Case Note & Summary
The petitioner, Ganpat Gaonkar, an advocate by profession, was a director on the Board of Directors of Sattari Taluka Farmers Service Co-operative Society Ltd. The Assistant Registrar of Co-operative Societies, Bicholim, passed an order dated 10 January 2019 disqualifying him from continuing as director under Section 60(i)(e) and Section 59(11) of the Goa Co-operative Societies Act, 2001. The disqualification was based on an inquiry report dated 15 May 2018. The petitioner challenged the order on two main grounds: first, that the order was passed in breach of principles of natural justice as he was not given an oral hearing despite the statutory requirement under Section 59(11); second, that the material on record did not establish that he was a salaried employee or held any office of profit under the society. The petitioner argued that he merely appeared as an advocate for the society, and any fees were debited from the loan accounts of defaulting borrowers, not paid by the society. The court, after hearing both sides, found that the impugned order recorded that the petitioner was heard, but in fact no oral hearing was given. The court held that the mandatory requirement of an opportunity of being heard under Section 59(11) was violated, and on this ground alone, the order was liable to be set aside. The court also noted that the merits of the disqualification were not fully examined, but the breach of natural justice was sufficient to quash the order. The petition was allowed, and the impugned order was set aside, with liberty to the respondents to proceed afresh after giving a proper hearing.
Headnote
A) Administrative Law - Principles of Natural Justice - Mandatory Hearing - Section 59(11) of the Goa Co-operative Societies Act, 2001 - The Assistant Registrar disqualified the petitioner without granting an oral hearing, despite the statutory requirement of an opportunity of being heard. The court held that the order was in breach of natural justice and set it aside. (Paras 2-4) B) Co-operative Law - Disqualification of Director - Office of Profit - Section 60(i)(e) of the Goa Co-operative Societies Act, 2001 - The petitioner, an advocate, appeared for the society and recovered amounts from defaulters, but there was no evidence that he was a salaried employee or held an office of profit. The court found that the disqualification was not sustainable on merits. (Paras 5-6)
Issue of Consideration
Whether the impugned order disqualifying the petitioner as director of a co-operative society was passed in violation of principles of natural justice and whether the petitioner held any office of profit or was a salaried employee under the society.
Final Decision
The petition is allowed. The impugned order dated 10 January 2019 is set aside. The respondents are at liberty to proceed afresh after giving proper opportunity of hearing to the petitioner.
Law Points
- Principles of natural justice
- mandatory hearing requirement
- disqualification of director
- office of profit
- salaried employee
- co-operative society
