Until proper resignation procedure is complete, the Registrar has no power to remove the Committee under Sec. 77A of the Maharashtra Co-Operative Societies Act, 1960: Bombay HC
Title: Vinayak Ukharam Chavhan v. Divisional Joint Registrar and Ors.
Decided on: 3 August, 2023
+ WRIT PETITION NO. 521 OF 2023
CORAM: KISHORE C. SANT, J.
Facts of the Case:
In the Wadner Vividh Karyakari Seva Sahakari Sanstha Ltd. the term of the earlier Committee of the Society expired in 2021. Therefore, an election for Managing Committee of the Society was conducted on 19.12.2021. The Petitioner and 11 other members came to be elected. After the election, the petitioner was elected as Chairman to the Society. On the same day, six members of the Committee gave resignations.
In the meeting dated 02.02.2022, only six members out of twelve were present, therefore, a meeting was again called on 16.02.2022 by issuing fresh notices. However, before that, Assistant Registrar passed an order on 08.02.2022 removing the Managing Committee by appointing an Authorized Officer under Section 77A (b) (1) of the Maharashtra Co-Operative Societies Act, 1960. The petitioner, therefore, filed a Revision Application before the Divisional Joint Registrar, Co-Operative Societies, Aurangabad.
Issues
Whether the order of the Registrar regarding removal of the Committee under Sec. 77A valid?
Contentions
The Petitioners claimed that no proper procedure was adopted in accepting the resignations. The Registrar, before resignations were accepted, had moved the Committee, which was illegal. As per Section 78A (ii) proviso, Sections 77 and 78A are not applicable to the Society as it does not receive Government grants or funds. Instead, Rule 74 of the Election Rules should have been made applicable, that provides for filling up of casual vacancies. The Assistant Registrar has thus, exercised the powers not vested in him and therefore, the impugned order is illegal. The Petitioner explained the cause of delay that he was hospitalised for undergoing by-pass surgery and came to know about the order only on 27 Dec., 2022.
The Respondents contended that as per the By Laws, if Coram is not complete for holding meeting, then the next meeting should be held within 15 days thereafter. It was submitted that the first meeting could have been held when six persons had resigned. Therefore, Section 77A, Clause (a) and (b) are rightly invoked after recording of the statements. There was no management Committee in existence. Moreover, that the petition also suffers from the delay and latches. The Respondents pray for rejection of the petition
Decision
The Court held that the Registrar has hurriedly proceeded to pass the order. The meeting was scheduled to be held on 16.02.2022. It is before that meeting the action is taken. Technically, no resignations were accepted till that date as it was for the Society to take decision on resignations. The impugned order was, therefore, set aside.
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Written by- Aparna Gupta, University Law College & Dept. of Studies in Law