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2016 Supreme(Bom) 862

IN THE HIGH COURT OF JUDICATURE AT BOMBAY, NAGPUR BENCH
Z.A. HAQ, J.
Damodar - Petitioner
Vs.
State of Maharashtra & Ors. - Respondents
Writ Petition No. 3446 of 2016
Decided On : 20-07-2016

Advocates:
Advocate Appeared:
For the Petitioner: Shri R.J. Mirza, Shri A.J. Mirza
For the Respondents: Shri Harshal Futane, Shri K.R. Lule

The main legal point established is the interpretation and application of Section 73CA(1)(i) of the Maharashtra Cooperative Societies Act, 1960, which provides for the disqualification of a person from being a member of the Committee of a Society if they are a defaulter of any Society.

Headnote:

Election Disqualification - Cooperative Society - Maharashtra Cooperative Societies Act, 1960, Section 73CA(1)(i)

Fact of the Case:

The petitioner challenged the acceptance of the nomination paper of respondent No.6 for the Managing Committee elections of a society, citing disqualification under byelaw No.50(6) and non-payment of interest to the Cooperative Society. The court directed notice to be issued and, upon review, found the respondent disqualified under Section 73CA(1)(i) of the Maharashtra Cooperative Societies Act, 1960 and byelaws.

Finding of the Court:

The court held that the respondent was disqualified from contesting the election and quashed the decision of the Election Officer to accept the nomination paper.

Issues: Disqualification of respondent No.6 for Managing Committee elections, interpretation of byelaws and Section 73CA(1)(i) of the Act.

Ratio Decidendi: The court interpreted Section 73CA(1)(i) of the Act, emphasizing that the term 'any' in the provision is wide enough to disqualify a person from being a member of the Committee of a Society if they are a defaulter of any Society. The court also analyzed the byelaw regarding construction on allotted plots and found the respondent disqualified for failing to undertake construction within the stipulated time.

Final Decision: The court ruled in favor of the petitioner, quashing the acceptance of the nomination paper and holding the respondent disqualified from the Committee of the society.

JUDGMENT :

Heard Shri R.J. Mirza, Advocate h/f Shri A.J. Mirza, Advocate for the petitioners, Shri Harshal Futane, Advocate for the respondent Nos.4 and 6 and Shri K.R. Lule, A.G.P. for the respondent Nos.1 to 3 and 5.

2. Rule. Rule made returnable forthwith.

3. The elections of Managing Committee of respondent No.4 Society were due on 3rd July, 2016. The respondent No.6 had submitted his nomination paper which was accepted by the Returning Officer. The petitioner has approached this Court with the grievance that the nomination paper of the respondent No.6 could not have been accepted as he is disqualified as per the byelaw No.50(6) of the Society as he failed to undertake construction within stipulated time on the plot allotted to him by the Society. The petitioner also alleged that the Note of Auditors showed that the respondent No.6 had not paid the amount of interest payable by him to the Cooperative Society from which he had taken loan and the respondent No.6 is disqualified to contest the election, on this count also. By the order dated 22nd June, 2016 this Court directed issuance of notice making it returnable on 29th June, 2016 and by an interim order the respondent No.5 was directed to put a note against the name of the respondent No.6 in the list to be published that the inclusion of name of the respondent No.6 in the list and allotment of symbol shall be subject to further orders to be passed in this petition. The notice was made returnable on 29th June, 2016 and the directions, as above, were given to the Election Officer to see that the respondent No.6 appears before the Court and brings on record the actual facts so that further appropriate orders could be passed. On 30th June, 2016 when the matter was listed, the learned Advocate for the respondent Nos.4 and 6 sought two weeks' time. The conduct of the respondent No.6 prima-facie showed that he avoided to bring on record the actual facts and to assist the Court. The Election Officer had filed an affidavit on 28th June, 2016 stating that the Audit Note shows that the respondent No.6 was liable to pay interest and he had not paid that amount. Considering the facts on record, an interim order was passed directing that the name of the respondent No.6 be deleted from the list of validly nominated candidates. It is reported that the elections are conducted and the results are declared on 3rd July, 2016.

4. The Advocate for the respondent No.6 has submitted that he is liable to pay interest on the amount of loan taken from some other Society and not the respondent No.4 Society and, therefore, the respondent No.6 cannot be disqualified from contesting the election of the Committee of respondent No.4 Society. Shri R.J. Mirza, Advocate for the petitioner, has relied on the provisions of Section 73CA of the Maharashtra Cooperative Societies Act, 1960 (for short “Act of 1960”) and has submitted that the respondent No.6 is disqualified to be a member of the Committee of respondent No.4 Society even if he is a defaulter of any other Cooperative Society.

5. Section 73CA(1)(i) of the Maharashtra Cooperative Societies Act, 1960 reads as under :

“73CA. Disqualification of committee and its members.

[A1] ..............

(1) Without prejudice to the other provisions of this Act or the rules made thereunder in relation to the disqualification of being member of a committee, no person shall be eligible for being appointed, nominated, elected, co-opted or, for being a member of a committee, if he –

(i) is a defaulter of any society;”

The provisions of Section 73CA(1)(i) of the Act of 1960 in clear and unambiguous terms lay down that a person will be disqualified to be a member of the Committee of Society if he is defaulter of any Society. The term “any” in Clause (i) of Subsection (1) of Section 73CA of the Act of 1960 is wide enough and the respondent No.6 is disqualified for being appointed as the Member of the respondent No.4 Society even if he is a defaulter of another cooperative Society i.









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