Failure to comply with mandatory obligations under Section 75(5) of the Maharashtra Co-operative Societies Act, 1960, warrants disqualification of office bearers for a period of five years.

ORAL ORDER

1.This petition filed under Article 226 of the Constitution of India assails an order dated 14 June 2022 passed by the Divisional Joint Registrar, Co-operative Societies, Mumbai Division, whereby the revision application as filed by the petitioner under Section 154 of the Maharashtra Co-operative Societies Act,1960 (for short the ‘MCS Act’) has been dismissed. In the revision application, the petitioner had challenged an order dated 3 March 2022 passed by the Deputy Registrar, Co-operative Societies, D/E-Ward, Mumbai, passed under Section 75(5) of the MCS Act, whereby the petitioner was disqualified for being elected and for being an office bearer or a member of the managing committee, for a period of five years for the reason that in the capacity as Secretary of respondent No.3-Paras Nagar Co-operative Housing Society Ltd.(for short “the Society”) the petitioner had failed to comply with the vital obligations to hold annual general meeting. It is in such meeting all the important actions of the managing committee including of approving financial matters/accounts, takes place.

2.The genesis of the action as taken by the respondent-Registrar against the three office bearers of the society, namely against the Chairman (who has since expired), the Secretary (the petitioner), and the treasurer, was on the basis of an inspection, which was undertaken by the Registrar as per the provisions of Section 89A of the MCS Act. Such order to undertake an inspection was issued by the Registrar of Co- operative Societies on 14 July 2021. Accordingly, an inspection was undertaken of the affairs of the society. An inspection report dated 3 January 2022 was prepared by Mr.Suresh V. Khedkar who was appointed as Inspector. Such report was submitted to the Deputy Registrar of Co- operative Societies, K/East Division, Mumbai. The inspection report is a detailed report, which has been placed on record on behalf of the State as annexed to the reply affidavit of Shri.Sanjay Sanduji Raut, Deputy Registrar, Co-operative Society.

3.In the context of the issues which arise for consideration of the Court in the present proceedings, it is relevant to note the provisions of Section 75(5) of the MCS Act, whereunder the petitioner has been disqualified for a period of five years, with the other office bearers.

Section 75 reads thus:-

“Section 75 - Annual general body meeting.

(1) Every society shall, within a period of [four months after the close of the financial year, get its books of accounts audited and within six months after the close of financial year to transact its business as may be provided in this Act, call the annual general body meeting of its members].

[Amendment of section 75 of Mah. XXIV of 1961.

3. In section 75 of the principal Act, in sub-section (1),-

(a) before the existing proviso, the following proviso shall be added, namely :-

“Provided that, for the financial year 2019-2020, the society may get its books of accounts audited within nine months from the close of its financial year and call the annual general body meeting within twelve months from the close of its financial year.”

(b) in the existing proviso, for the words “Provided that,”, the words “Provided further that,” shall be substituted.]

Provided further that, where such meeting is not called by the society, the Registrar or any officer authorized by him may call such meeting in the manner prescribed and that meeting shall be deemed to be a general body meeting duly called by the society, and the Registrar may order that the expenditure incurred in calling such a meeting shall be paid out of the funds of the society or by such person or persons who, in the opinion of the Registrar, were responsible for the refusal or failure to convene the general meeting.

(2) At every annual general body meeting of a society, the committee shall lay before the society,-

(i) a statement showing the details of the loans, if any, given to any of the members of the committee or any member of the famil