Bombay High Court Quashes Disqualification Order in Co-operative Society Dispute — Lack of Reasons Violates Natural Justice. Deputy Registrar's order disqualifying elected members under Maharashtra Co-operative Societies Act set aside for non-compliance with Section 154 and principles of natural justice.

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

The petitioners, three members of Kendwell Co-op. Housing Society Ltd., were duly elected as office bearers in elections held on 18.01.2023 and declared on 10.02.2023. The Deputy Registrar of Co-operative Societies passed an order dated 06.04.2023 disqualifying them for a period of five years by accepting an inquiry report under Sections 83 and 88 of the Maharashtra Co-operative Societies Act, 1960, but without assigning any reasons. The petitioners challenged this order by way of a writ petition under Article 226 of the Constitution. The court noted that the impugned order merely stated that the Deputy Registrar had accepted the inquiry report and disqualified the petitioners, without any discussion or reasoning. The court held that such an order is a nullity for want of reasons and non-compliance with principles of natural justice. The court set aside the order dated 06.04.2023 and directed the Deputy Registrar to pass a fresh reasoned order after hearing the petitioners, within four weeks from the date of the judgment. The petition was disposed of accordingly.

Headnote

A) Administrative Law - Natural Justice - Reasoned Order - Section 154 Maharashtra Co-operative Societies Act, 1960 - The Deputy Registrar passed an order disqualifying three freshly elected members of the Managing Committee for five years by accepting an inquiry report under Sections 83 and 88 but without giving any reasons. The Court held that the order was a nullity for want of reasons and non-compliance with principles of natural justice, and set it aside. (Paras 2, 4-6)

B) Co-operative Societies - Disqualification of Members - Inquiry Report - Sections 83, 88, 154 Maharashtra Co-operative Societies Act, 1960 - The impugned order merely stated that the Deputy Registrar accepted the inquiry report and disqualified the petitioners for five years, without any discussion or reasoning. The Court held that such an order cannot be sustained as it fails to disclose the basis for disqualification and violates the requirement of a reasoned order under Section 154. (Paras 2, 4-6)

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Issue of Consideration

Whether an order disqualifying elected members of a managing committee for five years, passed without assigning any reasons and solely based on an inquiry report, is sustainable in law.

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Final Decision

The impugned order dated 06.04.2023 is set aside. The Deputy Registrar is directed to pass a fresh reasoned order after hearing the petitioners, within four weeks from today.

Law Points

  • Natural justice
  • reasoned order
  • disqualification of committee members
  • co-operative societies
  • inquiry report
  • Section 83
  • Section 88
  • Section 154
  • Maharashtra Co-operative Societies Act
  • 1960
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Case Details

2023 LawText (BOM) (12) 107

Writ Petition (L) No. 12214 of 2023

2023-12-22

Milind N. Jadhav, J.

Nigel Quraishy, Dushyant Krishnan, Milind More

Reuben Alphonso & Ors.

State of Maharashtra & Ors.

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Nature of Litigation

Writ petition challenging disqualification order passed by Deputy Registrar of Co-operative Societies.

Remedy Sought

Quashing of order dated 06.04.2023 disqualifying petitioners for five years.

Filing Reason

Order passed without reasons and in violation of natural justice.

Previous Decisions

Deputy Registrar passed order disqualifying petitioners based on inquiry report under Sections 83 and 88 of the Act.

Issues

Whether the impugned disqualification order is sustainable when passed without assigning any reasons.

Submissions/Arguments

Petitioners argued that the order is a nullity for want of reasons and non-compliance with principles of natural justice.

Ratio Decidendi

An order disqualifying elected members of a managing committee must be a reasoned order; failure to assign reasons renders the order a nullity and violative of principles of natural justice.

Judgment Excerpts

The impugned order merely states that the Deputy Registrar has accepted the inquiry report and disqualified the petitioners for a period of five years. There is no discussion or reasoning in the said order. The impugned order is a nullity for want of reasons and non-compliance with principles of natural justice.

Procedural History

Petitioners were elected on 18.01.2023 and declared on 10.02.2023. Deputy Registrar passed disqualification order on 06.04.2023. Petitioners filed writ petition on an unspecified date. Judgment delivered on 22.12.2023.

Acts & Sections

  • Maharashtra Co-operative Societies Act, 1960: 83, 88, 154
  • Constitution of India: 226
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