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2022 Supreme(Bom) 972

IN THE HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT AURANGABAD
MANGESH S. PATIL, SANDEEP V. MARNE, JJ.
Jagdish Lahu Badhe & Ors. - Petitioners
Versus
The State of Maharashtra, through Deputy Secretary for Agriculture, Animal Husbandry Dairy Development and Fisheries Department & Ors. - Respondents
Writ Petition No. 8066 of 2022 With Civil Application No. 11860 of 2022
Decided On : 30-08-2022

Advocates Appeared:
For the Petitioners:Mr. V.D. Hon, Sr. Advocate i/b. Mr. A.V. Hon.
For the Respondents: Mr. D.R. Kale, Mr. D.B. Thoke.

The main legal point established in the judgment is the requirement for independent exercise of quasi judicial power, adherence to principles of natural justice, and the need for objective reasoning when exercising statutory powers.

Headnote:

Quasi Judicial Power - Exercise of Power under Maharashtra Co-operative Societies Act, 1960 - Section 77A - Summary of Acts and Sections: Section 77A of the Maharashtra Co-operative Societies Act, 1960 - The judgment discusses the exercise of quasi judicial power by the respondent no. 4 - Divisional Deputy Registrar (DDR) of Co-operative Societies under section 77A of the Act. The court highlights the lack of independent enquiry, absence of objective reasoning, and mala fide exercise of power by the respondent no. 4 - DDR. The court refers to the provisions of section 77A and emphasizes the Registrar's powers and the need for satisfaction of specific circumstances before exercising such powers. The judgment also draws parallels with previous Supreme Court cases to support its findings.

Fact of the Case:

The petitioners, elected managing committee members of a co-operative society, challenged the order of the Divisional Deputy Registrar (DDR) of Co-operative Societies, which dissolved their committee and appointed a new administrative committee. The petitioners alleged mala fide intentions behind the order, citing political motives and lack of independent enquiry.

Finding of the Court:

The court found that the respondent no. 4 - DDR had not exercised quasi judicial power independently and had acted at the behest of the State Government, violating the principles of natural justice. The court also noted the absence of objective reasoning and the mala fide nature of the order.

Issues: The issues revolved around the exercise of quasi judicial power by the respondent no. 4 - DDR, the alleged political motives behind the order, and the absence of independent enquiry and objective reasoning.

Ratio Decidendi: The court's decision was based on the lack of independent exercise of quasi judicial power, absence of objective reasoning, and mala fide nature of the order, which led to the quashing of the impugned order.

Final Decision: The petition was allowed, and the impugned order was quashed and set aside. The court rejected the request to stay the operation of the order.

JUDGMENT :

Mangesh S. Patil, J.

1. Rule. Rule is made returnable forthwith. Learned Government Pleader waives notice for respondents nos. 1 to 5 and learned advocate Mr. Thoke waives notice for the respondents nos. 6 to 15. By consent of the parties, the matter is heard finally at the stage of admission.

2. By way of this petition under Article 226 and 227 of the Constitution of India, the petitioners are impugning the order dated 29-07-2022, of the respondent no. 4 - who is Divisional Deputy Registrar (hereinafter ’DDR’) of Co-operative Societies, in purported exercise of the powers under section 77A of the Maharashtra Co-operative Societies Act, 1960 (hereinafter the ‘Act’).

3. The petitioners are the elected managing committee members of the Jalgaon Zilla Dudh Utpadak Sangh Ltd. registered under the Act, for a period 2015-2020. Their term was to expire during the COVID-19 pandemic. The elections of all the co-operative societies in the State were postponed from time to time and lastly till 30-09-2022 by a Government decision. It is the case of the petitioners that their society also prepared a provisional voters’ list as per the directions of the authorities giving full particulars as is required by the Maharashtra Co-operative Societies (Election to Committee) Rules, 2014 (hereinafter ‘the Rules’). Necessary election expenses were also deposited. It is their allegation that because of the change in the Government where a new coalition has taken over at the State level, with an ulterior motive and mala fide, the new Government took a decision to remove the petitioners who belong to a political party now in the opposition. It is also alleged that on the directions of the Chief Minister dated 28 July 2022, the respondent no. 4 - DDR has obliged by passing the order under challenge.

4. The learned senior Advocate Mr. Hon would argue that ex facie the quasi judicial power has been exercised on the instructions of the Hon’ble Chief Minister. No independent enquiry was held. Giving a complete go-bye to the principles of natural justice all of a sudden, the impugned order was passed. On the previous day i.e. 28 July 2022, the Deputy Secretary to the State Government specifically informed in writing to the respondents no. 3 who is the Joint Registrar of the Co-operative Societies and the respondent no. 4 - DDR wherein it was expressly informed that they should take appropriate steps for dissolution of the petitioners’ managing committee by invoking the powers under section 77A(f)(ii) of the Act. It was specifically mentioned that a new managing committee be constituted as per directions of the Hon’ble Chief Minister comprising of 11 new members who are respondents nos. 6 to 15 herein. This very communication clearly demonstrates that the respondent no. 4 - DDR had not acted independently but has acted at the behest of the Hon’ble Chief Minister, in flagrant violation of the powers supposed to be exercised by him. The fact situation is similar to the one that was before the Supreme Court in the matter of Chandrika Jha Vs. State of Bihar and Ors.; (1984) 2 SCC 41, which thereafter was followed in the matter of Manohar Lal (Dead) by LRs Vs. Ugrasen (Dead) by LRs. and Ors; (2010) 11 SCC 557. Though the order is purportedly passed by the respondent no. 4 - DDR under the purported exercise of the powers under section 77A, the authority which is acting behind the curtains is none other than the Hon’ble Chief Minister. There is absolutely dearth of evidence to demonstrate that the respondent no. 4 - DDR had independently undertaken any scrutiny of material and has taken some objective decision as is expected of the authority competent to exercise quasi judicial power.

5. He would point out that in response to the directions coming from the State Government by the communication dated 28 July 2022, on the same day, the respondent no. 4 - DDR had responded by a communication of even date elaborately expressing his strong opinion as to how in the fa

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