Registrar (Co-Operative Societies) cannot dissolve the board of directors of a society on account of half of the members of the committee resigning before the society has accepted the resignations, the Aurangabad bench of the Bombay High Court said.
Justice Kishore C Sant quashed an order of the registrar dissolving the board of directors of a co-operative society whose six out of 12 members resigned at once. The judge noted that their resignations were not accepted by the society.
“This Court finds that the Registrar has hurriedly proceeded to pass the order. The By Laws were duly passed and were accepted by passing the orders dated 29.08.2023 by respondent No.2 (assistant registrar of do-operative societies,” Justice Sant observed.
Petition filed by chairman of the society
The court noted that the meeting to discuss the resignations was scheduled for February 16, 2022. It is before that meeting the action was taken. “Technically no resignations were accepted till that date as it was for the Society to take decision on resignations. The impugned order, therefore, deserves to be set aside,” Justice Sant added.
The Bombay High Court was hearing a petition filed by one Vinayak Chavhan, who was elected as the chairman of the society, challenging an order passed by the Divisional Joint Registrar, Cooperative Societies, Aurangabad, appointing an authorised officer to assume control of the society under the provisions of the Maharashtra Co-Operative Societies Act, 1960.
Chavan argued that proper procedure was not followed in accepting the resignations of committee members. As per the society’s by laws, the resignations were required to be tendered. Also, Chavan said that the order was passed before the meeting where resignations were to be discussed.
Registrar did not issue notice to be displayed on the society's board
Justice Sant remarked that the registrar's power to appoint a committee or authorised officer under the Act should be exercised only when “specific contingencies”, as listed in the section, arise. Also, proper procedure, including displaying notices, should be followed before exercising such powers.
In the present case, the registrar had not issued the notice to be displayed on the society's notice board inviting objections and suggestions with respect to the proposed order.
The judge observed that the Registrar's actions in this case were “premature”, as the resignations had not been accepted by the society itself. Also, the order was passed hastily and without proper adherence to the society's By-Laws and procedural requirements.
