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1994 Supreme(Online)(Bom) 23

BOMBAY HIGH COURT
, J
Balasaheb Desai Sahakari Sakhar Karkhana Limited – Appellant
Versus
Government of Maharashtra – Respondent
Writ Petition



Advocates:
For the Appellants/Petitioners: Mr. K. K. Singvi
For the Respondents: None

The managing committee ceases to hold office after six years per legislative amendments, authorizing administrator appointment under Section 77A.

Headnote:The petitioners, directors of a co-operative society, challenge the dismissal of their board under Section 77A of the Maharashtra Co-operative Societies Act. The Court finds the order justified, stating the committee ceased to hold office after six years, rendering Section 77A applicable. The essence of the case involves the application of Sections 73G and 77A, with the court determining the relevance of legislative amendments and their implications on board continuity. The petition is dismissed with no merit.

Table of Content
1. facts surrounding the dismissal of the committee. (Para 1 , 2)
2. arguments against the applicability of section 77a. (Para 3)
3. court's analysis of statutory provisions and amendments. (Para 4 , 5 , 6)
4. conclusion affirming the lawfulness of the dismissal. (Para 7)
5. final ruling and dismissal of the writ petition. (Para 8 , 9)

1. The petitioners are the directors of Balasaheb Desai Sahakari Sakhar Karkhana Limited, a Co - operative society registered under the Maharashtra Co - operative Societies Act, 1960 ("the Act"). By this writ petition they seek to challenge the legality of the order of the Additional Chief Secretary to the Government of Maharashtra, Co - operation and Textile Department dated 7 January, 1994 dismissing the appeal of the petitioners against the order of the Director of Sugar (Administration) and Additional Registrar of the Co - operative Societies, Maharashtra dated 20 November, 1993 by which in exercise of the powers under S.77A(b) and S.77A(c) of the Co - operative Societies Act, the Board of Directors of the society comprising of the petitioners was dismissed and in their place, the Joint Director (Sugar) (Administration) was appointed as the Administrator.

2. The material facts of the case relevant for the determination of the controversy raised in this writ petition are as follows :
The Board of Directors of the Society consists of 15 directors of which 11 are elected from amongst the members, 2 are representative of workers, one is co - opted as expert director and one is the representative of the District Central Co - operative Bank. The last election of the Board of Directors was held in 1984. The term of the said Board under S. 73G(2) of the Act was for five years. The term of the above Board expired in 1989. For one reason or the other election of the members of the Board could not be held before the expiry of the term in 1989 and till now. On 15 October, 1983 the Director of Sugar, Maharashtra State, who is also the Additional Registrar of Co - operative Societies, issued a notice to the society, its managing director and workers to show cause against proposed removal of the existing Board of Directors and appointment of an administrator in their place. In the above notice it was stated inter alia -
"Whereas, it has now become clear that the period of the Board of Directors of the Karkhana is ended in the month of June, 1989 and newly elected Board of Directors could not take charge. Therefore, I am satisfied that it has become necessary now to take legal action under the provisions of S. 77A of the Act, AND WHEREAS, before taking action under S. 77A of the Act, concerned persons should be heard and therefore they should be given such opportunity. THEREFORE, show cause as to why though the prescribed period of the Board of Directors of the Karkhana was expired the new Board of Directors could not take charge, therefore, show cause. Why the existing Board of Directors should not be removed and the administrator should not be appointed in its place, before 26th October, 1993 either in person of the representative duly authorised by you to the undersigned. If you fail to show cause as aforesaid within the prescribed time limit or the course shown is not satisfactory, further action as provided in S. 77A of the Maharashtra Co - operative Societies Act, 1960."
The members of the Board of directors submitted written reply to the show cause on 16 November, 1993. In the said reply, the circumstances due to which election could not be held so long were set out and the Director was requested to drop the proposed action under S. 77A. The Director did not find the cause shown by the petitioners satisfactory and by order dated 20 November, 1993 dismissed the Board of Directors of the Society and appointed Shri Y. B. Khavale, Joint Director (Sugar) (Administration) as the administrator to discharge the duties and responsibilities of the Board. The petitioners appealed against the above order































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