Bombay High Court Allows Petition Challenging Election Process of Housing Society for Violation of Bye-Laws and Cooperative Societies Act. Appointment of Returning Officer by Managing Committee held invalid as Bye-Law No. 49 vests such power in the General Body under Section 73B of the Maharashtra Cooperative Societies Act, 1960.

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

The petitioners, eleven members of The Ashwamedh C.H.S. Ltd., a cooperative housing society, along with the society itself, filed a writ petition challenging the election process for the managing committee. The dispute arose when the Managing Committee appointed a Returning Officer and fixed an election schedule without following the procedure prescribed under the Maharashtra Cooperative Societies Act, 1960 and the society's bye-laws. The petitioners contended that Bye-Law No. 49 vests the power to appoint the Returning Officer in the General Body, not the Managing Committee. The respondents, including the Returning Officer and some members, argued that the Managing Committee had the authority to appoint the Returning Officer and fix the election schedule. The court analyzed the relevant provisions of the Act and the bye-laws and found that the Managing Committee acted without authority. The court held that the appointment of the Returning Officer by the Managing Committee was invalid and that the election schedule was not validly fixed. Consequently, the court set aside the appointment of the Returning Officer and the election schedule, directing the society to conduct fresh elections in accordance with the Act and bye-laws. The court also held that a writ petition under Article 226 is maintainable against a cooperative society for violation of statutory provisions and bye-laws.

Headnote

A) Cooperative Societies - Election of Managing Committee - Validity of Appointment of Returning Officer - Section 73B of the Maharashtra Cooperative Societies Act, 1960 and Bye-Law No. 49 - The Managing Committee appointed the Returning Officer without authority as Bye-Law No. 49 vests the power to appoint the Returning Officer in the General Body. The Court held that the appointment of the Returning Officer by the Managing Committee was invalid and contrary to the bye-laws, vitiating the entire election process. (Paras 6-10)

B) Cooperative Societies - Election Schedule - Fixation of Election Programme - Section 73B of the Maharashtra Cooperative Societies Act, 1960 and Bye-Law No. 49 - The election schedule was fixed by the Managing Committee without following the procedure prescribed under the Act and Bye-Laws. The Court held that the election programme was not validly fixed and directed fresh elections to be conducted in accordance with the Act and Bye-Laws. (Paras 11-13)

C) Constitutional Law - Writ Jurisdiction - Maintainability of Writ Petition against Cooperative Society - Article 226 of the Constitution of India - The Court held that a writ petition under Article 226 is maintainable against a cooperative society when there is a violation of statutory provisions and bye-laws, as the society performs public functions and is amenable to writ jurisdiction. (Para 14)

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Issue of Consideration

Whether the election process of the Ashwamedh C.H.S. Ltd. is vitiated due to non-compliance with the Maharashtra Cooperative Societies Act, 1960 and the society's bye-laws, particularly regarding the appointment of the Returning Officer and the fixation of the election schedule.

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Final Decision

The court allowed the writ petition, setting aside the appointment of the Returning Officer and the election schedule. The court directed the society to conduct fresh elections in accordance with the Maharashtra Cooperative Societies Act, 1960 and the bye-laws.

Law Points

  • Election of managing committee of cooperative housing society must be conducted strictly in accordance with the Maharashtra Cooperative Societies Act
  • 1960 and the society's bye-laws
  • Appointment of Returning Officer by the Managing Committee is invalid if bye-laws vest such power in the General Body
  • Election schedule cannot be fixed without following prescribed procedure
  • Writ petition under Article 226 is maintainable against cooperative society for violation of statutory provisions and bye-laws
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Case Details

2024 LawText (BOM) (03) 93

WRIT PETITION (L) NO.8924 OF 2024

2024-03-15

SANDEEP V. MARNE, J.

2024:BHC-OS:4662

Mr. S.S. Kanetkar with Mr. Amar D. Parsekar i/b Mr. Saurav N. Katkar for Petitioners, Mr. Dilip Bodke for Respondent Nos.1, 3 and 4, Mr. Manish Upadhye, AGP for Respondent Nos.2 and 17, Mr. Rahul Soman with Mr. Shon D. Gadgil for Respondent No.5, Mr. Shantanu Raktate for Respondent Nos.6 to 11

Sharadchandra T Rane and others (members of The Ashwamedh C.H.S. Ltd.) and The Ashwamedh C.H.S. Ltd.

Suresh Khedkar (Returning Officer), Assistant Registrar Co-op. Societies, State Co-operative Election Authority, Dayanand D. Chavan (Returning Officer), Kishor Kirkise and Sunil R. Gawade (Secretary and President of Ashwamedh Redevelopment Co-op. Grahanirman Sanstha Ltd.), Devdas Krishna Shetty and others (members), State of Maharashtra

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Nature of Litigation

Writ petition challenging the election process of a cooperative housing society for violation of the Maharashtra Cooperative Societies Act, 1960 and the society's bye-laws.

Remedy Sought

The petitioners sought to set aside the appointment of the Returning Officer and the election schedule, and to direct fresh elections in accordance with the Act and bye-laws.

Filing Reason

The Managing Committee appointed a Returning Officer and fixed an election schedule without following the procedure prescribed under the Act and bye-laws, particularly Bye-Law No. 49 which vests the power to appoint the Returning Officer in the General Body.

Issues

Whether the appointment of the Returning Officer by the Managing Committee was valid under the bye-laws and the Maharashtra Cooperative Societies Act, 1960. Whether the election schedule fixed by the Managing Committee was valid. Whether a writ petition under Article 226 is maintainable against a cooperative society.

Submissions/Arguments

Petitioners argued that Bye-Law No. 49 vests the power to appoint the Returning Officer in the General Body, and the Managing Committee acted without authority. Respondents argued that the Managing Committee had the authority to appoint the Returning Officer and fix the election schedule.

Ratio Decidendi

The appointment of the Returning Officer by the Managing Committee was invalid as Bye-Law No. 49 vests such power in the General Body. The election schedule was not validly fixed. A writ petition under Article 226 is maintainable against a cooperative society for violation of statutory provisions and bye-laws.

Judgment Excerpts

Bye-Law No. 49 vests the power to appoint the Returning Officer in the General Body and not in the Managing Committee. The Managing Committee acted without authority in appointing the Returning Officer and fixing the election schedule. The election process is vitiated due to non-compliance with the Act and bye-laws.

Procedural History

The writ petition was filed in the High Court of Judicature at Bombay challenging the election process. Rule was issued and made returnable forthwith. With consent of parties, the petition was taken up for final hearing and disposal.

Acts & Sections

  • Maharashtra Cooperative Societies Act, 1960: Section 73B
  • Constitution of India: Article 226
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