Case Note & Summary
The Bombay High Court allowed a writ petition filed by five members of a cooperative housing society challenging their expulsion from the society's membership under Section 35 of the Maharashtra Cooperative Societies Act, 1960. The petitioners had raised various grievances regarding the functioning of the managing committee between 2017 and 2021 by approaching statutory authorities, auditors, police, municipal authorities, and courts on issues relating to construction, deemed conveyance, election disputes, installation of a generator, and other administrative matters.
The society initiated expulsion proceedings alleging that the petitioners' repeated complaints were detrimental to the interests and smooth functioning of the society. A Special General Meeting passed a resolution for their expulsion, which was approved by the Deputy Registrar and subsequently affirmed by the appellate and revisional authorities.
The High Court held that the petitioners had merely exercised their lawful right to raise grievances and seek redress before competent forums. Filing complaints or initiating legal proceedings through statutory mechanisms, without proof of malice or abuse of process, cannot be treated as conduct prejudicial to the interests of the society under Section 35. The Court further observed that the authorities failed to consider relevant evidence, recorded no proper reasons, and mechanically upheld the expulsion, rendering the decision arbitrary and contrary to the principles of natural justice.
Accordingly, the High Court quashed the orders of the Deputy Registrar, the appellate authority, and the revisional authority, set aside the expulsion resolution, and directed the restoration of the petitioners' membership with all consequential rights.
Headnote
Maharashtra Cooperative Societies Act, 1960 – Section 35 – Expulsion of Member – Cooperative Housing Society – Legitimate complaints against Managing Committee – Scope of "acts detrimental to the interests of the society" – Petitioners expelled for approaching statutory authorities, police, auditors and courts regarding alleged irregularities – Authorities mechanically upheld expulsion without considering evidence or assigning reasons – Held, exercise of legal remedies and raising genuine grievances cannot be treated as misconduct warranting expulsion – Expulsion is a drastic measure affecting proprietary and membership rights and can be invoked only in exceptional cases involving conduct seriously prejudicial to the society – Orders suffered from non-application of mind, absence of reasons and violation of principles of natural justice – Expulsion orders quashed and petitioners restored to membership.
Issue of Consideration
The Issue of whether the expulsion of petitioners from the cooperative society membership under Section 35 of the Maharashtra Cooperative Societies Act, 1960 was justified based on their complaints and grievances raised against the society's functioning
Final Decision
The Bombay High Court allowed the writ petition, quashed the expulsion orders dated 27 June 2024, 7 November 2024, and 20 August 2025, and restored the petitioners' membership in shivnagari Cooperative Housing Society Ltd. with all consequential membership rights. The society's request for stay was rejected.
Law Points
- Principles of natural justice
- Interpretation of Section 35 of the Maharashtra Cooperative Societies Act
- 1960
- Scope of judicial review in writ jurisdiction
- Distinction between legitimate grievances and misconduct
- Requirements for valid expulsion from cooperative society membership
Case Details
2026 LawText (BOM) (02) 67
Writ Petition No. 13736 of 2025
Mr. Adwait Bhonde with Mr. Atharva Bhosale for petitioners, Mr. Shrivallabh S. Panchpor with Ms. Mahima Sharma for respondent No.1, Mr. A.C. Bhadang, AGP for respondent Nos.2 to 4
Abhay Manohar Paranjape, Shailendra Suresh Bagal, Narendra Yashwant Phatak, Hrushikesh Sunil Deshmukh, Krishna Champatrao Deshpande
Shivnagari Cooperative Housing Society Limited, The State of Maharashtra through Ministry of Cooperation, Divisional Joint Registrar, Cooperative Societies, Pune Division, Pune, Deputy Registrar, Cooperative Societies, Pune
Subscribe to unlock Case Details (Citation, Judge, Date & more)
Subscribe Now
Nature of Litigation
Writ Petition challenging the expulsion of the petitioners from the membership of a cooperative housing society under Section 35 of the Maharashtra Cooperative Societies Act, 1960.
Remedy Sought
Quashing of the expulsion resolution and the consequential orders passed by the cooperative authorities, along with restoration of the petitioners' membership and all consequential rights. Filing Reason
Filing Reason
The petitioners challenged the concurrent orders of the Deputy Registrar, Divisional Joint Registrar, and Revisional Authority upholding their expulsion from the society under Section 35 of the Maharashtra Cooperative Societies Act, 1960.
Previous Decisions
Deputy Registrar: Approved the expulsion resolution on 27 June 2024.
Divisional Joint Registrar: Dismissed the appeal on 7 November 2024.
Revisional Authority: Dismissed the revision on 20 August 2025.
Issues
Whether the petitioners' complaints and grievances raised before statutory authorities and other competent forums constituted acts prejudicial or detrimental to the interests of the society under Section 35 of the Maharashtra Cooperative Societies Act, 1960.
Whether the expulsion orders suffered from non-application of mind, absence of reasons, and violation of the principles of natural justice.
Submissions/Arguments
The petitioners contended that they had merely exercised their legal right to raise grievances before competent authorities. The police treated their complaints as civil disputes and did not find them false or malicious. The statutory auditors found merit in some of the complaints raised by the petitioners. It was further argued that the authorities failed to consider the evidence placed on record, passed unreasoned orders, and mechanically upheld the expulsion.
Ratio Decidendi
The lawful exercise of statutory or legal remedies by members of a cooperative housing society, including filing complaints or initiating proceedings before competent authorities, does not constitute acts prejudicial to the interests of the society under Section 35 of the Maharashtra Cooperative Societies Act, 1960. Expulsion is an exceptional measure and can be justified only where there is clear evidence of conduct seriously detrimental to the society's functioning. Mechanical approval of expulsion without proper consideration of evidence and reasons violates the principles of natural justice.
Judgment Excerpts
The Court held that the petitioners had merely exercised their legal right to question the functioning of the society by approaching competent authorities. Such conduct could not be treated as detrimental to the interests of the society under Section 35. The authorities failed to consider the material evidence, did not assign adequate reasons, and mechanically upheld the expulsion, rendering the orders arbitrary and unsustainable.
Procedural History
2 September 2023: Show cause notice issued under Section 35.
22 October 2023: Special General Meeting passed the resolution for expulsion.
27 June 2024: Deputy Registrar approved the expulsion.
7 November 2024: Divisional Joint Registrar dismissed the appeal.
20 August 2025: Revisional Authority dismissed the revision.
2025: Petitioners filed the writ petition before the Bombay High Court.
11 February 2026: The Bombay High Court allowed the writ petition, quashed the impugned orders, and restored the petitioners' membership.
Acts & Sections
- Maharashtra Cooperative Societies Act, 1960: Section 35, Section 91
