Bombay High Court Allows Writ Petition Challenging Cancellation of Society Registration for Violation of Natural Justice. Cancellation of Registration Under Maharashtra Cooperative Societies Act, 1960 Without Show Cause Notice and Hearing is Illegal.

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

The petitioner, Mirai Bahuddeshiya Vikas Sanstha, a society registered under the Maharashtra Cooperative Societies Act, 1960, challenged the cancellation of its registration by the respondent authorities. The petitioner contended that the cancellation was effected without any prior show cause notice or opportunity of hearing, thereby violating the principles of natural justice. The respondents, including the State of Maharashtra and other tribal development authorities, did not dispute the lack of notice. The court, after hearing the parties, found that the cancellation was indeed made without following the mandatory procedure of issuing a show cause notice and affording a hearing. The court emphasized that any action affecting the rights of a party must comply with the principles of natural justice. Consequently, the court allowed the writ petition, set aside the impugned order of cancellation, and restored the registration of the society. The court directed the respondents to treat the society as registered and to allow it to function accordingly.

Headnote

A) Cooperative Societies - Cancellation of Registration - Principles of Natural Justice - Section 22 of the Maharashtra Cooperative Societies Act, 1960 - The petitioner society's registration was cancelled by the respondent authorities without any prior show cause notice or opportunity of hearing. The court held that such cancellation is in gross violation of principles of natural justice and cannot be sustained. The court set aside the cancellation and restored the registration. (Paras 3-5)

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Issue of Consideration

Whether the cancellation of registration of a society under the Maharashtra Cooperative Societies Act, 1960 without issuing a show cause notice and affording an opportunity of hearing is valid in law.

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Final Decision

The court allowed the writ petition, set aside the impugned order of cancellation of registration, and restored the registration of the petitioner society. The respondents were directed to treat the society as registered and allow it to function.

Law Points

  • Principles of Natural Justice
  • Audi Alteram Partem
  • Cancellation of Registration
  • Show Cause Notice
  • Opportunity of Hearing
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Case Details

2016 LawText (BOM) (05) 11

Writ Petition No. 9970 of 2012

2016-05-04

S.S. Shinde, Sangitrao S. Patil

Mr. S.B. Talekar, Advocate, for the petitioner; Mr. S.G. Karlekar, Asst. Government Pleader, for respondent nos.1 to 4; Mr. N.D. Khamborkar, Advocate, for respondent no.5

Mirai Bahuddeshiya Vikas Sanstha, Through its Chairman, Sharad Murlidhar Netkar

The State of Maharashtra, Through its Principal Secretary, Tribal Development Department, Mantralaya, Mumbai 400 032; The Commissioner, Tribal Development, Agra Road, Nashik; The Additional Commissioner, Tribal Development, Agra Road, Nashik; The Project Officer, Integrated Tribal Development Project, Yawal, Dist. Jalgaon; Gourav Bahuddeshiya Shikshan Sanstha, Varora, Taluka Varora, District Chandrapur, Through its Secretary

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Nature of Litigation

Writ petition challenging the cancellation of registration of a society under the Maharashtra Cooperative Societies Act, 1960.

Remedy Sought

The petitioner sought quashing of the order cancelling its registration and restoration of its registration.

Filing Reason

The registration of the petitioner society was cancelled without issuing any show cause notice or affording an opportunity of hearing, in violation of principles of natural justice.

Issues

Whether the cancellation of registration of the petitioner society without prior show cause notice and opportunity of hearing is valid.

Submissions/Arguments

The petitioner argued that the cancellation was done without any notice or hearing, violating natural justice. The respondents did not dispute the lack of notice and hearing.

Ratio Decidendi

Cancellation of registration of a society under the Maharashtra Cooperative Societies Act, 1960 without issuing a show cause notice and affording an opportunity of hearing is in gross violation of principles of natural justice and cannot be sustained.

Judgment Excerpts

The petitioner society's registration was cancelled by the respondent authorities without any prior show cause notice or opportunity of hearing. The court held that such cancellation is in gross violation of principles of natural justice and cannot be sustained.

Procedural History

The petitioner filed a writ petition in the High Court of Judicature at Bombay, Aurangabad Bench, challenging the cancellation of its registration. The court heard the parties and reserved judgment on 15th April 2016, pronouncing it on 4th May 2016.

Acts & Sections

  • Maharashtra Cooperative Societies Act, 1960: Section 22
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High Court Bombay High Court Allows Writ Petition Challenging Cancellation of Society Registration for Violation of Natural Justice. Cancellation of Registration Under Maharashtra Cooperative Societies Act, 1960 Without Show Cause Notice and Hearing is Illegal.