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2013 Supreme(Bom) 966

In the High Court of Bombay at Aurangabad
R.M. BORDE & SUNIL P. DESHMUKH, JJ.
Dnyandeo Mohan Salunke & Another
Versus
The State of Maharashtra, Cooperation, Marketing and Textile Department & Others
Writ Petition No.2629 of 2013
Decided on : 10-05-2013

Advocates Appeared:
For the Petitioners:V.D. Salunke, i/by R.R. Karpe, Advocates.
For the Respondents:R1 to R4, K.G. Patil, A.G.P., R5 & R6, V.D. Hon, Advocate.

Headnote:Maharashtra Co-operative Societies Act, 1960 - Sections 73-B, 73-G and 157 - Exercise of power under Section 157.

       Power under Section 157 of Act can be exercised by State Government for granting exemption to societies and not to individuals or Board of Directors of Societies.

       Maharashtra Co-operative Societies Act, 1960 - Sections 73-B, 73-G and 157 - Extension of terms of Managing Committee of Society.

       Order of State Government, granting extension of term of Managing Committee of Society, in exercise of powers under Section 157 of Act, illegal. - Thus, in the facts and circumstances of this case, contentions raised by respondent No. 6 that in view of proviso to sub-section (2-B) of Section 73-G, the Committee is entitled to continue to remain in office till the date immediately preceding the first meeting of the newly Constituted committee, cannot be accepted. Court does not find any failure on the part of the Collector to hold elections of the Committee. However, there appears to be failure on the part of the Committee to take steps and it is evident, on perusal of the orders of extensions granted by the State Government on 15.12.2011 and 30.5.2012, which are issued at the request of Managing Committee of the Society.

       

Judgment :

1. Petitioners, who are members of Respondent No.5 – Mula-Pravara Electric Cooperative Society Ltd. Shrirampur, Tq. Shrirampur, District Ahmednagar, have approached this Court with a request to issue writ of mandamus or any other writ, order or direction in the nature of writ of mandamus, directing the Respondents to make appointment of Administrator of the rank of District Deputy Registrar/Collector or the Officer of equivalent rank to take over the functions of Management of Respondent No. 5-Society.

2. Respondent No.5-Society is a specified Co-operative Society within the meaning of Section 73G of the Maharashtra Co-operative Societies Act, 1960 (herein after referred to as “the Act”). The last elections to the Managing Committee of Respondent No.5-Society were held and elected Managing Committee assumed charge of the administration of the Society on 27.11.2006. The term of the elected Managing Committee is of five years which expired on 26.11.2011. According to petitioners, the Managing Committee of Respondent No.5-Society did not take steps for holding elections before expiry of their term, however, made a request to the State Government for granting extension of the term. The proposal, in that regard, was submitted on behalf of the Managing Committee, in pursuance to which notification came to be issued granting exemption under Section 73 (IB) of the Act and directing extension of term of Managing Committee for the period of six months. After expiry of extended term of six months, on second occasion, Government orders came to be issued granting exemption under Section 73(IB) of the Act and further extending term of Managing Committee of Respondent No.5-Society for further period of six months on 30.05.2012. The extended term of the Managing Committee has also come to an end in November 2012.

3. It is to be noted that the orders directing exemption from the operation of provisions of Section 73(IB) were issued by the State Government on 15.12.2011 and 30.05.2012 in exercise of powers conferred under Section 157 of the Act. The State Government, at the request of the Managing Committee of Respondent No.5 Society, in spite of expiry of term of elective office as well as extended term of one year, granted further exemption in exercise of powers conferred under Section 157 of the Act on 27.11.2012 and granted extension of the term of Managing Committee until further orders.

4. Petitioners contend that it was not open for the State Government to grant exemption from operation of provisions of Section 73 (IB) of the Act and extend term of the Managing Committee in exercise of powers under Section 157 of the Act. The powers exercisable under Section 157 of the Act cannot be invoked for extending benefits to the Managing Committee of a Society. The exercise of powers by the State Government is against the mandate of the Supreme Court as well as of this Court in various reported matters.

5. It is the contention of petitioners that on perusal of the orders of exemption granted by the State Government itself, it is evident that the orders have been issued by the State Government at the request of the Managing Committee and the Managing Committee, in stead of taking steps for holding of elections, has tendered a request to the State Government for grant of extension. It is the contention of petitioners that in view of provisions of Section 73H of the Act, the Managing Committee, whose term has already come to an end, does not have entitlement to continue in office and as such, direction needs to be issued to appoint Administrator to take over the affairs of Society.

6. Learned Counsel appearing for Respondent No.6 – Managing Committee of Respondent No.5-Society has vehemently opposed the contentions raised by petitioners. According to Respondent No.6, for the valid reasons recorded in the orders dated 15.12.2011 and 30.05.2012, the State Government has granted extension of term in favour of the Managing Committee. The lea

















































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