Case Note & Summary
The appeal arose from a writ petition dismissed by a Single Judge, challenging the notice issued by the Deputy Registrar under Section 32(5)(a) of the Andhra Pradesh Co-operative Societies Act, 1964, calling for a general body meeting of the society. The first appellant, a house building society with 93 members, had its managing committee elected on 09.03.2023 for a five-year term. The society was required to hold general body meetings at least twice a year, but a meeting scheduled for 22.04.2024 was postponed due to lack of quorum. A requisition for a special meeting was made by 53 members on 18.07.2024, but the appellants contended it did not meet the required 2/3 majority. The Deputy Registrar issued a notice on 19.11.2024, stating that the existing committee had ceased to hold office due to non-compliance with the statutory requirements. The appellants argued that the Registrar failed to provide an opportunity for the existing committee to respond to the requisition and that the notice violated principles of natural justice. The respondents contended that the Registrar acted within his powers due to the committee's failure to hold meetings. The court found that the cessation of the committee's office was automatic under the Act, but the Registrar was still obligated to provide notice and an opportunity for hearing. The court set aside the Single Judge's order and the Registrar's notice, remanding the matter for a de novo inquiry, allowing all parties to present their objections. The interim committee was allowed to continue managing the society until a final order was issued.
Headnote
A) Cooperative Societies - General Body Meetings - Requirement of Holding Meetings - Andhra Pradesh Co-operative Societies Act, 1964, Section 32(1) - The committee must hold at least two general meetings in a cooperative year, with one in each half year. The failure to convene meetings as required led to the cessation of the committee's office, but the Registrar must provide an opportunity for hearing before such cessation is enforced. Held that the absence of notice and hearing rendered the proceedings unsustainable (Paras 17-18).
Issue of Consideration
Whether the Registrar's notice for a general body meeting violated principles of natural justice and whether the cessation of the committee's office was justified.
Final Decision
The court set aside the order of the Single Judge and the notice issued by the Deputy Registrar, remanding the matter for a de novo inquiry. The interim committee was allowed to continue managing the society until a final order was issued.
Law Points
- Natural justice
- Cooperative societies
- General body meetings
- Cessation of office bearers
- Requisition for meetings
