JUDGMENT

SAIKIA, J.— Pursuant to the Notification issued in June 1986 the elections of Directors to the District Central Cooperative Bank, Chandrapur, hereinafter referred to as the Bank the appellant filed his nomination papers in July 1986, and he was elected on August 18, 1986 as one of the Directors of the Bank from the Brahmapuri Agricultural Sales and Purchase Society. His election was not called in question according to the procedure prescribed by the Maharashtra Cooperative Societies Act, 1960, hereinafter referred to as the Act.

2. On January 8, 1987, the District Deputy Registrar of the Cooperative Societies, Chandrapur, hereinafter referred to as the Deputy Registrar, issued a notice to the appellant under Section 78(1) of the Act to show cause within 15 days as to why he should not be removed from the Board of Directors of the Bank as per the provisions of Section 73-FF, and directed him to remain present on February 2, 1987 at 11 a.m. in the Deputy Directors office. The notice stated that the appellant had borrowed a loan of total Rs 10,000 (Rs 7000 as debt and Rs 3000 subsidy) from the Bank and he kept the loan constantly in arrears till October 21, 1986 and being elected as Director of the Bank on August 18, 1986, till then he was working as the Director of the Bank. The notice further said:

"Because you have remained in arrears of the loan instalments as referred above to the Maharashtra State Cooperative Land Development Bank, under Section 73-FF(l)(i)(b) of the Maharashtra State Cooperative Societies Act, 1960, you are disqualified to be elected or to continue as Director or Executive Committee Member of the Executive Committee of a Cooperative Society and under Section 73-FF(2) of Maharashtra State Cooperative Societies Act, 1960 a person committing defaults ceased to be the Executive Committee (member) or Director.

From the information above given because the loan instalments of Maharashtra State Cooperative Land Development Bank remained due from you on the date of filing nomination papers for the election of post of Director of Chandrapur District Central Cooperative Bank and also on the date of your election and thereafter, you are disqualified to contest the election to the post of Director of Chandrapur District Central Cooperative Bank as also to be elected and to continue as Director. And therefore under powers given to me by Section 78(1) of Maharashtra State Cooperative Societies Act, 1960 and Order No. CSL/1481/24982/15-C(87) dated July 1, 1981 of Agriculture and Cooperation Department of Maharashtra State Government. I, KM. Deshpande, District Dy. Registrar, Cooperative Societies, Chandrapur hereby ask you to show cause in writing as to why you should not be removed from the Board of Directors of Chandrapur District Central Cooperative Bank and from the Executive Committees of the other cooperative societies in the district. Your explanation in writing should be submitted to this office within 15 days from the receipt of this notice."

The appellant showed cause and also filed an additional reply on November 10, 1987 stating that he "had not committed any default after the amended Section 73-FF came into existence".

3. The Assistant Registrar, Cooperative Societies, Chandrapur by his order dated December 7, 1987 removed the appellant from the Committee of Directors of the Bank holding that the appellant was defaulter on. January 31, 1986, on March 31, 1986 and he became defaulter under the provisions of Section 73-FF(l) of the Act, and rejected the appellants contention that Section 73-FF became applicable from August 6, 1986 as per the Government Notification issued on April 18, 1986 and that as he had accepted that he paid the dues on October 21, 1986, on August 18,1986 when he was elected as Director, he was defaulter under Section 73-FF(1) of the Act.

4. The order of the Assistant Registrar dated December 7, 1987 was served on the appellant on December 8, 1987. The appellants appeal against that ord