IN THE HIGH COURT OF JUDICATURE AT BOMBAY, NAGPUR BENCH
S.B. SHUKRE, J.
M.I.D.C. Prakalpgrast Majur Kamgar, Sahakari Sanstha – Petitioner
Versus
Amravati District Labour Cooperative Society's Union Ltd. – Respondent
WRIT PETITION NOS. 527 & 528 OF 2016
Decided On : 09-06-2016
Cooperative Societies - Challenge to Order under Maharashtra Cooperative Societies Act, 1960 - Section 27(10) - Summary
Fact of the Case:
The petitioners, registered under the Maharashtra Cooperative Societies Act, 1960, challenged an order rejecting their objections to exclusion from the voters list due to arrears of dues to the respondent Federal Society. The petitioners contended that they were not defaulters and should have been given a hearing before being disqualified from voting.
Finding of the Court:
The court found that the petitioners were given adequate hearing and opportunity to prove they were not defaulters, but failed to do so. The court held that the right to vote is a statutory creation and can only be exercised if conditions stipulated in the statute are fulfilled. The court concluded that the petitioners could not prove they were not defaulters and upheld the order rejecting their objections.
Issues: The main issue was whether the petitioners were rightly excluded from the voters list due to arrears of dues to the respondent Federal Society.
Ratio Decidendi: The court held that the provision of Section 27(10) imposes a prohibition upon the members' right to vote, and the consequence of losing the voting right follows automatically on the happening of the event of default. The court also emphasized that the right to vote can only be exercised in accordance with the conditions prescribed in the statute.
Final Decision: The court dismissed the writ petitions, stating that no fault could be noticed in the impugned order and that no interference with the same was warranted. The court also noted that the election process was almost complete, and the only option left to the petitioners was to resort to appropriate remedy available under the law.
S.B. SHUKRE, J.
1. Rule. Rule made returnable forthwith. Heard finally by consent of learned counsel appearing for the parties.
2. By these writ petitions the petitioners have challenged the legality and correctness of the order dated 11.1.2016 passed by the District Cooperative Election Officer-cum-District Deputy Registrar, Cooperative Societies, Amravati. Both the petitioners are the Cooperative Societies registered under the provisions of the Maharashtra Cooperative Societies Act, 1960 (in short “Act, 1960”) and the Maharashtra Cooperative Societies Rules, 1961 (in short, “Rules, 1961”). They are classified as producer societies in view of the Rule 10(1) of the Rules 1961. The respondent No.1, in both the writ petitions, is a Federal Society to which the petitioners-Societies are affiliated and respondent No.2, in both the writ petitions, is the Election Officer appointed for conducting the elections of respondent No.1 Society.
3. On 1st September, 2009, there was an election of respondent No.1 Society in which the existing executive body of respondent No.1 was got elected. It's term, however, expired on 31st August, 2014, it being for a period of 5 years as per the byelaws of respondent No.1Society. But, no elections were proposed and held immediately or within reasonable time thereafter. On 19.12.2015, the respondent No.2 declared a temporary election programme in which provisional voters list dated 31.10.2014 was referred to. On going through the provisional voters list dated 31.10.2014 the petitioners learnt that only 14 members out of 96 were included therein as the voters and the petitioners did not find their names mentioned in the voters list. The reason for exclusion of their names from the voters list learnt to be that both the petitioners-societies were considered as defaulters. Therefore, the petitioners in Writ Petition No.527 and petitioner in Writ Petition No.528/2016 filed written objections with the respondent No.2 on 29.12.2015 respectively. They also prayed for inclusion of their names as voters in the voters list.
4. Pursuant to the objections taken by both the petitioners, the respondent No.2 by notice dated 5.1.2016 called upon both the petitioners to remain present for hearing before him on 11.1.2016 along with receipts showing payment of arrears of dues of respondent No.1, relevant proceeding books, no dues certificate issued by the respondent No.1 and other necessary documents.
5. After hearing all the petitioners, the respondent No.2 by common order passed on 12th January, 2016 rejected the objections on the ground that the petitioners were defaulters in clearing the arrears of the society within the meaning of Section 27(2) read with Section 73CA(1) of the Act, 1960 and Rule 6 of the Maharashtra Cooperative (Election to Committee) Rules 2014 (in short, “Rules, 2014”). It is this order which has been challenged in both these writ petitions and it being a common order both these writ petitions are being disposed of by this common judgment.
6. I have heard Shri Chitaley, learned counsel for both the petitioners, Shri A.M. Ghare, learned counsel for the respondent No.1 and Shri S.B. Ahirkar along with Ms. T.H. Udeshi, learned Assistant Government Pleader for respondent No.2. With their assistance, I have carefully gone through the paper book of both the petitions including the impugned order.
7. Shri Chitaley, learned counsel for the petitioners submits that the petitioners in order to attract the provision of Section 27(10) of the Act, 1960 should have been the loan defaulters and even if it is assumed just for the sake of argument, that both the petitioners were defaulters as contemplated under Section 27(10) still the provisions of Section 73CA(1) together with Rule 58 of the Rules, 1961 would require that a notice is given to the concerned members regarding nonpayment of their arrears, before order of cessation of membership is issued by the Registrar. He submits, relying upon the Full Bench J
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