Bombay High Court
Bhaskar Sitaram Bapat
Versus
Assistant Registrar, Co-operative Societies, Bhor and others
Decided On:

Headnote:Sections 78/157 -Power of exemption under Section 78 (a) (ii) to Society -Exercise of, by State Government under Section 157- Validity Order under Section 78- To be made by Registrar and not by State Government-Removal of petitioner as Chairman of Board of Management by State Government and to appoint a new Board-Held, such exercise of power of exemption by State Government illegal and struck down-Registrar directed to exercise his powers under Section 78 by appointing a new Board of Management in accordance with law-(Co-operative Society-Power of exemption).

       An order under Section 78 is to be made by the Registrar and not by the state Government. Secondly, by the impugned order, the State Government has purported to remove the petitioner who is functioning as the Chairman of the Board of Management and to appoint a new Board consisting of three persons including the Respondent No.3. In the instant case the exercise of the power is patently illegal because thereby the Respondent No. 3 has been restored to hold office which he was otherwise disqualified to do. There is nothing on record to indicate that there has been any application of mind to the said fact of the Respondent No.3 being the member of a Board which had been removed and replaced by Board of Management. No reasons appear to have been indicated nor the particular provisions which are being exempted had been set out in the impugned order. The exercise of such power of exemption ought to be struck down. It would be however open to the State Government to pass a fresh order under Section 157 for enlarging the time limit for holding a fresh election for reconstitution of the Board. Therefore, the Registrar was directed to exercise his powers under Section 78 by appointing a new Board of Management in accordance with law.

       For Citation : 1990 CTJ 527 (Bom)