VIJAYPATIBHAU DEORE AND ORSversusTHE DISTRICT CO OP ELECTION OFFICER @ DISTRICT DEPUTY REGISTRAR AND ORS

2026:BHC-AS:40463
             k                              1/10                      12 wp 12719.26 as.doc




                        IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                CIVIL APPELLATE JURISDICTION

                                WRIT PETITION NO.12719 OF 2026

             Vijay Patilbhau Deore & Ors.                               ....Petitioners
                   V/S
             The District Co-operative Election Officer
             @ District Deputy Registrar & Ors.                         ....Respondents
                                              _________

             Mr. Rameshwar N. Gite with Ms. Tejaswini Pathave for the Petitioners.
             Mr. Kishor Patil i/b Mr. Akshay H. Bankapur and Mr. Sunil Javale AN. for
             Respondent Nos.2, 4 and 5.
             Mr. Y.D. Patil, AGP for Respondent Nos.1, 3 and 6/State.
                                            __________


                                       CORAM : SANDEEP V. MARNE, J.
                                       DATE : 05 OCTOBER 2026.

             P.C.:


             1.       The Petition challenges order dated 17 September 2026 passed by
             the Divisional Joint Registrar, Co-operative Societies, Nashik Division,
             Nashik, rejecting the stay application filed in Appeal No.A-127 of 2026.
             The Appeal has been filed by the Petitioners challenging order dated 31
             July 2026 passed by the Deputy Registrar, by which powers under Section
             77A(1)(i) of the Maharashtra Cooperative Societies Act, 1960 (MCS Act)
             were exercised and the Deputy Registrar has appointed two members of
             the Society as the members of the managing committee to fulfil the
             quorum on account of tendering of resignations by the ten managing
             committee members. Petitioners, who had tendered resignations from

             katkam                                Page No. 1 of 10
k                               2/10                      12 wp 12719.26 as.doc




the managing committee, are aggrieved by the Deputy Registrar's
direction for appointing two members on the managing committee. It is
the contention of the Petitioners that after tendering of resignations by
ten members, the quorum was incomplete and that therefore, the only
course of action open for the Deputy Registrar was to appoint a
temporary committee for managing day-to-day affairs of the Society and
it was impermissible for the Deputy Registrar to fill in the vacancies in
respect of a committee which had become non-functional. However,
since stay to the order dated 31 July 2026 was rejected by the Divisional
Joint Registrar, the present Petition has been filed.



2.       I have heard Mr. Gite, the learned counsel appearing for the
Petitioners, Mr. Kishor Patil, the learned counsel appearing for
Respondent Nos. 2, 4, and 5 and Mr. Patil, the learned AGP appearing for
Respondent Nos.1, 3 and 6/State.


3.       Elections to the Nashik District Government and Zilla Parishad
Employees’ Cooperative Bank Limited, Nashik, were held in the year
2023. The strength of the managing committee is 21, however, only 19
committee members were elected in the elections. The quorum required
for a managing committee comprising of 19 members is 11. However, on
28 June 2026, the 10 Petitioners, who were elected managing committee
members, tendered their resignations, thereby reducing the strength of
the committee to 9. Thus, the committee did not have required quorum
for its functioning. The Deputy Registrar, stepped in by exercising
powers under Section 77(A) of the MCS Act. After noticing that two more
katkam                                 Page No. 2 of 10
k                                     3/10                         12 wp 12719.26 as.doc




members were required for constitution of a valid quorum, he proceeded
to exercise powers under clause (i) of Section 77(A)(1) of the MCS Act
and proceeded to appoint two members—Pradeep Ratan Ahire and Anil
Ramnath Wagh on the Board of the Bank.


4.       Under Section 77(A) of the MCS Act, the Registrar can exercise
powers of appointment of a member of committee, a new committee, an
authorized officer, etc. Section 77(A) of the MCS Act provides thus:

         “77A. Appointment of member of committee, new committee, authorised
         officers, where there is failure to elect member, to constitute committee
         or where committee does not enter upon office, etc.
         (1)    Where the Registrar is satisfied that,-
                (1-a) a provisional committee has failed to make necessary
         arrangements for holding election for the constitution of the first committee,
         before the expiry of its term as specified in sub-section (1A) of section 73;
                 (a)     at the first constitution of the committee of any society there is
         a failure to elect all or any of the members of the committee;
                 (b)     the term of the committee of any society or of any of its
         members has expired or for any other reason election is held and there is a
         failure to elect all or any of the members required to fill the vacancies;
                (b-1) there is a stalemate in the constitution or committee has ceased
         to function and vacuum is created in the management;
                (c)     any committee is prevented from entering upon office;
                (d)    a new committee has failed to enter upon office on the date on
         which the term of office of the existing committee expired; or
                (e)     …
                (f)     where more than one group of persons in a society is claiming
         to be elected as the committee members and proceedings in respect thereof
         have been filed in the Co-operative Court;
         the Registrar may, either suo-motu or on the application of any officer or
         member of the society by order appoint-
              (i)     any member or members of the society to be the member or
         members of the committee to fill the vacancies;



katkam                                       Page No. 3 of 10
k                                           4/10                      12 wp 12719.26 as.doc




                 (ii)   a committee, consisting of not more than three members of the
         society, or one or more authorised officers, who need not be members of the
         society, to manage the affairs of the society till a new committee enters upon
         office:
                Provided that, before making such order, the Registrar shall publish a
         notice on the notice board at the head office of the society, inviting objections
         and suggestions with respect to the proposed order within a period specified in
         the notice and consider all objections and suggestions received by him within
         that period:
                Provided further that, it shall not be necessary to publish such notice
         in any case where Registrar is satisfied that immediate action is required to be
         taken or that it is not reasonable practical to publish such notice.
                 (2)    The committee or authorised officer so appointed shall, subject
         to the control of the Registrar and to such instructions as he may, from time to
         time, give, have power to discharge all or any of the functions of the
         committee or of any officer of the society and take all such action as may be
         required to be taken in the interests of the society.
                (3)     The Committee or authorised officer so appointed shall hold
         office for a period of twelve months from the date of assuming the
         management of the society and shall make necessary arrangements for
         constituting a new committee within the said period and for enabling the new
         committee including any new committee referred to in clause (f) of sub-
         section (1), which is determined by the Court to have been legally elected, to
         enter upon office:
                 Provided that, in no circumstances the term of office of the committee
         or authorised officer shall exceed twelve months from the date of their holding
         office.
                 (4)    The Registrar shall have the power to change the committee or
         any or all members thereof or any or all the authorised officers appointed
         under sub-sections (1) at his discretion even before the expiry of the period
         specified in the order made under sub-section (1).
                (5)     The provisions of sub-section (2) of section 78A shall apply
         mutatis mutandis for fixation of remuneration to be paid to the members or
         authorised officers appointed under sub-section (1).”



5.       The issue of interpretation of provisions of Section 77(A) of the
MCS Act came for consideration before a Co-ordinate Bench of this
Court in Vijay Lakhi & Ors. vs. Minister of Co-operation & Ors. 1 After

1    Writ Petition No.11625 of 2025, decided on 6 October 2025.
katkam                                             Page No. 4 of 10
k                                    5/10                         12 wp 12719.26 as.doc




analysing the statutory scheme of Section 77(A) of the MCS Act, this
Court drew a distinction of circumstances under which powers under
clauses (i) and (ii) of Section 77(A)(1) of the MCS Act can be exercised.
This Court held in paragraphs 25 to 33 of the judgment as under:

         “Clause (i) of Section 77A(1):
         25. Clause (i) of Section 77A(1) deals with situations where the elected
committee is broadly in place but some seats are left vacant. This may happen at the
first election itself, where not all seats are filled, or later, when some members resign,
die, or are disqualified. In such cases, the committee is not completely paralysed. It is
only short of its full strength.
       26. This provision, therefore, allows the Registrar to step in and fill up those
vacancies by appointing members of the society itself. The purpose is limited, to
complete the committee and ensure that it can continue its work smoothly. This
avoids unnecessary disruption and keeps the society under the control of its own
members, which is the essence of the co-operative movement.
      27. It is important to note that this power is meant only for filling casual or
temporary gaps. It is not a license for the Registrar to interfere with the elected body
whenever he wishes. The elected committee remains the main governing authority,
and the Registrar’s role under clause (i) is only supportive, to strengthen the
committee so that it does not collapse because of a few vacancies.
        28. The guiding principle of co-operative law is self-governance by members.
Therefore, when vacancies are few and the elected structure is otherwise working, the
Registrar must prefer this minimal intervention under clause (i). Only when the
situation is more serious, such as a stalemate or complete deadlock, can the Registrar
move to stronger measures under clause (ii) or the expression 'one or more authorised
officers'.
        29. Thus, clause (i) is a preventive safeguard. It ensures that minor vacancies
do not stop the functioning of the society. At the same time, it protects the
democratic character of the institution by filling those vacancies only with members
of the same society.
        30. The Registrar, when filling up vacancies by appointing members of the
society, must select only those who are eligible to be elected as committee members
under the Act, Rules and bye-laws. This flows from the principle that an appointee
under Section 77A merely steps into the shoes of an elected member. He cannot enjoy
a higher status than one who could be elected. Hence, statutory disqualifications
under Sections 73CA, 78, and 78A and similar provisions will apply. For example,
Defaulter in repayment of loans; Conviction of offences involving moral turpitude;
Having interest in contracts with the society; Disqualified under bye-laws or under
State Government Government Resolutions. If a person is disqualified from being
elected, he cannot be inducted by the Registrar under Section 77A.
katkam                                      Page No. 5 of 10
k                                    6/10                        12 wp 12719.26 as.doc




Clause (ii) of Section 77A(1):
       31. Clause (ii) of Section 77A(1) applies when the problem is more serious than
a few vacant seats. This happens when the managing committee as a whole cannot
function. Examples include a situation where the term of the committee has expired
but the new committee has not taken charge, or where there is a deadlock and the
committee has ceased to function, or where disputes between groups have paralysed
the management. In such cases, the society cannot continue with its regular business
through the elected body.
         32. To deal with such a situation, the Registrar is empowered to form a small
temporary committee of not more than three members from within the society. This
ensures that the society continues to be run by its own members, even if on a
temporary basis. The idea is that external control should be avoided as far as possible,
and preference should always be given to members themselves to manage their
affairs.
        33. The object of clause (ii) is therefore to prevent a vacuum in administration
while maintaining the democratic spirit of co-operatives. It is an intermediate
measure, stronger than simply filling up a few vacancies under clause (i), but less
drastic than bringing in outsiders under the expression 'one or more authorised
officers'. This step shows the Legislature’s intention to keep co-operative societies
member-driven, even during a crisis.”



6.       This Court has thus held that powers under clause (i) of Section
77(A)(1) of the MCS Act can be exercised only if the committee as a
whole is still valid and functional. In such circumstances, the Registrar
can appoint any member of the Society to be the member of the
committee to fill the vacancy. However, if the committee itself is non-
functional inter alia on the ground of not having enough members to
meet the quorum, the only power exercisable is under clause (ii) of
Section 77(A)(1) of the MCS Act. This Court held in paragraphs 46 to 48
of the judgment as under:

                “Legal effect of resignation of majority members:
                 46.     When a majority of the managing committee members resign,
         their resignation takes effect from the date it is accepted in law (in most
         societies, resignation becomes effective when it is tendered and accepted, if

katkam                                      Page No. 6 of 10
k                                       7/10                      12 wp 12719.26 as.doc




         required, as per bye-laws). Once the resignations become effective, those
         members immediately cease to be part of the committee.
               47.     If only a small number of members remain and quorum is lost,
         the committee cannot legally function. Without quorum, it cannot hold
         meetings, pass resolutions, or co-opt new members. In such a case, the elected
         body comes to an end, just as in the case of disqualification. In law, the
         committee stands collapsed.
         Applicability of Clause (I):
                 48. Clause (i) of Section 77A is meant for situations where there are
         only a few vacancies, but the committee as a whole is still valid and functional.
         For example, if one or two members resign, leaving enough members to meet
         quorum, then the Registrar can step in and fill those vacancies by appointing
         society members. However, when a majority resign and quorum is lost, the
         committee ceases to exist in a valid form. In such cases, clause (i) cannot
         apply, because there is no functioning body to support.”


7.       In the present case, upon tendering of resignations by ten
managing committee members on 28 June 2026, the required quorum
was not available and thereby the committee as a whole became invalid
and non-functional. If the committee itself was not in existence, there is
no question of any vacancy remaining in such a non-existent committee.
In that sense, it was wholly impermissible for the Deputy Registrar to fill
up a non-existent vacancy in respect of a non-existent committee by
having recourse to provisions of clause (i) of Section 77(A)(1) of the MCS
Act. The correct course of action in such circumstances was to exercise
powers under clause (ii) of Section 77(A)(1) of the MCS Act. To this
extent, the Deputy Registrar appears to have clearly faltered in the
present case by appointing two members of the Society on the
committee for filling up the vacancies. What the Deputy Registrar ought
to have done was to appoint a committee consisting of not more than
three members of the Society to manage the affairs of the Society till a
new committee enters upon the office.
katkam                                         Page No. 7 of 10
k                                8/10                      12 wp 12719.26 as.doc




8.       Mr. Patil has strenuously sought to suggest that in Vijay Lakhi
(supra) this Court has highlighted the importance of management of
affairs of the Society through its members and not through outside
agencies/entities. However, even by appointment of a committee
consisting of not more than three members of the Society, the objective
of managing the affairs of the Society through members can be achieved.
In my view therefore, the order passed by the Deputy Registrar in the
present case is clearly unsustainable and liable to be set aside. Though
the appeal is pending before the Divisional Joint Registrar, with a view to
cut short any further litigation between the parties on the issue, it would
be appropriate to set aside the Deputy Registrar's order dated 31 July
2026 so that the Deputy Registrar can proceed to exercise powers under
clause (ii) of Section 77(A)(1) of the MCS Act and forthwith appoint a
committee consisting of not more than three members of the Society.


9.       Mr. Patil, on taking instructions, submits that his clients are not
really opposed to the arrangement of appointment of a committee of not
more than three members of the Society till elections for formation of a
new committee are held. He, however, submits that such three members
need to be appointed through the nine committee members who were
interested in continuing as managing committee members and who had
not tendered their resignations. This suggestion is opposed by Mr. Gite.
In the present case, Petitioners have shown disinterest in managing the
affairs of the Society. They have voluntarily resigned from their positions
and have refused to act as managing committee members. It therefore is
incomprehensible that Petitioners can be appointed as members of an

katkam                                  Page No. 8 of 10
k                                    9/10                      12 wp 12719.26 as.doc




ad-hoc committee under Section 77(A)(1)(i) of the MCS Act. If the
balance nine members of the erstwhile managing committee who had
not tendered their resignations are interested in functioning as members
of the committee under clause (ii) of Section 77(A)(1) of the MCS Act,
the Registrar would obviously keep the same in mind while deciding the
composition of the committee.


10.      I accordingly proceed to pass the following order:


i)       Order dated 31 July 2026 passed by the Deputy Registrar is set
         aside.


ii)      The Deputy Registrar shall proceed to appoint a committee under
         Section 77(A)(1)(ii) of the MCS Act, comprising of not more than
         three members of the Society for deciding composition of the
         committee. It would be open for the Deputy Registrar to take into
         consideration interest expressed by the nine managing committee
         members who had not tendered their resignations.

iii)     The appointment of the committee shall be for the purpose of
         managing day-to-day affairs of the Society and for the purpose of
         holding of elections in an expeditious manner. Accordingly, the
         committee shall proceed to take steps for expeditious holding of
         elections of the Society.


iv)      Since the order of the Deputy Registrar dated 31 July 2026 is set
         aside the Divisional Joint Registrar shall proceed to pass a formal
         order closing Appeal No.A/127 of 2026.
katkam                                      Page No. 9 of 10
                         k                              10/10                             12 wp 12719.26 as.doc




                         11.      With the above directions, Writ Petition is partly allowed and
                         disposed of. There shall be no order as to costs.



                                                                                    (SANDEEP V. MARNE, J.)




                          katkam
Signed by: Sudarshan R. Katkam                                  Page No. 10 of 10
Designation: PS To Honourable Judge
Date: 06/10/2026 15:10:29