Bombay High Court Quashes Orders in Fisheries Society Dispute for Violation of Natural Justice. Failure to Provide Opportunity of Hearing Under Section 23(1) of Maharashtra Co-operative Societies Act, 1960 Renders Orders Void.

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

The petitioner, Terna Matsyavyavsai Sahakari Sanstha Ltd., a fisheries cooperative society, filed a writ petition challenging orders passed by the Assistant Registrar, Deputy Registrar, and the State Minister (Fisheries) under Section 23(1) of the Maharashtra Co-operative Societies Act, 1960. The grievance was that these authorities failed to provide any opportunity of hearing to the petitioner before passing the orders. The petitioner sought quashing of the orders and a direction for fresh consideration after hearing. The respondents, including the State authorities and individual members (respondent Nos.4 to 23), opposed the petition. The court, after hearing arguments, found that the orders were passed without complying with the mandatory requirement of hearing under Section 23(1). The court held that the failure to give an opportunity of hearing vitiated the orders. Consequently, the court quashed the impugned orders and remanded the matter to the Assistant Registrar for fresh decision after affording a reasonable opportunity of hearing to all concerned parties, including the petitioner and respondent Nos.4 to 23. The Assistant Registrar was directed to decide the matter within three months from the date of the order. The civil application was also disposed of.

Headnote

A) Co-operative Law - Natural Justice - Section 23(1) Maharashtra Co-operative Societies Act, 1960 - Opportunity of Hearing - The petitioner society challenged orders of Assistant Registrar, Deputy Registrar, and State Minister which were passed without giving any opportunity of hearing to the society. The court held that the requirement of hearing under Section 23(1) is mandatory and failure to provide it vitiates the orders. The court quashed the orders and remanded the matter for fresh consideration after hearing all parties. (Paras 1-5)

B) Co-operative Law - Remand - Section 23(1) Maharashtra Co-operative Societies Act, 1960 - Fresh Hearing - The court directed the Assistant Registrar to decide the matter afresh after giving opportunity of hearing to all concerned parties, including the petitioner society and respondent Nos.4 to 23, within three months from the date of the order. (Para 5)

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Issue of Consideration

Whether the orders passed by the Assistant Registrar, Deputy Registrar, and State Minister under Section 23(1) of the Maharashtra Co-operative Societies Act, 1960 are valid when no opportunity of hearing was given to the petitioner society.

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Final Decision

The court quashed the impugned orders and remanded the matter to the Assistant Registrar for fresh decision after giving opportunity of hearing to all concerned parties, including the petitioner and respondent Nos.4 to 23. The Assistant Registrar was directed to decide the matter within three months from the date of the order. The civil application was disposed of.

Law Points

  • Natural justice
  • opportunity of hearing
  • Section 23(1) Maharashtra Co-operative Societies Act
  • 1960
  • quashing of orders
  • remand
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Case Details

2017 LawText (BOM) (02) 36

Writ Petition No.7942 of 2012 with Civil Application No.2542 of 2017

2017-02-21

S. B. Shukre

Shri A.N. Irpatgire for petitioner, Shri A.V. Deshmukh A.G.P. for respondent Nos.1 to 3, Shri S.S. Wakure for respondent No.4 to 23

Terna Matsyavyavsai Sahakari Sanstha Ltd.

The State Minister (Fisheries) and Others

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Nature of Litigation

Writ petition challenging orders passed under Section 23(1) of the Maharashtra Co-operative Societies Act, 1960 by the Assistant Registrar, Deputy Registrar, and State Minister without giving opportunity of hearing.

Remedy Sought

Quashing of the impugned orders and direction for fresh consideration after hearing the petitioner society.

Filing Reason

The petitioner society alleged that the authorities failed to follow the basic requirement of Section 23(1) of the Maharashtra Co-operative Societies Act, 1960 by not providing any opportunity of hearing before passing the orders.

Previous Decisions

Orders passed by Assistant Registrar, Deputy Registrar, and State Minister under Section 23(1) of the Maharashtra Co-operative Societies Act, 1960.

Issues

Whether the orders passed under Section 23(1) of the Maharashtra Co-operative Societies Act, 1960 are valid when no opportunity of hearing was given to the petitioner society.

Submissions/Arguments

Petitioner argued that the authorities failed to give any opportunity of hearing before passing the orders, violating Section 23(1). Respondents opposed the petition, but the court found merit in the petitioner's grievance.

Ratio Decidendi

The requirement of giving an opportunity of hearing under Section 23(1) of the Maharashtra Co-operative Societies Act, 1960 is mandatory. Failure to provide such hearing vitiates the orders passed thereunder.

Judgment Excerpts

The grievance of the petitioner Society is that, firstly the Assistant Registrar, then the Deputy Registrar and then the Hon’ble Minister, all authorities have failed to follow the basic requirement of Section 23(1) of the Maharashtra Co-operative Societies Act, 1960. In the circumstances, the petition deserves to be allowed. The impugned orders are quashed and set aside. The matter is remitted back to the Assistant Registrar, Co-operative Societies (Dairy), Osmanabad for deciding it afresh after giving opportunity of hearing to all concerned parties including the petitioner and respondent Nos.4 to 23.

Procedural History

The petitioner filed a writ petition challenging orders passed by the Assistant Registrar, Deputy Registrar, and State Minister under Section 23(1) of the Maharashtra Co-operative Societies Act, 1960. The court heard the matter and delivered judgment on 21st February 2017.

Acts & Sections

  • Maharashtra Co-operative Societies Act, 1960: 23(1)
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