Case Note & Summary
The petitioner, a member of respondent no.4-Society registered under the Maharashtra Co-operative Societies Act, was expelled from membership by the Managing Committee. The petitioner had availed loans from the Society and repaid them regularly. In 2018-2019, the petitioner was refused a loan by the Managing Committee. Subsequently, the Society passed a resolution expelling the petitioner from membership. The petitioner challenged the expulsion before the Minister for Co-operation, who dismissed the revision application and confirmed the expulsion. The petitioner then filed a writ petition before the Bombay High Court. The High Court found that the Society had not issued any show cause notice to the petitioner before expulsion and had not provided any opportunity of hearing. The Court held that the principles of natural justice require that a person be heard before being expelled from membership. The Court set aside the Minister's order and the Society's resolution, and directed the Society to restore the petitioner's membership. The Court also observed that the Society could proceed afresh in accordance with law if it wished to expel the petitioner after giving due notice and hearing.
Headnote
A) Cooperative Law - Expulsion of Member - Natural Justice - Maharashtra Co-operative Societies Act, 1960, Sections 27, 35, 154 - The petitioner was expelled from membership without any show cause notice or opportunity of hearing. The Society's resolution and the Minister's order confirming expulsion were set aside as violative of principles of natural justice. Held that no person can be expelled from membership without being heard (Paras 4-6).
Issue of Consideration
Whether the expulsion of the petitioner from membership of the respondent-Society and the confirmation thereof by the Minister in revision are sustainable in law when the petitioner was not afforded any opportunity of hearing or show cause notice before expulsion.
Final Decision
The Bombay High Court allowed the writ petition, set aside the order dated 27.6.2024 passed by the Minister for Co-operation and the resolution of the Managing Committee expelling the petitioner. The Court directed the Society to restore the petitioner's membership. The Court further observed that if the Society wishes to proceed against the petitioner, it may do so afresh in accordance with law after giving due notice and opportunity of hearing.
Law Points
- Natural justice
- Right to be heard
- Expulsion of member
- Cooperative society
- Show cause notice
- Maharashtra Co-operative Societies Act
- 1960
- Section 27
- Section 35
- Section 154
- Revision
- Minister's order
- Judicial review
- Writ jurisdiction
Case Details
Writ Petition No. 11078 of 2024
Mr. Chetan G. Patil A/w Prathamesh P. Magdum a/w Siddheshwari R. Chavan i/b Mr. Mandar G. Bagkar for Petitioner; Mr. Ruturaj Pawar, AGP for Respondents 4; Mr. S.D. Rayrikar, AGP for Respondents 1-3
Shri Vishwas Laxman Karande
The Hon’ble Minister for Co-operation, State of Maharashtra; The Divisional Joint Registrar, Cooperative Societies, Kolhapur; The Assistant Registrar, Cooperative Societies, Kagal, Kolhapur; Shree Jaybhavani V.K.S. Vikas Seva Sanstha, Ltd., Gorambe
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Nature of Litigation
Writ petition challenging order of Minister for Co-operation confirming expulsion of petitioner from membership of a cooperative society.
Remedy Sought
Petitioner sought quashing of the Minister's order dated 27.6.2024 and restoration of his membership in the Society.
Filing Reason
Petitioner was expelled from membership without any show cause notice or opportunity of hearing, and the Minister confirmed the expulsion in revision.
Previous Decisions
The Managing Committee of respondent no.4-Society passed a resolution expelling the petitioner from membership. The petitioner filed Revision Application No.204 of 2023 before the Minister for Co-operation, which was dismissed on 27.6.2024, confirming the expulsion.
Issues
Whether the expulsion of the petitioner from membership of the Society without any show cause notice or opportunity of hearing is violative of principles of natural justice.
Whether the Minister's order confirming the expulsion in revision is sustainable in law.
Submissions/Arguments
Petitioner argued that he was not served with any show cause notice nor given any opportunity of hearing before the resolution expelling him was passed.
Respondents argued that the Society had followed due process, but the Court found no evidence of notice or hearing.
Ratio Decidendi
Expulsion of a member from a cooperative society without affording any show cause notice or opportunity of hearing is a clear violation of principles of natural justice. Such an order is unsustainable in law and liable to be set aside. The revisional authority (Minister) must also ensure compliance with natural justice before confirming expulsion.
Judgment Excerpts
The petitioner was not issued any show cause notice before expulsion nor any opportunity of hearing was given to him.
The order of expulsion passed by the Managing Committee and confirmed by the Minister is in gross violation of principles of natural justice.
The writ petition is allowed. The impugned order dated 27.6.2024 passed by respondent no.1 and the resolution of the Managing Committee expelling the petitioner are set aside.
Procedural History
The petitioner was a member of respondent no.4-Society. The Managing Committee passed a resolution expelling him. He filed Revision Application No.204 of 2023 before the Minister for Co-operation, which was dismissed on 27.6.2024. He then filed the present writ petition before the Bombay High Court.
Acts & Sections
- Maharashtra Co-operative Societies Act, 1960: Sections 27, 35, 154
