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2026 Supreme(Bom) 387
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
AMIT BORKAR, J.
Abhay Manohar Paranjape - Appellant
Vs.
Shivnagari Cooperative Housing Society Limited - Respondent
Writ Petition No.13736 of 2025
Decided On : 11-02-2026
Important Points
Subject
Cooperative Societies - Membership Expulsion
Act Referred
Headnote
(B) Quasi-judicial authorities under the Act - Must pass speaking and reasoned orders independently scrutinizing evidence, discussing material like police and auditor observations, and analyzing individual charges against each member - Mechanical reproduction of submissions without application of mind or weighing explanations renders orders perverse and liable to be quashed (Paras 14, 18-22).
Facts of the case:
Members actively questioned society office bearers' functioning through complaints to cooperative authorities, sub-registrar, municipal corporation, police, courts and auditors between 2017-2021. Complaint by other members led to show cause notice alleging false defamatory complaints obstructing functioning. Special General Meeting passed expulsion resolution by three-fourth majority, approved by Deputy Registrar, upheld in appeal and revision.
Findings of Court:
Impugned orders quashed for non-application of mind, absence of reasoning, failure to consider supportive evidence (police advised civil remedy; auditors found merit in some issues) and lack of individual charge assessment. Members restored to membership with all rights.
Issues: Whether lawful complaints/litigation amount to detrimental acts justifying expulsion? Whether authorities afforded fair hearing through reasoned decisions examining evidence?
Ratio Decidendi: Approaching forums cannot be penalized as it chills dissent essential to cooperative democracy; requires proof of malice or substantial harm beyond mere disagreement. Majority resolution and procedural compliance insufficient without substantive fairness. Section 35 interpretation confined to clear disruption cases.
Result: Writ petition allowed.
Advocate Appeared:
For the Appellant : Mr. Adwait Bhonde with Mr. Atharva Bhosale
For the Respondent: Mr. Shrivallabh S. Panchpor with Ms. Mahima Sharma, Mr. A.C. Bhadang, AGP
| Table of Content |
|---|
| 1. expulsion procedure under section 35 followed by society (Para 1 , 2 , 3 , 4 , 5 , 6) |
| 2. petitioners' complaints legitimate per police, auditors (Para 7 , 8 , 9 , 10) |
| 3. authorities' orders unreasoned, failed evidence scrutiny (Para 11 , 12 , 13 , 14 , 15) |
| 4. society claims repeated complaints caused detriment (Para 16) |
| 5. fair hearing, evidence-based expulsion decisions required (Para 17 , 18) |
| 6. civil complaints not malicious despite police referral (Para 19) |
| 7. auditors' validations must be considered (Para 20) |
| 8. quasi-judicial orders need reasons, individual analysis (Para 21) |
| 9. section 35 limited to destructive acts, not dissent (Para 22 , 23 , 24 , 25 , 26) |
| 10. legal remedies invocation not punishable by expulsion (Para 27 , 28 , 29) |
| 11. conveyance objections not detrimental absent malice (Para 30 , 31) |
| 12. procedure cannot cure substantive reasoning defects (Para 32 , 33) |
| 13. unreasoned expulsion orders quashed, membership restored (Para 34 , 35 , 36) |
JUDGMENT :
AMIT BORKAR, J.
1. The petitioners have instituted the present writ petition assailing the judgment and orders passed by the Revisional Authority, whereby the revisions preferred by the petitioners came to be dismissed and the action of respondent No.1 society in expelling the petitioners from its membership was confirmed. The expulsion has been upheld on the ground that the petitioners had allegedly indulged in acts prejudicial and detrimental to the normal and smooth functioning of the society.
2. The factual matrix giving rise to the present proceedings is as follows. Respondent No.1 is a co operative housing society registered under the provisions of the Maharashtra Cooperative Societies Act, 1960. The petitioners are members of the said society and owners of residential flats therein. Between the years 2017 and 2021, the petitioners had actively questioned the functioning of the office bearers of the society and had raised various grievances before statutory and administrative authorities, including the authorities under the Cooperative Department, the office of the Sub Registrar, appellate forums, and the Pune Municipal Corporation.
3. On 24 May 2021, respondent No.1 claims to have received a complaint purportedly signed by 26 members of the society seeking expulsion of the petitioners from membership. The allegation in the said complaint was that the petitioners were making false and defamatory complaints against the office bearers, thereby damaging the reputation of the society and creating obstacles in its day to day functioning. Thereafter, on 2 September 2023, the office bearers of respondent No.1 issued a show cause notice to the petitioners under Section 35 of the Maharashtra Cooperative Societies Act, alleging that the conduct of the petitioners had adversely affected the reputation and working of the society. By the said notice, the petitioners were informed that a Special General Meeting would be convened on 22 October 2023 to consider a resolution for their removal from membership.
4. The petitioners, on 12 September 2023, submitted an interim reply to the show cause notice and called upon the society to furnish certain documents in support of the allegations. On 22 October 2023, a Special General Meeting of the society was convened. The petitioners were afforded an opportunity to present their explanation to the charges levelled against them. Upon consideration of the matter, a resolution for expulsion of the petitioners from the membership of the society was passed by a three fourth majority of the members present and voting.
5. On 4 December 2023, respondent No.1 submitted an application before the Deputy Registrar seeking approval of the resolution dated 22 October 2023, as required under the Act. The petitioners filed their reply to the said proceedings on 15 February 2024. By order dated 27 June 2024, the Deputy Registrar granted approval to the resolution and confirmed the removal of the petitioners from membership of the society.
6. Bei
