Case Note & Summary
The petitioners, Adhyatma Bandhu Gupta (Chairman) and Gaurishankar Saraf (Secretary) of Hatkesh Co-operative Housing Society Ltd., challenged the judgment and order dated 9th July 2014 passed by the Divisional Joint Registrar, Co-operative Societies, Mumbai, in Revision Application No.61 of 2014. The revision application was dismissed, affirming the order dated 31st January 2014 passed by the Deputy Registrar Co-operative Societies, which removed the petitioners from their posts and disqualified them from being elected or becoming an officer or member of the committee for five years under Section 75(5) of the Maharashtra Co-operative Societies Act, 1960. The background of the dispute involves allegations of misappropriation of society funds and mismanagement. The Deputy Registrar, after conducting an inquiry, found that the petitioners had withdrawn substantial amounts from the society's bank accounts without proper authorization and failed to maintain proper accounts. The petitioners contended that the orders were passed without giving them a proper opportunity of being heard and that the findings were perverse. The High Court, after hearing the parties, held that the findings of fact recorded by the Deputy Registrar were based on evidence and were not perverse. The revisional authority had correctly appreciated the evidence and affirmed the order. The court found no error of law or jurisdiction in the impugned order. Consequently, the writ petition was dismissed, and the rule was discharged.
Headnote
A) Co-operative Law - Removal of Office Bearers - Section 75(5) Maharashtra Co-operative Societies Act, 1960 - Misappropriation and Mismanagement - The petitioners, Chairman and Secretary of a co-operative housing society, were removed and disqualified for five years for misappropriating society funds and failing to maintain proper accounts. The Deputy Registrar found that the petitioners had withdrawn substantial amounts without proper authorization and failed to produce records. The Divisional Joint Registrar affirmed the order. The High Court held that the findings of fact were based on evidence and not perverse, and the revisional authority had not committed any error of law. (Paras 1-21)
Issue of Consideration
Whether the order of removal and disqualification of the petitioners from the posts of Chairman and Secretary of the society under Section 75(5) of the Maharashtra Co-operative Societies Act, 1960 was justified and whether the revisional authority erred in affirming the same.
Final Decision
The High Court dismissed the writ petition, upholding the order of removal and disqualification of the petitioners under Section 75(5) of the Maharashtra Co-operative Societies Act, 1960. The rule was discharged.
Law Points
- Section 75(5) of Maharashtra Co-operative Societies Act
- 1960
- removal of office bearers
- disqualification
- misappropriation
- failure to maintain accounts
- co-operative society management
Case Details
2023 LawText (BOM) (06) 47
Writ Petition No.7358 of 2014
Mr. Shivanand A. Mishra for Petitioners; Mr. C.D. Mali, AGP for State- Respondent Nos. 1 and 2; Ms. Rujuta Patil and Hasan Mushabber i/b Negandhi Shah and Himayatullah for Respondent No. 3
Adhyatma Bandhu Gupta and Gaurishankar Saraf
Division Joint Registrar, Co-Operative Societies, Mumbai; The Deputy Registrar, C.S. K/West Ward; Mr. Natwarlal Agarwal; Hatkesh Co-operative Housing Society Ltd
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Nature of Litigation
Writ petition challenging the order of removal and disqualification of office bearers of a co-operative housing society under Section 75(5) of the Maharashtra Co-operative Societies Act, 1960.
Remedy Sought
The petitioners sought to quash and set aside the order dated 9th July 2014 passed by the Divisional Joint Registrar, Co-operative Societies, Mumbai, in Revision Application No.61 of 2014, and the order dated 31st January 2014 passed by the Deputy Registrar Co-operative Societies, removing them from the posts of Chairman and Secretary and disqualifying them for five years.
Filing Reason
The petitioners were removed and disqualified on grounds of misappropriation of society funds and failure to maintain proper accounts.
Previous Decisions
The Deputy Registrar Co-operative Societies passed an order on 31st January 2014 removing the petitioners and disqualifying them for five years. The Divisional Joint Registrar affirmed this order on 9th July 2014 in Revision Application No.61 of 2014.
Issues
Whether the order of removal and disqualification under Section 75(5) of the Maharashtra Co-operative Societies Act, 1960 was justified based on the evidence of misappropriation and mismanagement.
Whether the revisional authority erred in affirming the order of the Deputy Registrar.
Submissions/Arguments
The petitioners argued that the orders were passed without giving them a proper opportunity of being heard and that the findings were perverse.
The respondents contended that the Deputy Registrar had conducted a proper inquiry and the findings were based on evidence, including the withdrawal of substantial amounts without authorization and failure to maintain accounts.
Ratio Decidendi
The court held that the findings of fact recorded by the Deputy Registrar were based on evidence and were not perverse. The revisional authority had correctly appreciated the evidence and affirmed the order. There was no error of law or jurisdiction in the impugned order. The removal and disqualification under Section 75(5) of the Maharashtra Co-operative Societies Act, 1960 were justified.
Judgment Excerpts
The challenge in this Petition is to the judgment and order dated 9th July, 2014, passed by The Divisional Joint Registrar, Co-operative Societies, Mumbai, in Revision Application No.61 of 2014, whereby the application preferred by the petitioners came to be dismissed by affirming an order dated 31st January, 2014, passed by the Deputy Registrar Co-operative Societies, removing the petitioners from the post of Chairman and Secretary of Hatkesh Co-operative Housing Society Ltd- respondent No.4 and disqualifying them from being elected and becoming an officer or member of the committee for a term of five years, under Section 75 (5) of the Maharashtra Co-operative Societies Act, 1960.
Procedural History
The Deputy Registrar Co-operative Societies passed an order on 31st January 2014 removing the petitioners from the posts of Chairman and Secretary and disqualifying them for five years under Section 75(5) of the Maharashtra Co-operative Societies Act, 1960. The petitioners filed Revision Application No.61 of 2014 before the Divisional Joint Registrar, Co-operative Societies, Mumbai, which was dismissed on 9th July 2014. The petitioners then filed the present writ petition before the High Court of Judicature at Bombay.
Acts & Sections
- Maharashtra Co-operative Societies Act, 1960: Section 75(5)
