Case Note & Summary
The petitioners, four 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 Societies Act, 2001. The new Board was elected on 4.6.2014, and the petitioners were among the nine elected members. The Assistant Registrar issued a show cause notice on 5.1.2015 stating that the petitioners were disqualified under Section 75 of the Act and calling upon them to show cause why they should not be disqualified. The petitioners submitted a reply on 6.1.2015, but without any further hearing, the impugned order was passed on 8.1.2015 disqualifying them. The petitioners contended that the show cause notice did not specify the grounds of disqualification and no opportunity of hearing was given, violating principles of natural justice. The respondent argued that the notice was sufficient and the petitioners had replied. The court held that the show cause notice must disclose the grounds on which action is proposed, and an opportunity of hearing must be given before passing an adverse order. Since the notice merely stated the section without reasons and no hearing was afforded, the order was quashed. The court allowed the petition and set aside the disqualification order.
Headnote
A) Administrative Law - Natural Justice - Audi Alteram Partem - Show Cause Notice - The show cause notice must specify the grounds on which action is proposed, and an opportunity of hearing must be given before passing any adverse order. In this case, the notice merely stated that the petitioners were disqualified under Section 75 of the Goa Co-operative Societies Act, 2001 without disclosing the reasons, and no hearing was afforded. Held that the order is in violation of principles of natural justice and liable to be set aside. (Paras 4-6) B) Co-operative Societies - Disqualification of Directors - Section 75 of Goa Co-operative Societies Act, 2001 - The power to disqualify a director under Section 75 must be exercised after following due process, including a proper show cause notice and hearing. The Assistant Registrar's order disqualifying the petitioners for 5 years was quashed as it was passed without complying with natural justice. (Paras 5-7)
Issue of Consideration
Whether the order of disqualification passed by the Assistant Registrar without giving an opportunity of hearing and without specifying grounds in the show cause notice is sustainable in law.
Final Decision
The 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.
Law Points
- Natural justice
- audi alteram partem
- show cause notice must specify grounds
- disqualification under Section 75 requires hearing
- order without opportunity is void
