High Court of Judicature at Bombay
J.H. BHATIA
Shri Ram Jadhav
Versus
V.S. Indulkar & Others
CONTEMPT PETITION NO. 350 OF 2009 & WRIT PETITION NO. 6562 OF 2009
Decided on : 11-08-2011
Contempt of Court - Maharashtra Cooperative Societies Act - Section 78(1), Section 146, Section 80 - The court discussed the appointment of an Administrator, the management of the society, and the breach of stay order by the Respondents. The key legal provisions discussed were Section 78(1) regarding the supersession of the Managing Committee and appointment of the Administrator, Section 146 regarding the handover of possession, and Section 80 regarding the direction to hand over records. The court's decision was influenced by the Administrator's actions and the Respondents' breach of the stay order.
Fact of the Case:
The Deputy Registrar passed an order appointing an Administrator, which was challenged and stayed by the Divisional Joint Registrar. The Petitioner filed an Intervention Application, and the order vacating the interim stay was challenged in a Writ Petition. The Respondents held an Annual General Meeting and elections despite the stay order, leading to a contempt of court charge.
Finding of the Court:
The court found that the Administrator had taken over the management on 10th September, 2008, and the Respondents had flouted the orders by holding the Annual General Meeting and elections, leading to a contempt of court.
Issues: The issues involved the appointment of the Administrator, the validity of the actions taken by the Respondents, and the breach of the stay order.
Ratio Decidendi: The court held that the Respondents committed contempt of court by flouting the stay order and continuing to hold the Annual General Meeting and elections despite not being in charge of the management.
Final Decision: The Respondent Nos. 1 and 2 were held guilty of contempt of court and were each punished with a fine of Rs. 2000.
Heard the Learned Counsel.
1. Perused previous orders. It appears that on 23rd July, 2008, the Deputy Registrar Cooperative Societies, Pune passed an order under section 78 (1) of the Maharashtra Cooperative Societies Act superseding the Managing Committee and appointed an Administrator. That order was challenged before the Divisional Joint Registrar Cooperative Societies, Pune who stayed the order passed by the Deputy Registrar. It was interim stay. As a result order about appointment of Administrator came to be stayed. Thereafter, the Petitioner filed Intervention Application.
2. On 10th September, 2008, the Divisional Joint Registrar vacated the interim stay order, result of which would be the appointment of Administrator as per the order passed by the Deputy Registrar. The order dated 10th September, 2008 was challenged in Writ Petition No. 6436/2008. It was contended on behalf of the Petitioners in their Petition, that the order vacating interim relief was in breach of principles of natural justice as Petitioners, who were Appellants before the Divisional Joint Registrar, were not given opportunity of hearing. On 19th September, 2008 this Court in the said Writ Petition stayed the order dated 10th September, 2008 passed by the Divisional Joint Registrar. The effect of this order was to revert back to the interim stay granted by the Divisional Joint Registrar to the appointment of the Administrator. Later on 20th November, 2008, this Court directed the parties to maintain status-quo as on 19th September, 2008. It is contended by the Petitioner that the charge of management was already taken over by the Administrator on 10.09.2008 after the interim stay was vacated by the Divisional Joint Registrar. This fact was not disclosed by the Respondents before the Court while filing the Writ Petition No. 6436/2008. As such on 19th September, 2008 when this Court stayed the impugned order dated 10th September, 2008, it was not pointed out to the Court that the Administrator had already taken over the management and by suppressing the fact secured the order dated 19th September, 2008. As on 19th September, 2008 when this Court passed the order, the Administrator was in charge of the management, the order dated 20th November, 2008 directing the parties to maintain status-quo as of 19th September, 2008 would mean that the Administrator would continue to be in management. Inspite of this the Respondents held the Annual General Meeting on 30th December, 2008 and also held election for 3 posts and thus Respondents committed contempt of court by violating the order of status-quo passed by this Court on 20th November, 2008.
3. In the Affidavit-in-Reply filed by Respondent No. 2 – Ujawal H. Mohite it is contended that the charge was never taken by the Administrator either on the basis of the order passed by the Deputy Registrar or after the Divisional Joint Registrar had vacated the interim relief granted by himself. It is contended that the management was still with the Managing Committee, which was superseded by the order of the Deputy Registrar and that as Managing Committee was still in the management, it was justified in holding the Annual General Body Meeting as well as the elections to fill in 3 vacancies in the Managing Committee which had become vacant. Thus, the Respondents have tried to justify their action.
4. It may be noted that Appeal No. 48 of 2008 was allowed by the Divisional Joint Registrar by order dated 30th January 2010. That order was challenged by the Petitioner by filing the Revision Application No. 143 of 2010 before the Hon’ble Minister Cooperation, Government of Maharashtra. The Revision Application was allowed by Hon’ble Minister on 22nd July, 2011 and the order passed by the Divisional Joint Registrar in Appeal was set aside. The order passed by the Deputy Registrar on 23rd July, 2008 for supersession of the Managing Committee and appointment of the Administrator was thus confirmed.
5. The Learned
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