Case Note & Summary
The petitioners, Ravindra Bhaurao Patil Shishode and Subhash Marutirao Patil Shishode, filed a writ petition challenging the order dated 30 July 2009 passed by the Hon'ble Minister (Cooperation) in Revision Application No. 254/2009. By that order, the Minister dismissed the revision and confirmed the order dated 8 May 2009 passed by the Divisional Joint Registrar (Cooperative Societies), Aurangabad, in Appeal No. 8/2009. The appellate order had set aside the disqualification of respondents No. 6 and 7 (Bhagchand Manik Dolas and Machindra Vithal Wagh) as directors of the V.K.S.S., Dhakephal, and directed appointment of an administrator to run the affairs of the society. The Assistant Registrar, Cooperative Societies, Paithan, had earlier disqualified respondents No. 6 and 7 under Section 78 of the Maharashtra Cooperative Societies Act, 1960. The petitioners contended that the disqualification was valid and the appellate and revisional orders were erroneous. The respondents argued that the disqualification was passed without proper inquiry and in violation of principles of natural justice. The court examined the records and found that the Assistant Registrar had not conducted any inquiry as required under Section 83 of the Act and had not given an opportunity of hearing to the disqualified directors. The Divisional Joint Registrar in appeal had rightly set aside the disqualification and directed appointment of an administrator. The Minister in revision had correctly confirmed the appellate order. The High Court held that the impugned order did not suffer from any legal infirmity and dismissed the writ petition. The court emphasized that disqualification of directors must be preceded by a proper inquiry and adherence to natural justice.
Headnote
A) Cooperative Law - Disqualification of Directors - Section 78 of Maharashtra Cooperative Societies Act, 1960 - Natural Justice - The Assistant Registrar disqualified respondents No. 6 and 7 without proper inquiry and without giving them an opportunity of being heard. The Divisional Joint Registrar in appeal set aside the disqualification and directed appointment of an administrator. The Minister in revision confirmed the appellate order. Held that the disqualification order was passed in violation of principles of natural justice and the appellate and revisional orders were justified. (Paras 1-10) B) Cooperative Law - Revision Powers - Section 154 of Maharashtra Cooperative Societies Act, 1960 - Scope - The State Minister in revision can examine the legality and propriety of the appellate order. The Minister found no infirmity in the appellate order and dismissed the revision. Held that the revision was rightly dismissed as the appellate order was based on proper appreciation of facts and law. (Paras 1-10)
Issue of Consideration
Whether the order of disqualification of respondents No. 6 and 7 as directors of the cooperative society was validly passed and whether the revision order of the Minister confirming its revocation was legal.
Final Decision
The High Court dismissed the writ petition, upholding the order of the Minister and the Divisional Joint Registrar. The disqualification of respondents No. 6 and 7 was set aside and the direction to appoint an administrator was confirmed.
Law Points
- Principles of natural justice
- Disqualification of directors
- Cooperative societies
- Revision powers of State Minister
- Inquiry under Section 83 of MCS Act
