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2023 Supreme(Bom) 1785

IN THE HIGH COURT OF BOMBAY
M.S.Sonak, Bharat P.Deshpande, JJ.
Ramchandra G. N Mule - Appellant
Versus
Registrar of Cooperative Societies - Respondent
Writ Petition No. 2120/2023 (F)
Decided On : 11-10-2023

Advocates appeared:
Gaurang Panandikar, Advocate, Vithal Naik, Advocate, D.Pangam, Advocate, Maria Correia, Advocate, G.K.Sardessai, Advocate, Prasanna Chaudikar, Advocate, S.Bangera, Advocate

IMPORTANT POINT
The statutory provisions governing cooperative societies, specifically Section 59A of the Goa Cooperative Societies Act, 2001, take precedence over conflicting bye-laws, ensuring democratic principles in the governance of such societies.

Headnote:

COOPERATIVE SOCIETIES - NO CONFIDENCE MOTION - GOA COOPERATIVE SOCIETIES ACT, 2001 - SEC. 59A - The court interpreted Section 59A of the Goa Cooperative Societies Act, 2001, which outlines the procedure for passing a motion of no confidence against officers of cooperative societies. The court emphasized that the statutory provisions prevail over any conflicting bye-laws. The Assistant Registrar's failure to adhere to these provisions and reliance on bye-laws was deemed a breach of duty, leading to the conclusion that the no-confidence motion was validly passed, resulting in the removal of the Chairperson.

Fact of the Case:

The petitioners challenged the Assistant Registrar's order stating that a no-confidence motion against the Chairperson of the Goa State Cooperative Union was not passed. The context involved a series of disqualifications of requisitionists prior to a special meeting convened to consider the motion, which was supported by a majority of the board members.

Finding of the Court:

The court found that the no-confidence motion was validly passed as per Section 59A of the Goa Cooperative Societies Act, 2001, despite the Assistant Registrar's erroneous reliance on bye-laws. The court emphasized the need for adherence to statutory provisions and the principles of natural justice.

Issues: Whether the no-confidence motion against the Chairperson was validly passed and whether the Assistant Registrar's order was in compliance with the provisions of the Goa Cooperative Societies Act, 2001.

Ratio Decidendi: The court held that the provisions of Section 59A of the Goa Cooperative Societies Act, 2001, which require a simple majority for passing a no-confidence motion, prevail over any conflicting bye-laws. The Assistant Registrar's decision was found to be perverse and contrary to established legal principles.

Final Decision: The court quashed the Assistant Registrar's order, declared the no-confidence motion validly passed, and ordered the Registrar to conduct elections for the Chairperson within 15 days.

JUDGMENT/ORDER

M.S.SONAK, J. - Heard Mr Gaurang Panandikar with Mr Vithal Naik for the Petitioners, Mr D. Pangam, learned Advocate General appears along with Ms Maria Correia, learned Additional Government Advocate for the State and Mr G. K. Sardessai appears along with Mr Prasanna Chaudikar and Ms S. Bangera for Respondent No.4.

2. Rule. The Rule is made returnable immediately with the consent of and at the request of the learned counsel for the parties.

3. The challenge in this petition is to the impugned order/ minutes of proceedings dtd. 11/9/2023 made/recorded by the Assistant Registrar of Cooperative Societies (respondent no.2), holding that the motion of no confidence was not passed against the fourth respondent.

4. The arguments in this batch of petitions including Writ Petitions No.651/2023 and 652/2023 concluded on 10/10/2023. We were informed that the election of the Chairperson was scheduled on 12/10/2023. Accordingly, it was imperative that these petitions are disposed of before 12/10/2023.

5. The background in which the impugned order/minutes came to be recorded has been discussed in the Judgment and Order disposing of Writ Petition No.651/2023. Accordingly, the said discussion therein may be taken as incorporated herein. On account of constraints of time and the necessity to dispose of this petition before 12/10/2023, reference will have to be made to the background facts discussed in the Judgments and Orders disposing of Writ Petitions No.651/2023 and 652/2023 to be pronounced along with this Judgment and Order.

6. One Dnyeshwar Kushta Sawant had also instituted Writ Petition No.656/2023 (Stamp No.2086/2023 (F)) challenging his disqualification under Sec. 67A of the Goa Cooperative Societies Act, 2001 (said Act) in gross breach of principles of natural justice and fair play. The order impugned in the said petition was stayed on 11/9/2023. On 4/10/2023, learned AG made a statement that this order stands withdrawn and fresh order would be made after compliance with the principles of natural justice and fair play.

7. Dnyaneshwar Kushta Sawant, the petitioner in Writ Petition No.656/2023 had placed on record the Roznama recorded by the Cooperative Officer who made the order dtd. 7/9/2023 under Sec. 67A of the said Act which reads as follows:

    "Minute No.70 As per Telephonic/Mobile discussion with minister for cooperation with A.R. the undersigned has given directions to prepare showcause notice to BOD of shampurush Dudh Utp. Sah. Saunstha Maryadit sarvan, Bicholim Goa as they have not conducted/convened AGM in time u/s 58, non submission of s/A-i/s 73 and and audit of said sty u/s 74 of the Act. The draft to that effect is prepared and put up for approval."

8. Accordingly, the impugned order made in this petition will have to be seen and construed in the context of series of orders made by the Government or the Government Officials to disqualify or disable the Directors who requisitioned a special meeting to consider no confidence motion against the Chairman of the Goa State Cooperative Union Ltd. (Union). Such orders were made in the interregnum between the convening of the special meeting to consider the no confidence motion and just before the no confidence motion could be taken up for consideration on 11/9/2023. After the interim orders were granted by this Court and it became apparent that the no confidence motion would be passed, the order impugned in this petition was made to nullify the no confidence motion which was validly passed.

9. On 13/9/2023, this Court made an interim order, staying the impugned order/conclusion recorded in the minutes after this Court was satisfied that a very strong case was made out for the grant of such interim relief.

10. The interim order made on 13/9/2023 in this petition reads as follows:

    "P.C.: 1. Heard Mr Panandiker for the Petitioners. Mr. D. Pangam, learned Advocate General, appears along with Ms. Maria Correia, learned Additional Government Advocate, for Respondent Nos.1 and 2.

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