Case Note & Summary
The petitioners, eight members of the Managing Committee of the Ordnance Factory Bhandara Karmachari Sahakari Pat Sanstha Maryadit (respondent No.4-Society), challenged the order dated 30th September 2013 passed by the Divisional Joint Registrar, Cooperative Societies, Nagpur Division (respondent No.2) under Section 77(1) of the Maharashtra Cooperative Societies Act, 1960. By that order, the entire Managing Committee was removed and an Administrator was appointed under Section 78 of the Act. The petitioners contended that the order was passed without any show cause notice or opportunity of hearing, violating principles of natural justice. The respondents argued that the power under Section 77(1) is an emergency power and can be exercised without hearing. The Court examined the language of Section 77(1) and held that the power to remove a committee is quasi-judicial and must be exercised after giving an opportunity of being heard. Since no show cause notice was issued, the order was illegal. Consequently, the appointment of the Administrator under Section 78, being consequential, also fell. The Court allowed the petition, quashed the impugned order, and directed that the petitioners be allowed to continue as members of the Managing Committee.
Headnote
A) Cooperative Law - Removal of Managing Committee - Section 77(1) Maharashtra Cooperative Societies Act, 1960 - Natural Justice - The Divisional Joint Registrar passed an order removing the Managing Committee of a credit cooperative society without issuing any show cause notice or giving an opportunity of hearing to the elected members. The Court held that the power under Section 77(1) can be exercised only after following the principles of natural justice, and the order passed without such opportunity is illegal and liable to be set aside. (Paras 1-10) B) Cooperative Law - Appointment of Administrator - Section 78 Maharashtra Cooperative Societies Act, 1960 - Consequence of Invalid Removal - Since the removal of the Managing Committee under Section 77(1) was held illegal, the appointment of the Administrator under Section 78, which was consequential to such removal, also cannot be sustained. The Court directed that the petitioners be allowed to continue as members of the Managing Committee. (Paras 10-12)
Issue of Consideration
Whether the order passed by the Divisional Joint Registrar under Section 77(1) of the Maharashtra Cooperative Societies Act, 1960 removing the Managing Committee of the respondent No.4-Society without issuing any show cause notice or giving an opportunity of hearing to the petitioners is legal and sustainable.
Final Decision
The Court allowed the writ petition, quashed the order dated 30th September 2013 passed by the Divisional Joint Registrar under Section 77(1) of the Maharashtra Cooperative Societies Act, 1960, and directed that the petitioners be allowed to continue as members of the Managing Committee of the respondent No.4-Society.
Law Points
- Natural justice
- opportunity of hearing
- show cause notice
- removal of managing committee
- Section 77(1) Maharashtra Cooperative Societies Act
- 1960
- Section 78 Maharashtra Cooperative Societies Act
