IN THE HIGH COURT OF JUDICATURE AT BOMBAY
N.J. Jamadar, J.
Santosh Hari Gavas & Anr. - Appellants
Versus
State Of Maharashtra & Ors. - Respondents
Writ Petition No. 11658 of 2019
Decided On : 21-10-2021
Disqualification - Convening General Body Meeting - Maharashtra Cooperative Societies Act, 1960, Section 75 - The court discussed the relevant provisions of section 75 of the Act, 1960, which mandates the time limit for convening the Annual General Body Meeting (AGBM) of the society and the consequences of non-compliance, emphasizing the legislative intent to ensure transparent and efficient management of society affairs. The court considered the applicability of Rule 60 of Maharashtra Cooperative Societies Rules, 1961 and the interpretations from previous judgments to determine the default in convening the AGBM and upheld the disqualification of the petitioners.
Fact of the Case:
The petitioners, office bearers of a cooperative society, were disqualified for default in convening the Annual General Body Meeting (AGBM) within the statutory period, as per the Maharashtra Cooperative Societies Act, 1960. The petitioners claimed that the meeting was adjourned due to low attendance and a requisition received from society members, but the authorities found discrepancies in their claims and upheld the disqualification.
Finding of the Court:
The court found that the petitioners failed to convene and hold the AGBM within the prescribed period, and their reasons for adjourning the meeting were not found credible. The court upheld the disqualification of the petitioners under section 75(5) of the Act, 1960, based on the legislative intent to ensure efficient management of society affairs.
Issues: The key issue was whether the petitioners incurred disqualification under section 75(5) of the Act, 1960 for default in convening and holding the AGBM of the society within the statutory period.
Ratio Decidendi: The court relied on the provisions of section 75 of the Act, 1960, and interpretations from previous judgments to determine the default in convening the AGBM and upheld the disqualification of the petitioners.
Final Decision: The petition was dismissed, and the court upheld the disqualification of the petitioners for default in convening the AGBM within the statutory period.
JUDGMENT
N.J. Jamadar, J . - Rule. Rule made returnable forthwith and, with the consent of the counsels for the parties, heard finally.
2. This petition under Article 227 of the Constitution of India takes exception to the judgment and order passed by the Divisional Joint Registrar, Cooperative Societies, Mumbai Division, Mumbai dated 16th August, 2018 in Revision Application No. 117 of 2018 whereby the revision application preferred by the petitioners herein came to be dismissed confirming the order dated 27th March, 2018 passed by the Dy. Registrar, Cooperative Societies, Mumbai Western Suburbs, Mhada, Mumbai disqualifying the petitioners from being elected and being any officer or member of the committee under section 75(5) of the Maharashtra Cooperative Societies Act, 1960 (the Act, 1960) for the default in convening a general body meeting of Navratna CHS Limited (the society) of which the petitioner Nos. 1 and 2 were the President and Secretary, respectively.
3. The petition arises in the backdrop of the following facts:-
a] Navratna CHS Limited is a Society registered under the Act, 1960. The petitioner Nos. 1 and 2 were elected as the President and Secretary of the society for the term 2015-2019.
b] The Annual General Body Meeting (AGBM) of the society for the year 2017 was convened on 24th September, 2017 vide notice dated 9th September, 2017. The agenda for the meeting included, inter alia, approval to the audited balance sheet and audit report for the financial year 2016-2017 and appointment of an auditor for the financial year 2017-2018.
c] The petitioners claim that, a day before the scheduled date of meeting, a communication was received from the members of the society, seeking postponement of the said AGBM as religious and cultural programmes were being held on account of Navratri festival from 20th September, 2017 to 30th September, 2017. Nonetheless a meeting was held on 24th September, 2017. However, only 13 members attended the said meeting. Thus, having regard to the dismal attendance and the communication received from the members, dated 23rd September, 2017, it was decided to adjourn the meeting.
d] On 23rd October, 2017 the respondent No. 3 Subhash Mane and other members of the society addressed a letter to the Dy. Registrar, Cooperative Societies for initiation of action against the office bearers of the society for default in holding the AGM within the statutory period. A show cause notice was issued to the office bearers of the society under section 75(5) of the Act, 1960, on 4th January, 2018. After considering the explanation furnished by the petitioners/ office bearers, the Dy. Registrar, by an order dated 6th March, 2018 appointed an authorized officer to hold the AGM for the year 2016-2017 and, by a separate order dated 27th March, 2018 held that the petitioners committed default in holding the meeting in conformity with the provisions of the Act, 1960 and, thus, incurred disqualification under section 75(5) of the Act, 1960.
e] Being aggrieved, the petitioners preferred a revision before the Divisional Joint Registrar. By the impugned order, the Divisional Joint Registrar dismissed the revision concurring with the view of the Dy. Registrar. Being further aggrieved, the petitioners have invoked the writ jurisdiction.
4. I have heard Mr. Mogre, learned counsel for the petitioners, Mr. Poojari, learned AGP for the State and Mr. Mutha, learned counsel appointed to espouse the cause of respondent No.3. With the assistance of the learned counsels for the parties, I have carefully perused the material on record.
5. The core question which crops up for consideration in this petition is whether the petitioners have incurred the disqualification under section 75(5) of the Act, 1960 for default in convening and holding AGBM of the society. For exploring an answer, it may be imperative to note, at the outset, the relevant provisions of section 75 of the Act, 1960. Sec.75 reads as under:
75. Annual General Body Meeting.
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