Case Note & Summary
The petitioner, Vithal Nagar Co-operative Housing Society Ltd., challenged an order-cum-show cause notice dated 9.11.2011 issued by the Deputy Registrar, Co-operative Societies, K-West Ward, Mumbai, and the subsequent order dated 17.1.2012 of the Divisional Joint Registrar, Co-operative Societies, Mumbai Division, passed in revision. The Deputy Registrar's notice recorded that seven out of nine managing committee members elected in 2006 had failed to execute bonds as per Rule 58-A of the Maharashtra Co-operative Societies Act, 1960, and therefore, under Section 73(1AB) of the Act, they ceased to be members of the managing committee. Consequently, the managing committee had become minority, and the members were called upon to show cause why they should not be removed under Section 78 of the Act. The petitioner initially filed Writ Petition No.10091 of 2011, and the Division Bench stayed the show cause notice for two weeks, directing the petitioner to approach the revisional authority under Section 154. The revisional authority dismissed the revision, upholding the Deputy Registrar's order. The High Court held that the Deputy Registrar had no jurisdiction to record a finding of disqualification under Section 73(1AB) without conducting a proper inquiry and without giving an opportunity of hearing to the affected members. The order-cum-show cause notice was invalid as it pre-judged the issue. The court quashed both the show cause notice and the revisional order, allowing the writ petition.
Headnote
A) Co-operative Law - Disqualification of Managing Committee Members - Section 73(1AB) of Maharashtra Co-operative Societies Act, 1960 - Jurisdiction of Deputy Registrar - The Deputy Registrar cannot record a finding of disqualification under Section 73(1AB) without conducting a proper inquiry and without affording an opportunity of hearing to the affected members. The order-cum-show cause notice that simultaneously records a finding of disqualification and calls for explanation is invalid as it pre-judges the issue. (Paras 5-7) B) Co-operative Law - Show Cause Notice - Validity - Section 78 of Maharashtra Co-operative Societies Act, 1960 - The show cause notice under Section 78 must be preceded by a valid finding of disqualification under Section 73(1AB). If the finding of disqualification is recorded without jurisdiction, the subsequent show cause notice under Section 78 is also vitiated. (Paras 5-7) C) Co-operative Law - Revision - Section 154 of Maharashtra Co-operative Societies Act, 1960 - The finding of disqualification under Section 73(1AB) is appealable by way of revision under Section 154. The revisional authority must consider the validity of the finding before proceeding with the show cause notice. (Para 4)
Issue of Consideration
Whether the Deputy Registrar had jurisdiction to record a finding of disqualification under Section 73(1AB) of the Maharashtra Co-operative Societies Act, 1960, without prior inquiry and without giving an opportunity of hearing to the affected members, and whether the order-cum-show cause notice was valid.
Final Decision
The High Court allowed the writ petition, quashing the order-cum-show cause notice dated 9.11.2011 and the revisional order dated 17.1.2012. Rule made absolute.
Law Points
- Jurisdiction of Deputy Registrar
- Disqualification under Section 73(1AB)
- Show Cause Notice
- Revision under Section 154
- Natural Justice
