Case Note & Summary
The petitioners, Mrs. Kusum Ramesh Agarwal and others, were office bearers of Poonam Chambers, B Wing, Commercial Premises Co-operative Society Limited. The Deputy Registrar, Co-operative Societies, in exercise of powers under Section 78A(1)(b) of the Maharashtra Co-operative Societies Act, 1960, removed the petitioners as members of the committee and held them ineligible for re-election, re-co-option, or re-nomination until the next term. Simultaneously, an Authorised Officer was appointed to administer the society's affairs. On 11th January 2022, a new committee comprising Shri Chirag Shah, Shri Mahavir Murarka, and Mr. Anand Patil (Authorised Officer) was constituted. The petitioners appealed under Section 152 of the Act, but the Divisional Joint Registrar confirmed the order on 2nd June 2022. A revision before the Hon'ble Minister under Section 154 was also dismissed on 21st June 2022. Aggrieved, the petitioners approached the High Court under its supervisory jurisdiction. The core legal issue was whether the Deputy Registrar's order, passed without affording the petitioners a reasonable opportunity of hearing, violated principles of natural justice. The petitioners argued that no show cause notice was issued before the removal. The respondents contended that the power under Section 78A(1)(b) is summary in nature and does not require a hearing. The Court analyzed the provision and held that even summary powers must be exercised in conformity with natural justice. Since the petitioners were not given any opportunity to be heard, the impugned orders were quashed and set aside. The Court allowed the petition, restoring the petitioners to their positions as committee members, subject to any fresh proceedings initiated after giving due hearing.
Headnote
A) Co-operative Law - Removal of Committee Members - Section 78A(1)(b) Maharashtra Co-operative Societies Act, 1960 - Natural Justice - The Deputy Registrar removed the petitioners as committee members without giving them a show cause notice or hearing, which violated principles of natural justice - The Court held that the power under Section 78A(1)(b) must be exercised in conformity with natural justice, and the order was quashed (Paras 4-6). B) Co-operative Law - Appeal and Revision - Sections 152 and 154 Maharashtra Co-operative Societies Act, 1960 - The Divisional Joint Registrar and the Minister confirmed the removal order in appeal and revision, but the Court found that the appellate and revisional authorities failed to cure the procedural defect - The orders were set aside (Paras 3, 6). C) Constitutional Law - Supervisory Jurisdiction - Article 227 of the Constitution of India - The High Court exercised its supervisory jurisdiction to correct errors of subordinate tribunals where there was a failure to follow natural justice - The petition was allowed (Para 6).
Issue of Consideration
Whether the Deputy Registrar's order removing the petitioners as committee members under Section 78A(1)(b) of the Maharashtra Co-operative Societies Act, 1960, without affording them a reasonable opportunity of hearing, is sustainable in law.
Final Decision
The petition is allowed. The impugned orders dated 11th January 2022, 2nd June 2022, and 21st June 2022 are quashed and set aside. The petitioners are restored to their positions as committee members, subject to any fresh proceedings initiated after giving due hearing. Rule is made absolute accordingly.
Law Points
- Natural justice
- Reasonable opportunity of hearing
- Section 78A(1)(b) Maharashtra Co-operative Societies Act
- 1960
- Section 152 Maharashtra Co-operative Societies Act
- Supervisory jurisdiction under Article 227 of the Constitution of India
