ILLEGAL MANAGING COMMITTEE CANNOT HOLD FRESH ELECTIONS

Mr. Shashikant Jesrani & Ors...Petitioners
Vs.
Assistant Registrar & Ors...Respondents
Mr.Satyajeet Mirajkar i/b.Gabriel Pillai for the Petitioners
Mr.S.N.Patil, A.G.P. for the Respondents

CORAM: - V.C.DAGA, Justice.
DATE: 27TH JANUARY, 2009
P.C

1. Heard learned Counsel for Petitioner. This Petition is directed against the order dated 13th January, 2009 passed by the Divisional Joint Registrar, Co-operative Societies, Mumbai Division, Mumbai.

2. The factual matrix canvassed during the course of hearing, is as under:

3. On 8th August, 2005, the Managing Committee of The Society entered into the office for a term of five years.

4. As per Section 73(1) (AB) of the Maharashtra Co-operative Societies Act, 1960, the members of the Managing Committee were bound to execute Indemnity Bond in Form M-20 by 23 August, 2005 (i.e. Within 15 days from the date of assuming office).

5. The members of the Managing Committee failed to execute bonds. Consequently, by operation of law, the Managing Committee automatically vacated their office on 24th August, 2005. Thereafter, there was no validly elected Managing Committee in the office of the Society.

6. It appears that out of 7 members, 6 members who constituted Managing Committee in the month of August, 2005 continued to look after the affairs of the Society till 2008 though unauthorisedly. It further appears that sensing action from the Cooperative Department; these 6 members adopted resolution dated 10th September, 2008 and appointed Advocate Mr. Borade as an Election Officer to conduct Election, who appears to have conducted Election in the month of October, 2008. The present Petitioners are claiming to be the validly elected members of the Managing Committee in the election held in October, 2008.

7. The fault was found by the Co-operative Department with regard to the contention of the Petitioners with regard to the validity of the election held in the month of October, 2008, since old Managing Committee could not have held election for want of authority. Consequently, the Assistant Registrar in exercise of power under Section 73(1) (AB) read with Section 78 of the Maharashtra Co-operative Societies Act, 1960 appointed an Administrator. Challenge to this order failed. The said order has also been confirmed in Appeal by the Divisional Joint Registrar, which is impugned in this Petition filed under Article 227 of the Constitution of India.

8. Having heard learned Counsel for Petitioner, it is clear that the members of the Managing Committee were elected on 8th August, 2005, had automatically vacated their office on 24th August, 2005, in view of the lapse committed by them leading failure to execute bond under Section 78(1) (AB) of the Maharashtra Cooperative Societies Act,1960. Thereafter, there was no legal Managing Committee in the office. Therefore, the resolution dated 10th September, 2008 adopted by the Managing Committee, who was illegally holding office could not have adopted resolution to hold fresh election. The action is bad & illegal.

9. If the aforesaid resolution was the foundation for holding election giving birth to the existing Managing Committee, then it suffers from the illegality. The Election conducted by the Society in the month of October, 2008 being bad and illegal, the Respondent Co-operative Department was perfectly justified in appointing an Administrator under Section 78 of the Maharashtra Cooperative Societies Act, 1960.

10. In this view of the matter, the Petition is devoid of any substance and liable to be dismissed in limine.

11. In the result, Petition is dismissed. No order as to costs.

(V.C.DAGA, Justice)

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