Case Note & Summary
The petitioners, members of the Deonar Industrial Premises Co-operative Society Limited, challenged the appointment of Respondent No. 3, Ganesh Gosavi, as the Authorised Officer under Section 77A of the Maharashtra Co-operative Societies Act, 1960 (MCS Act). The appointment was made by the Deputy Registrar, Co-operative Societies, M Ward, without issuing any show cause notice or affording an opportunity of hearing to the society. The petitioners contended that the appointment was arbitrary and in violation of the principles of natural justice and the statutory scheme under Section 77A. The court examined the provisions of Section 77A, which empowers the Registrar to appoint an authorised officer to manage the affairs of a society if it is necessary in the public interest or to prevent mismanagement. The court noted that the section requires the Registrar to form an opinion based on material and pass a reasoned order. The court held that the power under Section 77A is a drastic power and must be exercised in compliance with the principles of natural justice, which include giving a show cause notice and an opportunity of hearing to the society before appointing an authorised officer. The court found that no such notice was given and no reasons were recorded in the order appointing the authorised officer. Consequently, the court quashed the appointment and directed the respondents to follow the proper procedure if they wished to proceed further. The writ petition was allowed.
Headnote
A) Co-operative Law - Appointment of Authorised Officer under Section 77A of MCS Act - Compliance with Statutory Procedure - The court considered whether the appointment of an authorised officer under Section 77A of the Maharashtra Co-operative Societies Act, 1960, without issuing a show cause notice and without affording an opportunity of hearing to the society, is valid. Held that the statutory scheme under Section 77A requires the authority to form an opinion based on material and pass a reasoned order, which implies an opportunity of hearing to the society before appointment. The appointment was quashed for non-compliance with principles of natural justice and statutory requirements. (Paras 1-10)
Issue of Consideration
Whether the appointment of an authorised officer under Section 77A of the Maharashtra Co-operative Societies Act, 1960, without issuing a show cause notice and without affording an opportunity of hearing to the society, is valid in law.
Final Decision
The court allowed the writ petition, quashing the appointment of Respondent No. 3 as Authorised Officer. The respondents were directed to follow the proper procedure under Section 77A, including issuing a show cause notice and affording an opportunity of hearing, if they wished to proceed further.
Law Points
- Section 77A of Maharashtra Co-operative Societies Act
- 1960
- appointment of authorised officer
- compliance with statutory procedure
- natural justice
- opportunity of hearing
- show cause notice
- reasoned order
