Bombay High Court Dismisses Petition Challenging Expulsion from Cooperative Society. Member's Challenge to Expulsion Order Fails as Court Finds No Violation of Natural Justice and Upholds Minister's Decision Under Maharashtra Cooperative Societies Act, 1960.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The petitioner, Baliram Hari Patil, was a member of respondent No. 2, Tavase Khurd Vividh Karyakari Seva Sahakari Society Limited, a cooperative society dealing in agricultural and other loans. The society's general body passed a resolution expelling the petitioner from membership. The petitioner challenged this expulsion before the Assistant Registrar of Cooperative Societies, Chopda, who confirmed the expulsion. The petitioner then appealed to the Divisional Joint Registrar, Cooperative Societies, Nasik, who also confirmed the order. Thereafter, the petitioner filed a revision before the Minister of State for Cooperation, who by order dated 24th June 1991, confirmed the orders of the lower authorities. Aggrieved, the petitioner filed the present writ petition under Article 226 of the Constitution of India. The main legal issue was whether the petitioner was afforded a reasonable opportunity of being heard before the impugned order was passed. The petitioner argued that he was not given a proper hearing. The respondents contended that the petitioner was heard and that the orders were passed after due consideration. The High Court examined the records and found that the petitioner was given sufficient opportunity to present his case. The court noted that the Minister had heard the parties and passed a reasoned order. The court held that there was no violation of principles of natural justice and that the orders of the authorities below were valid. Consequently, the writ petition was dismissed with no order as to costs.

Headnote

A) Cooperative Law - Expulsion of Member - Natural Justice - Section 154, Maharashtra Cooperative Societies Act, 1960 - The petitioner, a member of a cooperative society, was expelled by the society's general body. The Assistant Registrar and Divisional Joint Registrar confirmed the expulsion. The Minister of State for Cooperation, in revision, upheld the orders. The High Court held that the petitioner was given sufficient opportunity to be heard and that the orders were not vitiated by any procedural irregularity. The petition was dismissed. (Paras 1-6)

B) Cooperative Law - Revisional Powers of Minister - Scope - Section 154, Maharashtra Cooperative Societies Act, 1960 - The Minister, while exercising revisional powers, confirmed the orders of the lower authorities. The High Court found no error in the Minister's decision and held that the revision was properly disposed of after hearing the parties. (Paras 4-6)

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Issue of Consideration

Whether the order of expulsion of the petitioner from the membership of the respondent cooperative society was valid and whether the petitioner was afforded a reasonable opportunity of being heard before the impugned order was passed.

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Final Decision

The High Court dismissed the writ petition with no order as to costs, upholding the orders of the Assistant Registrar, Divisional Joint Registrar, and the Minister of State for Cooperation.

Law Points

  • Natural justice
  • Right of hearing
  • Cooperative society membership
  • Expulsion of member
  • Minister's revisional powers
  • Section 154 of Maharashtra Cooperative Societies Act
  • 1960
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Case Details

2010 LawText (BOM) (01) 344

Writ Petition No. 2658 of 1991

2010-01-14

V.R. Kingaonkar

Mr. V.R. Dhorde (holding for Mr. R.N. Dhorde) for petitioner, Mr. S.B. Talekar for respondent No. 2, Mr. N.H. Borade, AGP for respondents No. 1, 3 and 4

Baliram Hari Patil

State of Maharashtra, Tavase Khurd Vividh Karyakari Seva Sahakari Society Limited, Assistant Registrar of Cooperative Societies, Divisional Joint Registrar of Cooperative Societies

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Nature of Litigation

Writ petition challenging the order of the Minister of State for Cooperation confirming the expulsion of the petitioner from membership of a cooperative society.

Remedy Sought

The petitioner sought quashing of the order dated 24th June 1991 passed by the Minister of State for Cooperation and the orders of the Assistant Registrar and Divisional Joint Registrar confirming his expulsion.

Filing Reason

The petitioner was expelled from membership of respondent No. 2 cooperative society by a resolution of the general body, and his appeals and revision against the expulsion were dismissed.

Previous Decisions

The Assistant Registrar of Cooperative Societies confirmed the expulsion; the Divisional Joint Registrar confirmed the order; the Minister of State for Cooperation confirmed the orders in revision.

Issues

Whether the petitioner was afforded a reasonable opportunity of being heard before the order of expulsion was passed. Whether the orders of the authorities below and the Minister were vitiated by any procedural irregularity.

Submissions/Arguments

The petitioner argued that he was not given a proper hearing and that the orders were passed in violation of principles of natural justice. The respondents contended that the petitioner was heard and that the orders were passed after due consideration of the facts.

Ratio Decidendi

The court held that the petitioner was given sufficient opportunity to be heard and that there was no violation of principles of natural justice. The orders of the authorities below and the Minister were valid and did not warrant interference under Article 226 of the Constitution.

Judgment Excerpts

The petitioner was member of the respondent No. 2 Vividh Karyakari Seva Sahakari Society Limited – which deals in business of agricultural and other loans, etc. By this petition, he challenges order dated 24th June, 1991, rendered by Hon’ble Minister of State for Cooperation whereby the orders of the Divisional Joint Registrar and Assistant Registrar of Cooperative Societies were confirmed. The petitioner was given sufficient opportunity to be heard. The orders impugned are not vitiated by any procedural irregularity. Hence, the petition is dismissed. No order as to costs.

Procedural History

The petitioner was expelled by the general body of the cooperative society. He challenged the expulsion before the Assistant Registrar, who confirmed it. He appealed to the Divisional Joint Registrar, who also confirmed it. He then filed a revision before the Minister of State for Cooperation, who confirmed the orders on 24th June 1991. The petitioner then filed the present writ petition in the High Court.

Acts & Sections

  • Maharashtra Cooperative Societies Act, 1960: Section 154
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