Case Note & Summary
The petitioner, Dnyaneshwar @ Dinesh Waman Bhosale, purchased Office No.10 in a building owned by Respondent No.4 society, a commercial premises society, from Smt. Nargis Jal Pardiwala, who was a member in respect of that office. On 29.12.2011, the petitioner applied for transfer of membership from the seller's name to his own. The society rejected the application on 11.01.2012 on the ground that it was not in the prescribed format as per the bye-laws. The petitioner then filed a fresh application on 31.01.2012 in the proper format but received no response. Consequently, he filed an application before the Deputy Registrar of Cooperative Societies under Section 22(2) of the Maharashtra Cooperative Societies Act, 1960. The society opposed the application, arguing that the application was not in the proper format because there was no bye-law No.38(e)(ii) in the society's bye-laws. The Deputy Registrar, by order dated 29.04.2013, rejected the application on the ground that it was not in the proper format, i.e., not in terms of Form No.1 bye-law No.D1.3. Aggrieved, the petitioner appealed to the Divisional Joint Registrar, who by order dated 15.05.2014 allowed the appeal and directed the society to transfer the membership. The society then filed an appeal before the Minister for Cooperation, who by order dated 25.09.2014 allowed the appeal, set aside the Joint Registrar's order, and confirmed the Deputy Registrar's order. The petitioner challenged the Minister's order by way of a writ petition under Article 227 of the Constitution of India. The main legal issue was whether the Minister's order, passed without affording an opportunity of hearing to the petitioner, was sustainable. The petitioner argued that the Minister's order was passed in violation of natural justice as he was not heard. The respondents contended that the Minister had the power to pass the order. The court analyzed that the Minister's order was a quasi-judicial order and the petitioner, being a party directly affected, ought to have been given an opportunity of hearing. The court held that the Minister's order was in breach of principles of natural justice and therefore unsustainable. The court quashed the Minister's order and remanded the matter back to the Minister for fresh hearing after giving an opportunity of hearing to all parties. The court also directed that the petitioner's application for transfer of membership be considered on its own merits without being influenced by the earlier orders.
Headnote
A) Cooperative Law - Transfer of Membership - Section 22(2) Maharashtra Cooperative Societies Act, 1960 - Natural Justice - The petitioner applied for transfer of membership after purchasing office premises from a member. The society rejected the application on technical grounds. The Deputy Registrar dismissed the petitioner's application under Section 22(2) for not being in proper format. The Divisional Joint Registrar allowed the appeal. However, the Minister for Cooperation, in a suo motu revision, set aside the Joint Registrar's order without hearing the petitioner. Held that the Minister's order violated principles of natural justice as the petitioner was not given an opportunity of hearing. The order was quashed and the matter remanded for fresh hearing. (Paras 1-10)
Issue of Consideration
Whether the order of the Minister for Cooperation, passed without affording an opportunity of hearing to the petitioner, is sustainable in law.
Final Decision
The writ petition is allowed. The order dated 25.09.2014 passed by the then Minister for Cooperation, Government of Maharashtra, is quashed and set aside. The matter is remanded back to the Minister for Cooperation for fresh hearing after giving an opportunity of hearing to all parties. The petitioner's application for transfer of membership shall be considered on its own merits without being influenced by the earlier orders. Rule is made absolute accordingly with no order as to costs.
Law Points
- Natural justice
- opportunity of hearing
- Section 22(2) Maharashtra Cooperative Societies Act
- 1960
- transfer of membership
- cooperative society
- writ jurisdiction under Article 227
