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2010 Supreme(Bom) 856

IN THE H1GH COURT OF JUDICATURE AT BOMBAY (AURANGABAD BENCH)
R. K. DESHPANDE,J.
Shankarlal Govindram Gunwani & Ors. – Appellants
Vs.
State of Maharashfra & Ors. – Respondents
Writ Petition No.3045 of 2009
Decided on : 25th June, 2010.

Advocates Appeared:
Shri. V. D. HON, Advocate for Petitioners.
Shri. T. S. LODHE, A.G.P., for Respondent Nos.1 to 3.
Shri. V. D. SALUNKE, Advocate for Respondent No.5.
Shri. S. S. CHOUDHARI, Advocate for Respondent No.6.

Headnote:Maharashtra Co-operative Societies Act, 1960 - Section 78-Managing committee of society-Suppression of-Mandatory requirement for-Reasonable opportunity to defend charges must be afforded-Non-compliance of mandatory requirement renders action taken illegal.-Section 78(1) of the said Act requires the Registrar to provide the committee or its member as the case may be, an opportunity of stating its or his objection, if any, to the charge or the charges in respect of which, its or his removal is proposed. The action of removal either of the committee or any of its member, is a drastic action which makes the member so removed ineligible to be re-elected, re-appointed, re-nominated or re-co-opted as a member of the committee, till the expiry of the period of next one full term of the committee, from the date of his removal or till such lesser period as may be laid down under the provisions of Section 73-FFF or 144-E, as the case may be. In a way, it is astigmatic removal and hence an in built safeguard of prior consultation with federal society to which such society is affiliated, has been provided for. The requirement under Section 78(1), is to provide an effective opportunity to defend the proceedings and it is mandatory. In view of this, it is implicit requirement of Section 78(1), to state all material facts and particulars as well as the provisions of law, if any, to spell out or constitute a specific charge or charges on which the committee, or its member is sought to be removed. It is the duty and obligation of the Registrar to supply such information in the show-cause notice under Section 78(1) of the Act. It is not expected that the person or persons charged under Section 78(1) to search or make an inquiry to find out the material facts and particulars of charge and the law applied, to first understand the nature of charge and then to furnish the explanation. Failure to perform such duty or to discharge the obligation, to spell out or constitute a specific and definite charge of removal, would vitiate the findings, not only on the ground of breach of the principles of natural justice but also on the ground that the action is in breach of mandatory requirement of providing effective opportunity to furnish explanation or raise an objection as contemplated by Section 78(1) itself.

JUDGMENT

This writ petition is preferred by the 12 members of the Management Committee of Shri. Shivaji Sindhi Co-operative Housing Society Ltd., Jalna Road, Aurangabad which is registered under the Maharashtra Co-operative Housing Societies Act, 1960 (hereinafter referred to as 'the said Act'). It challenges the order dated 6.4.2009 passed by the respondent No.3 - The Taluka Deputy Registrar, Co-operative Societies, superseding the Management Committee of the said Society, in exercise of his powers under Section 78(1) of the said Act. It further challenges the order dated 30.4.2009, passed by the respondent NO.2-The Divisional Joint Registrar, Co-operative Societies, Aurangabad, dismissing the appeal preferred by the petitioners under Section 152 of the said Act, challenging the order dated 6.4.2009 passed under Section 78( 1) of the said Act by the respondent No.3.

2. The facts giving rise to the controversy involved in the case are as stated below:-

The stand of the respondent No.3 - The Taluka Deputy Registrar, Co-operative Societies, Aurangabad is that as per the complaint made by one Shri. Kishanchand Tanwani, M.L.e. to the Hon'ble Minister Shri. Patangrao Kadam, Department of Co-operation, Maharashtra State and also by one Shri. Rajesh Laxmandas Paswani and 21 others, a notice under Section 80(1) of the Maharashtra Cooperative Societies Act, 1960 (hereinafter referred to as "the said Act") was issued by the Tahsildar, Aurangabad for production of the records of the Society in respect of day-to-day affairs. The Special Auditor, Class II, Cooperative Societies (Flying Squad) Aurangabad, was appointed as an Inquiry Officer and he submitted two reports dated 22.4.2008 and 9.2.2009, stating that the Members of the Society are not co-operating and purposefully avoiding to submit the record for inquiry. Hence, it was stated that it was impossible to submit the report to the Government.

3. The Society failed to produce the record and therefore, notice under Section 78( 1) of the said Act was issued on 12.2.2009, to all the Members of the Managing Committee of the Society, for furnishing an explanation in respect of the charges levelled against them. The charges levelled, included the charge of mis-appropriation of huge amount and non-submission of bond, as contemplated by Rule 58(A) of the Rules, framed under the said Act. The petitioners, who are the Members of the Managing Committee of the said Society, submitted their explanation dated 25.5.2009, to the said show cause notice. All the charges levelled were denied. In respect of non submission of bond, the stand was that it was furnished within stipulated period. A photocopy of such bond, dated 5.6.2008, in form No.20 signed by all the petitioners, was also furnished. It was stated that the members of the Society, took the charge of the Society on 1.6.2008.

4. The hearing was conducted by the Respondent No.3 on 27.2.2009, 9.3.2009, 16.3.2009, 17.3.2009, 24.3.2009, 30.3.2009 and 20.4.2009. The respondent No.3 - the Taluka Deputy Registrar, by his order dated 6.4.2009, passed under Section 78(1) of the said Act held that all the charges were proved. In respect of the charge of non submission of bond, it was held that after the elections of the Members of the Managing Committee, a bond was required to be submitted within a period of 15 days, as per Rule 58(A) of the said Rules. However, the bond was not submitted and hence, there was non compliance of the provision of Rule 58(A) of the said Rules. It was held that the explanation furnished by the petitioners cannot be accepted. Accordingly, the respondent No.3 passed an order under Section 78(1) of the said Act on 6.4.2009, superseding the Managing Committee of the Society and appointing the respondent No.4 Shri. S. B. Sontakke, as an administrator over the Society, for a period of six months or till further orders.

5. All the 12 petitioners preferred an Appeal No. 13/2009 under Section 152 of the said Act, before the respondent No.2

















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