Bombay High Court Examines Challenge to Final Voters List in Cooperative Society Election. Court Considers Whether Non-Payment of 1% Supervision Charges Constitutes Default Disqualifying Member Societies from Voting Under Section 91 of Maharashtra Co-operative Societies Act, 1960.

High Court: Bombay High Court Bench: NAGPUR
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Case Note & Summary

This writ petition was filed by 18 cooperative societies, all members of Amravati Jilha Majur Sahkari Sansthancha Sangha Maryadit (respondent No.2), a federal/apex society, challenging the final voters list published by the District Deputy Registrar and District Co-operative Election Officer (respondent No.1) on 15/06/2022. The petitioners sought quashing of the final voters list and a direction for a fresh programme for finalization of voters list, with interim relief restraining publication of the election programme of respondent No.2. The core factual background is that respondent No.1 published a provisional voters list and later a final voters list for election of the executive committee of respondent No.2. The petitioners alleged that more than 85% of member societies, including the petitioners, were excluded from the final list as defaulters solely on the ground of non-payment of 1% supervision charges to respondent No.2. They contended that the election programme was not duly published, denying them the opportunity to raise objections. They further claimed that the figures of alleged defaults were fictitious and concocted. The ostensible reason for exclusion was failure to pay 1% supervision charges; however, petitioners relied on the judgment of this Court in Bajrang Majoor Kamgar Sahakari Sanstha Maryadit v. District Co-operative Election Officer (2015) which held that non-payment of 1% supervision charges could not render a society a defaulter. They argued that a subsequent judgment in M.I.D.C. Prakalpgrast Majur Kamgar, Sahakari Sanstha, Maryadit v. Amravati District Labour Cooperative Society's Union Ltd. (2016) which held to the contrary was per incuriam because it did not consider the earlier Bajrang judgment. Respondent No.2 opposed the petition, alleging suppression of facts and contending that disputed questions of fact should be resolved through an election dispute under Section 91 of the Maharashtra Co-operative Societies Act, 1960, not in writ jurisdiction. Respondent No.2 asserted that the election programme was published in newspaper Deshonnati and on the notice board, and that member societies were called upon as early as 08/04/2022 to send names of their representatives; some petitioners failed to do so. Respondent No.2 argued that the Bajrang judgment was distinguishable and that the M.I.D.C. judgment was directly applicable. The court heard the matter on merits, with both sides presenting arguments on statutory compliance, default status based on supervision charges, binding precedent, per incuriam, and maintainability. The court reserved judgment on 07/07/2022 and pronounced it on 01/08/2022, but the operative part of the judgment is not included in the provided text. Therefore, the final decision and ratio decidendi are not mentioned here.

Headnote

A) Cooperative Societies - Voter List Finalization - Maharashtra Co-operative Societies Act, 1960 - Section 91 - Petitioners, member societies of respondent No.2 Federal Society, challenged final voters list dated 15/06/2022, alleging that more than 85% of member societies were excluded as defaulters for non-payment of 1% supervision charges, without proper publication and denial of opportunity to object. Respondent No.2 contended that the election programme was duly published in newspaper 'Deshonnati' and on notice board, and that petitioners had notice since 08/04/2022 to send representatives; some petitioners failed to do so. The court considered arguments on statutory compliance and maintainability under Section 91 (Paras 2-6, 8-9).

B) Precedent - Per Incuriam and Stare Decisis - Maharashtra Co-operative Societies Act, 1960 - Section 91 - Petitioners argued that the later judgment in M.I.D.C. Prakalpgrast Majur Kamgar, Sahakari Sanstha, Maryadit v. Amravati District Labour Cooperative Society's Union Ltd. (2016) was per incuriam as it ignored the earlier Bajrang Majoor Kamgar Sahakari Sanstha Maryadit v. District Co-operative Election Officer (2015) judgment holding that non-payment of 1% supervision charges cannot make a society defaulter. Respondent No.2 contended that the earlier judgment was distinguishable and the later judgment was on point. The court considered binding precedent, per incuriam, and stare decisis principles (Paras 6-7, 10).

C) Writ Jurisdiction - Alternative Remedy - Section 91 of Maharashtra Co-operative Societies Act, 1960 - Respondent No.2 raised the objection that disputes regarding voters list should be raised as an election dispute under Section 91 of the Act, not in writ jurisdiction. Petitioners maintained that the final voters list was ex facie illegal, warranting writ interference. The court noted the objection and the counter-arguments (Paras 8, 5-6).

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Issue of Consideration

Whether the final voters list published on 15/06/2022 was vitiated due to exclusion of 85% member societies as defaulters for non-payment of 1% supervision charges, and whether the later judgment in M.I.D.C. Prakalpgrast Majur Kamgar, Sahakari Sanstha, Maryadit was per incuriam given the earlier Bajrang Majoor Kamgar Sahakari Sanstha Maryadit judgment.

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Law Points

  • Binding precedent
  • per incuriam
  • stare decisis
  • alternative remedy under Section 91 of Maharashtra Co-operative Societies Act
  • 1960
  • voters list finalization
  • supervision charges as default
  • statutory publication requirements
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Case Details

2022 LawText (BOM) (08) 144

Writ Petition No. 3318 of 2022

2022-08-01

Manish Pitale, J.

K.P. Mahalle (for petitioners), K.L. Dharmadhikari (AGP for respondent No.1), A.M. Ghare (for respondent No.2)

MIDC Prakalpgrasth Majur Sahkari Sanstha, Wagholi and Others

The District Deputy Registrar and District Co-operative Election Officer, Co-operative Societies, Amravati and Amravati Jilha Majur Sahkari Sansthancha Sangha Maryadit

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Nature of Litigation

Writ petition challenging final voters list for election of executive committee of respondent No.2 Federal Cooperative Society

Remedy Sought

Quash and set aside final voters list dated 15/06/2022; direct respondent No.1 to publish fresh programme for finalization of voters list; interim direction restraining respondent No.1 from publishing election programme of respondent No.2

Filing Reason

Petitioners alleged that more than 85% of member societies were excluded from final voters list as defaulters for non-payment of 1% supervision charges; statutory requirements for publication of voters list programme were not followed; petitioners were deprived of opportunity to raise objections

Previous Decisions

Interim order dated 17/06/2022 by this Court granting stay on publication of election programme; earlier judgments in Bajrang Majoor Kamgar Sahakari Sanstha Maryadit v. District Co-operative Election Officer (2015) and M.I.D.C. Prakalpgrast Majur Kamgar, Sahakari Sanstha, Maryadit v. Amravati District Labour Cooperative Society's Union Ltd. (2016) with conflicting views on supervision charges

Issues

Whether the final voters list published on 15/06/2022 was vitiated due to alleged violation of statutory procedure and exclusion of 85% member societies as defaulters Whether non-payment of 1% supervision charges to respondent No.2 Federal Society constitutes a valid ground to treat a member society as defaulter and exclude it from voters list Whether the later judgment in M.I.D.C. Prakalpgrast Majur Kamgar, Sahakari Sanstha, Maryadit v. Amravati District Labour Cooperative Society's Union Ltd. was per incuriam as it ignored the earlier Bajrang judgment Whether the writ petition is maintainable when an alternative remedy under Section 91 of the Maharashtra Co-operative Societies Act, 1960 is available

Submissions/Arguments

Petitioners argued that the final voters list was vitiated because more than 85% of member societies were excluded as defaulters without proper publication or opportunity to object. Petitioners contended that non-payment of 1% supervision charges cannot make a society a defaulter as per the earlier Bajrang judgment, and the later M.I.D.C. judgment holding otherwise was per incuriam and not binding. Petitioners submitted that the figures of default shown by respondent No.2 were fictitious and concocted, and that respondent No.2 could not rely on the later judgment. Respondent No.2 argued that the petitioners suppressed material facts and the writ petition should be dismissed on that ground alone. Respondent No.2 contended that there were disputed and complicated questions of fact which should be decided in an election dispute under Section 91 of the Maharashtra Co-operative Societies Act, 1960, not in writ jurisdiction. Respondent No.2 asserted that the election programme was duly published in newspaper Deshonnati and on notice board, and that member societies were called upon on 08/04/2022 to send names of their representatives; some petitioners did not comply. Respondent No.2 submitted that reliance on the Bajrang judgment was misplaced and that the later M.I.D.C. judgment was directly on point.

Judgment Excerpts

By this writ petition, the petitioners, who are Co-operative Societies and Members of respondent No.2 – Federal / Apex Society, have approached this Court for quashing and setting aside of final voters list published on 15/06/2022, by the respondent No.1 i.e. the District Deputy Registrar and the District Co-operative Election Officer of Co-operative Societies, Amravati, with a further prayer to direct the respondent No.1 to publish a fresh programme for finalization of voters list. It was submitted that the ostensible reason for non- inclusion of names of petitioner societies in the final voters list, was that such societies were allegedly defaulters. The petitioners and other such member societies were illegally branded as defaulters for not having paid 1% supervision charges to the respondent No.2 – Federal Society for the works allegedly allotted by the respondent No.2 – Federal Society to the petitioners and other member societies. It was submitted that the respondent No.2 was not justified in relying upon judgment of this Court in the case of M.I.D.C. Prakalpgrast Majur Kamgar, Sahakari Sanstha, Maryadit Vs. Amravati District Labour Cooperative Society's Union Ltd. and another (judgment and order dated 09/06/2016, passed in Writ Petition No. 527/2016), wherein it was held that non-payment of 1% supervision charges was a ground for holding the member society as defaulter, dis-entitling inclusion in voters list, for the reason that the said judgment was per incuriam, as the aforesaid earlier judgment of this Court in the case of Bajrang Majoor Kamgar Sahakari Sanstha Maryadit Vs. The District Co-operative Election Officer (supra), was not brought to the notice of the learned Single Judge in the aforesaid subsequent judgment.

Procedural History

Petitioners filed the writ petition challenging the final voters list dated 15/06/2022. On 17/06/2022, this Court issued notice and granted interim relief restraining respondent No.1 from publishing the election programme of respondent No.2. Respondents appeared through counsel and filed replies opposing the petition. The matter was heard finally, reserved on 07/07/2022, and pronounced on 01/08/2022.

Acts & Sections

  • Maharashtra Co-operative Societies Act, 1960: Section 91
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