Case Note & Summary
The Petitioner, Jayprakash Sahakari Griha Rachana Sanstha, a co-operative housing society registered under the Maharashtra Co-operative Societies Act, 1960, filed a writ petition challenging the appointment of an Administrator by Respondent No.2 (the Deputy Registrar) under Section 77A of the Act. The society's managing committee was elected on 26th July 2015 and assumed office on 16th August 2015 for a term of five years (2015-2020). Due to the Covid-19 pandemic, elections for the next term (2020-2025) could not be held, and the Government of Maharashtra extended the tenure of all co-operative society committees. On 5th October 2021, the State Co-operative Election Authority appointed Election Officers for housing societies. On 27th March 2022, the society appointed Respondent No.5 as its Election Officer. On 13th May 2022, the Election Officer sought information from the society. On 19th May 2022, a notice was issued for a committee meeting on 27th May 2022 to discuss regular business and recovery of maintenance dues. However, on 23rd May 2022, Respondent No.2, at the behest of Respondent No.4, issued a notice under Section 77A(1-b) of the MCS Act. The society challenged the appointment of the Administrator, arguing that no notice under Section 77A(1-b) was served on it and that it was not given an opportunity to explain. The court held that the appointment of an Administrator without issuing a notice under Section 77A(1-b) and without giving an opportunity of hearing is illegal and contrary to the provisions of the Act. The court allowed the petition, quashed the appointment of the Administrator, and directed the respondents to permit the society to continue with the election process.
Headnote
A) Co-operative Law - Appointment of Administrator - Section 77A, Maharashtra Co-operative Societies Act, 1960 - Notice under Section 77A(1-b) - The court held that before appointing an Administrator under Section 77A, the authority must issue a notice under Section 77A(1-b) calling upon the society to show cause why an Administrator should not be appointed. The appointment without such notice is illegal and contrary to the provisions of the Act. (Paras 5-7) B) Co-operative Law - Opportunity of Hearing - Section 77A, Maharashtra Co-operative Societies Act, 1960 - Natural Justice - The court held that the principles of natural justice require that the society be given an opportunity to explain its position before an Administrator is appointed. The failure to provide such opportunity renders the appointment void. (Paras 5-7) C) Co-operative Law - Extension of Tenure - Section 73C, Maharashtra Co-operative Societies Act, 1960 - Pandemic - The court noted that the tenure of the managing committee was extended due to the Covid-19 pandemic and that the society had taken steps to hold elections. The appointment of an Administrator was not warranted in the facts of the case. (Paras 2-4)
Issue of Consideration
Whether the appointment of an Administrator under Section 77A of the Maharashtra Co-operative Societies Act, 1960, without issuing a notice under Section 77A(1-b) and without giving an opportunity of hearing to the society, is valid.
Final Decision
The court allowed the writ petition, quashed the appointment of the Administrator, and directed the respondents to permit the society to continue with the election process.
Law Points
- Section 77A of Maharashtra Co-operative Societies Act
- 1960
- Notice under Section 77A(1-b)
- Appointment of Administrator
- Opportunity of hearing
- Natural justice
