Case Note & Summary
The judgment concerns multiple writ petitions filed by members of the Sion Kamgar Cooperative Housing Society Ltd. (Respondent No.5) who were expelled from membership. The petitioners had become members by paying entrance fees, share money, and donation, and their names were duly recorded. The society passed a resolution expelling them, which was approved under Section 35 of the Maharashtra Cooperative Societies Act, 1960 (MCS Act). The expulsion was subsequently confirmed by the appellate authorities. The petitioners challenged these orders before the Bombay High Court. The court noted that there was no serious dispute regarding the petitioners' membership. The core legal issue was whether the expulsion and its confirmation were valid. The court found that the society had not provided an opportunity of hearing to the petitioners before expulsion, nor had it passed a reasoned order. The appellate authority also failed to properly consider these defects. The court held that the principles of natural justice were violated and that the statutory requirements under Section 35 were not complied with. Consequently, the court quashed and set aside the expulsion orders and the appellate confirmation, allowing the writ petitions. The court directed that the petitioners be reinstated as members of the society.
Headnote
A) Cooperative Law - Expulsion of Members - Section 35 Maharashtra Cooperative Societies Act, 1960 - Natural Justice - The court examined whether the expulsion of members from a cooperative housing society was valid. The court held that the society failed to provide an opportunity of hearing and did not pass a reasoned order, violating principles of natural justice. The expulsion orders were quashed and set aside. (Paras 2-10) B) Cooperative Law - Appellate Authority - Section 35 Maharashtra Cooperative Societies Act, 1960 - Confirmation of Expulsion - The appellate authority confirmed the expulsion without proper application of mind. The court held that the appellate order was also unsustainable as it did not cure the procedural defects. (Paras 8-10) C) Constitutional Law - Writ Jurisdiction - Article 226 Constitution of India - Judicial Review - The court exercised its writ jurisdiction to interfere with the expulsion orders as they were passed in violation of natural justice and statutory requirements. (Paras 1-10)
Issue of Consideration
Whether the expulsion of petitioners from membership of Respondent No.5 Society under Section 35 of the Maharashtra Cooperative Societies Act, 1960, and its confirmation by appellate authorities, is valid and sustainable in law.
Final Decision
The court allowed the writ petitions, quashed and set aside the expulsion orders and the appellate confirmation, and directed reinstatement of the petitioners as members of the society.
Law Points
- Natural justice
- opportunity of hearing
- reasoned order
- Section 35 Maharashtra Cooperative Societies Act 1960
- expulsion of members
- cooperative society
- writ jurisdiction
