Bombay High Court Dismisses Writ Petition Challenging Election of Directors of Co-operative Bank Due to Alternative Remedy Under MCS Act. Dispute Regarding Validity of Nomination and Election Must Be Adjudicated Under Section 91 of Maharashtra Co-operative Societies Act, 1960.

High Court: Bombay High Court Bench: BOMBAY
  • 67
Judgement Image
Font size:
Print

Case Note & Summary

The petitioner, Mr. Mulchandani Amar Sadhuram, filed a writ petition under Article 226 of the Constitution of India challenging the election of directors of the Seva Vikas Co-operative Bank Ltd. The petitioner alleged that the nomination of certain candidates was invalid and that the election process was flawed. The respondents, including the bank and the returning officer, opposed the petition, arguing that the dispute fell within the exclusive jurisdiction of the Co-operative Court under Section 91 of the Maharashtra Co-operative Societies Act, 1960 (MCS Act). The court examined the maintainability of the writ petition in light of the alternative remedy. It held that the MCS Act provides a complete code for resolution of disputes relating to the election of directors, including the validity of nominations. The court noted that the petitioner had not availed of the remedy under Section 91 and had not shown any exceptional circumstances to justify invoking the writ jurisdiction. Consequently, the court dismissed the writ petition as not maintainable, leaving it open to the petitioner to pursue the statutory remedy. The court also disposed of the connected writ petition filed by the bank.

Headnote

A) Co-operative Law - Election Dispute - Alternative Remedy - Section 91 of Maharashtra Co-operative Societies Act, 1960 - The petitioner challenged the election of directors of a co-operative bank by filing a writ petition under Article 226. The court held that disputes relating to election of directors must be adjudicated under Section 91 of the MCS Act, which provides a comprehensive mechanism. The writ petition was dismissed as not maintainable due to the availability of an alternative efficacious remedy. (Paras 1-16)

B) Constitutional Law - Writ Jurisdiction - Alternative Remedy - Article 226 of Constitution of India - The court reiterated that the High Court should not entertain a writ petition when an alternative statutory remedy is available, unless exceptional circumstances exist. The petitioner failed to demonstrate any exceptional ground to bypass the statutory remedy under the MCS Act. (Paras 1-16)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether a writ petition under Article 226 of the Constitution of India is maintainable to challenge the election of directors of a co-operative bank, in view of the alternative remedy available under Section 91 of the Maharashtra Co-operative Societies Act, 1960.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The court dismissed the writ petitions as not maintainable, holding that the dispute must be adjudicated under Section 91 of the Maharashtra Co-operative Societies Act, 1960.

Law Points

  • Election disputes under MCS Act must be resolved under Section 91
  • not by writ petition under Article 226
  • Alternative remedy bar
  • Co-operative society election dispute
  • Jurisdiction of Co-operative Court
Subscribe to unlock Law Points Subscribe Now

Case Details

2018 LawText (BOM) (01) 183

WRIT PETITION NO. 10917 OF 2017 and WRIT PETITION NO. 10918 OF 2017

2018-01-30

2018:BHC-AS:3147

Mr. Mulchandani Amar Sadhuram

Mr. Haresh Shivaldas Bodani & Ors.

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Writ petition under Article 226 challenging election of directors of a co-operative bank.

Remedy Sought

Petitioner sought to challenge the election of directors and validity of nominations.

Filing Reason

Alleged invalidity of nomination of certain candidates and flaws in the election process.

Issues

Whether the writ petition under Article 226 is maintainable in view of alternative remedy under Section 91 of MCS Act.

Submissions/Arguments

Petitioner argued that the election was invalid due to improper nominations. Respondents contended that the dispute falls under Section 91 of MCS Act and writ petition is not maintainable.

Ratio Decidendi

Disputes relating to election of directors of a co-operative society must be resolved under the statutory mechanism provided under Section 91 of the Maharashtra Co-operative Societies Act, 1960, and not by way of a writ petition under Article 226 of the Constitution, unless exceptional circumstances exist.

Judgment Excerpts

The dispute relating to election of directors must be adjudicated under Section 91 of the MCS Act. The writ petition is dismissed as not maintainable.

Procedural History

The petitioner filed Writ Petition No. 10917 of 2017 under Article 226 challenging the election of directors of Seva Vikas Co-operative Bank Ltd. The bank also filed Writ Petition No. 10918 of 2017. Both were heard together and dismissed by the High Court on 30 January 2018.

Acts & Sections

  • Maharashtra Co-operative Societies Act, 1960: Section 91
  • Constitution of India: Article 226
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Upholds Acquittal of Accused in NDPS Case Due to Non-Compliance with Mandatory Search Provisions. Failure to Follow Sections 41(2) and 42 of NDPS Act Renders Recovery of Ganja Invalid, Accused Acquitted.
Related Judgement
Supreme Court Supreme Court Upholds Accused's Right to Default Bail in Pre-Charge Sheet Detention; Holds 60-Day Limit Applies Unless Offence Carries Minimum 10 Years' Imprisonment. Interpretation of 'imprisonment for a term not less than ten years' in Section 167(...