A cooperative society must provide specific allegations prior to expelling members, and any dismissal of membership without due process is unsustainable under the Telangana Cooperative Societies Act.

ORDER :

T. Madhavi Devi, J.

W.P.No.29424 of 2025 is filed seeking a declaration that the inaction on the part of respondent No.2 in taking action on the petitioners’ complaint submitted on 28.08.2025 against respondent No.4-society as illegal, arbitrary, unconstitutional and as violative of Cooperative Societies Act and consequently to direct respondent No.2 to take appropriate action with immediate effect against the Managing Committee of respondent No.4-soceity and consequently to stay the conduct of the General Body Meeting of respondent No.4-society scheduled to be held on 28.09.2025 or any other subsequent date, pending proceedings of respondent No.2 vide RC.No.2569/2025-HR2, dated 20.08.2025 under Section 34 (1)(b) of the Telangana Cooperative Societies Act, 1964 (for short, “the Act”) or in the alternative direct respondent No.2 to appoint a Special Officer to conduct the proposed General Body Meeting of respondent No.4-society scheduled on 28.09.2025 and to pass such other order or orders.

2. Learned counsel for the petitioners has drawn the specific attention of this Court to the petitioners’ complaint dated 28.08.2025 submitted to respondent No.2 in respect of show cause notice dated 19.08.2025 received from respondent No.4-society proposing the expulsion of the petitioners from the society under Section 23 of the Act. It was submitted that the issue of disqualification of the society Governing Body was already pending before this Court in W.P.No.9335 of 2025 and in W.P.No.7642 of 2024 and therefore, during the pendency of such writ petitions, the respondents ought not to have issued the show cause notices to the petitioners and others, particularly when Agenda No.8 of the General Body Meeting held on 04.08.2024 was subject to the orders of this Court in W.P.No.15677 of 2024. Therefore, the petitioners requested the Commissioner to take action under Section 34 of the Act, to supersede the existing governing body of the society, constitute a PIC committee and seize the files, accounts/activities of the society without further delay. When no action was taken on their complaint dated 28.08.2025 and respondent No.4 society was proceeding to hold the General Body Meeting on 28.09.2025 with an agenda to expel the petitioners and others from the membership of the society, the petitioners preferred this Writ Petition. At the time of admission of the case, learned counsel for the petitioners had drawn the attention of this Court to the agenda of the General Body Meeting to be held on 28.09.2025, wherein item No.6 was “to discuss about the removal of members who were obstructing the work of the society, its registrations and causing financial loss to the society and to terminate their membership”; and item No.9 was pertaining to “discussion of 2025-29 elections and to take a decision thereon”.

3. This Court, being prima facie satisfied, directed that any resolution in respect of Item No.6 of the agenda shall be subject to the outcome of this Writ Petition.

4. The learned counsel for the petitioners submitted that in response to the show cause notice dated 19.08.2025, the petitioners and others submitted their explanations/representations, but holding that petitioner No.2 in W.P.No.29424 of 2025 has not submitted his explanation and the explanations submitted by the other members were not satisfactory, a resolution was proposed to be passed by the General Body removing the petitioners from the membership of the society. Thereafter, the respondents have proceeded to conduct the General Body meeting on 28.09.2025 and in respect of item No.6 of the agenda, passed a resolution removing the members from the membership of the society invoking the provisions of Section 23 of the Act, and a communication dated 25.10.2025 was issued to the said effect. Challenging the termination of the membership and seeking immediate restoration, the petitioners and others filed applications under Section 61 of the Act before respondent No.2 on 03.11.