Case Note & Summary
The Bombay High Court dealt with two writ petitions challenging an order dated 21st December 2004 passed by the Divisional Joint Registrar of Co-operative Societies under Section 77A of the Maharashtra Co-operative Societies Act, 1960. The order appointed an administrator for the Mumbai District Central Co-operative Bank for six months. The petitioners were directors of the bank. The background involved an election to the Board of Directors held on 24th June 1999, with the term due to expire on 4th July 2004. The bank had requested the Collector to initiate elections, but the State Government postponed elections due to parliamentary elections. The Divisional Joint Registrar passed the impugned order without issuing any notice or affording a hearing to the directors. The legal issue was whether such an order could be sustained without compliance with natural justice. The court found that the order was manifestly inconsistent with law and in excess of jurisdiction, as Section 77A requires adherence to principles of natural justice. The court set aside the order and allowed the petitions.
Headnote
A) Co-operative Law - Appointment of Administrator - Section 77A Maharashtra Co-operative Societies Act, 1960 - Natural Justice - The Divisional Joint Registrar appointed an administrator for the Mumbai District Central Co-operative Bank without issuing any notice or providing an opportunity of hearing to the Board of Directors. The Court held that such an order is manifestly inconsistent with the provisions of law and in excess of jurisdiction under Section 77A, as the power under Section 77A must be exercised in conformity with principles of natural justice. (Paras 1-3)
Issue of Consideration
Whether the order passed by the Divisional Joint Registrar under Section 77A of the Maharashtra Co-operative Societies Act, 1960 appointing an administrator without issuing notice or affording an opportunity of hearing is valid.
Final Decision
The court allowed the writ petitions and set aside the order dated 21st December 2004 passed by the Divisional Joint Registrar.
Law Points
- Natural justice
- Section 77A Maharashtra Co-operative Societies Act
- 1960
- Appointment of administrator
- Notice and hearing
- Jurisdictional error
