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IN THE HIGH COURT OF BOMBAY
Arun R.Pedneker, J.
Sudam Ganpat Kothambire - Appellant
Versus
State of Maharashtra - Respondent
Writ Petition No. 5760 of 2022
Decided On : 31-01-2023
Maharashtra Cooperative Societies Act - Membership Induction - Sections 23, 79A, 91 - The court analyzed the provisions of the Maharashtra Cooperative Societies Act, particularly Sections 23, which mandates the acceptance of qualified members, and 79A, which allows the government to issue directions in public interest. The court interpreted these sections to conclude that the induction of 1405 members was valid as long as they met the eligibility criteria. The court emphasized that any challenge to the membership must follow the procedures outlined in Section 91, which requires proper notice to affected parties. The court found that the actions of the Registrar and the Minister were in accordance with the law, leading to the dismissal of the writ petition.
Fact of the Case:
The petitioners, directors and members of Parner Taluka Sahakari Bank Ltd., challenged the legality of the induction of 1405 new members, claiming it was done improperly to influence elections. They sought to quash the order declaring 1392 members' membership valid and the membership of 13 members invalid.
Finding of the Court:
The court found that the induction of members was valid under Section 23 of the Maharashtra Cooperative Societies Act, as the society is required to accept qualified applicants. The court noted that the Registrar had verified the records and upheld the validity of the majority of the new memberships.
Issues: Whether the induction of 1405 members was valid under the Maharashtra Cooperative Societies Act and whether the petitioners had the right to challenge the membership without following the proper procedures outlined in the Act.
Ratio Decidendi: The court held that the cooperative society must accept all qualified applicants for membership as mandated by Section 23. The court also ruled that any disputes regarding membership must be addressed through the mechanisms provided in Section 91, and that the actions taken by the Registrar and the Minister were lawful and justified.
Final Decision: The writ petition was dismissed, affirming the validity of the membership of 1392 members and the invalidity of 13 members, with the court ruling that the petitioners must pursue their grievances through the appropriate cooperative court channels.
JUDGMENT/ORDER
ARUN R.PEDNEKER,J. - Rule. Rule made returnable forthwith. With the consent of learned Advocates for the respective parties, heard finally.
2. By the present writ petition, the petitioners are challenging the impugned judgment and order dtd. 11/5/2022 passed by the Hon'ble Minister, Co-operation, Textile and Marketing Department of State of Maharashtra, thereby dismissing the Revision being REV-2021/Pra.Kra.348/15-S. The petitioners also pray for quashing the letter/communication dtd. 24/12/2020 issued by the Commissioner, Co-operative and Registrar Co-operative, Societies, Maharashtra State thereby declaring that membership of 1392 newly added members is legal and valid out of 1405 newly added members.
3. Brief facts, leading to the filing of the present writ petition can be summarised as under :- The petitioner Nos. 1 and 2 are the Directors, the petitioner Nos. 3 and 4 are the co-opted Directors and the petitioner No. 5 is the member and account holder of the respondent No. 5 - Parner Taluka Sahakari Bank Ltd. The respondent No. 5 is a Co-operative Society duly registered under the provisions of Maharashtra Cooperative Societies Act, 1960 and is carrying 17/23(2) the business of banking.
4. It is the case of the petitioners that respondent No. 5/Bank illegally inducted 1405 members without following due procedure on 26/7/2019. The newly added members are inducted as they being favourable to the elected body and only with the purpose of ensuing election. The petitioners filed several complaints/ representations before respondent No. 2 - The Commissioner for Cooperation and Registrar, Co-operative Societies, Ahemednager. Thereafter, the petitioners approached the High Court by filing Writ Petition No. 890/2020, seeking directions against the respondent No. 2 to decide the complaints/representations dtd. 13/9/2019 and 27/11/2019 of the petitioners. Statement was made before the High Court that the complaints/representations filed by petitioners would be considered and decided within three months. In view of the same, the writ petition came to be disposed of with direction to decide the complaints/representations of the petitioners within a period of three months.
5. Accordingly respondent No. 2 called inquiry report from respondent No. 3 - District Deputy Registrar, Co-operative Societies, Ahmednagar and respondent No. 4 - Assistant Registrar, Co-operative Societies, Parner, Dist. Ahmednagar. The respondent No. 4 conducted inquiry and submitted an inquiry report to the respondent No. 3 on 7/7/2020. The respondent No. 4, in it's report submitted that there were near about 144 members, who have not signed the membership application form nor completed K.Y.C. procedure. The respondent No. 4, after considering all these illegalities, recommended action under Sec. 79A of the Maharashtra Co-operative Societies Act, 1960 (hereinafter referred to as 'MCS Act' for short) against the respondent No. 5/Bank. Thereafter the respondent No. 3 forwarded the inquiry report of respondent No. 4 to the respondent No. 2, pointing out the illegalities committed by the respondent No. 5/Bank.
6. The respondent No. 2 called respondent No. 5/Bank to produce entire record in respect of membership of newly inducted 1405 members on 24/8/2020. The respondent No. 5/Bank admitted that documentation of only 13 newly inducted members was not proper or complete and as such, respondent No. 5/Bank took action against 13 members and informed the same to respondent No. 2 and also produced the entire record before the respondent No. 2. The respondent No. 2, on perusal of the record, by communication dtd. 24/12/2020 declared that membership of 1392 is legal and valid and that membership of only 13 members was invalid. The petitioners, therefore, challenged the order/ communication dtd. 24/12/2020 of respondent No. 2 before the Hon'ble Minister and the Hon'ble Minister, by the impugned order dtd. 11/5/2022 dismissed the revision petition filed against communic
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