The Registrar must consider the reasonability of the excuse offered by the affected party before imposing disqualification or penalty under Section 75 (5) of the Act, 1960.

JUDGMENT :

1. Rule. Rule made returnable forthwith and with the consent of the learned Counsel for the parties heard finally.

2. The challenge in this Petition is to the judgment and order dated 9th July, 2014, passed by The Divisional Joint Registrar, Co-operative Societies, Mumbai, in Revision Application No.61 of 2014, whereby the application preferred by the petitioners came to be dismissed by affirming an order dated 31st January, 2014, passed by the Deputy Registrar Co-operative Societies, removing the petitioners from the post of Chairman and Secretary of Hatkesh Co-operative Housing Society Ltd. respondent No. 4 and disqualifying them from being elected and becoming an officer or member of the committee for a term of five years, under Section 75 (5) of the Maharashtra Co-operative Societies Act, 1960 (“the Act, 1960”), for having committed default in holding the Annual General Meeting (AGM) of the respondent No. 4 - Society for the year 2012-2013.

3. Shorn of unnecessary details, the background facts can be stated as under:-

(a) Hatkesh Co-operative Housing Society Ltd – respondent No. 4, is a Society registered under the Act, 1960. The petitioner No. 1 was elected as the Chairman and petitioner No. 2 the Secretary, of the said Society. Annual General Body Meeting of the said Society was to be held on or before 30th September, 2014. In view of the legislative change brought about consequent to 97th Constitutional Amendment, it was not possible for the petitioners, to hold the AGM before 30th September, 2014. Thus, the committee of respondent No. 4 passed a Resolution on 10th August, 2013 to postpone the AGM and make an application to Deputy Registrar, seeking an extension for a period of 90 days for holding the said meeting. On 12th August, 2013 an application was submitted to the Deputy Registrar, seeking extension of time of three months to hold the AGM along with a copy of the Resolution.

(b) In the meanwhile, the respondent No. 3, a member of the Finance Committee of the Society, made a complaint to the Deputy Registrar. The petitioners and the Society were called upon to furnish an explanation. The petitioners furnished explanation on 4th December, 2013. However, on 12th December, 2013, a notice was addressed to the petitioners to show cause as to why action for default in holding Annual General Body Meeting of the Society, as contemplated under Section 75 of the Act, 1960, be not taken.

(c) The petitioners gave suitable reply on 27th December, 2013. It was, inter alia, pointed out that the AGM could not be convened as, in view of the legislative change, the Auditors of the Society were required to be changed and the accounts could not be finalised as the Manager of the Society had left the employment and the accountant was sick. Draft accounts were circulated to the Managing Committee in the first week of July. Moreover, there was no clarity in the legal regime on account of the legislative change brought about by 97th Constitutional Amendment. In any event, the Annual General Body Meeting of the Society was duly convened and held on 10th November, 2014.

4. After considering the explanation, the District Deputy Registrar was persuaded to pass an order on 31st January, 2014, holding that the members of the committee had committed default in holding AGM of the Society, for the year 2012-2013, on or before 30th September, 2013, which was the statutory requirement. Since the proviso to Section 75 (1) of the Act, 1960, which empowered the Registrar to extend the time to hold the meeting, stood deleted by Act No. XVI of 2013, with effect from 6th February, 2013, the application of the Society for extension of time did not deserve to be considered. Holding thus, the District Deputy Registrar ordered the removal of petitioner Nos. 1 and 2 from office of Chairman and Secretary, respectively, of the Society and further disqualified them from being elected or nominated as an Officer or Member of the committee for a term of five y