Case Note & Summary
The petitioner, Pune Zilla Sahakri Doodh Utpadak Sangh, a society registered under the Maharashtra Co-operative Societies Act, 1960, challenged the communication dated 30th June 2016 issued by the Divisional Deputy Registrar, Co-operative Societies (Dairy), Mumbai, which stated that the term of the nominated directors on the board of the petitioner had ceased. The petitioner argued that the nominated directors were entitled to continue until their successors were appointed and that they should have been given a hearing before being removed. The respondents, including the State of Maharashtra and various dairy development authorities, contended that the nomination was co-terminus with the term of the nominating authority, which had expired, and thus the cessation was automatic. The court analyzed Section 73B of the Act, which provides for nomination of directors by the State Government, and noted that the term of such nominated directors is linked to the term of the authority that nominates them. The court held that upon expiry of the term of the nominating authority, the nominated directors cease to hold office automatically, and no separate order or hearing is required. The court dismissed the petition, finding no merit in the petitioner's contentions.
Headnote
A) Co-operative Law - Cessation of Nominated Directors - Section 73B, Maharashtra Co-operative Societies Act, 1960 - The term of directors nominated by the State Government ceases automatically upon the expiry of the term of the nominating authority, and no separate order or hearing is required for such cessation. The court held that the nomination is co-terminus with the term of the authority that made the nomination. (Paras 5-7) B) Co-operative Law - Right of Hearing - Section 27, Maharashtra Co-operative Societies Act, 1960 - The principle of natural justice (audi alteram partem) does not apply to the cessation of nominated directors upon expiry of the nominating authority's term, as the cessation is automatic by operation of law and not a punitive removal. The court held that no hearing is required before the expiry of the term. (Paras 6-8)
Issue of Consideration
Whether the term of directors nominated by the State Government under Section 73B of the Maharashtra Co-operative Societies Act, 1960 ceases automatically upon the expiry of the term of the nominating authority, and whether such directors are entitled to a hearing before their cessation.
Final Decision
The petition is dismissed. The court held that the term of nominated directors ceases automatically upon expiry of the term of the nominating authority, and no hearing is required before such cessation.
Law Points
- Cessation of term of nominated directors upon expiry of nominating authority's term
- No right of hearing before cessation of nominated directors
- Interpretation of Section 73B of Maharashtra Co-operative Societies Act
- 1960
- Applicability of Section 27 of Maharashtra Co-operative Societies Act
