Case Note & Summary
The case involves a challenge by Madhavi Vilas Gosavi (Petitioner No.2) and another member (Petitioner No.1) against a resolution of the Managing Committee of Padmavati Nagar Co-operative Housing Society Limited (Respondent No.9) and the endorsement of that resolution by the Deputy Registrar, Co-operative Societies, P-Ward, Mumbai. The resolution dated 15 April 2026 removed Petitioner No.2 from the position of Chairman of the Managing Committee, and the Deputy Registrar declared the position vacant. Subsequently, a new Chairman was elected on 2 May 2026, which was also challenged. The Society, formed in 1987, had undertaken redevelopment of its building in Goregaon (East), Mumbai, through a Development Agreement with M/s. Viraj Properties in 2012, with supplementary agreements in 2014 and 2022. The building was demolished in October 2020, but redevelopment stalled, leading to withdrawal of consents by 51 out of 73 members. The Managing Committee meeting on 15 April 2026 was convened to consider the redevelopment issue. Petitioner No.1 was not allowed to participate or vote, and the resolution removing Petitioner No.2 was passed. The Petitioners argued that the meeting was invalid due to lack of quorum and violation of bye-laws. The Respondents contended that the removal was valid under the bye-laws and that Petitioner No.1 had no right to vote. The court analyzed the bye-laws, particularly Bye-Law 30, and found that Petitioner No.1 had a right to vote. The court also noted that the Deputy Registrar's endorsement was mechanical and did not consider procedural irregularities. The court held that the resolution and endorsement were invalid and set them aside, restoring Petitioner No.2 as Chairman. The court also set aside the subsequent resolution dated 2 May 2026 electing a new Chairman.
Headnote
A) Co-operative Society - Removal of Chairman - Validity of Resolution - Managing Committee Resolution dated 15 April 2026 removing Petitioner No.2 as Chairman and Deputy Registrar's endorsement - Court held that the resolution was passed in violation of bye-laws and principles of natural justice as Petitioner No.1 was not allowed to participate and vote, and the quorum was not properly maintained - Held that the removal was invalid and set aside (Paras 2, 15-20). B) Co-operative Society - Right to Vote - Bye-Law Interpretation - Bye-Law 30 of the Society - Court interpreted that the bye-law does not restrict voting rights of committee members and that Petitioner No.1 had a right to vote in the meeting - Held that denial of vote vitiated the resolution (Paras 12-14). C) Co-operative Society - Deputy Registrar's Powers - Endorsement of Resolution - Section 154A of the Maharashtra Co-operative Societies Act, 1960 - Court held that the Deputy Registrar's endorsement was mechanical and without application of mind, as it did not consider the procedural irregularities - Held that the endorsement was unsustainable (Paras 21-23).
Issue of Consideration
Whether the Managing Committee's resolution removing Petitioner No.2 as Chairman and the Deputy Registrar's endorsement thereof are valid, and whether Petitioner No.1 was wrongfully denied participation and vote in the meeting.
Final Decision
The court allowed the petition, quashed the Managing Committee resolution dated 15 April 2026, the Deputy Registrar's endorsement, and the subsequent resolution dated 2 May 2026. Petitioner No.2 was restored as Chairman of the Society.
Law Points
- Natural justice
- right to vote
- quorum
- bye-law interpretation
- co-operative society management
- removal of office bearer
- Deputy Registrar's powers
