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2018 Supreme(Cal) 68
IN THE HIGH COURT OF JUDICATURE AT CALCUTTA
BISWANATH SOMADDER, MOUSHUMI BHATTACHARYA, JJ.
S.K Jalaluddin & Ors. - Appellant
Versus
The State of West Bengal & Ors. - Respondent
MAT 1819 of 2017 With CAN 10366 of 2017
Decided on : 17-01-2018
For the Appellants : Mr. Milon Chandra Bhattacharya, Sr. Adv., Mr. Khirul Alam, Adv.
Ms. Sulagna Bhattacharya, Adv.
For the Respondent: Mr. Srijan Nayak, Adv. Mr. Raja Saha, Adv., Mr. Partha Sarathi Bhattacharya, Sr. Adv., Mr. Somnath Banerjee, Adv., Mr. Raju Bhattacharya, Adv.
The importance of complying with the procedural requirements for expulsion in co-operative societies, and the obligation to fulfill financial commitments within a co-operative society.
Headnote:
Expulsion - Co-operative Society - West Bengal Co-operative Societies Act, 2006, Rule 133
Fact of the Case:
The petitioners challenged the decision of a Co-operative Society to expel them for failing to pay an enhanced amount for the allotment of flats. The primary grievance was the lack of a hearing before the Board of the Society.
Finding of the Court:
The court found that the petitioners were given an opportunity to present their case before the decision of expulsion was taken by the Board, as evidenced by meeting minutes. The court also noted that the requirements of Rule 133 were duly complied with by the Society before making the decision of expulsion.
Issues: Deprivation of a right to a hearing before the Board of the Society, compliance with Rule 133 of the West Bengal Co-operative Societies Rules, 2011
Ratio Decidendi: The court held that the petitioners were given an opportunity to be heard before the decision of expulsion, and the Society complied with the requirements of Rule 133. The court also emphasized the importance of fulfilling financial obligations in a co-operative society.
Final Decision: The appeal was dismissed, but the petitioners were given the opportunity to pay the outstanding amount and be restored to their position before the expulsion decision.
MOUSHUMI BHATTACHARYA, J.
1. The order under challenge before us has been passed in a writ petition being W.P 14226(w) of 2017 filed by the writ petitioners challenging two orders passed by the Principal Secretary, Government of West Bengal and the Registrar Co-operative Societies, West Bengal, confirming the decision of the Co-operative Society to expel the petitioners.
2. All six petitioners are residents of Khowab Housing Co-operative Society Limited, a co-operative Society registered under the provisions of the West Bengal Co-operative Societies Act, 2006 (hereinafter referred to as ‘the Society’). On the date of filing of the writ petition, the Society had a total of 48 members. The petitioners allege that they were required to pay certain amounts of money for obtaining a flat of a specified area, which according to the petitioners, was contrary to the decision approved in the Special General Meeting held in June 2013. In the writ petition, the petitioners have questioned the basis of increase in the price for allotment of flats and were finally aggrieved by the decision of the Society to expel them after they failed to pay the enhanced amount of money.
3. Mr. Milon Bhattacharya, learned Senior Counsel, appearing for the petitioners submits that the impugned order should be set aside since the petitioners were not given an opportunity of hearing by the Board of Directors of the Society. According to him, although the petitioners were present before the Registrar and participated in the hearing before him, no such opportunity was given to the petitioners before the Board of Directors decided to expel the petitioners from the Society. According to Mr. Bhattacharya, this is in violation of Rule 133 of the West Bengal Co-operative Societies Rules, 2011.
4. A brief narration of the facts as stated in the writ petition:—
The Society sent several communications to the petitioners to pay the required sum of money for allotment of flats and some of the notices to this effect from 15th November 2013 onwards are annexed to the writ petition. A notice dated 24th August 2014, annexed as P4 to the writ petition, shows that the Society had unequivocally intimated the petitioners that any member who continues to default in payment of his dues towards cost of allotment of flat to him by the Society for more than six months without a break may be expelled for the Society. The petitioners' reply to such notice is also on record. Since the petitioners failed to make the required payment within the specified time frame, a show cause notice was issued by the Society on 4th May 2015, whereby the Society gave one last opportunity to the defaulting members to clear their dues failing which the member would be expelled from the Society. The West Bengal Co-operative Societies Rules, 2011 (hereinafter referred to as ‘the Rules’), were referred to in the said Show Cause notice. The decision to expel the petitioners was communicated by a letter dated 20th August 2015. A perusal of this communication shows that the decision to expel the petitioners was taken in terms of Rule 133(1) of the Rules and that further the said decision was communicated to the Registrar Co-operative Societies, West Bengal on 7th July 2015. The petitioners were thereafter informed that a hearing with regard to the proposed expulsion had been fixed on 15th October, 2015 before the Registrar.
5. It is an admitted position that the petitioners attended the hearing before the Registrar at the scheduled time and made their submissions with regard to escalation of the cost for the flats which according to the petitioners was enhanced without any basis. As directed by the Registrar, the petitioners filed written statements and appeared before the Registrar once again on further dates being 3rd December 2015, 18th January 2016, 9th February 2016 and 5th September 2016. After hearing was concluded, the Registrar directed the Society to prepare updated demands for each of the default
