Case Note & Summary
The two writ petitions arose from a common order of the Registrar of Co-operative Societies, Goa, disqualifying the entire nine-member managing committee of MES Employees Consumer Co-operative Society under Section 61(a) of the Goa Co-operative Societies Act, 2001. The society’s managing committee, elected on 21 January 2009 for a five-year term, became divided into two factions: a group of six members (party no. 1) and a group of three members (party no. 2). Party no. 2 filed a complaint leading to an inquiry which revealed that the committee had not held any meetings between March 2010 and July 2011 and had failed to conduct the annual general meetings for the years 2009-10 and 2010-11. A show cause notice was issued on 17 January 2013 under Section 71 of the Act. Both groups submitted replies, each blaming the other for the defaults. They also referred to pending litigation over the validity of an earlier annual general meeting. The Registrar, after hearing the parties, passed an order disqualifying all committee members and authorising an officer to constitute a new board. Both groups challenged this order by filing cross-writ petitions. During the hearing before the High Court, the petitioners’ counsel confined their arguments to a single issue: the period for which the disqualification would operate and the date from which it commences. They contended that the Registrar’s order did not specify the commencement date, leading to uncertainty and potential prejudice, and suggested that the court should fix a date not beyond 1 January 2012. The Additional Government Advocate for the Registrar agreed that in the absence of a specified date, the court could stipulate an appropriate date to enable fresh elections. The court noted that it could dispose of the petitions on this short ground. The available text does not contain the final operative order, but the court indicated that the matter could be resolved by addressing the limited issue of the disqualification period’s commencement.
Headnote
A) Cooperative Societies - Disqualification of Directors - Period of Disqualification - Goa Co-operative Societies Act, 2001, Section 61(a) - The managing committee of the MES Employees Consumer Co-operative Society was disqualified by the Registrar for failure to hold annual general meetings for 2009-10 and 2010-11 and for not convening managing committee meetings from March 2010 to July 2011 - The dispute centred on the date from which the disqualification was to be effective; the court considered arguments that the order must specify the commencement date and that, in its absence, the court may fix an appropriate date to avoid prejudice to the disqualified members (Paras 2-14).
Issue of Consideration
Whether the disqualification order under Section 61(a) of the Goa Co-operative Societies Act, 2001 must specify the date from which the five-year disqualification period runs, and what is the appropriate date of commencement when the order is silent
Final Decision
The Court, after hearing the parties, found that the petitions could be disposed of on the short ground of the period of disqualification. The available text does not contain the final operative order and directions; the judgment excerpt ends mid-discussion.
Law Points
- Disqualification of directors under Section 61(a) for failure to conduct annual general meeting within nine months of closure of accounting year is automatic
- the Registrar must specify the date from which the five-year disqualification period commences
- if the disqualification order is silent
- the court may stipulate the commencement date to prevent injustice
- a declaration of deemed disqualification requires an order from the competent authority
Case Details
2017 LawText (BOM) (10) 120
Writ Petition Nos. 20 of 2014 and 58 of 2014
Shri Devidas J. Pangam with Shri Luis Fernandes, Shri Gaurish Agni with Shri Eeshan Usapkar, Shri Pravin Phaldessai (Additional Government Advocate)
Shri P.N. Halshikar & Ors. (W.P. 20/2014) and Shri Arun Y. Redkar & Ors. (W.P. 58/2014)
Registrar of Co-operative Societies, Government of Goa and others (respective opponent groups in each petition)
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Nature of Litigation
Challenge to the order of the Registrar of Co-operative Societies disqualifying the entire managing committee of the MES Employees Consumer Co-operative Society under Section 61(a) of the Goa Co-operative Societies Act, 2001, for failure to conduct annual general meetings and managing committee meetings.
Remedy Sought
Petitioners sought to set aside the disqualification order dated (not mentioned) and, alternatively, to obtain a direction from the court fixing the date of commencement of the five-year disqualification period, proposing a date not later than 01.01.2012.
Filing Reason
The Registrar’s order disqualified all members of the managing committee without specifying the date from which the five-year period would run, creating uncertainty regarding their future eligibility to serve as directors.
Previous Decisions
The Registrar’s order itself is the impugned decision. Before that, a show cause notice was issued. Earlier, party no. 2 had challenged an AGM held on 14.10.2009; the Registrar’s Nominee declared it void (02.09.2010), the Co-operative Tribunal allowed an appeal (23.08.2011) restoring its validity, and that restoration was challenged in Writ Petition No. 610/2011 (pending).
Issues
Whether the Registrar’s disqualification order under Section 61(a) of the Goa Co-operative Societies Act, 2001 must specify the date from which the five-year disqualification period commences?
What is the appropriate date for commencement when the order is silent?
Whether a declaration of deemed disqualification requires a specific order from the competent authority?
Submissions/Arguments
Petitioners argued that the disqualification order does not indicate the date from which the five-year period starts, leading to confusion; the court may fix a date not beyond 01.01.2012.
Shri Agni for WP58 petitioners contended that there must be a declaration of disqualification from a competent authority, relying on Kerbaji Marotirao Shinde Vs. State of Maharashtra.
Additional Government Advocate for the Registrar submitted that an appropriate date may be stipulated by the court to enable fresh elections as the society had been non-functional for over five years.
Judgment Excerpts
the managing committee of the Society consists of nine members. ... These petitions are a result of simmering disputes between the two groups, which has led all the members of the managing committee being disqualified under Section 61(a) of the Act.
I find that the petitions can be disposed of on a short ground, where it may not be necessary to set out the facts in details.
the learned Counsel for the petitioners have raised a limited issue as to the period for which such disqualification would operate.
the impugned order does not indicate as to the date from which the period of five years shall commence.
Section 61(a) of the Act ... all the directors of the board shall, be deemed to have incurred disqualification for a period of five years for being chosen as directors and shall be ineligible to continue as directors of the society, if, during their term as directors of the society- (a) they did not conduct the annual general meeting within nine months of closure of the society's accounting year;
Procedural History
The nine-member managing committee was elected on 21.01.2009 for a five-year term ending 20.01.2014. Disputes split the committee into two groups: six members (party no. 1) and three members (party no. 2). Party no. 2 filed a complaint leading to an inquiry which found no managing committee meetings from March 2010 to July 2011 and failure to hold AGMs for 2009-10 and 2010-11. On 17.01.2013, a show cause notice was issued. Both groups filed replies. Previously, on 02.09.2010, the Registrar’s Nominee had declared an AGM of 14.10.2009 void; the Co-operative Tribunal set aside that order on 23.08.2011, and that decision was challenged in W.P. No. 610/2011 (pending). The Registrar, after hearing, passed the impugned order disqualifying the entire committee under Section 61(a) and authorising constitution of a new board. Both groups filed present writ petitions (20/2014 and 58/2014). The High Court heard the matters and reserved judgment on 04.10.2017; the common judgment was pronounced on 11.10.2017.
Acts & Sections
- Goa Co-operative Societies Act, 2001: 61(a), 71, 72
