IN THE HIGH COURT OF BOMBAY
(Dr. Pratibha Upasani, J.)
TAJNAGAR CO-OPERA TNE HOUSING SOCIETY, NANDED - Petitioner
Versus
FATEH MOHAMMED MAULANA and others- Respondents
Advocates appeared
For petitioner: N. K. Kakde
For respondent Nos. 1 to 28: N. P. Patil
For respondent Nos. 29, 31 and 32 : S. D. Kaldate, A.G.P.
Expulsion of Members - Maharashtra Co-operative Societies Act, 1960 - Section 152, Section 154 - Rules 28, 29 - The judgment discusses the expulsion of members from a cooperative housing society under the Maharashtra Co-operative Societies Act, 1960. It highlights the legal provisions of Section 35, Rules 28 and 29, and emphasizes the fair procedure required for expelling a member. The court found that the expulsion of members was conducted without following the mandatory procedures, rendering the entire exercise illegal.
Fact of the Case:
The petitioner, a Cooperative Housing Society, sought to expel 28 members for non-payment of registration charges. The respondents contested that the demand for charges was unauthorized and the notices were not served upon them. The Divisional Sub-Registrar reversed the approval granted for the expulsion, and the Minister for State, Cooperation, confirmed the decision, leading to the filing of the writ petition.
Finding of the Court:
The court found that the expulsion of members was conducted without following the fair procedure required by the Maharashtra Co-operative Societies Act, 1960. It noted that the resolution for expulsion was passed by a two-third majority instead of the required three-fourths majority, and the notices did not comply with the prescribed procedure. As a result, the court dismissed the writ petition.
Issues: The issues revolved around the legality of the expulsion of members from the cooperative housing society, the authorization of the demand for registration charges, and the compliance with the procedural requirements under the Maharashtra Co-operative Societies Act, 1960.
Ratio Decidendi: The court emphasized the importance of following the fair procedure outlined in Section 35 and Rules 28, 29 of the Maharashtra Co-operative Societies Act, 1960 for the expulsion of members from a cooperative society. It found that the expulsion was conducted without adhering to the mandatory procedures, rendering the entire exercise illegal.
Final Decision: The court dismissed the writ petition, ruling that the expulsion of members from the cooperative housing society was conducted without following the fair procedure required by the Maharashtra Co-operative Societies Act, 1960.
Writ Petition No. 585 of 1987 of decided on 19-10-2001. (Aurangabad) petitioner - society and confirming the order dated 16-1-1982 passed by the Divisional Sub Registrar, Co-operative Societies, Aurangabad. This order of the Divisional Sub-Registrar dated 16-1-1982 was passed in appeal No. 589/81 filed by Munjaji Darbaji Godbule & 27 others, who are respondents No. 1 to 28 herein, under Section 152 of the Maharashtra Co-operative Societies Act, 1960 (hereinafter referred to as "the Act").
2. Factual matrix of the matter can be given as follows:
Petitioner is a Cooperative Housing Society registered under the provisions of the Act. This petition is filed for and on behalf of the said society by its Chairman Shaikh Rasul Shaikh Satar. This society is comprising of the persons belonging to lower strata of the society in general. The members of the society consist of Coolies, Hama1s and persons engaged in similar vocations. The said society is formed with the sole object of providing shelter to these persons within the area of its operation i.e. persons residing in Nanded City who belong to Muslim and backward class categories. Petitioner society was established in the year 1977 vide Registration No. NND-HOC-20 1 of 1977. There are 100 members in the petitioner-society.
The contention of the petitioner is that, to achieve its object, the petitioner society acquired land and for the purpose of conveyance which was to be executed with respect to the said land and after ascertaining the conveyance charges from the competent authority, served on all its members a notice requesting them to pay Rs. 165/- per member as his contribution towards the conveyance and registration of the land. The petitioner has submitted that it had purchased the land admeasuring 9 acres and 10 gunthas from out of Survey No. 35, situated at Aadullabad, Nanded. The vendees of the said land were one Hanuman Gad Agricultural Farm, which was a partnership firm consisting of two partners. An agreement for sale of the said land to the proposed petitioner society, which was being managed by the promoters, was entered into on 27th August, 1976. Thereafter registration certificate was issued in the name of the petitioner society by the competent authority. The land so agreed to be purchased was sold as agricultural land and it was further agreed between the parties to the agreement of sale that proceedings with respect to putting the said land to non agricultural use would be carried out by the petitioner society on its own and 100 plots, each measuring 50 feet x 60 feet were to be laid out with the price of Rs. 1800/- to each of them. Thus, the agreement of sale was for Rs. 1,80,000/-. In addition, it was agreed that rental at the rate of Rs. 50/- per plot for the said 100 plots, amounting to Rs. 5,000/- would be paid by the petitioner society to the vendees of the said plots before 15th of each month. In pursuance to this agreement of sale, the petitioner society was to execute the sale deed with the vendees of the said land and for the purpose of conveyance charges, it was necessary for every member of the petitioner society to contribute in addition to the plot price, an amount of Rs. 165/- towards the registration of the sale deed.
The petitioner society, therefore, issued notices on various dates to its members calling upon them to pay to the petitioner society, an amount of Rs. 165/- per head. First such notice was sent on 10.02.1980, wherein it was stated that for registration of 100 plots, which the society had purchased from out of Survey No. 35, situated at Aadullabad, Nanded a conveyance for the sum of Rs. 1,80,000/- was to be executed and an amount of Rs. 16,000/- was nece
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