Case Note & Summary
The case involves three writ petitions filed under Article 227 of the Constitution of India challenging a common order dated 11th September 2014 passed by the Divisional Joint Registrar of Co-operative Societies, Mumbai Division (DJR) in exercise of revisional jurisdiction under Section 154 of the Maharashtra Co-operative Societies Act, 1960 (MCS Act). The DJR set aside the election of the managing committee of a co-operative housing society and directed fresh elections. The petitioners, who were elected members of the managing committee, contended that the DJR had no jurisdiction to interfere with the election as the dispute should have been raised before the Co-operative Court under Section 91 of the MCS Act. The respondents, including the State and other members, argued that the election was conducted in gross violation of the society's bye-laws and the MCS Act, as non-members were allowed to contest and vote. The High Court examined the scope of revisional jurisdiction under Section 154, which allows the Registrar to call for and examine the record of any proceeding and pass orders to ensure legality and propriety. The court held that the DJR has the power to set aside an election that is void ab initio due to violation of statutory provisions and bye-laws. The court also noted that the alternative remedy under Section 91 is not a bar to the exercise of revisional jurisdiction when the election is fundamentally flawed. The High Court dismissed the writ petitions, upholding the DJR's order and directing that fresh elections be conducted in accordance with the bye-laws and the Act.
Headnote
A) Co-operative Law - Revisional Jurisdiction - Section 154 of Maharashtra Co-operative Societies Act, 1960 - Election of Managing Committee - The DJR, in exercise of revisional powers, set aside the election of the managing committee of a co-operative housing society on the ground that the election was held in violation of the bye-laws and the Act, as non-members were allowed to contest and vote. The High Court held that the DJR has jurisdiction under Section 154 to examine the legality and propriety of the election proceedings and to pass appropriate orders, including setting aside the election and directing fresh elections. (Paras 1-12) B) Co-operative Law - Bye-laws - Candidature of Non-Members - Section 27 of Maharashtra Co-operative Societies Act, 1960 - The bye-laws of the society provided that only members of the society could contest and vote in the election of the managing committee. The DJR found that the election was conducted in violation of the bye-laws as non-members were allowed to participate. The High Court upheld this finding, stating that the election must be conducted strictly in accordance with the bye-laws and the Act. (Paras 4-8) C) Co-operative Law - Election Dispute - Alternative Remedy - Section 154 of Maharashtra Co-operative Societies Act, 1960 - The petitioners argued that the election dispute should have been raised before the Co-operative Court under Section 91 of the MCS Act. The High Court rejected this argument, holding that the DJR's revisional jurisdiction under Section 154 is not ousted by the availability of an alternative remedy, especially when the election is alleged to be void ab initio due to violation of statutory provisions. (Paras 9-11)
Issue of Consideration
Whether the Divisional Joint Registrar (DJR) has jurisdiction under Section 154 of the Maharashtra Co-operative Societies Act, 1960 to set aside the election of the managing committee of a co-operative society on the ground that the election was held in violation of the bye-laws and the Act, and whether the DJR can direct fresh elections.
Final Decision
The High Court dismissed all three writ petitions, upholding the order of the Divisional Joint Registrar dated 11th September 2014. The court held that the DJR had jurisdiction under Section 154 of the MCS Act to set aside the election and direct fresh elections, and that the alternative remedy under Section 91 was not a bar. The court directed that fresh elections be conducted in accordance with the bye-laws and the Act.
Law Points
- Revisional jurisdiction under Section 154 of MCS Act
- Election of managing committee
- Violation of bye-laws
- Candidature of non-members
- Power of Registrar to interfere in election disputes
