Case Note & Summary
The petitioners, members of the managing committee of a co-operative society, challenged the order dated 12.4.2005 passed by the Minister for Co-operation, Maharashtra State, in revision, which confirmed the supersession of the committee under Section 78 of the Maharashtra Co-operative Societies Act, 1960. The show cause notice for supersession contained two charges: (i) failure to execute a bond as required under Section 73(1AB) of the Act, and (ii) failure to submit such bond to the Registrar. The Deputy Registrar, after considering the reply, found that out of six managing committee members, four had submitted their bonds on 11.8.2003 and two on 2.10.2004. On appeal, the Divisional Joint Registrar differed from the Deputy Registrar on the vital aspect of compliance, observing that the committee had not executed the Joint Liability Bond in Form M-20 as statutorily required under Section 73(1AB) read with Rule 58A, yet still found no reason to interfere and confirmed the order. When the matter was carried in revision before the Minister for Co-operation, the petitioners agitated the point of compliance of Section 73(1AB), but the revisional authority admittedly did not advert to this aspect and gave no finding thereon. The High Court noted that Section 73(1AB) imposes joint and several responsibility on committee members for decisions and acts, and requires execution of a bond. The court held that the revisional authority must consider the compliance of the statutory provisions under which the show cause notice was issued. Since the Minister failed to consider the compliance of Section 73(1AB), the order was vitiated. The court set aside the Minister's order and remanded the matter for fresh consideration, directing the Minister to decide the revision application afresh after hearing the parties and considering the compliance of Section 73(1AB). The writ petition was allowed to that extent.
Headnote
A) Co-operative Law - Supersession of Managing Committee - Section 78 read with Section 73(1AB) of the Maharashtra Co-operative Societies Act, 1960 - Requirement of Joint Liability Bond - The petitioners challenged the order of supersession passed under Section 78 of the Act. The show cause notice alleged non-execution of bond under Section 73(1AB). The Deputy Registrar found that four out of six members had submitted bonds on 11.8.2003 and two on 2.10.2004. The Divisional Joint Registrar differed on the aspect of compliance but still confirmed the order. The Minister for Co-operation in revision did not advert to the compliance of Section 73(1AB) at all. Held that the revisional authority must consider the compliance of statutory requirements before confirming supersession; failure to do so vitiates the order. (Paras 2-7) B) Co-operative Law - Revisional Authority's Duty - Section 154 of the Maharashtra Co-operative Societies Act, 1960 - The revisional authority must give a finding on the compliance of the statutory provisions under which the show cause notice was issued. In this case, the Minister failed to consider the compliance of Section 73(1AB) regarding the joint liability bond. Held that the order of the Minister is set aside and the matter is remanded for fresh consideration. (Paras 5-7)
Issue of Consideration
Whether the revisional authority (Minister for Co-operation) erred in not considering the compliance of Section 73(1AB) of the Maharashtra Co-operative Societies Act, 1960 regarding execution of joint liability bond before confirming the supersession of the managing committee.
Final Decision
The High Court allowed the writ petition, set aside the order dated 12.4.2005 passed by the Minister for Co-operation, and remanded the matter for fresh consideration. The Minister was directed to decide the revision application afresh after hearing the parties and considering the compliance of Section 73(1AB) of the Maharashtra Co-operative Societies Act, 1960.
Law Points
- Section 73(1AB) of the Maharashtra Co-operative Societies Act
- 1960 requires committee members to execute a joint liability bond in Form M-20
- failure to consider compliance vitiates supersession order
