Case Note & Summary
The petitioners, who were members of the Managing Committee of the Eighth Respondent cooperative society registered under the Maharashtra Cooperative Societies Act, 1960, challenged an order of the Assistant Registrar of Cooperative Societies dated 6 March 2004. The Assistant Registrar had held that resignations tendered by seven members of the Managing Committee on 17 and 18 January 2004 had come into force immediately upon being tendered, and that there was no provision for withdrawal of resignations. The facts revealed that on 7 December 2002, an election programme was declared for electing 13 members of the Managing Committee, but one post from Denotified Tribes remained unfilled. On 17 and 18 January 2004, seven members, including the four petitioners and Respondent Nos.1, 2 and 7, tendered their resignations to the Secretary. One member had expired, leaving only four members in office. On 19 January 2004, the Secretary forwarded the resignations to the Assistant Registrar. On 27 January 2004, the Assistant Registrar issued a show cause notice under Section 78 of the Act. Meanwhile, Respondent Nos.1, 2 and 7 withdrew their resignations. However, the Assistant Registrar passed an order on 6 March 2004, observing that there was no provision for withdrawal and that the resignations had taken effect immediately. The petitioners argued that under Section 78, a resignation from the Managing Committee is not effective until accepted by the Registrar, and that withdrawal before acceptance is permissible. The court agreed, holding that Section 78 requires the Registrar to accept the resignation, and until such acceptance, the resignation is not effective. The court noted that the Act and Rules do not prohibit withdrawal before acceptance. The court set aside the Assistant Registrar's order and allowed the withdrawal of resignations by Respondent Nos.1, 2 and 7. The writ petition was allowed, and the rule was made absolute.
Headnote
A) Cooperative Law - Resignation from Managing Committee - Section 78 of Maharashtra Cooperative Societies Act, 1960 - Effectiveness of Resignation - The court considered whether resignations of members of the Managing Committee of a cooperative society become effective immediately upon tendering or only upon acceptance by the Registrar under Section 78. The court held that under Section 78, a resignation from the Managing Committee is not effective until it is accepted by the Registrar, and the member can withdraw the resignation before such acceptance. The Assistant Registrar's order that the resignations had come into force immediately upon tendering was set aside. (Paras 2-5) B) Cooperative Law - Withdrawal of Resignation - Section 78 of Maharashtra Cooperative Societies Act, 1960 - Permissibility - The court held that there is no bar in the Act or Rules against withdrawal of a resignation before it is accepted by the Registrar. The Assistant Registrar erred in holding that there was no provision for withdrawal. The court allowed the withdrawal of resignations by Respondent Nos.1, 2 and 7. (Paras 3-5)
Issue of Consideration
Whether a resignation tendered by a member of the Managing Committee of a cooperative society under the Maharashtra Cooperative Societies Act, 1960 becomes effective immediately upon tendering or only upon acceptance by the Registrar under Section 78, and whether such resignation can be withdrawn before acceptance.
Final Decision
The court allowed the writ petition, set aside the order of the Assistant Registrar dated 6 March 2004, and held that the resignations of Respondent Nos.1, 2 and 7 were not effective as they had been withdrawn before acceptance by the Registrar. The rule was made absolute.
Law Points
- Resignation from Managing Committee of cooperative society is not effective until accepted by Registrar under Section 78 of Maharashtra Cooperative Societies Act
- 1960
- Withdrawal of resignation is permissible before acceptance
- Section 78 of MCS Act
