2007 Supreme(Bom) 1188
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
SWATANTER KUMAR, C.J. & DR. D.Y. CHANDRACHUD, J.
Kolhapur Zilla Sahakari Doodh Utpadak Appellant
versus
State of Maharashtra and 64 others Respondents
LETTERS PATENT APPEAL NO. 155 OF 2007
IN
WRIT PETITION NO. 5251 OF 2007
with
C.A. No. 281 of 2007
Decided on: August 23, 2007
Advocate Appeared
Mr. S.S. Pakale with Mr. Aditya Chitale and Ms. Yogita R.Tanawade for
the appellant.
Mr. S.R. Nargolkar, Assistant Government Pleader, for respondent Nos.
1 to 3.
Mr. P.K.Dhakephalkar, Senior Advocate, with Mr. S.S. Patwardhan for
respondent Nos. 5 and 38.
Headnote:Maharashtra Co-operative Societies Act, 1960 - Section 35-Maharashtra Co-operative Societies Rules, 1961, Rules 28 and 29-Order of Deputy Registrar granting approval to resolution passed in annual general meeting expelling societies from membership-Challenged in appeal under Section 152-Contending no procedure and no proper meeting held-Restored with limitation of time-Challenged-Held-If expulsion was bad there was no question of fixing time limit appeal dismiss.
Maharashtra Co-operative Societies Act, 1960 - Section 35 - Maharashtra Co-operative Societies Rules, 1961, Rules 28 and 29 - Expulsion of 225 societies from its membership - Resolution for, passed in Annual General Meeting - Challenged - Affected parties not served with proper notice - Membership of 61 societies restored for a period of one year by revisional authority - Apparent mistake in order of revisional authority - If expulsion was bad - Limitation of time cannot be fixed - Time conditions incorporated in order is of no consequence - Appellants free to hold fresh meeting in respect of expulsion of respondents in accordance with law. - The only apparent mistake that appears to have occurred in the order of the revisional authority is that in its order dated 11th July, 2007, it has restored the member-ship of 61 societies for a period of one year, subject to condition of supply of milk to the appellant-Sangh. Incorporation of this direction is not sustainable in law. Either the expulsion of the members was good or it was bad in law. If it was good, then the impugned order, in any case, could not have been passed. If the expulsion was bad, then there was no question of fixing a limitation of time.
Respondent Nos. 5 to 65 in the present appeal had filed
appeal under Section 152 of the Maharashtra Co-operative Societies
Act, 1960 (hereinafter referred to as “the Act”) before the Joint
Registrar, Co-operative Societies (Dairy), Mumbai, against the order
dated 30th December, 2006, passed by the Deputy Registrar, Cooperative
Societies (Dairy), Pune. The Deputy Registrar in that order
had granted approval to the resolution passed in the Annual General
Body meeting held on 11th November, 2005, under Section 35 of the
Act which expelled 225 societies from its membership. The order
dated 30th December, 2006, was challenged on various grounds,
including that there was no proper meeting and no proper procedure
was followed in accordance with law. The affected parties were not
granted proper notices. Notices of the Annual General Meeting dated
11th November, 2005 were sent on 11th October, 2005 and were
received by the concerned societies from 12th to 18th October, 2005 and
as such the said notice is not of clear 30 days as required under law.
Reliance was also placed upon different judgments of the Court.
Another contention that was raised before the authorities was that
approval had been granted without proper application of mind and in a
routine manner. As there was no compliance of Section 35 of the Act
read with Rules 28 and 29 of the Maharashtra Co-operative Societies
Rules, 1961 (hereinafter referred to as “the Rules”) which are
mandatory, the entire order is vitiated. These arguments were
contested by the Appellant that notices were issued to all 263 societies
on 6th June, 2005 and from 11th October, 2005 only 38 societies started
supplying milk again and remaining 225 societies were absent on 11th
October, 2005. Despite service of notice, no written representation was
received. No explanation to show cause notices was received and
resultantly they were expelled. The Appellate Authority, Joint Registrar,
Co-operative Societies (Dairy), Worli, after dealing with all these
contentions in great detail, held as under:-
“I have gone through the records and proceedings of the
Respondent No.1. It is true that the Respondent No.1 has
given sufficient opportunity to all the concerned Societies
including the Appellants and even inspite of purshis on
behalf of some of the Appellants Societies, they have not
started supply of milk and as such it is clear that the
Appellants Societies did not wish to start supply of milk to
the Respondent No.2 and as such it is the duty of the
Respondent No.1 to see the well being of the Society and
if some of the Societies who have expelled started supply
of milk, there is no illegality on the part of the Respondent
No.1 in not giving approval for their expulsion. Under
these circumstances I am not agreeable with the
submission on behalf of the Appellants that the Resolution
cannot be segregated.
44. It seems that after receipt of the proposal and filing
of say on behalf of the Appellants which is dated
26.6.2006, no positive case is made out by the Appellants
but some general statements are made by them in the said
say. I find that after submissions of all the documents, the
Respondent No.1 by deputing officers from the Department
have taken inspection of the record of the Respondent
No.2 Sangh in its office so as to satisfy himself about the
facts and circumstances. I have minutely gone through the
impugned order passed by the Respondent No.1. The
said order is detail order and the Respondent No.1 has
considered all the aspects i.e. Factual as well as legal and
has discussed the same in his order categorically and
thereafter only and by giving proper and sufficient
opportunity for leading oral evidence by way of affidavits
and the interrogatories and to produce the documentary
evidence, has passed the impugned order. That according
to my findings, the impugned order is perfectly legal and
valid and it is according to the facts and law. The
Appellants have acted against the interest of the
Respondent No.2 Sangh by non supplying o