Bombay High Court Upholds Rejection of Nomination in Co-operative Society Election for Non-Compliance with Bye-Laws. The Court held that the Co-operative Court had jurisdiction under Section 91 of the Maharashtra Co-operative Societies Act, 1960, and that the candidate's failure to produce a valid 'No Dues Certificate' justified the rejection.

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

The petitioner, Dilip Pandurang Thopate, was a candidate for election to the board of directors of Pune Zilla Sahakari Dudh Sangh Maryadit, a co-operative society. His nomination paper was rejected by the Returning Officer on the ground that he did not submit a 'No Dues Certificate' as required by Bye-Law No. 28(2) of the society. The respondent No.1, Ashokrao V. Thopate, filed a dispute before the Co-operative Court under Section 91 of the Maharashtra Co-operative Societies Act, 1960, challenging the rejection. The Co-operative Court dismissed the dispute, holding that the rejection was proper. On appeal, the Maharashtra State Co-operative Appellate Court allowed the appeal of respondent No.1 and set aside the Co-operative Court's order, directing that the nomination be accepted. The petitioner then filed a writ petition under Article 227 of the Constitution of India before the Bombay High Court. The High Court examined the jurisdiction of the Co-operative Court and found that the dispute regarding rejection of nomination papers fell within the ambit of Section 91 of the MCS Act. On the merits, the Court noted that Bye-Law No. 28(2) required a candidate to produce a 'No Dues Certificate' issued by the society, and the petitioner had failed to do so. The certificate produced by the petitioner was not from the society but from a different entity. The Court held that the rejection was valid and that the Appellate Court had erred in allowing the appeal. Consequently, the High Court allowed the writ petition, set aside the order of the Appellate Court, and restored the order of the Co-operative Court dismissing the dispute.

Headnote

A) Co-operative Law - Election Dispute - Jurisdiction of Co-operative Court - Section 91 of Maharashtra Co-operative Societies Act, 1960 - The Court held that a dispute regarding rejection of nomination papers in a co-operative society election falls within the ambit of Section 91 of the MCS Act, as it relates to the conduct of elections and the rights of members. The Co-operative Court had jurisdiction to entertain the dispute. (Paras 10-15)

B) Co-operative Law - Nomination Rejection - Validity - Bye-Law No. 28(2) - Requirement of 'No Dues Certificate' - The Court held that the rejection of the petitioner's nomination was valid as he failed to produce a 'No Dues Certificate' from the society, which was mandatory under Bye-Law No. 28(2). The certificate was required to be issued by the society and not by the candidate himself. (Paras 16-22)

C) Constitutional Law - Writ Jurisdiction - Article 227 of Constitution of India - Scope of Interference - The Court held that while exercising jurisdiction under Article 227, the High Court does not act as an appellate court and can only interfere if there is a patent error of law or jurisdiction. In the present case, the findings of the Appellate Court were based on evidence and did not warrant interference. (Paras 23-25)

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Issue of Consideration

Whether the Co-operative Court had jurisdiction to entertain a dispute regarding rejection of nomination papers in a co-operative society election, and whether the rejection of the petitioner's nomination was valid under the bye-laws.

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Final Decision

The High Court allowed the writ petition, set aside the judgment and order of the Appellate Court dated 17th March, 2020, and restored the judgment and award of the Co-operative Court dated 30th September, 2019 dismissing Dispute No.59 of 2015.

Law Points

  • Jurisdiction of Co-operative Court under Section 91 of MCS Act
  • 1960
  • Rejection of nomination for non-compliance with bye-laws
  • Requirement of 'No Dues Certificate' for eligibility
  • Scope of Article 227 of Constitution of India
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Case Details

2023 LawText (BOM) (01) 187

Writ Petition No.1510 of 2022

2023-02-07

A.S. Gadkari

2023:BHC-AS:5124

Mr. A.Y. Sakhare (Senior Advocate) a/w Mr. S.S. Patwardhan and Mr. Bhooshan Mandlik for Petitioner; Mr. Vishwajeet Sawant (Senior Advocate) i/by Mr. Ajay Joshi for Respondent No.1; Mr. Deelip Patil Bankar (Chief Standing Counsel) a/w Ms. Pooja Patil for Respondent No.3

Dilip Pandurang Thopate

Ashokrao V. Thopate, Pune Zilla Sahakari Dudh Sangh Maryadit, Returning Officer

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Nature of Litigation

Writ petition under Article 227 of Constitution of India challenging the judgment and order of the Maharashtra State Co-operative Appellate Court in an election dispute regarding rejection of nomination.

Remedy Sought

Petitioner sought to quash and set aside the Appellate Court's order which had allowed the appeal of respondent No.1 and directed acceptance of his nomination.

Filing Reason

Petitioner's nomination was rejected by the Returning Officer for non-submission of a 'No Dues Certificate' as required by Bye-Law No. 28(2).

Previous Decisions

Co-operative Court dismissed the dispute filed by respondent No.1, upholding the rejection. Appellate Court allowed respondent No.1's appeal and set aside the Co-operative Court's order.

Issues

Whether the Co-operative Court had jurisdiction to entertain a dispute regarding rejection of nomination papers in a co-operative society election under Section 91 of the MCS Act. Whether the rejection of the petitioner's nomination was valid under the bye-laws of the society.

Submissions/Arguments

Petitioner argued that the Co-operative Court had no jurisdiction as the dispute related to election matters which are outside the purview of Section 91. Respondent No.1 argued that the rejection was arbitrary and that he had submitted a 'No Dues Certificate' from the society.

Ratio Decidendi

The Co-operative Court has jurisdiction under Section 91 of the Maharashtra Co-operative Societies Act, 1960 to entertain a dispute regarding rejection of nomination papers in a co-operative society election. The rejection of nomination was valid as the candidate failed to produce a 'No Dues Certificate' as mandated by Bye-Law No. 28(2), which was a condition for eligibility.

Judgment Excerpts

By the present Petition under Article 227 of the Constitution of India, the Petitioner, Original Opponent No.3 has impugned Judgment and Order dated 17th March, 2020 passed by the learned Member, Maharashtra State Co-operative Appellate Court Mumbai, Bench at Pune in Appeal No.131 of 2019 filed by the Petitioner and Appeal No.133 of 2019 filed by the Respondent No.1. The Court held that the Co-operative Court had jurisdiction to entertain the dispute under Section 91 of the MCS Act.

Procedural History

The dispute originated as Dispute No.59 of 2015 before the Co-operative Court No.1 at Pune, which dismissed it on 30th September, 2019. Appeals were filed: Appeal No.131 of 2019 by the petitioner and Appeal No.133 of 2019 by respondent No.1. The Appellate Court allowed Appeal No.133 of 2019 and dismissed Appeal No.131 of 2019 on 17th March, 2020. The petitioner then filed the present writ petition under Article 227 of the Constitution of India before the Bombay High Court.

Acts & Sections

  • Maharashtra Co-operative Societies Act, 1960: Section 91
  • Constitution of India: Article 227
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