Case Note & Summary
The petitioner, Sau. Aruna Bhagwant Tiple, was an ex-director of respondent no. 3, Chakradhar Swami Nagri Sahakri Pata Sanstha Limited, a cooperative credit society. She was removed from her directorship by an order dated 11.03.2010 under Section 78(1) of the Maharashtra Cooperative Societies Act, 1960 (MCS Act) on the ground of disqualification under Section 73FF(1)(vi) of the Act. The disqualification was declared by respondent no. 2, the District Deputy Registrar, Cooperative Societies, Nagpur, after noticing that the petitioner was working as a pigmy agent for the same society, earning commission, which was considered an office of profit leading to conflict of interest. Her appeal under Section 152 of the MCS Act was dismissed on 24.05.2010. The petitioner challenged both orders by way of a writ petition under Articles 226 and 227 of the Constitution of India. The petitioner argued that she was a director, not a salaried employee, and that the concept of office of profit under Section 73FF(1) applies only to offices held under the Government, Municipality, or Local Authority, and not to a cooperative society. She further contended that commission earned as a pigmy agent is neither salary nor remuneration, and therefore, the disqualification was unwarranted. The respondents, including the Divisional Joint Registrar, the District Deputy Registrar, the society, and two individuals, opposed the petition. The court, after hearing arguments, held that the term 'office of profit' under Section 73FF(1)(vi) is broad enough to include any position that yields pecuniary gain, whether by way of salary, remuneration, or commission. The court noted that the provision is intended to prevent conflict of interest, and a director who also works as a pigmy agent for the same society clearly has a conflict. The court relied on the Supreme Court judgments in Shibu Soren v. Dayanand Sahay and Jaya Bacchan v. Union of India, as well as a Division Bench judgment of the Bombay High Court in Murlidhar Bhaulal Malu's case. The court dismissed the petition, upholding the removal and the dismissal of the appeal.
Headnote
A) Cooperative Societies - Disqualification of Director - Office of Profit - Section 73FF(1)(vi) Maharashtra Cooperative Societies Act, 1960 - The petitioner, a director of a cooperative credit society, was also working as a pigmy agent earning commission. The court held that the term 'office of profit' under Section 73FF(1)(vi) includes any position that yields pecuniary gain, whether by way of salary, remuneration, or commission. The disqualification is not confined to salaried employees but extends to any office of profit under the society. The court reasoned that the provision aims to prevent conflict of interest, and a pigmy agent's commission constitutes profit. The removal was upheld. (Paras 1-5)
Issue of Consideration
Whether a director of a cooperative credit society who also works as a pigmy agent on commission basis is disqualified under Section 73FF(1)(vi) of the Maharashtra Cooperative Societies Act, 1960.
Final Decision
The writ petition is dismissed. The removal order dated 11.03.2010 and the dismissal of appeal dated 24.05.2010 are upheld.
Law Points
- Disqualification under Section 73FF(1)(vi) of MCS Act applies to any office of profit
- including commission-based agency
- concept of office of profit not limited to salaried employment
- conflict of interest arises when director also works as pigmy agent for same society.
