Mumbai: The Maharashtra State Co-operative Appellate Court has effectively placed the administration of Splendor Complex CHS Ltd. in Jogeshwari on hold, restraining its managing committee from conducting meetings or passing any resolutions. The sweeping interim injunction will remain in force until the pending dispute is resolved or fresh elections are conducted. The order, issued by Member A.S. Wanve, highlights a severe “stalemate” and “vacuum” in the society’s administration following mass resignations and the failure to maintain the minimum legal strength required under the Maharashtra Co-operative Societies (MCS) Act.
Committee Falls Below Legal Minimum Strength
While adjudicating four connected appeals arising out of a 2024 dispute, the court noted that the 19-member managing committee had fallen well short of the statutory strength required to function.
Under Section 154B-19 of the MCS Act, at least two-thirds of committee members 13 in this case must be elected members who continue in office.
Out of 18 originally elected members, eight resigned, reducing the number of elected committee members to ten.
The society attempted to fill the vacancies through co-option, but Rule 74 of the Maharashtra Co-operative Societies (Election to Committee) Rules allows only one-third co-option a maximum of six members making it impossible to legally replenish eight vacancies.
Co-option Challenge Sparked Legal Proceedings
The dispute was initiated by member Sudhir Agarwal, who challenged the legality of the co-option process. He argued that a committee lacking the required legal constitution cannot exercise the authority to appoint co-opted members.
The Appellate Court agreed, observing that the mass resignations had created circumstances similar to those described under Section 77A(1)(b-1) of the MCS Act conditions warranting intervention by the Registrar when a society’s functioning is jeopardized.
The court also noted non-compliance with reserved seat requirements under Section 154B-20, further undermining the committee’s democratic legitimacy.
Committee Barred From Any Meetings or Decisions
In its interim order, the Appellate Court restrained the managing committee from holding any meetings, taking administrative decisions, passing any resolutions
The restrictions will continue until the dispute concludes or new elections are held, effectively freezing the society’s administrative functioning.
