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2014 Supreme(Bom) 946

In the High Court of Bombay at Aurangabad
RAVINDRA V. GHUGE, J.
Uttam Jagannath Lungare
Versus
The State of Maharashtra & Others
Writ Petition No. 1546 of 2001
Decided on : 21-04-2014

Advocates appeared:
For the Petitioner:S.S. Choudhari h/f D.N. Suryawanshi, Advocates.
For the Respondents:R1 to R4, V.H. Dighe, AGP, R5 to R7, S.R. Barlinge, Advocate.

Headnote:Maharashtra Co-operative Societies Act, 1960 - Section 35 - Maharashtra Co-operative Societies Rules, 1961, Rules 28 and 29 - Expulsion of members. - Non-issuance of prior notice of special general meeting indicating discussion on issue of expulsion of member to member, renders order of expulsion of member improper.

Judgment :

1. Heard learned Advocates for the respective parties.

2. By an order dated 25th April 2001, this Court had admitted this petition and had granted interim relief in terms of prayer clause (D) which reads thus; –

"(D). Pending hearing and final disposal of this Writ Petition, the resolution dated 4.4.1999 passed by respondent No. 5, the judgment and order dated 28.6.1995,12.10.1999 and 22.1.2001 passed by respondent No. 4, 3 and 2, in case No. 2/99, in appeal No. 154 99 and in the revision No. RVA/2779/CR-400/15-C respectively, please be stayed."

3. So, the petitioner herein was protected by the orders of this Court for the last about 13 years.

4. The petitioner claims to be a founder member of the respondent No. 5 Society. His membership was cancelled by the said Society under section 35 of the Maharashtra Cooperative Societies Act, 1960 {"Act of 1960".) Respondent No. 1 is the State of Maharashtra. Respondent No. 2 is a Secretary for Co-operation and Textile Department of the State of Maharashtra. Respondent No. 3 is the Divisional Joint Registrar, Cooperative Societies, Aurangabad. Respondent No. 4 is the Taluka Deputy Registrar, Cooperative Societies, Aurangabad. Respondent Nos. 6 to 16 are the members of the respondent No.5 Cooperative Society who have voted against the petitioner, resulting in the expulsion of the petitioner from the Cooperative Society.

5. The respondent No.5 Society was formed in 1968. The petitioner and other members have paid the amounts towards the purchase of land in 1969 and obtained receipts from the Chief Promoter of the Society. Eventually, the Society was registered in October 1971. The petitioner gave a declaration that he and his family do not have any plot or house in the operational area.

6. The petitioner was initially allotted the plot No. 6 in the respondent 5 Society. As he found the said plot to be unsuitable to him, he sold the same to Dr.Khanna and purchased the plot No. 5 to the extent of half portion from the Northern side from the founder member Shri H.N. Podar, vide registered sale deed No. 7839, dated 8th August 1988. Both the transactions are approved by respondent 5 Society by its resolutions in the year 1988.

7. The petitioner submits that he was issued with a show cause notice dated 29th of January 1991 by respondent 5 Society. 11 charges were levelled against him. He submitted his explanation to the show cause notice on 15 March 1999. The petitioner denied all the charges leveled upon him. The said charges were levelled after a lapse of about 10 to 15 years. It is contended that the said show cause notice prima facie is illegal and unsustainable.

8. Respondent No. 5 Society issued an agenda-cum-notice dated 17th of March 1999 for convening a special general body meeting, which was scheduled on 4.4.1999. The said notice dated 17th of March 1999 does not specify that there would be a discussion on expulsion of the petitioner under section 35 of the Act of 1960. As per the said notice of meeting, the special general body meeting was held on 4th April 1999 and the resolution was passed by a majority of 11:4 members in favour of the expulsion of the petitioner as member of the Society. The petitioner was not heard in the said meeting when the resolution dated 4th April 1999 was passed for expelling him as a member.

9. The petitioner initiated legal proceedings in the form of a dispute before the learned Judge, Cooperative Court, Aurangabad to the extent of the entitlement of the plot. In the meanwhile, respondent 5 Society submitted the resolution dated 4th April 1999 for approval under section 35 of the 1960 act to respondent No. 4. The petitioner appeared in the said proceedings. The record of the Society was not called for by respondent No. 4. It was pointed out by the petitioner that rule 28 and 29 of the Maharashtra Cooperative Societies Rules 1961 ("Rules of 1961") have been violated. However, respondent No. 4 granted approval to the expulsion of the petit





























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