Bombay High Court confirms expulsion of defaulter members

By Legal Bureau

The Bombay High Court refused to entertain a petition challenging the expulsion of two members of Ganga Estate Co-operative Housing Society Ltd., Sion Trombay Road, Chembur Mumbai – 400071. Granting no relief, Justice D.K. Deshmukh disposed of the petition holding that the challenge to the impunged orders of expulsion passed by the Deputy Registrar of Co-operative Society, Joint Registrar of Co-operative Society, Divisional Joint Registrar of co-operative Societies and the Co-operation Department could not be entertained by the High Court.

 

The high Court order implied that the expulsion order of the members of the said housing society is confirmed.

The two members were expelled on the ground that they were not co-operating with the society’s needs and had frequently defaulted in making payments of Society’s needs.

In January 2000,the Managing Committee of the Society passed a resolution to expel them as members on the ground of default of Payment of dues.

In October 2000,the Deputy Registrar of Co-operative Society approved their expulsion and an appeal field by them before the Divisional joint Registrar was dismissed on May 14, 2001. A revision application made to the Minister of State for Co-operation was also dismissed.

High Court Order

The High Court order disposing of the appeal by the expelled members is reproduced here for the information of our readers.

In the high Court of judicature at Bombay civil appellate jurisdiction writ petition No. 2227 of 2002

 

Mr. B.S.B. Kalwani & Ors.                 Petitioners

V/s.

Ganga Estate Co-op. Housing Society Ltd. Ors. Respondents

 

Coram : D.K. Deshmukh J.

Dated  24^th June, 2002

 

P.C.

1. By this petition, the Petitioners challenge the order passed by the Authority under the Co-operative Societies approving the resolution passed by the General Body of the Co-operative Society expelling the Petitioners from the membership of the Society.
2. The learned counsel appearing for the Petitioners relying on the judgement of the Division Bench of this Court in the case of Vishwajit Co-operative Housing Society v/s. P.P. Damle 1975 Bom.L.R. 615 submits that the authority considering the question of grant of approval to the resolution passed by the general body of the co-operative society is required to go into the merits of the reasons given by the society for expelling the member and after considering those reasons in detail, the question of grant of approval can be considered.
3. In so far as the present case is concerned form the orders which have been impugned in this petition, it cannot be said that the authority has not adverted t the merits of the reasons that have been given by the Society for making the order of expulsion. It is also further to be seen that there is no grievance that the procedure that has been provided by the Co-operative Societies Act was not followed except that according to the Petitioners when the resolution of the Managing Committee was passed, a showcause notice was given and reply was given to that show cause notice, though the petitioner did not give reply to the showcause notice issued before the General Body meeting, the Reply previously given should have been placed before the general body.
4. I find that the authorities under the Act have examined the matter in detail and have referred to the defence, which the petitioners had offered. The Act requires the resolution for expulsion to be passed by the special majority unless 3/4^th of the members of the attending general body meeting vote in favour of the motion, would not have taken to have been passed. In my opinion, though it is not doubt true that the authority approving the resolution has to consider reasons that have been given, the decision of the corporate majority has to be given its due weightage.

Taking overall view of the matter, therefore, in my opinion, this is not the case to be entertained in the extra ordinary jurisdiction of this court. Petition is, therefore disposed of.

Parties to act on simple copy of the order duly authenticated by the Sheristedar / Personal Assistant of the Court as a true copy.

(U.P.Kambli)

Personal Assistant to the Hon’ble Judge, High Court, Bombay