Bombay High Court Allows Petitioners in Co-operative Housing Society Disqualification Case — Violation of Natural Justice. Order of disqualification passed without show cause notice and opportunity of hearing set aside as arbitrary and illegal under Goa Co-operative Housing Societies Act, 2011.

High Court: Bombay High Court Bench: GOA In Favour of Accused
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Case Note & Summary

The petitioners, who were members of the Board of Directors of M/s Sapana Garden Co-operative Housing Society Ltd, challenged an order dated 8.1.2015 passed by the Assistant Registrar of Co-operative Societies, North Zone, Mapusa Goa, disqualifying them for a period of 5 years. The society is registered under the Goa Co-operative Housing Societies Act, 2011. The new Board of Directors was elected on 4.6.2014, and the petitioners were among the 9 elected members. The Assistant Registrar passed the impugned order without issuing any show cause notice to the petitioners and without affording them an opportunity of hearing. The petitioners contended that the order was passed in gross violation of principles of natural justice. The respondent did not appear or file any reply. The court examined the record and found that no show cause notice was issued and no hearing was given. The court held that the order was arbitrary and illegal, being violative of natural justice. The court quashed and set aside the order dated 8.1.2015 and allowed the writ petition. No order as to costs.

Headnote

A) Administrative Law - Natural Justice - Audi Alteram Partem - Goa Co-operative Housing Societies Act, 2011 - Disqualification of Directors - The Assistant Registrar passed an order disqualifying the petitioners for 5 years without issuing any show cause notice or affording opportunity of hearing. The court held that such an order is violative of principles of natural justice and cannot be sustained. The order was quashed and set aside. (Paras 3-5)

B) Co-operative Societies - Disqualification of Directors - Goa Co-operative Housing Societies Act, 2011 - The petitioners were members of the Board of Directors of a co-operative housing society. The Assistant Registrar disqualified them for 5 years. The court found that no show cause notice was given and no opportunity of hearing was provided. The order was held to be arbitrary and illegal. (Paras 2-5)

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Issue of Consideration

Whether the order of disqualification passed by the Assistant Registrar of Co-operative Societies without issuing show cause notice and without affording opportunity of hearing is sustainable in law.

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Final Decision

The writ petition is allowed. The impugned order dated 8.1.2015 passed by the Assistant Registrar of Co-operative Societies, North Zone, Mapusa Goa is quashed and set aside. No order as to costs.

Law Points

  • Natural justice
  • audi alteram partem
  • disqualification of directors
  • co-operative societies
  • show cause notice
  • opportunity of hearing
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Case Details

2016 LawText (BOM) (01) 100

WRIT PETITION NO. 236 OF 2015

2016-01-07

K. L. Wadane

Mr. A. Nigalye (for petitioners), Ms. S. Mordekar (for respondent)

Shri Nelson Heredia, Shri Sachin Talwadkar, Shri Dr. Abel B.O.Da Costa, Shri Philip Lobo

The Assistant Registrar of Co-operative Societies, North Zone

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Nature of Litigation

Writ petition challenging order of disqualification passed by Assistant Registrar of Co-operative Societies.

Remedy Sought

Quashing of order dated 8.1.2015 disqualifying petitioners for 5 years.

Filing Reason

Order passed without show cause notice and without opportunity of hearing.

Previous Decisions

Order dated 8.1.2015 passed by Assistant Registrar disqualifying petitioners.

Issues

Whether the order of disqualification passed without show cause notice and opportunity of hearing is sustainable.

Submissions/Arguments

Petitioners argued that the impugned order was passed in gross violation of principles of natural justice as no show cause notice was issued and no opportunity of hearing was given. Respondent did not appear or file any reply.

Ratio Decidendi

An order of disqualification passed without issuing show cause notice and without affording opportunity of hearing is violative of principles of natural justice and cannot be sustained.

Judgment Excerpts

The petitioners have challenged the order dated 8.1.2015 passed by the Assistant Registrar Co-operative Societies... by which the petitioners are disqualified for a period of 5 years from the date of the order. I have perused the record... It appears that no show cause notice was issued to the petitioners and no opportunity of hearing was given to them before passing the impugned order. Therefore, the impugned order is arbitrary and illegal and cannot be sustained.

Procedural History

The Assistant Registrar of Co-operative Societies passed an order on 8.1.2015 disqualifying the petitioners for 5 years. The petitioners filed a writ petition before the High Court of Bombay at Goa challenging the order. The court reserved judgment on 14.12.2015 and pronounced on 7.1.2016.

Acts & Sections

  • Goa Co-operative Housing Societies Act, 2011:
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