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2020 Supreme(Bom) 791

IN THE HIGH COURT OF BOMBAY
S.J. Kathawalla, Riyaz I Chagla, JJ.
Audumber Narayan Wadadekar - Appellant
Versus
State Of Maharashtra - Respondent
Writ Petition (St) No. 92156 of 2020
Decided On : 02-09-2020

Advocates Appeared:
Sarang S Aradhye, Advocate, Milind Sathe, Advocate, P.P. Kakade, Advocate, M.P. Thakur, Advocate, Dilip Patil Bankar, Advocate, Mandar Limaye, Advocate, S.S. Kanetkar, Advocate

Headnote:

Resignation - Co-operative Society - Maharashtra Co-operative Societies Act, 1960 - Section 73-CB, Maharashtra Co-operative Societies (Election to Committee) Rules, 2014 - The court dismissed the writ petition challenging the appointment of an authorized officer to hold an election for the post of Chairman of a Co-operative Society. The court held that the resignation of the Chairman was of a unilateral character and came into force immediately, creating a vacancy from the date of resignation. The court also emphasized that the resignation did not require acceptance under the law or bye-laws, and therefore, the decision to hold the election was valid and in accordance with the statutory mandate.

Fact of the Case:

The petitioners challenged the appointment of an authorized officer to hold an election for the post of Chairman of a Co-operative Society, arguing that the resignation of the Chairman was not approved by the Board of Directors, and therefore, the post should not be considered vacant.

Finding of the Court:

The court found that the resignation of the Chairman was of a unilateral character and came into force immediately, creating a vacancy from the date of resignation. The court also held that the decision to hold the election for the post of Chairman was valid and in accordance with the statutory mandate.

Issues: The main issue was whether the resignation of the Chairman created a vacancy and whether the decision to hold the election for the post of Chairman was valid.

Ratio Decidendi: The court emphasized that the resignation of the Chairman was of a unilateral character and did not require acceptance under the law or bye-laws, and therefore, came into force immediately, creating a vacancy from the date of resignation. The court also held that the decision to hold the election for the post of Chairman was valid and in accordance with the statutory mandate.

Final Decision: The court dismissed the writ petition, finding it devoid of any substance and merits.

JUDGMENT

S.J. Kathawalla, J. - By the above Writ Petition, the Petitioners seek to challenge the Order dated 13th August, 2020 (Exhibit F page 31) ('the Impugned Order') passed by the Respondent No.3 - The Secretary, State Co-operative Election Authority, appointing Respondent No.2 - the Divisional Deputy Registrar, Co-operative Societies (Dairy), Pune Division, Pune, to hold an election to the post of Chairman of Respondent No.4 Society and a restraint order from holding the meeting of the Board of Directors of Respondent No.4 Society.

2. The Petitioner Nos.1 to 4 are four of the 17 Directors of the Respondent No.4 - The Solapur Zillah Dudha Utpadak Sangha, a Co-Operative Society, duly registered under the Co-operative Societies Act, 1960, which functions as per its byelaws. Respondent No.1 is the State of Maharashtra, through the Department of CoOperation and Textiles, Mantralaya, Mumbai. Respondent No.2 is the Divisional Deputy Registrar, Co-operative Societies (Dairy)-Pune and is the District Co Operative Election Ofcer. Respondent No.3 is the Secretary, State Co-Operative Election Authority - Pune, a statutory body duly established pursuant to the provisions of Section 73-CB of the Maharashtra Co-operative Societies Act, 1960 and who has passed the Impugned Order dated 13th August, 2020 appointing Respondent No.2 for holding/conducting a meeting of the Respondent No.4 for the purpose of election of the Chairman of the Respondent No.4. Respondent No.5 was the Chairman of Respondent No.4. By his Letter dated 19th March, 2020, Respondent No.5 tendered his resignation as the Chairman of the Board of Directors of Respondent No.4.

3. The Petitioners have in the above Writ Petition stated/submitted as follows:

3.1 That in the year 2015, General Elections of Respondent No.4 took place. Respondent No.5 was elected as Chairman on 3rd July, 2015. The tenure of the existing Board of Directors came to an end on 23rd June, 2020. However, on account of the pandemic, the Respondent No.1 has postponed the elections of all the CoOperative Societies in the State of Maharashtra the tenure of whose Board/Managing Committee is already over.

3.2 On 19th March, 2020, the Chairman of the Respondent No.4 i.e. Respondent No.5 herein, tendered his resignation and had asked the Board of Directors to approve the same.

3.3 On 16th April, 2020, the Managing Director of Respondent No.4 addressed a Letter to the Respondent No.2 - the Divisional Deputy Registrar, Co-Operative Societies (Dairy) - Pune and the District Co-Operative Election Ofcer, informing him that Respondent No.5 has tendered his resignation as Chairman of Respondent No.4. However, since a meeting of the Board of Directors could not be held due to the pandemic, the said Board has not taken any decision on the same. The Managing Director of Respondent No.4 had clarifed in the said Letter that the same was addressed to Respondent No.2 for his information and to seek his guidance.

3.4 Respondent No.2, in turn, addressed a Letter dated 14th May, 2020 to the Respondent No.3 recording that Respondent No.5 has tendered his resignation as the Chairman of the Respondent No.4 on 19th March, 2020. However, a meeting of the Board of Directors has not been held due to the pandemic. Guidance with regard to the resignation, as well as further action was requested.

3.5 On 12th June, 2020 a meeting of the Board of Directors of Respondent No.4 was held. At the said Meeting, the resignation letter of Respondent No.5 was read over and it was decided not to accept the resignation of Respondent No.5 immediately and to keep the same in abeyance.

3.6 Respondent No.2 - the Divisional Deputy Registrar, Co-Operative Societies (Dairy) - Pune, submitted his Report dated 20th July, 2020 to the Respondent No.3 - the Secretary, State Co-operative Election Authority, recommending holding of an election to appoint a Chairman of the Board of Directors of Respondent No.4 and to appoint an ofcer to conduct the election process

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