Bombay High Court Allows Petition Challenging Acceptance of Nomination in Cooperative Society Election Due to Disqualification Under Byelaws. Failure to Pay Interest and Non-Compliance with Construction Obligations Under Byelaw 50(6) of the Society Justified Deletion of Candidate's Name from Valid Nominees List.

High Court: Bombay High Court Bench: NAGPUR In Favour of Prosecution
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Case Note & Summary

The petitioner, Damodar Shamrao Pande, filed a writ petition before the Bombay High Court at Nagpur challenging the acceptance of the nomination paper of respondent No.6, Arun Trimbakrao Gawande, for the election of the Managing Committee of respondent No.4 Society, Babasaheb Sangaludkar Sah. Sahbhagidari Gruh Nirman Sahakari Sanstha Maryadit, Daryapur. The elections were due on 3rd July 2016. The petitioner contended that respondent No.6 was disqualified under Byelaw 50(6) of the Society as he had failed to undertake construction within the stipulated time on the plot allotted to him by the Society. Additionally, the petitioner alleged that the Audit Note showed that respondent No.6 had not paid the interest payable by him to the cooperative society from which he had taken a loan, rendering him disqualified on that count as well. The Court had initially issued notice on 22nd June 2016 and directed the Election Officer to put a note against respondent No.6's name in the list, subject to further orders. On 30th June 2016, when the matter was listed, the advocate for respondents 4 and 6 sought time, which the Court viewed as an attempt to avoid bringing actual facts on record. The Election Officer filed an affidavit on 28th June 2016 confirming that the Audit Note showed respondent No.6 was liable to pay interest and had not paid it. Considering the facts, the Court passed an interim order directing deletion of respondent No.6's name from the list of validly nominated candidates. It was reported that elections were conducted and results declared on 3rd July 2016. The Court, after hearing all parties, made the rule absolute and confirmed the interim order, effectively upholding the disqualification of respondent No.6.

Headnote

A) Cooperative Societies - Election Disqualification - Byelaw 50(6) - Disqualification for failure to undertake construction within stipulated time and non-payment of interest - The petitioner challenged the acceptance of nomination of respondent No.6 on grounds of disqualification under Byelaw 50(6) for not constructing on allotted plot and for non-payment of interest as per Audit Note - The Court, after considering the Election Officer's affidavit confirming the Audit Note, directed deletion of respondent No.6's name from the list of validly nominated candidates - Held that the respondent No.6 was disqualified and his nomination could not have been accepted (Paras 1-3).

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Issue of Consideration

Whether the respondent No.6 was disqualified from contesting the election of the Managing Committee of the respondent No.4 Society under Byelaw 50(6) due to failure to undertake construction within stipulated time and non-payment of interest to the cooperative society.

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Final Decision

The Court made the rule absolute and confirmed the interim order dated 30th June 2016 directing deletion of respondent No.6's name from the list of validly nominated candidates. The petition was allowed.

Law Points

  • Disqualification for cooperative society elections
  • Byelaw 50(6) interpretation
  • Audit Note as evidence of disqualification
  • Interim relief pending election challenge
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Case Details

2016 LawText (BOM) (07) 127

Writ Petition No.3446/2016

2016-07-20

Z.A. Haq, J.

Shri R.J. Mirza, Advocate h/f Shri A.J. Mirza, Advocate for the petitioner; Shri Harshal Futane, Advocate for the respondents 4 and 6; Shri K.R. Lule, A.G.P for respondents 1 to 3 and 5

Damodar S/o Shamrao Pande

State of Maharashtra, District Deputy Registrar (Cooperative Societies), Assistant Registrar (Cooperative Societies)/Taluka Cooperative Election Officer, Babasaheb Sangaludkar Sah. Sahbhagidari Gruh Nirman Sahakari Sanstha Maryadit, Election Officer, Shri Arun S/o Trimbakrao Gawande

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Nature of Litigation

Writ petition challenging acceptance of nomination paper in cooperative society election on grounds of disqualification under byelaws.

Remedy Sought

Petitioner sought deletion of respondent No.6's name from the list of validly nominated candidates for the election of Managing Committee of respondent No.4 Society.

Filing Reason

Petitioner alleged that respondent No.6 was disqualified under Byelaw 50(6) for failing to undertake construction within stipulated time and for non-payment of interest as per Audit Note.

Previous Decisions

On 22nd June 2016, the Court directed issuance of notice and an interim order to put a note against respondent No.6's name. On 30th June 2016, the Court directed deletion of respondent No.6's name from the list of validly nominated candidates.

Issues

Whether respondent No.6 was disqualified under Byelaw 50(6) of the Society for failing to undertake construction within stipulated time? Whether respondent No.6 was disqualified for non-payment of interest as per Audit Note?

Submissions/Arguments

Petitioner argued that respondent No.6 failed to construct on allotted plot within stipulated time, violating Byelaw 50(6). Petitioner argued that Audit Note showed respondent No.6 had not paid interest, constituting disqualification. Respondent No.6 sought time to bring facts on record but did not assist the Court.

Ratio Decidendi

A candidate is disqualified from contesting elections of a cooperative society if he fails to comply with byelaw requirements such as undertaking construction within stipulated time or paying interest due to the society, as evidenced by Audit Notes. The Election Officer must reject such nomination.

Judgment Excerpts

The petitioner has approached this Court with the grievance that the nomination paper of the respondent No.6 could not have been accepted as he is disqualified as per the byelaw No.50(6) of the Society as he failed to undertake construction within stipulated time on the plot allotted to him by the Society. The Election Officer had filed an affidavit on 28th June, 2016 stating that the Audit Note shows that the respondent No.6 was liable to pay interest and he had not paid that amount. Considering the facts on record, an interim order was passed directing that the name of the respondent No.6 be deleted from the list of validly nominated candidates.

Procedural History

The petitioner filed Writ Petition No.3446/2016 before the Bombay High Court at Nagpur. On 22nd June 2016, the Court issued notice and directed the Election Officer to put a note against respondent No.6's name. On 30th June 2016, after the Election Officer's affidavit, the Court directed deletion of respondent No.6's name. The petition was finally heard on 20th July 2016 and allowed.

Acts & Sections

  • Maharashtra Cooperative Societies Act, 1960:
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