing - Disqualification of Director - Section 27 of the Goa Co-operative Societies Act, 2001 - The Assistant Registrar disqualified the petitioner without issuing any show cause notice or providing an opportunity of hearing - Held that the order is in gross violation of principles of natural justice and cannot be sustained (Paras 7-9).

B) Co-operative Societies - Disqualification of Director - Section 27 of the Goa Co-operative Societies Act, 2001 - The petitioner was disqualified for 4 years and held ineligible to continue as Secretary - The court found that the impugned order was passed without any notice or hearing - Held that the order is liable to be set aside (Paras 7-9).

C) Co-operative Societies - Appointment of Administrator - Section 73C of the Goa Co-operative Societies Act, 2001 - The Assistant Registrar appointed an Administrator to manage the society - The court noted that the appointment of Administrator was consequential to the disqualification order - Since the disqualification order is set aside, the appointment of Administrator also cannot stand (Paras 10-11).

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Issue of Consideration

Whether the impugned order disqualifying the petitioner as a Director and Secretary of the Society for a period of 4 years without giving an opportunity of hearing is sustainable in law.

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Final Decision

The court allowed the writ petition, quashing and setting aside the impugned order dated 06/07/2023 and the corrigendum dated 08/08/2023. The appointment of the Administrator was also set aside. Rule made absolute. No order as to costs.

Law Points

  • Natural justice
  • right of hearing
  • disqualification of director
  • co-operative society
  • Section 27 Goa Co-operative Societies Act 2001
  • Section 73C Goa Co-operative Societies Act 2001
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Case Details

2024 LawText (BOM) (02) 255

WRIT PETITION NO.607 OF 2023 WITH CIVIL APPLICATION NO.111 OF 2023

2024-02-05

BHARAT P. DESHPANDE, J

2024:BHC-GOA:259

Mr. Nigel Da Costa Frias with Ms. Barbara Andrade for the Petitioner; Mr. Deep Shirodkar, Additional Government Advocate for Respondent No.1; Mr. Rajendra L. Kamat, Respondent No.3 - Present; Mr. Antonio Costa, Respondent No.4 - Present

Mrs. Noella Fernandes

Assistant Registrar of Co-operative Societies, Central Zone, Panaji, Goa; The Infinity Enclave Co-operative Housing Maintenance Society Ltd.; Shri Rajendra L. Kamat; Shri Antonio Sergio Costa; Shri Gautam G. Talaulikar

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Nature of Litigation

Writ petition challenging the order of disqualification of a Director and Secretary of a co-operative society.

Remedy Sought

The petitioner sought quashing of the impugned order dated 06/07/2023 and corrigendum dated 08/08/2023 passed by the Assistant Registrar of Co-operative Societies.

Filing Reason

The petitioner was disqualified as a Director and Secretary without being given any opportunity of hearing, violating principles of natural justice.

Previous Decisions

The Assistant Registrar passed the impugned order on 06/07/2023 disqualifying the petitioner for 4 years and appointed an Administrator. A corrigendum was issued on 08/08/2023.

Issues

Whether the impugned order disqualifying the petitioner without giving an opportunity of hearing is sustainable in law.

Submissions/Arguments

The petitioner argued that the impugned order was passed without any show cause notice or opportunity of hearing, violating principles of natural justice. The respondents did not file any reply or contest the petition.

Ratio Decidendi

An order disqualifying a director of a co-operative society without giving any opportunity of hearing is in gross violation of principles of natural justice and cannot be sustained. The impugned order did not mention any notice or hearing given to the petitioner, and therefore, it was liable to be set aside.

Judgment Excerpts

The impugned order does not mention that any notice was issued to the petitioner or that she was heard before passing such order. The impugned order is in gross violation of principles of natural justice and cannot be sustained. Since the impugned order is set aside, the appointment of the Administrator also cannot stand.

Procedural History

The petitioner filed a writ petition challenging the order dated 06/07/2023 and corrigendum dated 08/08/2023 passed by the Assistant Registrar of Co-operative Societies. The petition was heard at the admission stage with consent and disposed of finally.

Acts & Sections

  • Goa Co-operative Societies Act, 2001: Section 27, Section 73C
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