Bombay High Court Quashes Supersession of APMC Executive Committee for Violation of Natural Justice — Order Passed Without Show Cause Notice Under Section 77(5) of Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 Held Invalid. The Court held that the power under Section 77(5) is quasi-judicial and requires compliance with principles of natural justice, including a show cause notice and opportunity of hearing.

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

The petitioner, Santosh Tale, a member of the Executive Committee of the Agricultural Produce Market Committee (APMC), Khamgaon, challenged an order dated 24 July 2014 passed by the District Deputy Registrar (Co-operative Societies), Buldhana, superseding the Executive Committee under Section 77(5) of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963. The petitioner contended that the order was passed without issuing any show cause notice or affording an opportunity of hearing, violating principles of natural justice. The respondents argued that the power under Section 77(5) is administrative and does not require a show cause notice. The Court examined the nature of the power and held that it is quasi-judicial, as it involves determination of facts and affects rights. Relying on the principle that even if the statute is silent, natural justice must be complied with, the Court found that the order was passed in gross violation of natural justice. The Court quashed the order and directed the respondents to proceed afresh after issuing a show cause notice and affording a hearing to the petitioner and other affected members. The writ petition was allowed with no order as to costs.

Headnote

A) Administrative Law - Natural Justice - Show Cause Notice - Section 77(5) of Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 - The District Deputy Registrar superseded the Executive Committee of APMC Khamgaon without issuing any show cause notice or affording an opportunity of hearing to the petitioner, who was a member of the Executive Committee. The Court held that the power under Section 77(5) is quasi-judicial in nature and requires compliance with principles of natural justice, including a show cause notice and opportunity of hearing. The order was quashed and set aside. (Paras 4-6)

B) Cooperative Law - Supersession of Committee - Opportunity of Hearing - Section 77(5) of Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 - The Court held that even if the statute does not expressly provide for a show cause notice, the quasi-judicial nature of the power mandates adherence to natural justice. The impugned order was passed without any notice, rendering it invalid. (Paras 5-6)

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Issue of Consideration

Whether the order of supersession of the Executive Committee of the Agricultural Produce Market Committee, Khamgaon, passed by the District Deputy Registrar without issuing a show cause notice and without affording an opportunity of hearing to the petitioner, is valid in law.

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Final Decision

The writ petition is allowed. The impugned order dated 24/07/2014 passed by respondent No.1 is quashed and set aside. The respondents are directed to proceed afresh after issuing a show cause notice and affording an opportunity of hearing to the petitioner and other affected members of the Executive Committee. Rule is made absolute in the above terms. No order as to costs.

Law Points

  • Natural justice
  • Show cause notice
  • Supersession of committee
  • Section 77(5) of Maharashtra Agricultural Produce Marketing (Development and Regulation) Act
  • 1963
  • Opportunity of hearing
  • Quasi-judicial order
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Case Details

2020 LawText (BOM) (01) 174

Writ Petition No. 5342 of 2019

2020-01-24

Manish Pitale, J.

Mr. A.M. Ghare (for petitioner), Mr. J.B. Gandhi (for respondent No.2), Mr. K.P. Mahalle (for respondent No.4), Mr. S.C. Chande (for respondent No.8), Mr. Amit Bhate (for respondent No.17), Mr. P.C. Madkholkar (for intervenor)

Santosh S/o Ramrao Tale

The District Deputy Registrar Co-operative Societies, Buldhana & Ors.

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Nature of Litigation

Writ petition challenging the order of supersession of the Executive Committee of Agricultural Produce Market Committee, Khamgaon, passed by the District Deputy Registrar under Section 77(5) of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963.

Remedy Sought

The petitioner sought quashing of the order dated 24/07/2014 passed by respondent No.1 superseding the Executive Committee, and a direction to restore the committee.

Filing Reason

The order was passed without issuing any show cause notice or affording an opportunity of hearing to the petitioner, who was a member of the Executive Committee, violating principles of natural justice.

Issues

Whether the order of supersession passed under Section 77(5) of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963, without issuing a show cause notice and without affording an opportunity of hearing, is valid in law.

Submissions/Arguments

Petitioner: The impugned order was passed without any show cause notice or opportunity of hearing, violating principles of natural justice. The power under Section 77(5) is quasi-judicial and requires compliance with natural justice. Respondents: The power under Section 77(5) is administrative in nature and does not require a show cause notice. The order was validly passed.

Ratio Decidendi

The power under Section 77(5) of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963, is quasi-judicial in nature, and even if the statute does not expressly provide for a show cause notice, principles of natural justice require that a show cause notice and opportunity of hearing be given before passing an order of supersession. An order passed without such notice is invalid.

Judgment Excerpts

The power under Section 77(5) of the said Act is quasi-judicial in nature and therefore, even if the statute does not specifically provide for issuance of a show cause notice, the principles of natural justice would have to be complied with. In the present case, it is an admitted position that no show cause notice was issued to the petitioner and no opportunity of hearing was granted before passing the impugned order. Therefore, the impugned order is in gross violation of principles of natural justice.

Procedural History

The petitioner filed Writ Petition No. 5342 of 2019 before the Bombay High Court, Nagpur Bench, challenging the order dated 24/07/2014 passed by the District Deputy Registrar (Co-operative Societies), Buldhana, superseding the Executive Committee of APMC Khamgaon. The petition was heard and finally disposed of on 24/01/2020.

Acts & Sections

  • Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963: 77(5)
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