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Bombay High Court

SUKHADEO PUNJAJI JADHAV AND ANOTHERversusTHE STATE CO OPETATIVE ELECTION AUTHORITY THROUGH ITS SECRETARY AND OTHERS

Disposal
DISPOSED OFF

Holding

The deletion order was illegal and was set aside because the society’s rights under the Act had not been extinguished and the order violated natural justice.

Summary

The petitioners, a cooperative society that is a member of Aurangabad District Central Co-operative Bank Ltd., challenged an order dated 18-05-2026 by the District Cooperative Election Officer that deleted their name from the provisional voters list for the bank's board election. The deletion was based on an objection from another respondent and the claim that the society was under liquidation pursuant to an interim order appointing a liquidator under Section 103 of the Maharashtra Cooperative Societies Act, 1960. The petitioners argued that no final winding‑up order had been passed, the liquidator had not taken charge, and they were denied a hearing, violating natural justice and the Election Rules. The court held that an interim liquidation order alone does not suspend the society’s right to participate in elections and that the deletion was made without proper jurisdiction or a hearing. Consequently, the order was quashed and the writ petition was allowed.

Issues considered

  • Whether a cooperative society subject only to an interim liquidation order under Section 103, but not a final winding‑up order, can be excluded from the voters list for a cooperative bank election.
  • Whether the District Cooperative Election Officer may delete a society’s name from the voters list without affording a hearing and based on an objection raised by a party lacking locus standi.
  • Interpretation of Rule 11 of the Maharashtra Cooperative Societies (Election to Committee) Rules, 2014 in the context of objections to provisional voters lists.
  • Whether principles of natural justice require a hearing before deletion of a member society’s name from the voters list.

Legislation cited

Subjects

  • cooperative society
  • liquidation
  • interim order
  • winding up
  • election
  • voters list
  • natural justice
  • Maharashtra Cooperative Societies Act
  • Section 103
  • cooperative bank
  • jurisdiction
  • Rule 11

Judgment

2026:BHC-AUG:22022
                                                                              927-WP-5449-2026.odt




                     IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                               BENCH AT AURANGABAD

                              WRIT PETITION NO. 5449 OF 2026

                              Sukhadeo Punjaji Jadhav And Another
                                            VERSUS
          The State Co Opetative Election Authority Through Its Secretary And Others
                                                ...
          Mr. K. J. Suryawanshi h/f Mr. A. K. Shingare, Advocate for the Petitioners
          Mr. V. H. Dighe, Advocate for Respondent Nos. 1 and 2
          Mr. V. H. Pathade, Advocate for Respondent No.3
          Mr. R. K. Ingole, AGP for Respondent No. 4
          Mr. K. F. Shingare, Advocate for Respondent No. 5
                                                  ***
                                                    CORAM : S. G. CHAPALGAONKAR, J
                                                            (VACATION COURT)

                                                    DATE       : MAY 28, 2026
          PC :

          1.           The Petitioners impugn order dated 18-05-2026 passed by

          Respondent No. 2 - District Cooperative Election Officer, Chhatrapati

          Sambhajinagar, thereby deleting name of Petitioner Society from voters list of

          Respondent No. 3 – Aurangabad District Central Co-operative Bank Ltd. (for short

          ‘ADCC Bank’).


          2.           Undisputedly, Petitioner/Society is a member of Respondent No. 3

          Bank. The election of Board of Directors of Respondent No. 3 Bank was due in

          month of March, 2026. The Respondent No. 2 issued a notification dated

          11.03.2026 inviting member society to submit resolution of its representative for

          preparation of provisional voters list. In pursuance to resolution passed by Society,

          representatives were nominated to participate in election of Respondent No. 3 Bank.

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Eventually, name of delegates/representatives of Petitioners Society was included in

provisional voters list. However, on objection raised by Respondent No. 5 and

report submitted by Respondent No. 1, Respondent No. 2 Election Officer deleted

name of Petitioner Society from voter's list on ground that Society is under

liquidation.


3.             Mr. K. J. Suryawanshi, learned Advocate appearing for Petitioners,

submits that impugned order is passed without granting opportunity of hearing to

Petitioners. The Respondent No. 5 had raised objection dated 10.04.2026 before

notification of election issued by Respondent No. 2. The Respondent No. 5 has no

locus to invoke jurisdiction of Respondent No. 2 under Rule 11 of Maharashtra

Cooperative Societies (Election to Committee) Rules, 2014 (for short ‘Election

Rules of 2014’). Even otherwise, merely on ground that interim order is passed by

Registrar appointing liquidators and before passing final order for winding up of

Society, existence of Society and right to participate in election of federal Society

cannot be taken away. He would submit that in present case, liquidator has not taken

charge of affairs of society. No steps are taken in pursuance to passing final order of

winding up. In support of his contention, Mr. Suryawanshi relies upon observations

of Supreme Court of India in case of Vineshkumar Mavjibhai Parmar and Others vs.

Dethali Gopalak Vividh Karyakari Sahakari Mandali Ltd and Others , 2017 (1) SCC

273 and observations of Single Judge of this Court in case of Balaji Phale Bhaji Pala

Kharedi Vikri and Prakriya Sahakari Sanstha Ltd vs. The State of Maharashtra and

Others (Writ Petition No. 1266/2021, decided on 30.01.2021).

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4.            Per contra, Mr. V. H. Dighe, learned Advocate appearing for

Respondent Nos. 1 and 2, justifies impugned order contending that report was

called from Respondent No. 1 regarding dormant societies. The action of interim

measures for winding up of Society are already taken. The orders appointing

liquidator in terms of Section 103 of Maharashtra Cooperative Societies Act, 1960

(for short ‘the Act’) have been passed long back and same have attained finality. The

officers of society are not in charge of office. Therefore, Respondent No. 2 has

rightly passed order deleting name of Petitioner Society from list of voters for

ensuing election of ADCC bank.


5.            Having considered submissions advanced by learned Advocates

appearing for respective parties, it can be observed that Petitioner Society is a

member Society of Respondent No. 3 - ADCC Bank. The name of Petitioner

Society was included in provisional voters list for ensuing elections of Respondent

No. 3 Bank. On 10.03.2026, notification inviting resolutions regarding

representatives of member society was published by Respondent No. 2. Accordingly,

Petitioner Society had passed a resolution nominating its delegate. As per

notification, objections to provisional voters list were to be raised during period from

27.04.2026 to 06.05.2026. Admittedly, during this period, no objection was raised

in terms of Rule 11 of Election Rules of 2014. However, Respondent No. 2, relying

upon communication of Respondent No. 5 dated 10.04.2026, called report from

Respondent No. 4 regarding status of Petitioner Society. Accordingly, action of

deletion of name of Petitioner Society has been taken.

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6.            Undisputedly, action is taken on ground that interim order appointing

liquidator on Petitioner Society has been passed in terms of Section 103 of the Act.

There is nothing to show that in terms of interim order, liquidator has taken charge

of society. The sub-section 3 of Section 103 of the stipulates shows that when final

order is passed confirming interim order, officers of society shall vacate their offices

and while winding-up order remains in force, general body of Society shall not

exercise any power. In present case, stage contemplated under sub-section 3 of

Section 103 of the Act is not yet reached. Therefore, there is no reason to presume

that office of Society fallen vacant. Till this date, winding-up order is not passed and

powers of general body of society are not suspended.


7.            In case of Vineshkumar Mavjibhai Parmar and Others (supra),

Hon’ble Supreme Court of India has observed in paragraph 25 and 31, thus:

           25.       The Gujarat legislature expressly provided under the
           SOCIETIES ACT for the curtailment of certain rights of the
           officers of societies facing liquidation proceedings. It must be
           remembered that at the same time it also declared that such
           OFFICERS cease to be the officers of the Society only when a
           final order of winding up is passed. In a given case if the Registrar
           after an appropriate enquiry following the interim order of
           winding decides not to finally wind up the society, the
           OFFICERS of the society would once again be entitled to
           exercise all the rights associated with it and perform all the
           functions attached to the office. Therefore, merely because the
           officers of CREDIT SOCIETY facing liquidation are disabled
           from enforcing certain rights attached to the office or perform
           certain obligations appended to the office, it does not necessarily
           follow that they are disabled from performing every function
           entrusted by law to such office.

           31.     Credit Societies against which there is an 'interim order'
           of winding up are temporarily debarred from dispensing

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           agricultural credit, by virtue of the operation of law. The embargo
           imposed by such interim order may or may not fructify into a
           final order of winding up. On the face of such possibility of the
           society resuming its activity of "dispensing agricultural credit" - to
           debar its managing committee members from discharging their
           statutory obligation under the MARKETS ACT would be
           productive of public mischief. Such an interpretation of the
           statute must be avoided.

8.            In light of aforesaid observations, in present case, when final order is

not yet passed in terms of Section 102 of the Act on basis of interim order for

winding-up of Society, it cannot be held that Petitioner Society had no authority to

participate in the election of ADCC bank or recommend name of its representative.


9.            The record indicates that impugned order is passed without there

being objection by any member or representative of member of society in terms of

Rule 11 of Election Rules of 2014. The Respondent No.2 acted upon

communication of Respondent No.5 who has no locus standi to raise objection

regarding inclusion of Petitioners name in provisional voters list. Further,

Respondent No.2 did not offer opportunity of hearing to Petitioner Society and

passed order disregard to principles of natural justice. Even otherwise, order

impugned is not sustainable in light of scheme under the Act.


10.           In result, impugned order deserves to be quashed and set aside. Hence,

Writ Petition stands allowed in terms of prayer clause ‘B’.



                                                (S. G. CHAPALGAONKAR, J.)
Umesh




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