Bombay High Court Allows Petition in Cooperative Society Membership Dispute — Remands Matter for Fresh Consideration of Notice Service. The court held that the authorities must consider evidence of service of notice before refusing approval for removal of members under the Maharashtra Cooperative Societies Act, 1960.

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

The petitioner, Maharashtra Rajya Vidyut Mandal Karmachari Sahakari Pat Sanstha Maryadit, a cooperative society, challenged the order dated 30.7.2010 passed by the Divisional Joint Registrar, Cooperative Societies, Nagpur, dismissing Revision No.516 of 2010. The revision was filed against the order dated 10.9.2009 of the Assistant Registrar, Cooperative Societies, Hingna, refusing to grant approval to the society's resolution dated 14.10.2006 removing respondent nos.3 to 6 from membership. Both authorities recorded a finding that the society failed to establish that notices of the meeting dated 14.10.2006 were served upon the respondents. In the revision, the society specifically contended that acknowledgements of service were filed but the Assistant Registrar failed to consider them. The Divisional Joint Registrar also did not address this aspect. In the writ petition, the society raised the same ground, and the respondents (nos.1 and 2) did not file a reply to this averment. The High Court, noting that the acknowledgements were not considered, set aside the impugned orders and remanded the matter to the Assistant Registrar for fresh consideration, directing that the society be given an opportunity to produce evidence of service of notice. The court also directed the Assistant Registrar to decide the matter within three months from the date of appearance of the parties.

Headnote

A) Cooperative Law - Membership Removal - Service of Notice - Maharashtra Cooperative Societies Act, 1960 - Sections 27, 154 - The petitioner society sought approval for removal of respondent members. The Assistant Registrar and Divisional Joint Registrar refused approval on the ground that service of notice of the meeting was not established. The High Court found that the petitioner had raised a specific ground that acknowledgements of service were filed but not considered. The Court held that the authorities must consider the evidence of service and remanded the matter for fresh consideration. (Paras 3-4)

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Issue of Consideration

Whether the authorities below erred in refusing to grant approval for removal of members from a cooperative society without properly considering the evidence of service of notice.

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Final Decision

The High Court allowed the writ petition, set aside the orders dated 30.7.2010 and 10.9.2009, and remanded the matter to the Assistant Registrar, Cooperative Societies, Hingna, for fresh consideration. The Assistant Registrar was directed to give an opportunity to the petitioner to produce evidence of service of notice and decide the matter within three months from the date of appearance of the parties.

Law Points

  • Natural justice
  • Service of notice
  • Cooperative societies
  • Membership removal
  • Revision jurisdiction
  • Remand
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Case Details

2011 LawText (BOM) (06) 122

Writ Petition No.5541 of 2010

2011-06-15

R. K. Deshpande

Shri Sachin Sambre for Petitioners; Shri D.P.Thakre, AGP for Respondent Nos.1 & 2

Maharashtra Rajya Vidyut Mandal Karmachari Sahakari Pat Sanstha Maryadit, Hingna

Divisional Joint Registrar, Cooperative Societies, Nagpur; Assistant Registrar, Cooperative Societies, Hingna; Pandurang Meshram; Salim Shaikh; Ramesh Moon; Arvind Zodape

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Nature of Litigation

Writ petition challenging orders of cooperative authorities refusing to approve removal of members from a cooperative society.

Remedy Sought

Petitioner sought quashing of orders dated 30.7.2010 and 10.9.2009 and approval of resolution removing respondent nos.3 to 6 from membership.

Filing Reason

The authorities refused to grant approval for removal of members on the ground that service of notice of the meeting was not established, despite the petitioner claiming to have filed acknowledgements of service.

Previous Decisions

Assistant Registrar refused approval on 10.9.2009; Divisional Joint Registrar dismissed revision on 30.7.2010.

Issues

Whether the authorities below erred in not considering the acknowledgements of service of notice filed by the petitioner. Whether the impugned orders are sustainable in law.

Submissions/Arguments

Petitioner argued that acknowledgements of service of notice were filed before the Assistant Registrar but not considered. Respondent nos.1 and 2 did not file a reply to the averment regarding acknowledgements.

Ratio Decidendi

The authorities must consider the evidence of service of notice before refusing approval for removal of members. Failure to consider acknowledgements filed by the society vitiates the orders.

Judgment Excerpts

Both the authorities have recorded the finding that the petitioners have failed to establish that the notices of the meeting dated 14.10.2006 were served upon the respondent nos.3 to 6. In this petition, a specific ground is raised that the acknowledgements were filed about the issuance of notice to respondent nos.3 to 6 and the meeting held on 14.10.2006. However, there is no reply to the said averment by the respondent nos.1 and 2 in the affidavit filed before this Court.

Procedural History

The petitioner society passed a resolution on 14.10.2006 removing respondent nos.3 to 6 from membership. The Assistant Registrar refused approval on 10.9.2009. The petitioner filed Revision No.516 of 2010 before the Divisional Joint Registrar, who dismissed it on 30.7.2010. The petitioner then filed the present writ petition.

Acts & Sections

  • Maharashtra Cooperative Societies Act, 1960:
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