Quashed

Raje Vijaysinh Dafale Shetkari Sahakari Sakhar Karkhana Ltd. and Ors. v. Regional Deputy Director (Sugar) and Joint Registrar Co-Op.Societies, Kolhapur and Ors.

Bombay HC5 Apr 2007WP/2390/2007

Case brief

AI extract

What is this about?

The High Court set aside an impugned order appointing an Administrator in a cooperative sugar society. The Court found the appointment violative of natural justice as notice was not given to the society and directors, despite an underlying election program. Relief was granted without deciding merits.

What did the court decide?

Impugned order appointing the Administrator was set aside. Respondent No.1 to be allowed to take steps legally entitled if so advised.

Raje Vijaysinh Dafale Shetkari Sahakari… — Pension and Retirement Benefits | Bombay HC (2007)

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MGN

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY

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CIVIL APPELLATE SIDE

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WRIT PETITION NO.2390 of 2007

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Rahje Vijaysinh Dafale Shetkari Sahakari Sakhar Karkhana Ltd. & Ors..Petitioners

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Vs.

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Regional Deputy Director (Sugar) and Joint Registrar, Co-op. Societies Kolhapur & Ors. ...Respondents Mr. G.S. Godbole, for the Petitioners. Mr. A.H. Palekar, AGP for respondent Nos. 1 to 3. Mr. Amit Borkar for respodnent No.5. Mr. Y.S. Jahagirdar, Senior Advocate with Mr. A.M. Kulkarni, for respondent No.4.

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WITH

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WRIT PETITION NO.2399 OF 2007

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Rajarambapu Patil Sahakari Sakhar Karkhana Ltd. & Ors... Petitioners

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Vs.

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Regional Deputy Director (Sugar) and Joint Registrar, Co-op. Societies Kolhapur & Ors. ...Respondents

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Mr. Y.S. Jahagirdar, Senior Advocate with Mr. A.M. Kulkarni, for the petitioners Mr. G.S. Godbole, for Respondent No.4. Mr. A.H. Palekar, AGP for respondent Nos. 1 to 3. Mr. Amit Borkar for respodnent No.5.

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CORAM : F.I. REBELLO & R.M.SAVANT, JJ. DATED : 5TH APRIL, 2007 .

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P.C.

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. The petitioners in Writ Petition No.2390 of 2007 is

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the society in respect of which the order came to be passed

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appointing an Administrator.Petitioner Nos. 2 to 4 were the

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erstwhile members of the Board of Directors.

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The petitioner in Writ Petition No.2399 of 2007 is

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whose possession

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holding the lease in respect of the factory whose was taken by the Maharashtra State Co-operative

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Bank

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pursuant to a notice served under Section 13(4) of the Securitization Act.

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3.	Before we decide	the controversy a few d	ates may	be
given.	A notice	under Secti	on	78 of		the Mah	arashtra
Co-operativ	e Societies	Act was	served	on the		petitioner	in
Writ	Petition No.2390	of 2007 on	13th	March,	2006	. On	18th
July,	2006 the Coll	ector was	pleased	to i	ssue	a not	ification
declaring	that the	date for el	ection.	On	29th	July,	2006
the	Regional Joint	Director of	Sugar	noted b	y	an order	that
as	the election	programme had	been	announced	the	re was	no
need	to proceed wi	th the notice	serve	d under	Sect	ion 78	of
the	M.C.S. Act.	Inspite of	the o	rder of	29th	July, 20	06 a
fresh	direction was	issued by	res	pondent	No.3	to res	pondent
No.1	on 10th Augus	t, 2006 fo	r ea	rlier deci	sion	under	Section
78 of	the M.C.S.	Act. On	16th	August, 20	06	it appears	that
without	giving any	fresh notice	to	the s	ociety	and	its
Directors	an Administrator	came to	be	appointed	.	It	further
appears	that decisio	n had been	taken	by the		Collector	to
proceed	with the	elections on	17th	July, 2006		though	the

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actual notification showing the programme for election was

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issued in 18th August, 2006.

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3.	D	uring this p	eriod a notic	e came to be se	rved on the
society	by	the	Apex	Co-operativ	e Bank	for rec	overy	of	its
dues	on	31st	May,	2006	under	Section	13(2)	of	the
Securitization		Act.	On	14th	August,	2006	the		Apex
Co-operative		Bank	took	possession	of the	sugar	factory		and

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thereafter a Tripartite Agreement	came to be entered	into
between the sugar factory whose	possession was taken	over,
the Apex Co-operative Bank, who	has taken possession	and
another party who took on lease	of the said sugar	factory.
By the present petition what	is being challenged is	the
appointment of Administrator. Onc	e the respondent No.1	on
29th July, 2006 had arrived at	a conclusion that in view	of
the programme for election is annou	nced there was no need	to
proceed under Section 78 of the	M.C.S. Act and th	ereafter
even if respondent No.3 had	issued any direction	the
respondent No.1 was bound to giv	e notice to the bank	and
Directors before an Administrator	could be appointed.	No
such opportunity was given.	Under these circumstances	in
our opinion the impugned order	which has civil effects	will
have to be set aside as there	is violation of principles	of
natural justice and fair play.	In the light of that	Rule
made absolute in terms of pra	yer clause (b) in both	the
petitions. There shall be no order	as to costs. We ma	y it
clear that we have not decided	the matter on merits,	but
only on the ground of failure	to give opportunity. It	will
be open to the respondent No.1,	if so advised, to take	steps
which in law he will be entitled	to. We make it clear	that
if the respondent No.1 proceeds	to take any	action
considering that the interest	of the petitioner in	Writ

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Petition No.2399 of 2007 notice should also be given to the

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said petitioners.

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( F.I.REBELLO , J)

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( R.M. SAVANT,J)

Raje Vijaysinh Dafale Shetkari Sahakari Sakhar Karkhana Ltd. and Ors. v. Regional Deputy Director (Sugar) and Joint Registrar Co-Op.Societies, Kolhapur and Ors.

Case brief

What is this about?

What did the court decide?

Raje Vijaysinh Dafale Shetkari Sahakari Sakhar Karkhana Ltd. and Ors. v. Regional Deputy Director (Sugar) and Joint Registrar Co-Op.Societies, Kolhapur and Ors.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

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