1992 Supreme(SC) 75
SUPREME COURT OF INDIA
B.P.Jeevan Reddy : M.N.Venkatachaliah
Shashikant Sonaji Deshmukh
Versus
State Of Maharashtra
Case No. : 292 , 293 of 1992
Date of Decision : 1/22/92
Headnote:
Maharashtra Co-operative Societies Act, 1960 - Section,78 - Election - supersession of the Board of Directors - Board of Directors of a Cooperative Society for term of five years- Joint Registrar of Cooperative Societies in Maharashtra initiated proceedings Maharashtra Co-operative Societies Act for supersession of Board of Directors by issue of show-cause notice explanation furnished by appellants and Respondent who was also one of Directors, against proposed action was not found satisfactory and acceptable by Joint Registrar of Cooperative Societies who made an order superseding Board- A statutory appeal was taken before government- That appeal was heard secretary government in department concerned- On same day appellate order dismissing appeal and confirming Joint Registrars action was made- One of grievances against appellate order is that hearing before secretary was mere formality as secretary concluded matter in a few minutes in evening and passed order same day –Held, Parties though perhaps on account of some inadvertence High court had not recorded that fact in course order- But this is seriously disputed by appellants- Appellants further say that in proceedings before High court where appellants had made serious allegations of male fide and complained that orders were made at instance of and under pressure from politicians authorities had not even filed their counter-affidavits court are of view that in absence of consent of appellants any order of kind made by High court would not be sustainable- If there was such consent it was appropriate for High court to have recorded that- In absence of any indication in order in their behalf or in any other record it difficult to accept contention of respondent that appellants were consenting parties- result is that writ petitions would have to be heard on their merits and disposed afresh by High court and remit writ petitions to High court for a fresh disposal in accordance with law- Court request High court having regard to nature controversy and need for an expeditious decision to dispose of writ petitions as early as possible- Now that writ petitions are restored interim orders made during their subsistence would continue to operate unless otherwise directed – Order accordingly
Certainly. Here are the key points derived from the provided legal document:
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The case involves a dispute over the supersession of the Board of Directors of a cooperative society and the subsequent legal proceedings, including appeals and writ petitions (!) .
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The Board of Directors was elected for a five-year term, but proceedings were initiated under statutory provisions to supersede the Board, which resulted in an order superseding the Board's authority (!) [1000296860001].
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The appellate authority, namely the secretary to the government, dismissed the appeal on the same day as the hearing, which was argued to be a mere formality, raising questions about the fairness and adequacy of the hearing process (!) [1000296860001].
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The appellants challenged the appellate order before the High Court, which directed a new election to be held within a specified timeframe, but the appellants contested whether the High Court's order was made with their consent or based on an adjudication of the merits (!) (!) .
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There were allegations of mala fide and undue pressure from political authorities influencing the orders, and the appellants contended that the authorities had not filed counter-affidavits to substantiate their claims (!) [1000296860004].
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The court observed that, in the absence of clear evidence of consent from the appellants, any order made by the High Court would not be sustainable, and thus, the writ petitions needed to be reheard on their merits (!) [1000296860005].
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The Supreme Court set aside the High Court's order and remitted the matter back for a fresh disposal, emphasizing the importance of recording consent and proper proceedings, and requested the High Court to expedite the case (!) [1000296860006].
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Interim orders previously granted would continue to operate unless directed otherwise by the High Court upon rehearing (!) [1000296860006].
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(1) APPELLANTS seek special leave to appeal to this court from the common order dated 15/08/1991 of the High court at Bombay made in Writ Petition Nos. 1120 and 1121 of 1990. We have heard Mr Masodkar, learned counsel for the petitioner; Mr Bhasme, learned counsel for the respondent-State and its authorities, and Mr Biria, learned counsel for Respondent 6. Special leave granted.
(2) THE appellants in these two appeals along with Respondent 6 were elected to the Board of Directors of a Cooperative Society : "The Ahmednagar Zilla Sahakari Dudh Vyavsaik Sangh Ltd." for a term of five years. The Joint Registrar of Cooperative Societies in Maharashtra initiated proceedings under S. 78 of the Maharashtra Co-operative Societies Act, 1960 for supersession of the Board of Directors by the issue of a show-cause notice dated 6/05/1989. The explanation furnished by the appellants and Respondent 6 who was also one of the Directors, against the proposed action was not found satisfactory and acceptable by the Joint Registrar of Cooperative Societies, who, on 31/08/1989, made an order under S. 78 superseding the Board. A statutory appeal was taken before the government. That appeal was heard on 20/03/1990 by the secretary to government in the department concerned. On the same day, the appellate order dismissing the appeal and confirming the Joint Registrars action was made. One of the grievances against the appellate order is that the hearing before the secretary was a mere formality as the secretary concluded the matter in a few minutes in the evening and passed the order the same day.
(3) SIX amongst the newly-elected Directors of the Board challenged the appellate order before the High court in Writ Petition No. 1120 of 1990. The seven remaining members including Respondent 6 who were on the previous Board and were re-elected filed an independent Writ Petition No. 1121 of 1990 assailing the appellate order. The matter came before a division bench of the High court and on 13/08/1991, the division bench made an order in the following terms :
"HEARD Mr Dhorde, Counsel for the petitioner and Mr Kakade G.P. for the State. Mr Kakade G.R. on instructions of R. Nos. 3 and 4 states that they are willing to hold election of the specified society, R. No. 7. We, therefore, direct the Collector, Ahmednagar to hold election of the Society and complete the election process as far as possible within FOUR MONTHS from receipt of the writ. Mr Kakade submits that till the election process is completed, the Managing Committee should not take major policy decision in the interest of R. No. 7 and its members. It will be better if no major policy decisions are taken by the Managing Committee till the election process is completed. Interim relief in terms of prayer clause (c) to continue till the election process is completed."
(4) LEARNED counsel for the appellants contends that the order of the High court is neither one made on the consent of the parties nor can it be called an adjudication. Appellants were not consenting parties to the arrangement contemplated by the order. It is urged that it was open to the High court either to quash the order impugned in the writ petition on a consideration of the merits of the matter or reject the challenge. But the directions issued for a fresh election without pronouncing on the merits of the challenge to the supersession for no reason other than that the government was prepared to hold a fresh election, says counsel, is neither here nor there as no election can or need be held if the supersession is bad.
(5) RESPONDENTS, however, seek to maintain that order was made on consent of all the parties, though, perhaps on account of some inadvertence, the High court had not recorded that fact in the course of the order. But this is seriously disputed by the appellants. Appellants further say that in the proceedings before the High court where appellants had made serious allegations of