Case Note & Summary
The petitioners, Assisi Co-operative Housing Society Limited and its committee members (petitioners 2 to 7), challenged an order dated 9th February 2005 passed by the State Government in revision. The revision was filed by respondent no.4, and the Government held that petitioners 2 to 7 had ceased to be members of the managing committee by virtue of sub-section (1AB) of Section 73 of the Maharashtra Co-operative Societies Act, 1961. The facts are that elections to the committee were held in October/November 2002, and petitioners 2 to 7 were elected and took charge on 3rd November 2002. Under Section 73(1AB), each committee member is required to execute a bond in the prescribed form within 15 days of assuming office, failing which they are deemed to have vacated office. Petitioners 2 to 7 did not execute the bond within the statutory period (by 15th November 2002). A complaint was filed by respondent no.5 to the Deputy Registrar, who issued a show cause notice on 24th June 2003, received by petitioners on 17th July 2003. After receipt of the notice, the petitioners executed the bond on 18th July 2003. The Deputy Registrar, by order dated 30th September 2003, held that since the bond was executed after the statutory period, the petitioners 2 to 7 were deemed to have vacated office. The petitioners filed a revision before the State Government, which was dismissed by the impugned order. The High Court considered the legal issue of whether the requirement under Section 73(1AB) is mandatory and whether subsequent execution can cure the default. The court held that the provision is mandatory and the failure to execute the bond within 15 days results in automatic deemed vacation. The subsequent execution of the bond does not revive the membership. The court also noted that the revisional authority correctly applied the law. The petition was dismissed.
Headnote
A) Co-operative Societies - Deemed Vacation of Office - Section 73(1AB) of Maharashtra Co-operative Societies Act, 1961 - Mandatory Bond Execution - The provision requiring execution of a bond within 15 days of assuming office is mandatory and failure results in automatic deemed vacation. Subsequent execution of the bond does not cure the default. (Paras 1-5) B) Co-operative Societies - Revision - Section 154 of Maharashtra Co-operative Societies Act, 1961 - Scope of Revision - The State Government in revision can examine the legality and propriety of the order passed by the subordinate authority. The revisional authority can set aside an order that is contrary to law. (Para 4) C) Co-operative Societies - Removal of Committee Members - Section 78(2) of Maharashtra Co-operative Societies Act, 1961 - Applicability - Where a member is deemed to have vacated office under Section 73(1AB), there is no need for a separate proceeding under Section 78(2) for removal. The deemed vacation operates automatically. (Para 5)
Issue of Consideration
Whether the failure to execute the bond under Section 73(1AB) of the Maharashtra Co-operative Societies Act, 1961 within the prescribed 15-day period results in automatic deemed vacation of office, and whether subsequent execution of the bond can cure the default.
Final Decision
The High Court dismissed the writ petition, upholding the order of the State Government that petitioners 2 to 7 had ceased to be members of the managing committee by virtue of Section 73(1AB) of the Maharashtra Co-operative Societies Act, 1961.
Law Points
- Mandatory requirement of executing bond within 15 days of assuming office
- Deemed vacation of office for non-compliance
- Section 73(1AB) of Maharashtra Co-operative Societies Act
- 1961
- Section 78(2) of the Act
- Revisionary powers of State Government under Section 154 of the Act
