Case Note & Summary
The petitioners, seven individuals who were former members of the managing committee of Shilpa Premises Co-operative Society Limited, challenged an order dated 30th June 2018 passed by the Deputy Registrar, Co-operative Societies, Mumbai, which removed them from the committee and appointed an administrator to manage the society's affairs. The petitioners contended that the order was passed without any show cause notice or opportunity of hearing, in gross violation of principles of natural justice and Section 78 of the Maharashtra Co-operative Societies Act, 1960. The respondent No. 1, a member of the society, had filed a complaint alleging mismanagement, but the Deputy Registrar acted without hearing the petitioners. The court examined the provisions of Section 78, which requires the Registrar to give a show cause notice and reasonable opportunity before removing a committee. The court found that the impugned order did not mention any show cause notice or hearing, and the record did not indicate any such compliance. The court held that the order was unsustainable and set it aside, restoring the status quo ante as of the date of the order. The court clarified that the Deputy Registrar could proceed afresh in accordance with law after giving due opportunity to all concerned.
Headnote
A) Co-operative Law - Removal of Committee Members - Section 78 of the Maharashtra Co-operative Societies Act, 1960 - Natural Justice - The Deputy Registrar removed the petitioners from the managing committee and appointed an administrator without issuing any show cause notice or giving an opportunity of hearing. The court held that such action is violative of principles of natural justice and the statutory requirement under Section 78, which mandates a show cause notice and reasonable opportunity before removal. (Paras 1-10) B) Co-operative Law - Appointment of Administrator - Section 78 of the Maharashtra Co-operative Societies Act, 1960 - Validity - The appointment of an administrator by the Deputy Registrar was based on the same order that removed the committee members. Since the removal was set aside for violation of natural justice, the appointment of the administrator also fell. The court directed status quo ante to be restored. (Paras 11-15)
Issue of Consideration
Whether the removal of the petitioners as members of the managing committee of the respondent society and the appointment of an administrator by the Deputy Registrar, Co-operative Societies, without issuing a show cause notice and without affording an opportunity of hearing, is valid in law.
Final Decision
The court allowed the writ petition, quashed and set aside the impugned order dated 30th June 2018, and directed restoration of the status quo ante as of that date. The Deputy Registrar was given liberty to proceed afresh in accordance with law after giving due opportunity to all concerned.
Law Points
- Principles of natural justice
- Show cause notice
- Opportunity of hearing
- Section 78 Maharashtra Co-operative Societies Act
- 1960
- Appointment of Administrator
- Removal of committee members
- Co-operative society management
