Bombay High Court Reviews Writ Petition Against Ministerial Order Setting Aside Disqualification of Cooperative Society Member Under Maharashtra Co-operative Societies Act, 1960. Court Examines Whether Member Owing Dues to Housing Society Was Disqualified Under Section 73CA(1)(e) and Rule 58.

High Court: Bombay High Court Bench: AURANGABAD
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Case Note & Summary

The writ petition before the High Court of Judicature at Bombay, Bench at Aurangabad, arose from a dispute concerning disqualification of a member of a cooperative housing society under Section 73CA(1)(e) of the Maharashtra Co-operative Societies Act, 1960 read with Rule 58 of the Maharashtra Co-operative Societies Rules, 1961. The petitioners were members of respondent no.7 Kanchan Nagar Co-operative Housing Society Limited, Aurangabad. Respondent no.6 was a member of the society and had been elected to the managing committee in 2014-2016 elections. The society alleged that respondent no.6 held two plots and had constructed and sold a building of 14 flats on plot no.16 conjointly with one Mr. Abhishek Deshmukh without making the flat purchasers members of the society, causing strain on infrastructure. An application for disqualification was filed on 05.01.2019 contending that respondent no.6 was a defaulter and owed Rs.1,38,200/- to the society, and that demand notices had been issued. The Deputy Registrar by order dated 29.01.2021 disqualified respondent no.6 under Section 73CA(1)(e) after finding dues outstanding and notices served. The Joint Registrar by order dated 07.01.2022 dismissed respondent no.6's appeal and upheld the disqualification, observing that the society's audit records showed outstanding dues of Rs.1,40,160/-, Rs.2,14,120/- and Rs.3,01,000/- for the years ending 31.03.2018, 31.03.2019 and 31.03.2020 respectively. Respondent no.6 then filed a revision petition before the State Minister, who by order dated 10.06.2022 allowed the revision and set aside the disqualification orders, holding that respondent no.6 was not a defaulter and hence not disqualified to be a member of the managing committee. The petitioners challenged the Minister's order by writ petition. The legal issue was whether respondent no.6 was disqualified under Section 73CA(1)(e) of the Act as a defaulter of the society. The arguments of the parties were not fully reproduced in the extracted text. The judgment text was incomplete and did not include the final decision, ratio decidendi, or the High Court's analysis beyond the factual background and the lower authorities' orders.

Headnote

A) Cooperative Law - Disqualification of Managing Committee Member - Default in Payment of Society Dues - Maharashtra Co-operative Societies Act, 1960, Section 73CA(1)(e); Maharashtra Co-operative Societies Rules, 1961, Rule 58 - The dispute concerned whether respondent no.6, a member of a housing society, was disqualified from membership of the managing committee for non-payment of society dues. The Deputy Registrar by order dated 29.01.2021 and Joint Registrar by order dated 07.01.2022 held respondent no.6 to be a defaulter and disqualified him under Section 73CA(1)(e). The State Minister, acting in revision, by order dated 10.06.2022 set aside those orders and held respondent no.6 not to be a defaulter. The writ petition challenged the Minister's order. The extracted text did not include the final holding of the High Court (Paras 1-9).

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Issue of Consideration

Whether respondent no.6 is disqualified under Section 73CA(1)(e) of the Maharashtra Co-operative Societies Act, 1960 read with Rule 58 of the Maharashtra Co-operative Societies Rules, 1961, to be a member of respondent no.7 committee, being a defaulter of the respondent no.7 housing society.

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Final Decision

The final decision of the High Court is not available in the extracted text as the judgment is incomplete.

Law Points

  • A member of a housing society is disqualified under Section 73CA(1)(e) of the Maharashtra Co-operative Societies Act
  • 1960 if the member fails to pay the society dues within three months from the date of demand notice
  • Section 9(1) of the Act governs registration of cooperative societies
  • Rule 58 of the Maharashtra Co-operative Societies Rules
  • 1961 is relevant to disqualification proceedings
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Case Details

2023 LawText (BOM) (06) 19

WRIT PETITION NO.6470 OF 2022

2023-06-05

ARUN R. PEDNEKER, J.

Ms. Komal Kandharkar, Mr. D. R. Kale, Mr. V. D. Sapkal, Mr. Abhishek Patil, Mr. M. G. Sansare, Mr. B. R. Kedar

Suman Vasant Kandharkar, Kishor Jagganath Pise, Rajendra Jadhav, Vilas Ramchandra Korhale, Ghanshyamdas Gondlal Khandelwal

The State of Maharashtra, Department of Co-operation State of Maharashtra, Mr. Vishwajeet Kadam State Minister, Joint Registrar Department of Co-operation Aurangabad, Dy. Registrar Department of Co-operation Aurangabad, Piyush Sethi, Kanchan Nagar Co-operative Housing Society Limited, Diwakar Kulkarni

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Nature of Litigation

Writ petition challenging order of State Minister allowing revision in cooperative society disqualification matter

Remedy Sought

Petitioners sought to set aside the ministerial order dated 10.06.2022 and restore the disqualification orders passed by the Deputy Registrar and Joint Registrar

Filing Reason

The State Minister allowed respondent no.6's revision and set aside the disqualification orders, holding respondent no.6 not to be a defaulter

Previous Decisions

Deputy Registrar order dated 29.01.2021 disqualified respondent no.6; Joint Registrar order dated 07.01.2022 upheld the disqualification; State Minister order dated 10.06.2022 set aside the disqualification

Issues

Whether respondent no.6 is disqualified under Section 73CA(1)(e) of the Maharashtra Co-operative Societies Act, 1960 read with Rule 58 of the Maharashtra Co-operative Societies Rules, 1961, to be a member of respondent no.7 committee, being a defaulter of respondent no.7 housing society. Whether the order of the State Minister dated 10.06.2022 allowing the revision and setting aside the disqualification orders was legally sustainable.

Ratio Decidendi

Not mentioned in the extracted text.

Judgment Excerpts

The issue involved in the present writ petition is, whether respondent no.6 is disqualified under Section [73CA](1)(e) of the Maharashtra Co-operative Societies Act, 1960 read with Rule 58 of the Maharashtra Co-operative Societies Rules, 1961, to be the member of the respondent no.7 committee, being a defaulter of the respondent no.7 housing society. By the present writ petition the petitioners are challenging the order dated 10.06.2022, passed by the Hon’ble Minister whereby the Hon’ble Minister was pleased to allow the revision petition filed by respondent no.6 herein and set aside the disqualification orders passed by the lower authorities.

Procedural History

An application for disqualification was filed on 05.01.2019 before the Deputy Registrar. The Deputy Registrar passed an order on 29.01.2021 disqualifying respondent no.6. Respondent no.6 filed Appeal No.4 of 2021 before the Joint Registrar. The Joint Registrar by order dated 07.01.2022 upheld the disqualification. Respondent no.6 then filed a revision petition before the State Minister. The State Minister by order dated 10.06.2022 allowed the revision and set aside the disqualification orders. The petitioners filed the present writ petition challenging the Minister's order.

Acts & Sections

  • Maharashtra Co-operative Societies Act, 1960: Section 9(1), Section 73CA(1)(e)
  • Maharashtra Co-operative Societies Rules, 1961: Rule 58
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