Bombay High Court Quashes Order Dissolving Managing Committee of Co-operative Society Under Section 77A of Maharashtra Co-operative Societies Act; Quasi-Judicial Decision Vitiated by Extraneous Directions from Chief Minister. Court Holds That Independent Decision-Making Is Crucial for Quasi-Judicial Orders, and Existence of Alternate Remedy Does Not Bar Writ Jurisdiction When Order Is Fundamentally Illegal.

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

The writ petition under Articles 226 and 227 of the Constitution of India challenged an order passed by the Divisional Deputy Registrar (DDR) of Co-operative Societies, dissolving the managing committee of Jalgaon Zilla Dudh Utpadak Sangh Ltd., a co-operative society registered under the Maharashtra Co-operative Societies Act, 1960. The petitioners were the elected managing committee members whose term had expired during the COVID-19 pandemic, but elections had been postponed by the State Government until 30-09-2022. The society had prepared a provisional voters' list and deposited election expenses, and an election programme was declared on 27 June 2022. However, on 29 July 2022, the DDR passed the impugned order under Section 77A of the Act, dissolving the petitioners' committee and appointing 11 new members (respondents 6 to 15) as an administrative committee. The petitioners alleged that the order was passed at the behest of the Chief Minister and the State Government, with mala fide intent, because the petitioners belonged to an opposition political party. They pointed to a communication dated 28 July 2022 from the Deputy Secretary to the Joint Registrar and DDR, directing them to dissolve the committee and constitute a new one as per the Chief Minister's directions, and naming the 11 new members. The DDR initially responded on the same day expressing his strong opinion that Section 77A was not applicable, but on the very next day passed the order, relying on the government's communication without any independent enquiry. The State and the newly appointed members argued that the DDR exercised quasi-judicial power due to gross mismanagement, that the petitioners' term had expired, and that an alternate remedy of appeal under Section 152 of the Act was available, making the writ petition not maintainable. The court held that the impugned order was vitiated by extraneous considerations and lack of independent decision-making, as the DDR acted on the instructions of the Chief Minister rather than his own satisfaction as required under Section 77A. The court further held that the existence of an alternate remedy did not bar writ jurisdiction when the order was fundamentally illegal, a nullity, and passed in flagrant violation of natural justice. Consequently, the court quashed and set aside the order dated 29-07-2022, allowed the writ petition, and made the rule absolute. The civil application was disposed of.

Headnote

A) Cooperative Societies - Dissolution of Managing Committee - Section 77A, Maharashtra Co-operative Societies Act, 1960 - Quasi-Judicial Power Must Be Exercised Independently - The Divisional Deputy Registrar passed order dissolving committee and appointing new members based on written communication from Deputy Secretary directing dissolution as per Chief Minister's directions, not on independent satisfaction - Held: Quasi-judicial power vitiated by extraneous consideration and non-application of mind (Paras 4-6)

B) Constitutional Law - Writ Jurisdiction - Alternate Remedy - Article 226 - When Exhaustion Not Required - Respondent argued writ not maintainable due to availability of appeal under Section 152 - Held: Since order was fundamentally illegal, a nullity, and passed in flagrant violation of natural justice, existence of alternate remedy does not bar writ jurisdiction (Paras 8, 11)

C) Administrative Law - Principles of Natural Justice - Section 77A proviso - Requirement of Notice - Though second proviso dispenses with notice if immediate action is required, the DDR initially opined that Section 77A was not applicable, then changed stance without any independent enquiry - Held: Action was malafide and in colourable exercise of power (Paras 5-7)

D) Cooperative Societies - Election - Postponement Due to COVID-19 - Petitioners' term expired, but elections postponed by State until 30-09-2022; despite election program declared, government sought to replace committee - Held: The order was motivated by political change, not by any failure to elect (Paras 3, 6)

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Issue of Consideration

Whether the order dated 29-07-2022 passed by the Divisional Deputy Registrar under Section 77A of the Maharashtra Co-operative Societies Act, 1960, dissolving the petitioners' managing committee and appointing a new administrative committee, was vitiated by malafides, violation of natural justice, and lack of independent decision-making due to directions from the Chief Minister and State Government.

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Final Decision

Writ petition allowed. Impugned order dated 29-07-2022 passed by respondent no.4 - Divisional Deputy Registrar is quashed and set aside. Rule made absolute. Civil Application No. 11860 of 2022 stands disposed of.

Law Points

  • Legal points not extracted
  • quasi-judicial power must be exercised independently
  • not on extraneous instructions
  • order dictated by superior authority is void
  • existence of alternate remedy does not bar writ jurisdiction when order is fundamentally illegal and violates natural justice
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Case Details

2022 LawText (BOM) (08) 62

Writ Petition No. 8066 of 2022

2022-08-30

Mangesh S. Patil, Sandeep V. Marne

Citation not available

V.D. Hon, A.V. Hon, D.R. Kale, D.B. Thoke

Jagdish Lahu Badhe & Ors.

State of Maharashtra & Ors.

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Nature of Litigation

Writ petition under Articles 226 and 227 of Constitution challenging quasi-judicial order of Divisional Deputy Registrar dissolving managing committee of cooperative society and appointing new members.

Remedy Sought

Petitioners seeking to quash and set aside order dated 29-07-2022 passed by respondent no.4.

Filing Reason

The order was allegedly passed on instructions of Chief Minister and State Government without independent application of mind, violating natural justice.

Previous Decisions

Previous decisions not referenced

Issues

Whether the impugned order dated 29-07-2022 under Section 77A of the Maharashtra Co-operative Societies Act, 1960 was passed in exercise of independent quasi-judicial authority or vitiated by mala fides and extraneous influence. Whether the writ petition is maintainable in view of the alternate remedy of appeal under Section 152 of the Act. Whether the principles of natural justice were violated in passing the order.

Submissions/Arguments

Petitioners argued that order passed on instructions of Chief Minister, no independent enquiry, violation of natural justice, DDR had initially opined that Section 77A not applicable, election process underway, mala fides. Respondents argued that DDR exercised quasi-judicial power, order based on mismanagement, term expired, petitioners taking policy decisions during extended period, alternate remedy exists.

Ratio Decidendi

Quasi-judicial authority must exercise power independently based on its own satisfaction and cannot act on extraneous instructions or at the behest of superiors. An order passed under dictation or without application of mind is a nullity. Existence of alternate remedy does not bar writ jurisdiction when the order is fundamentally illegal and violates principles of natural justice.

Judgment Excerpts

the quasi judicial power has been exercised on the instructions of the Hon’ble Chief Minister. No independent enquiry was held. though he was of strong opinion that the circumstances did not permit him to exercise that power. 77A. Appointment of member of committee, new committee, authorised officers, where there is failure to elect member, to constitute committee or where committee does not enter upon office, etc. the impugned order cannot be sustained.

Procedural History

Petitioners, elected managing committee members of Jalgaon Zilla Dudh Utpadak Sangh Ltd., filed writ petition challenging order dated 29-07-2022 passed by Divisional Deputy Registrar under Section 77A, dissolving their committee and appointing new members. Matter heard finally at admission stage by consent. Judgment reserved on 26-08-2022 and pronounced on 30-08-2022.

Acts & Sections

  • Maharashtra Co-operative Societies Act, 1960: 77A, 152
  • Constitution of India: 226, 227
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