In a significant legal decision, the Bombay High Court, Aurangabad bench, has ruled that the Registrar (Co-operative Societies) cannot dissolve the board of directors of a cooperative society when half of its committee members resign, especially before the society officially accepts these resignations. Justice Kishore C Sant presided over the case and quashed an order by the Registrar to dissolve the board of directors of a cooperative society, emphasizing that the resignations in question had not been accepted by the society itself.
The court's ruling stems from a writ petition filed by Vinayak Chavhan, who was elected as the Chairman of the society, challenging an order issued by the Divisional Joint Registrar, Cooperative Societies, Aurangabad. This order appointed an authorized officer to assume control of the society under Section 77A(b)(1) of the Maharashtra Co-Operative Societies Act, 1960.
Justice Sant noted that the Registrar had acted hastily and without proper adherence to procedural requirements. The court highlighted that the Registrar's power to appoint a committee or authorized officer should only be exercised when specific contingencies, as outlined in the Act, arise. Furthermore, the court underscored the importance of following proper procedures, including displaying notices, before exercising such powers.
The court's observation reflected that the resignations of committee members had not been formally accepted by the society, and therefore, the Registrar's actions were considered premature. The judge explained that the By-Laws of the society indicated that it was the society's prerogative to decide on the acceptance of member resignations. The court also pointed out that the Registrar had not issued a required notice to be displayed on the society's notice board, inviting objections and suggestions concerning the proposed order.
Source: Link
Picture Source :
