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2022 Supreme(Bom) 969

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
M.G. SEWLIKAR, R.D. DHANUKA, JJ.
Jayprakash Sahakari Griha Rachana Sanstha Mrt. - Petitioner
Versus
The State of Maharashtra & Ors. - Respondents
Writ Petition No. 7442 of 2022
Decided On : 04-07-2022

Advocates Appeared:
For the Petitioner: Mr. Valmiky H. Narvekar i/b Mr. Aadesh M. Patil.
For the Respondents: Mr. A.I. Patel, Addl. G.P. a/w Mrs. M.S. Bane, AGP, Mr. Prashant Darandale, Mr. Prasad P. Kulkarni.

The main legal point established in the judgment is the authorization for the extension of a committee's term under Section 73AAA of the Maharashtra Co-operative Societies Act, 1960, in exceptional circumstances such as the Covid-19 pandemic.

Headnote:

Election - Co-operative Housing Society - Maharashtra Co-operative Societies Act, 1960 - Section 73AAA - Section 77(A)(1-b)

Fact of the Case:

The Petitioner, a Co-operative Housing Society, sought a writ of mandamus to withdraw a show cause notice issued under Section 77(A)(1-b) of the Maharashtra Co-operative Societies Act, 1960. The notice was based on an inquiry report and challenged by the Petitioner due to the extension of the committee's term and the inability to hold elections because of the Covid-19 pandemic.

Finding of the Court:

The court found that the extension of the committee's term was authorized under Section 73AAA of the Act, due to the pandemic and government resolutions. It also noted that the objector, Respondent No.4, was not a member of the society and therefore his objections were not valid. The court directed the withdrawal of the show cause notice.

Issues: Extension of committee's term, inability to hold elections due to pandemic, validity of show cause notice, membership status of objector

Ratio Decidendi: The court relied on Section 73AAA of the Maharashtra Co-operative Societies Act, 1960, which authorized the extension of the committee's term in exceptional circumstances such as the Covid-19 pandemic. It also considered the membership status of the objector in evaluating the validity of the objections raised.

Final Decision: The Writ Petition was allowed, and the court directed the withdrawal of the show cause notice.

JUDGMENT :

M.G. Sewlikar, J.

1. Rule. Respondents waive service of notice. Rule is made returnable forthwith. With the consent of the parties taken up for final hearing at the stage of admission.

2. The facts leading to this Petition can be succinctly stated thus :

The Petitioner is a Co-operative Housing Society registered under the Maharashtra Co-operative Societies Act, 1960 (“MCS Act” for short). On 26th July, 2015 elections of the Managing Committee of the Petitioner-Society were held for the period from 2015-2020. Accordingly, the present Committee assumed office on 16th August, 2015. It was obligatory on the Petitioner-Society to hold elections for the years 2020-2025. However, because of unprecedented and unforseen circumstances created due to pandemic Covid-19, the elections of the Petitioner-Society could not be held. Owing to the pandemic, the Government of Maharashtra postponed all the elections in the State of Maharashtra. Upon Notification dated 20th July, 2020, the Government of Maharashtra extended the tenure of the committees of all types of societies to enable the existing members of the committees of the Co-operative Societies to continue in office until the next committees are duly constituted.

3. On 5th October, 2021 the State Co-operative Election Authority vide its order notified names of Election Officers for conducting the managing committee elections of housing societies. Respondent No.4 made a complaint and an enquiry was instituted. Inquiry Officer (Respondent No.3) accordingly submitted the report.

4. On 27th March,2022, the Petitioner-Society appointed Respondent No.5 as an Election Officer. On 13th May, 2022, Election Officer sought some information i.e. list of members, list of defaulters from the Petitioner-Society. On 19th May, 2022, Notice of agenda was issued for holding Committee meeting on 27th May, 2022. This notice was issued to conduct regular business and to consider the issue of calling amounts due from the members towards maintenance. Respondent No.2 at the behest of Respondent No.4 issued notice under Section 77(A)(1-b) of the MCS Act on 23rd May, 2022 to show cause as to why Administrator shall not be appointed on Society. This notice was served on 27th May, 2022.

5. In the meeting dated 27th May, 2022, election programme for the year 2022-2027 was declared and members were called upon to clear off the maintenance charges due from them.

6. On perusal of the show cause notice, the Petitioner learned that the notice was issued on the basis of inquiry report dated 22nd April, 2022 submitted by Respondent No.3-Inquiry Officer. The Petitioner has challenged the show cause notice in this Petition and sought writ of mandamus directing Respondent No.3 to withdraw the show cause notice dated 23rd May, 2022. Hence, this Petition.

7. Heard Mr. Narvekar, learned counsel for the Petitioner, Mr. A.I. Patel, Addl. GP for the State, Mr. Prashant Darandale, learned counsel for Respondent No.4 and Mr. Prasad Kulkarni, learned counsel for Respondent No.5.

8. The learned counsel for the Petitioner submitted that the Petitioner was served with the show cause notice on the basis of report submitted by Respondent No.3-Mr. Vijaysinh Malwadkar who was appointed as Enquiry Officer by Respondent No.2-Deputy Registrar, Co-operative Societies. He submitted that Respondent No.2 did not provide copy of the enquiry report. The Petitioner had to make an application to Respondent No.2 for getting a copy of the enquiry report. He further submitted that in terms of Section 77AAA of the MCS Act, the term of elected members of the committee was extended till the constitution of new committee. He submitted that when the term of the committee was over, election could not be held on account of pandemic Covid-19 and on account of Government Resolutions by virtue of which term of the extant committee was extended till the constitution of new committee. Respondent No.4 is not a member of the society and therefore he has no locus to ra

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