Case Note & Summary
The petitioner, a member of respondent No.2 society, was disqualified by the Deputy Registrar, Cooperative Societies, under Section 73CA(1)(d) of the Maharashtra Cooperative Societies Act, 1960, on the ground that he was a defaulter. The order dated 31/03/2017 was upheld by the Divisional Joint Registrar on 28/03/2018. The petitioner challenged both orders in a writ petition before the Bombay High Court. The sole ground raised by the petitioner was that there was no effective consultation with the federal society before the disqualification was ordered. The court considered the submissions of the advocates and noted that the Act had been amended by Maharashtra Act No.16/2013, and that disqualification of an individual member was now under Section 73CA(1)(d). The court examined the requirement of consultation with the federal society as per the Act and the judgments cited by the petitioner, namely Keshav Venkatrao Sathawane v. Minister of State for Cooperation and Narayan Kisanrao Samundre v. State of Maharashtra. The court found that the Deputy Registrar had not consulted the federal society before passing the disqualification order. Consequently, the court held that the disqualification was invalid and quashed both the orders. The writ petition was allowed, and rule was made absolute.
Headnote
A) Cooperative Law - Disqualification of Member - Section 73CA(1)(d) of Maharashtra Cooperative Societies Act, 1960 - Consultation with Federal Society - The Deputy Registrar disqualified the petitioner as a defaulter without consulting the federal society. The court held that consultation with the federal society is mandatory before ordering disqualification under Section 73CA(1)(d). Since no such consultation took place, the disqualification order was quashed and set aside. (Paras 1-6)
Issue of Consideration
Whether the disqualification of the petitioner under Section 73CA(1)(d) of the Maharashtra Cooperative Societies Act, 1960 is valid when there was no effective consultation with the federal society by the Deputy Registrar.
Final Decision
The writ petition is allowed. The impugned order dated 31/03/2017 passed by the Deputy Registrar, Cooperative Societies, and the order dated 28/03/2018 passed by the Divisional Joint Registrar, Cooperative Societies, are quashed and set aside. Rule is made absolute.
Law Points
- Consultation with federal society is mandatory before disqualifying a member under Section 73CA(1)(d) of the Maharashtra Cooperative Societies Act
- 1960
- Failure to consult renders disqualification order invalid
Case Details
2019 LawText (BOM) (03) 177
WRIT PETITION NO.4824 OF 2018
Mr.N.R.Solunke, Advocate for the petitioner; Mr.S.W.Munde, AGP for respondent Nos. 1,4 and 5; Mr.S.M.Gunjal, Advocate for respondent No.2 (Absent); Mr.N.S.Shah, Advocate for respondent No.3
Shaikh Naimuddin s/o Khajamoinoddin
Deputy Registrar Co.op.Societies, Aurangabad Taluka; Govt.Medical College and Hospital Employees Co.op.Credit Society Ltd., Aurangabad; Bhaskar s/o Jairam Bhalerao; The Divisional Joint Registrar, Co.op.Societies, Aurangabad; The State of Maharashtra
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Nature of Litigation
Writ petition challenging disqualification of a member of a cooperative society under Section 73CA(1)(d) of the Maharashtra Cooperative Societies Act, 1960.
Remedy Sought
Petitioner sought quashing of the disqualification order dated 31/03/2017 passed by the Deputy Registrar and the appellate order dated 28/03/2018 passed by the Divisional Joint Registrar.
Filing Reason
Petitioner was disqualified as a defaulter under Section 73CA(1)(d) without effective consultation with the federal society.
Previous Decisions
Deputy Registrar disqualified petitioner on 31/03/2017; Divisional Joint Registrar upheld the disqualification on 28/03/2018.
Issues
Whether the disqualification of the petitioner under Section 73CA(1)(d) of the Maharashtra Cooperative Societies Act, 1960 is valid when there was no effective consultation with the federal society by the Deputy Registrar.
Submissions/Arguments
Petitioner argued that there was no effective consultation with the federal society before the disqualification order was passed, relying on Keshav Venkatrao Sathawane v. Minister of State for Cooperation and Narayan Kisanrao Samundre v. State of Maharashtra.
Respondents did not contest the lack of consultation.
Ratio Decidendi
Consultation with the federal society is mandatory before disqualifying a member under Section 73CA(1)(d) of the Maharashtra Cooperative Societies Act, 1960. Failure to consult renders the disqualification order invalid.
Judgment Excerpts
The petitioner/member of respondent No.2/Society is aggrieved by the order dated 31/03/2017, passed by the Deputy Registrar, Co operative Societies, thereby disqualifying him in view of he being a defaulter u/s 73CA(1)(d) of the Amended Maharashtra Cooperative Societies Act, 1960.
Learned Advocate for the petitioner has frankly stated that he is challenging his disqualification only on one ground, which is, that there was no effective consultation with the federal society by the Deputy Registrar, Cooperative Societies, before ordering his disqualification.
In the light of the above, this petition is allowed. The impugned order dated 31/03/2017 passed by the Deputy Registrar, Cooperative Societies and the order dated 28/03/2018 passed by the Divisional Joint Registrar, Cooperative Societies, are quashed and set aside. Rule is made absolute.
Procedural History
The Deputy Registrar, Cooperative Societies, passed an order on 31/03/2017 disqualifying the petitioner under Section 73CA(1)(d) of the Maharashtra Cooperative Societies Act, 1960. The petitioner appealed to the Divisional Joint Registrar, who upheld the disqualification on 28/03/2018. The petitioner then filed a writ petition before the Bombay High Court, which was heard and decided on 18/03/2019.
Acts & Sections
- Maharashtra Cooperative Societies Act, 1960: 73CA(1)(d), 73FF(1)(i), 78(1)
