Bombay High Court Allows Petition Challenging Rejection of Objections to Nomination in Cooperative Society Election. Removal from Managing Committee Under Section 78(1)(b) of Maharashtra Co-operative Societies Act, 1960 Disqualifies Candidates from Contesting Election to Board of Directors.

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

The petitioners, Irshad Abdul Sattar Deshmukh and Rama Seva Chavan, filed a writ petition under Article 226 of the Constitution of India before the Bombay High Court, Aurangabad Bench, challenging an order dated 09-03-2015 passed by the Returning Officer (Respondent No. 2) of Pakni Vividh Karyakari Seva Sahakari Society Ltd. (Respondent No. 1). The Returning Officer had rejected the petitioners' objection to the nomination of respondents No. 3 to 6 (Mumtazmiya Mahemoodmiya Deshmukh, Narsingh Kaniram Chavan, Asaram Sakharam Pisal, and Narayan Nivrutti Kharwane) for election to the Board of Directors of the society for the term 2015-2020. The petitioners contended that respondents No. 3 to 6 were disqualified from contesting the election because they had been removed from the Managing Committee of the society by an order dated 24-01-2011 passed by the Assistant Registrar of Co-operative Societies, Mantha, under Section 78(1)(b) of the Maharashtra Co-operative Societies Act, 1960 (MCS Act). The Returning Officer rejected the objection on the ground that the disqualification under Section 78(1)(b) applies only to election to the Managing Committee, not to the Board of Directors. The High Court examined the provisions of Section 78(1)(b) of the MCS Act, which empowers the Registrar to remove a member of a committee and disqualify such person from being elected to any committee of the society for a specified period. The court held that the term 'committee' in Section 78(1)(b) is broad enough to include the Board of Directors, as the Board of Directors is a committee of the society. The court reasoned that the purpose of the disqualification is to prevent persons who have been removed for misconduct from holding any position in the society's governance. The court allowed the petition, set aside the order of the Returning Officer, and directed that the nomination of respondents No. 3 to 6 be rejected. The court also made the rule absolute and disposed of the petition.

Headnote

A) Cooperative Law - Election Disqualification - Section 78(1)(b) Maharashtra Co-operative Societies Act, 1960 - Removal from Managing Committee - The petitioners challenged the rejection of their objection to the nomination of respondents No. 3 to 6 for election to the Board of Directors on the ground that they were removed from the Managing Committee under Section 78(1)(b) of the MCS Act. The Returning Officer rejected the objection holding that the disqualification under Section 78(1)(b) applies only to election to the Managing Committee, not to the Board of Directors. The High Court held that the removal under Section 78(1)(b) disqualifies a person from being elected to any committee of the society, including the Board of Directors, as the term 'committee' in Section 78(1)(b) includes the Board of Directors. The court allowed the petition and set aside the order of the Returning Officer. (Paras 1-6)

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Issue of Consideration

Whether the removal of respondents No. 3 to 6 from the Managing Committee of the society under Section 78(1)(b) of the Maharashtra Co-operative Societies Act, 1960 disqualifies them from contesting election to the Board of Directors of the same society.

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Final Decision

The High Court allowed the writ petition, set aside the order dated 09-03-2015 passed by the Returning Officer, and directed that the nomination of respondents No. 3 to 6 be rejected. Rule made absolute.

Law Points

  • Disqualification under Section 78(1)(b) of MCS Act applies to election to Board of Directors
  • Removal from Managing Committee disqualifies for election to Board of Directors
  • Order under Section 78(1)(b) is a disqualification for any committee membership
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Case Details

2015 LawText (BOM) (03) 18

Writ Petition No. 3201 of 2015

2015-03-26

Sunil P. Deshmukh

Mr. Avinash A. Khande holding for Mr. G.V. Sukale for Petitioners, Smt. S.G. Chincholkar, A.G.P. for respondent No. 2, Mr. M.P. Kale for respondents No. 3 to 6

Irshad Abdul Sattar Deshmukh and Rama Seva Chavan

Pakni Vividh Karyakari Seva Sahakari Society Ltd., Returning Officer, Assistant Registrar Co-operative Societies, Mumtazmiya Mahemoodmiya Deshmukh, Narsingh Kaniram Chavan, Asaram Sakharam Pisal, Narayan Nivrutti Kharwane

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India challenging the order of the Returning Officer rejecting objection to nomination of candidates for election to the Board of Directors of a cooperative society.

Remedy Sought

Petitioners sought quashing of the order dated 09-03-2015 passed by the Returning Officer and direction to reject the nomination of respondents No. 3 to 6.

Filing Reason

The Returning Officer rejected the petitioners' objection that respondents No. 3 to 6 were disqualified from contesting election to the Board of Directors because they had been removed from the Managing Committee under Section 78(1)(b) of the MCS Act.

Previous Decisions

The Returning Officer passed an order on 09-03-2015 rejecting the objection. The Assistant Registrar had passed an order on 24-01-2011 removing respondents No. 3 to 6 from the Managing Committee under Section 78(1)(b).

Issues

Whether the removal of respondents No. 3 to 6 from the Managing Committee under Section 78(1)(b) of the MCS Act disqualifies them from contesting election to the Board of Directors of the same society.

Submissions/Arguments

Petitioners argued that respondents No. 3 to 6 were removed from the Managing Committee under Section 78(1)(b) and thus disqualified from being elected to any committee, including the Board of Directors. Respondents No. 3 to 6 argued that the disqualification under Section 78(1)(b) applies only to election to the Managing Committee, not to the Board of Directors.

Ratio Decidendi

The term 'committee' in Section 78(1)(b) of the Maharashtra Co-operative Societies Act, 1960 includes the Board of Directors. Therefore, a person removed from the Managing Committee under that section is disqualified from being elected to the Board of Directors.

Judgment Excerpts

Petitioners have moved this petition, questioning legality, validity and propriety of order dated 09-03-2015 passed by respondent No. 2, rejecting objection of the petitioners to nomination of respondents No. 3 to 6 for election to the Board of Directors of respondent No. 1 ... on the ground that under order dated 24-01-2011, Assistant Registrar of the Co-operative Societies, Mantha, in exercise of powers under Section 78(1)(b) of the Maharashtra Co-operative Societies Act, 1960 ... removed them from membership of the Managing Committee of the society. The order dated 09-03-2015 passed by respondent No. 2 is set aside. The nomination of respondents No. 3 to 6 shall stand rejected.

Procedural History

The petitioners filed objections to the nomination of respondents No. 3 to 6 for election to the Board of Directors of the society. The Returning Officer rejected the objections on 09-03-2015. The petitioners then filed the present writ petition before the Bombay High Court, Aurangabad Bench, which was heard and finally disposed of on 26-03-2015.

Acts & Sections

  • Maharashtra Co-operative Societies Act, 1960: 78(1)(b)
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