Case Note & Summary
The petitioners, members of the managing committee of Chandralok Gruha Nirman Sahakari Sanstha Ltd., challenged the order dated 16/11/2010 passed by the Divisional Joint Registrar, Cooperative Societies, Amravati, which dismissed their appeal against the order dated 13/8/2010 of the Assistant Registrar superseding the society under Section 78 of the Maharashtra Cooperative Societies Act, 1960. The proceedings under Section 78 were initiated on the complaint of respondent no.4, Narayan Mukundrao Deshmukh, who claimed to be the heir of the original member Smt. Vastalabai Deshmukh. Despite directions issued by the Registrar from time to time, the society failed to grant him membership. The authorities below, considering the non-compliance, superseded the managing committee. The High Court, after hearing the parties, noted that the petitioners' counsel initially sought time to take instructions regarding compliance. On the next date, the counsel stated that the society was willing to grant membership to respondent no.4 in respect of the plot in question. The court observed that since the society had now expressed willingness to comply, the purpose of the petition was served. The court dismissed the petition as having become infructuous, but clarified that the society must grant membership to respondent no.4 within four weeks. The court also directed that the Administrator appointed pursuant to the supersession order shall hand over charge to the newly elected managing committee after the membership is granted and elections are held.
Headnote
A) Cooperative Law - Supersession of Managing Committee - Section 78 of Maharashtra Cooperative Societies Act, 1960 - Non-compliance of Registrar's Directions - The managing committee of a cooperative housing society was superseded for failing to grant membership to the legal heir of a deceased member despite repeated directions from the Registrar. The court held that the authorities below were justified in exercising powers under Section 78 as the non-compliance was willful and continued. (Paras 2-4)
Issue of Consideration
Whether the Divisional Joint Registrar was justified in dismissing the appeal and upholding the order of supersession of the managing committee under Section 78 of the Maharashtra Cooperative Societies Act, 1960 for failure to grant membership to the legal heir of a deceased member despite repeated directions.
Final Decision
The petition was dismissed as having become infructuous. The court directed the society to grant membership to respondent no.4 within four weeks. The Administrator appointed pursuant to the supersession order shall hand over charge to the newly elected managing committee after membership is granted and elections are held.
Law Points
- Supersession of managing committee under Section 78 of Maharashtra Cooperative Societies Act
- 1960
- Non-compliance of directions issued by Registrar
- Membership rights of legal heir of deceased member
Case Details
2011 LawText (BOM) (08) 112
WRIT PETITION NO.1179 OF 2011
Mr.R.M.Pande for petitioners, Mr.A.S.Mardikar for respondent no.4
Shri Jagdish Gajdhar Khetan and others
The Divisional Joint Registrar, Cooperative Societies, Amravati and others
Subscribe to unlock Case Details (Citation, Judge, Date & more)
Subscribe Now
Nature of Litigation
Writ petition under Articles 226 and 227 of Constitution of India challenging order of Divisional Joint Registrar dismissing appeal against supersession of managing committee under Section 78 of Maharashtra Cooperative Societies Act, 1960.
Remedy Sought
Petitioners sought quashing of order dated 16/11/2010 passed by Divisional Joint Registrar and order dated 13/8/2010 passed by Assistant Registrar superseding the society.
Filing Reason
The managing committee was superseded for failing to grant membership to respondent no.4, the legal heir of a deceased member, despite repeated directions from the Registrar.
Previous Decisions
Assistant Registrar passed order dated 13/8/2010 superseding the society under Section 78. Appeal against that order was dismissed by Divisional Joint Registrar on 16/11/2010.
Issues
Whether the Divisional Joint Registrar was justified in dismissing the appeal and upholding the order of supersession under Section 78 of the Maharashtra Cooperative Societies Act, 1960.
Submissions/Arguments
Petitioners' counsel initially sought time to take instructions regarding compliance. Later, counsel stated that the society was willing to grant membership to respondent no.4 in respect of the plot in question.
Ratio Decidendi
Non-compliance of directions issued by the Registrar under the Maharashtra Cooperative Societies Act, 1960, especially regarding membership rights of legal heirs, justifies supersession of the managing committee under Section 78. However, if the society expresses willingness to comply, the petition becomes infructuous and the court may direct compliance within a specified period.
Judgment Excerpts
The above petition under Articles 226 and 227 of the Constitution of India has been filed challenging the order dated 16/11/2010 passed by the Divisional Joint Registrar, Cooperative Societies, Amravati, by which order the Appeal filed by the petitioner against the order passed by the Assistant Registrar dated 13/8/2010 superseding the Society by having recourse to Section 78 of the Maharashtra Cooperative Societies’ Act, 1960 came to be dismissed.
Today, when the matter is called out, the learned counsel Shri Ravi Pande appearing for the petitioners, states that in respect of the plot in question, which was allotted to original member Smt.Vastalabai Deshmukh, the Society is willing to grant membership to the respondent no.4.
Procedural History
Assistant Registrar passed order dated 13/8/2010 superseding the society under Section 78 of Maharashtra Cooperative Societies Act, 1960. Petitioners filed appeal before Divisional Joint Registrar, which was dismissed on 16/11/2010. Petitioners then filed writ petition under Articles 226 and 227 of Constitution of India before the High Court.
Acts & Sections
- Maharashtra Cooperative Societies Act, 1960: 78
- Constitution of India: 226, 227
