Case Note & Summary
The petitioners, who were members of the Umrane Agricultural Produce Market Committee, challenged the order of supersession of the committee passed by the District Deputy Registrar, Cooperative Societies, Nashik. The order was passed under Section 14(1) of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963. The petitioners contended that the order was passed without issuing any show cause notice and without affording an opportunity of hearing to the committee, thereby violating the principles of natural justice. The respondents argued that the committee had failed to perform its duties and that the supersession was necessary in the public interest. The court examined the provisions of Section 14(1) and noted that it explicitly requires the authority to issue a show cause notice and consider the explanation before passing an order of supersession. The court held that the requirement is mandatory and not directory. Since no show cause notice was issued and no opportunity of hearing was given, the order was quashed and set aside. The court allowed the petition and directed the respondents to restore the committee to its position prior to the impugned order.
Headnote
A) Administrative Law - Natural Justice - Show Cause Notice - Supersession of Market Committee - Section 14(1) of Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 - The order of supersession of the Agricultural Produce Market Committee was passed without issuing a show cause notice and without affording an opportunity of hearing to the committee. The court held that the requirement of issuing a show cause notice and giving an opportunity of hearing is mandatory and not directory. The order was quashed and set aside. (Paras 1-25) B) Cooperative Law - Supersession of Committee - Statutory Interpretation - Section 14(1) of Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 - The court interpreted Section 14(1) and held that the power of supersession can be exercised only after following the procedure prescribed, which includes issuance of a show cause notice and consideration of the explanation. The failure to comply with the statutory requirement vitiates the order. (Paras 1-25)
Issue of Consideration
Whether the order of supersession of the Agricultural Produce Market Committee, Umrane, passed under Section 14(1) of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963, without issuing a show cause notice and affording an opportunity of hearing to the committee, is sustainable in law.
Final Decision
The petition is allowed. The impugned order of supersession is quashed and set aside. The respondents are directed to restore the committee to its position prior to the impugned order.
Law Points
- Natural justice
- Show cause notice
- Supersession of market committee
- Section 14(1) of Maharashtra Agricultural Produce Marketing (Development and Regulation) Act
- 1963
- Opportunity of hearing
- Compliance with statutory requirement
