Case Note & Summary
The petitioner, Vinayak Ukharam Chavhan, was elected as Chairman of Respondent No. 4 Society, a cooperative society registered under the Maharashtra Co-Operative Societies Act, 1960. He challenged an order dated 08.04.2022 passed by the Divisional Joint Registrar, Co-Operative Societies, Aurangabad, in Revision Application No. 5 of 2022. By that order, the Divisional Joint Registrar dissolved the Board of Directors of the society and appointed an Authorized Officer from the office of Additional Registrar, Co-Operative Societies, Kannad, under Section 77A(b)(1) of the Act. The revision application had been filed by Respondent Nos. 5 to 14, who were members of the society, against an order of the Assistant Registrar, Co-Operative Societies, Kannad, who had refused to appoint an Authorized Officer. The petitioner contended that the impugned order was passed without issuing any notice or giving him an opportunity of hearing, thereby violating the principles of natural justice. The Court examined the record and found that no notice was issued to the petitioner before passing the order. The Court held that the order was passed in gross violation of the principles of natural justice and could not be sustained. Consequently, the Court quashed and set aside the impugned order and restored the Board of Directors of the society. The Court clarified that it had not expressed any opinion on the merits of the revision application and left it open for the Divisional Joint Registrar to decide the same afresh after giving an opportunity of hearing to all concerned parties.
Headnote
A) Cooperative Law - Dissolution of Board of Directors - Section 77A Maharashtra Co-Operative Societies Act, 1960 - Natural Justice - The Divisional Joint Registrar passed an order dissolving the Board of Directors and appointing an Authorized Officer without issuing any notice or giving an opportunity of hearing to the petitioner, who was the Chairman of the Society. The Court held that the order was passed in gross violation of principles of natural justice and set it aside, restoring the Board of Directors. (Paras 1-5) B) Cooperative Law - Revision - Section 154 Maharashtra Co-Operative Societies Act, 1960 - Maintainability - The Court noted that the revision application was filed by certain members of the society against the order of the Assistant Registrar refusing to appoint an Authorized Officer. The Divisional Joint Registrar allowed the revision and passed the impugned order. The Court did not delve into the merits of the revision but focused on the violation of natural justice. (Paras 1-5)
Issue of Consideration
Whether the order dissolving the Board of Directors and appointing an Authorized Officer under Section 77A of the Maharashtra Co-Operative Societies Act, 1960, passed without giving an opportunity of hearing to the petitioner, is sustainable in law.
Final Decision
The Court allowed the writ petition, quashed and set aside the impugned order dated 08.04.2022 passed by the Divisional Joint Registrar, Co-Operative Societies, Aurangabad, in Revision Application No. 5 of 2022, and restored the Board of Directors of the society. The Court left it open for the Divisional Joint Registrar to decide the revision application afresh after giving an opportunity of hearing to all concerned parties.
Law Points
- Natural Justice
- Audi Alteram Partem
- Section 77A Maharashtra Co-Operative Societies Act
- 1960
- Revision under Section 154
- Dissolution of Board of Directors
- Appointment of Authorized Officer
