Case Note & Summary
The petitioner, The Ordnance Factory Karmachari Sahakari Pat Sanstha, a cooperative society registered under the Maharashtra Cooperative Societies Act, 1960, filed a writ petition under Articles 226 and 227 of the Constitution of India challenging the order dated 9/3/2011 passed by the Maharashtra State Cooperative Appellate Court, Bench at Nagpur. The respondent, Mandeepsing Kohli, was elected as a Director of the petitioner society on 4/4/2010. He remained absent from four consecutive meetings of the Managing Committee held on 28/5/2010, 7/6/2010, 19/6/2010, and 26/6/2010, violating Bye-law No. 40. A show cause notice was issued on 2/7/2010, and he was removed as a member of the Managing Committee by resolution No. 10 dated 16/7/2010. The respondent filed Dispute No. 595 of 2010 challenging the resolution and sought interim stay. The Cooperative Court rejected the stay application on 25/8/2010, finding that prima facie the respondent had absented himself from four consecutive meetings. The respondent appealed to the Cooperative Appellate Court, which allowed the appeal and granted stay solely on the ground that the meeting dated 26/6/2010 was cancelled for want of coram. The High Court held that the Appellate Court erred in ignoring the other three meetings and that the respondent had not made out a prima facie case for stay. The balance of convenience was in favor of the society. The High Court allowed the writ petition, set aside the Appellate Court's order, and restored the Cooperative Court's order rejecting the stay.
Headnote
A) Cooperative Law - Disqualification of Director - Absence from Consecutive Meetings - Bye-law 40 of the Society - The petitioner society disqualified the respondent director for remaining absent from four consecutive meetings. The Cooperative Appellate Court granted interim stay solely because one meeting (26/6/2010) was cancelled for want of coram. The High Court held that the Appellate Court erred in ignoring the other three meetings and that the respondent had not made out a prima facie case for stay. (Paras 2-6) B) Interim Relief - Prima Facie Case - Balance of Convenience - The High Court held that the Cooperative Appellate Court failed to consider the prima facie case and balance of convenience. Since the respondent admitted absence from three meetings, the disqualification was justified. The stay was set aside. (Paras 5-6)
Issue of Consideration
Whether the Cooperative Appellate Court was justified in granting interim stay of the resolution disqualifying the respondent as a director, solely on the ground that one of the four meetings was cancelled for want of coram, without considering the other three meetings.
Final Decision
The High Court allowed the writ petition, set aside the order dated 9/3/2011 of the Maharashtra State Cooperative Appellate Court, and restored the order dated 25/8/2010 of the Cooperative Court rejecting the stay application.
Law Points
- Cooperative society
- disqualification of director
- absence from consecutive meetings
- bye-law 40
- interim stay
- prima facie case
- balance of convenience
- cancellation of meeting for want of coram
