Bombay High Court Allows Petition Challenging Cooperative Society's Bye-Law Amendment for Non-Compliance with Section 22 of Maharashtra Co-operative Societies Act, 1960. Amendment to Bye-Law 26(c) set aside as notice of meeting did not contain proposed amendment.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The petitioner, Sadguru University CHS Ltd., filed a writ petition challenging the amendment to Bye-Law 26(c) of the respondent society, Sadguru Premises Co-op. Society Ltd., passed at a general body meeting on 30.06.2024. The petitioner contended that the notice dated 15.06.2024 for the meeting did not contain the text of the proposed amendment, violating Section 22 of the Maharashtra Co-operative Societies Act, 1960, which requires 14 days' notice specifying the proposed amendment. The respondents argued that the notice was sufficient as it mentioned 'amendment in Bye-Law No.26(c)'. The court analyzed Section 22 and held that the notice must set out the proposed amendment, not merely refer to it. Since the notice failed to do so, the amendment was invalid. The court allowed the petition, setting aside the resolution and directing the society to follow proper procedure if it wishes to amend the bye-law again.

Headnote

A) Co-operative Law - Amendment of Bye-Laws - Notice Requirement - Section 22 of the Maharashtra Co-operative Societies Act, 1960 - The court considered whether an amendment to Bye-Law 26(c) of a housing society was valid when the notice of the general body meeting did not specify the proposed amendment. The court held that the requirement of 14 days' notice under Section 22 is mandatory and must contain the text of the proposed amendment. Since the notice only mentioned 'amendment in Bye-Law No.26(c)' without setting out the amendment, the amendment was invalid. (Paras 5-8)

B) Co-operative Law - Bye-Law Amendment - Validity of Meeting - Section 22 of the Maharashtra Co-operative Societies Act, 1960 - The court examined whether the general body meeting held on 30.06.2024 was validly convened. The court found that the notice dated 15.06.2024 did not comply with Section 22 as it did not contain the proposed amendment. Consequently, the meeting and the resolution passed were set aside. (Paras 6-8)

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Issue of Consideration

Whether the amendment to Bye-Law 26(c) of the respondent society was validly passed in compliance with Section 22 of the Maharashtra Co-operative Societies Act, 1960, which requires 14 days' notice of the proposed amendment.

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Final Decision

The court allowed the petition, setting aside the resolution passed at the general body meeting on 30.06.2024 amending Bye-Law 26(c). The respondents were directed to follow the procedure under Section 22 if they wish to amend the bye-law again.

Law Points

  • Notice requirement for amendment of bye-laws
  • Section 22 Maharashtra Co-operative Societies Act
  • 1960
  • Mandatory notice period
  • Compliance with statutory provisions
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Case Details

2025 LawText (BOM) (11) 67

Writ Petition No.18153 of 2024

0000-00-00

Sadguru University CHS Ltd.

State of Maharashtra, Divisional Jt. Registrar Co-operative Societies, CIDCO, Asstt. Registrar Coop. Societies, CIDCO, Sadguru Premises Coop. Society Ltd., Sadguru Infra Project (I) Pvt. Ltd.

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Nature of Litigation

Writ petition challenging amendment to bye-law of a cooperative housing society.

Remedy Sought

Petitioner sought to set aside the amendment to Bye-Law 26(c) passed at the general body meeting held on 30.06.2024.

Filing Reason

The notice for the general body meeting did not contain the proposed amendment, violating Section 22 of the Maharashtra Co-operative Societies Act, 1960.

Issues

Whether the amendment to Bye-Law 26(c) was validly passed in compliance with Section 22 of the Maharashtra Co-operative Societies Act, 1960.

Submissions/Arguments

Petitioner argued that the notice dated 15.06.2024 did not contain the proposed amendment, only stating 'amendment in Bye-Law No.26(c)', which is insufficient under Section 22. Respondents contended that the notice was sufficient as it mentioned the bye-law to be amended.

Ratio Decidendi

Section 22 of the Maharashtra Co-operative Societies Act, 1960 requires that notice of a proposed amendment to bye-laws must set out the text of the amendment, not merely refer to the bye-law to be amended. Failure to do so renders the amendment invalid.

Judgment Excerpts

The notice dated 15.06.2024 only mentions 'amendment in Bye-Law No.26(c)' but does not set out the proposed amendment. Section 22 of the Maharashtra Co-operative Societies Act, 1960 requires 14 days' notice of the proposed amendment. The requirement of notice under Section 22 is mandatory and must contain the proposed amendment.

Procedural History

The petitioner filed a writ petition before the High Court of Judicature at Bombay challenging the amendment to Bye-Law 26(c) passed at a general body meeting on 30.06.2024. The court heard the matter and delivered judgment allowing the petition.

Acts & Sections

  • Maharashtra Co-operative Societies Act, 1960: Section 22
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