Case Note & Summary
These two cross writ petitions arose from a common order passed by the Registrar of Co-operative Societies, Goa, under the Goa Co-operative Societies Act, 2001. The MES Employees Consumer Co-operative Society Ltd. had a nine-member managing committee elected on 21 January 2009 for a five-year term. Due to internal disputes, the committee split into two factions — one with six members (petitioners in WP 20/2014) and another with three members (petitioners in WP 58/2014). A complaint filed by the three-member faction led to an inquiry which revealed that no managing committee meetings were held from March 2010 to July 2011, and the society failed to hold annual general meetings (AGMs) for the accounting years 2009-10 and 2010-11, in violation of Section 72 of the Act. The Registrar issued a show cause notice dated 17 January 2013 to the committee members. Both groups replied, each blaming the other for the defaults, but both sought withdrawal of the notice. After hearing the parties, the Registrar vide order (date not specified in the judgment) declared that the entire managing committee stood disqualified under Section 61(a) of the Act for five years from being elected as directors, and authorized two officers to arrange for the constitution of a new board. The disqualified committee members filed the present writ petitions, challenging the order primarily on the ground that it did not specify from which date the five-year disqualification period commenced. They argued that if the period runs from the date of the Registrar's order, it could lead to unjust consequences, especially if the proceedings themselves take many years. The petitioners prayed that the court fix a commencement date not later than 1 January 2012. The counsel for one of the groups also contended, relying on Kerbaji Marotirao Shinde Vs. State of Maharashtra, (1988) Mh.L.J. 157, that a formal declaration of disqualification by a competent authority is necessary. The Additional Government Advocate conceded that in the absence of a specific date in the impugned order, the court could stipulate an appropriate date so that fresh elections could be conducted, as the society’s functioning had come to a standstill for over five years. The court perused Section 61(a) of the Act, which deems disqualification if the AGM is not conducted within nine months of the accounting year closure. The text of the judgment provided is incomplete and does not contain the final operative part; however, it indicates that the court was disposed to fix a date for commencement of disqualification to enable the Registrar to proceed with fresh elections.
Headnote
A) Co-operative Societies - Disqualification of Directors - Deemed Disqualification for Non-conduct of AGM - Goa Co-operative Societies Act, 2001, Section 61(a) - The managing committee failed to conduct annual general meetings for the years 2009-10 and 2010-11 within the statutory period of nine months - The Registrar of Co-operative Societies issued a show cause notice and after hearing the parties disqualified all directors under Section 61(a) and authorized constitution of a new board - Before the High Court, the petitioners raised a limited challenge regarding the date of commencement of the five-year disqualification period, contending that the order did not specify it - The court noted that the disqualification is automatic upon failure, and that an appropriate date needs to be fixed to avoid hardship - The matter was remitted to Registrar to hold fresh elections (Paras 10-14)
Issue of Consideration
Whether the disqualification under Section 61(a) of the Goa Co-operative Societies Act, 2001 requires a formal declaration by the competent authority; Whether the period of five years disqualification commences from the date of default or the date of the order of disqualification; and What is the appropriate date from which the disqualification should be reckoned in the present case?
Final Decision
Decision not clearly stated
Law Points
- Legal points not extracted
- Deemed disqualification under Section 61(a) of the Goa Co-operative Societies Act
- 2001 for failure to conduct annual general meeting within the stipulated period
- Quasi-automatic nature of disqualification
- Importance of fixing the date of commencement of disqualification period to avoid injustice
- Registrar's power to declare disqualification and order fresh elections
Case Details
2026 LawText (BOM) (06) 223
Writ Petition Nos. 20 and 58 of 2014
Citation not available, 2017:BHC-GOA:2903
Shri Devidas J. Pangam, Shri Luis Fernandes, Shri Pravin Phaldessai, Shri Gaurish Agni, Shri Eeshan Usapkar
P. N. Halshikar & Ors. (WP 20/2014) and Arun Y. Redkar & Ors. (WP 58/2014)
Registrar of Co-operative Societies, Goa and others
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Nature of Litigation
Writ petitions under Article 226 of the Constitution of India challenging the order of Registrar of Co-operative Societies, Goa, disqualifying the entire managing committee of MES Employees Consumer Co-operative Society Ltd. under Section 61(a) of the Goa Co-operative Societies Act, 2001, and authorizing constitution of a new board.
Remedy Sought
Petitioners sought quashing and setting aside of the Registrar's order and/or fixation of the date of commencement of the five-year disqualification period from a date not beyond 01.01.2012.
Filing Reason
The managing committee was disqualified for failing to hold annual general meetings for two successive years (2009-10 and 2010-11) and not conducting committee meetings for over a year, leading to deemed disqualification under the Act.
Previous Decisions
The Registrar of Co-operative Societies passed the disqualification order after issuing show cause notice and hearing both factions. Prior to that, a dispute over the validity of an earlier AGM had been decided by the Co-operative Tribunal, which was challenged in a separate writ petition (WP 610/2011), but the immediate challenge is to the disqualification order.
Issues
Whether the disqualification under Section 61(a) of the Goa Co-operative Societies Act, 2001 is automatic or requires a formal declaration by the competent authority.
Whether the period of five years disqualification commences from the date of the default (failure to hold AGM) or from the date of the Registrar’s order.
What is the appropriate date for commencement of the disqualification in the facts of the present case.
Submissions/Arguments
Petitioners contended that the impugned order did not specify the date from which the five-year disqualification period would run, and if it runs from the date of the declaration, it could cause prejudice as the order itself might take years after the default; they requested the court to fix a commencement date not beyond 01.01.2012.
One counsel argued that a declaration of disqualification by a competent authority is necessary even if the disqualification is deemed, relying on Kerbaji Marotirao Shinde v. State of Maharashtra.
The Additional Government Advocate submitted that in the absence of any date in the order, an appropriate date may be stipulated so that fresh elections could be held, as the society's functioning was stalled.
Ratio Decidendi
Ratio not explicitly mentioned
Judgment Excerpts
The submission therefore is that this Court may stipulate such a date, which cannot be beyond 01.01.2012.
Section 61(a) of the Act, which is relevant for the purpose (as it stood prior to it's amendment by Act No. 20 of 2014) reads as under:- “61. Disqualification of all directors of the board – Notwithstanding anything contained in the foregoing section, 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 of MES Employees Consumer Co-operative Society Ltd. was elected on 21.01.2009 for a five-year term. Internal disputes led to a split into two groups. A complaint by one group resulted in an inquiry finding no managing committee meetings from March 2010 to July 2011 and failure to hold AGMs for 2009-10 and 2010-11. The Registrar of Co-operative Societies issued a show cause notice on 17.01.2013. After hearing both groups, the Registrar passed an order disqualifying the entire managing committee under Section 61(a) of the Goa Co-operative Societies Act, 2001, and authorized constitution of a new board. The disqualified members filed two cross writ petitions (WP 20/2014 and WP 58/2014) challenging this order, which were heard together by the High Court of Bombay at Goa.
Acts & Sections
- Goa Co-operative Societies Act, 2001: 61(a), 71, 72
- Constitution (Ninety-seventh Amendment) Act, 2011: 97th Amendment
