Case Note & Summary
The petitioners, directors and members of Parner Taluka Sainik Sahakari Bank Ltd., challenged the judgment and order dated 11.05.2022 passed by the Minister of Co-operation, Textile and Marketing Department, State of Maharashtra, dismissing their revision (REV-2021/Pra.Kra.348/15-S). They also sought quashing of the letter/communication dated 24.12.2020 issued by the Commissioner for Cooperation and Registrar, Co-operative Societies, Maharashtra State, which declared that membership of 1392 newly added members was legal and valid out of 1405 newly added members. The brief facts are that the petitioners were directors/members of the bank. The bank had added 1405 new members. The petitioners objected to the addition of these members, alleging that they were not validly admitted. The matter went to the Registrar, who issued the communication dated 24.12.2020 declaring 1392 members as valid. The petitioners filed a revision before the Minister, who dismissed it by the impugned order dated 11.05.2022. The legal issues were whether the Registrar could declare membership validity without proper inquiry under Section 27 of the Maharashtra Co-operative Societies Act, 1960, and whether the Minister could uphold such declaration in revision. The petitioners argued that the Registrar's communication was without jurisdiction and that the Minister erred in dismissing the revision. The respondents contended that the membership was validly added. The court analyzed that under Section 27 of the MCS Act, the Registrar has the power to decide the validity of membership, and such decision must be made after giving an opportunity of hearing. The court found that the Registrar's communication dated 24.12.2020 was issued without proper inquiry and without hearing the petitioners. The Minister in revision also failed to consider this aspect. The court held that the impugned order and communication were unsustainable and set them aside. The court directed the Registrar to decide the validity of the 1405 new members afresh under Section 27 of the MCS Act, after giving an opportunity of hearing to all concerned parties, within a period of three months. The writ petition was allowed.
Headnote
A) Co-operative Law - Membership Validity - Registrar's Powers - Section 27 of Maharashtra Co-operative Societies Act, 1960 - The court held that the Registrar must first decide the validity of membership under Section 27 before any election or revision can proceed. The Minister's order upholding membership validity without such determination was set aside. (Paras 1-10) B) Co-operative Law - Revision Jurisdiction - Minister's Powers - Section 154 of Maharashtra Co-operative Societies Act, 1960 - The Minister in revision cannot decide the validity of membership de novo; the matter must be remitted to the Registrar for fresh consideration. (Paras 1-10) C) Co-operative Law - Natural Justice - Opportunity of Hearing - The petitioners were not given adequate opportunity before the Registrar's communication dated 24.12.2020, which was set aside. (Paras 1-10)
Issue of Consideration
Whether the Minister in revision could uphold the validity of 1392 new members without the Registrar having first decided the issue under Section 27 of the Maharashtra Co-operative Societies Act, 1960, and whether the impugned order was sustainable in law.
Final Decision
The impugned judgment and order dated 11.05.2022 passed by the Minister and the communication dated 24.12.2020 issued by the Commissioner for Cooperation and Registrar are quashed and set aside. The matter is remitted to the Registrar to decide the validity of the 1405 new members afresh under Section 27 of the Maharashtra Co-operative Societies Act, 1960, after giving an opportunity of hearing to all concerned parties, within a period of three months from the date of the order. Rule made absolute.
Law Points
- Co-operative Societies
- Membership Validity
- Registrar's Powers
- Revision Jurisdiction
- Natural Justice
