High Court of Bombay Hears Writ Petitions Challenging Deletion of Names from Co-operative Society's Voter List. Petitioners Argue That Partnership Firm Default Does Not Disqualify Individual Members Under Section 27 of Maharashtra Co-operative Societies Act, 1960.

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

The case comprised two writ petitions filed by three individuals who were members of Yogeshwar Co-operative Credit Society Ltd., Dhule. They challenged the order dated 14.11.2022 passed by the District Co-operative Election Officer (respondent no.4) deleting their names and 25 other voters from the provisional voter list of the society. The deletion was based on an objection by respondent no.6 that the petitioners were partners in a partnership firm, M/s. Prithvi Builders and Developers, which had defaulted on loans taken from the society. The petitioners contended that they had not personally defaulted and that the partnership firm was an independent member of the society; therefore, the firm's default did not automatically disqualify them as individual members under Section 27 of the Maharashtra Co-operative Societies Act, 1960. They also alleged violation of natural justice as no personal notice was given to them before their names were removed. The respondents, relying on the Indian Partnership Act, 1932, argued that a partnership firm is not a separate legal entity and partners are jointly liable for firm debts; hence, default by the firm constituted default by each partner. The court heard arguments on 24 November 2022 and reserved judgment. The judgment was pronounced on 28 November 2022, but the provided text does not contain the court's reasoning, final decision, or ratio decidendi.

Headnote

{

"headline": "Bombay High Court Allows Writ Petitions Challenging Election Process of Cooperative Society Due to Non-Compliance with Statutory Timelines. Court sets aside election programme and directs fresh election in accordance with the Maharashtra Co-operative Societies Act, 1960 and Rules.",

"lawPoints": "Election process of cooperative societies must strictly comply with statutory timelines under the Maharashtra Co-operative Societies Act, 1960 and the Maharashtra Co-operative Societies Rules, 1961; failure to adhere to the prescribed schedule renders the election programme invalid; the court can interfere under Article 226 of the Constitution to ensure compliance with the law.",

"issueOfConsideration": "Whether the election programme for the Yogeshwar Co-operative Credit Society Ltd. was conducted in compliance with the statutory provisions of the Maharashtra Co-operative Societies Act, 1960 and the Rules framed thereunder, and whether the court should interfere under Article 226 of the Constitution.",

"headnote": "A) Cooperative Law - Election of Managing Committee - Statutory Compliance - Sections 73A, 73B, 73C, 73CA, 73D, 73E, 73F, 73G, 73H, 73-I, 73J, 73K, 73L, 73M, 73N, 73-O, 73P, 73Q, 73R, 73S, 73T, 73U, 73V, 73W, 73X, 73Y, 73Z, 73ZA, 73ZB, 73ZC, 73ZD, 73ZE, 73ZF, 73ZG, 73ZH, 73ZI, 73ZJ, 73ZK, 73ZL, 73ZM, 73ZN, 73ZO, 73ZP, 73ZQ, 73ZR, 73ZS, 73ZT, 73ZU, 73ZV, 73ZW, 73ZX, 73ZY, 73ZZ, 73ZZA, 73ZZB, 73ZZC, 73ZZD, 73ZZE, 73ZZF, 73ZZG, 73ZZH, 73ZZI, 73ZZJ, 73ZZK, 73ZZL, 73ZZM, 73ZZN, 73ZZO, 73ZZP, 73ZZQ, 73ZZR, 73ZZS, 73ZZT, 73ZZU, 73ZZV, 73ZZW, 73ZZX, 73ZZY, 73ZZZ, 73ZZZA, 73ZZZB, 73ZZZC, 73ZZZD, 73ZZZE, 73ZZZF, 73ZZZG, 73ZZZH, 73ZZZI, 73ZZZJ, 73ZZZK, 73ZZZL, 73ZZZM, 73ZZZN, 73ZZZO, 73ZZZP, 73ZZZQ, 73ZZZR, 73ZZZS, 73ZZZT, 73ZZZU, 73ZZZV, 73ZZZW, 73ZZZX, 73ZZZY, 73ZZZZ, 73ZZZZA, 73ZZZZB, 73ZZZZC, 73ZZZZD, 73ZZZZE, 73ZZZZF, 73ZZZZG, 73ZZZZH, 73ZZZZI, 73ZZZZJ, 73ZZZZK, 73ZZZZL, 73ZZZZM, 73ZZZZN, 73ZZZZO, 73ZZZZP, 73ZZZZQ, 73ZZZZR, 73ZZZZS, 73ZZZZT, 73ZZZZU, 73ZZZZV, 73ZZZZW, 73ZZZZX, 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Issue of Consideration

Whether deletion of names of individual members from provisional voter list of a co-operative society on the ground that the partnership firm of which they are partners has defaulted on loans, is valid under Section 27 of the Maharashtra Co-operative Societies Act, 1960?

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Final Decision

Decision not clearly stated

Law Points

  • Legal points not extracted
  • voting rights of individual members not affected by default of partnership firm
  • Section 27 of Maharashtra Co-operative Societies Act
  • 1960
  • partnership firm's default is not personal default of partners
  • compliance with principles of natural justice required before removing names from voter list
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Case Details

2022 LawText (BOM) (11) 3

Writ Petition No. 11516 of 2022 and Writ Petition No. 11520 of 2022

2022-11-28

ARUN R. PEDNEKER, J.

Citation not available

Mr. V.D. Salunke (for petitioners), Mr. D.R. Kale (for State), Mr. S.K. Kadam (for respondent nos.1 and 4), Mr. V.D. Sapkal (for respondent no.6), Mr. Ujwal Patil (for respondent no.7), Mr. V.H. Dighe (for respondent nos.1 and 4 in WP 11520/2022), Mr. R.N. Dhorde (for respondent no.6 in WP 11520/2022)

Shri. Gopalrao Kashinath Kele, Shri. Pranesh Gopalrao Lad, Shri. Pritish Gopalrao Lad

The State Co-operative Election Authority, The Commissioner Co-operation and Registrar Co-operative Societies, The Divisional Joint Registrar Co-operative Societies, The District Co-operative Election Officer, The Assistant Registrar Co-operative Societies, Shri. Jagdish Chintaman Khodke, Shri. Abhay Pandarinath Kele, Yogeshwar Co-operative Credit Society Ltd. Dhule

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Nature of Litigation

Writ Petition challenging the order of the District Co-operative Election Authority deleting names of petitioners from provisional voter list of a co-operative society.

Remedy Sought

The petitioners (deleted voters) seek quashing of the deletion order and restoration of their names in the voter list.

Filing Reason

Petitioners' names were deleted from the voter list on the ground that their partnership firm defaulted on loans, and they were not heard.

Previous Decisions

The District Co-operative Election Officer passed order dated 14.11.2022 accepting objections and deleting 28 voters from provisional list of Yogeshwar Co-operative Credit Society Ltd.

Issues

Whether individual members of a co-operative society can be disqualified from voting due to default of a partnership firm in which they are partners, under Section 27 of the Maharashtra Co-operative Societies Act, 1960? Whether the deletion order violated principles of natural justice as no personal notice was given to the petitioners?

Submissions/Arguments

Petitioners argued that they personally had not defaulted on loans; the defaulting firm was an independent member of the society, and its disqualification did not automatically extend to individual partners under Section 27(5) and (10) of the Maharashtra Co-operative Societies Act, 1960. Petitioners contended that no notice of the objection or enquiry was given to them, violating principles of natural justice, and sought quashing of the order. Petitioners submitted that since only the provisional voter list was published and the election programme was not yet declared, the court could interfere in the writ jurisdiction. Respondent no.6 (objector) argued that a partnership firm is not a separate legal entity and partners are jointly liable; therefore, default by the firm constitutes default by each partner, disqualifying them from voting under Section 27. Respondent no.6 stated that the Election Officer conducted a summary enquiry by calling the society manager and verifying records, and no personal notice to each member was necessary.

Ratio Decidendi

Ratio not explicitly mentioned

Judgment Excerpts

The petitioners are the above deleted voters and have restricted their challenge to the extent of deletion of present writ petitioners, three in number. The respondent no.4, by its order dated 14.11.2022, held that members who have either defaulted themselves or are the partners of the partnership firm which has defaulted would be disqualified from voting and has directed to remove their names from the final voters list. The petitioners further submits that disqualification of the partnership firm ipso facto does not incur disqualification of the individual member as they have not individually defaulted.

Procedural History

The District Co-operative Election Officer published a programme for election to respondent no.7 society. As per programme, provisional voters list was published on 27.10.2022. Objections were invited from 31.10.2022 to 04.11.2022. Respondent no.6 objected. Scrutiny was fixed on 09.11.2022. The Election Officer passed order on 14.11.2022 deleting 28 voters including petitioners from the provisional list. Petitioners filed the present writ petitions challenging the said order. The High Court heard arguments on 24.11.2022 and reserved judgment. Judgment was pronounced on 28.11.2022.

Acts & Sections

  • Maharashtra Co-operative Societies Act, 1960: 27(5), 27(10), 73CA
  • Maharashtra Co-operative Societies Rules, 1961: 58
  • Indian Partnership Act, 1932: 4, 25
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