RAMESH SAWANT Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) THIS petition challenges the orders dated 24-8-1998, 25-11-1998 and 27-9-1999 passed by the Deputy Registrar, Co-operative Societies. The Joint Registrar, Co-operative Societies (Appeals) and the State Government respectively. These orders had been passed pursuant to a show-cause notice being issued to the petitioner under section 78 of the Maharashtra Co-operative Societies Act (for short, the Act) calling upon him to show cause as to why his name should not be removed as Managing Committee member since he was not a member of the society from 4-6-1996 and, therefore, could not have been a Managing Committee member.

(2.) THE petitioner was a member of respondent No. 5-society occupying flat No. A-205 in the building belonging to the society. Some time in May, 1996 when the petitioner was the Chairman of respondent No. 5 society, he decided to gift the flat to his three children and executed gift deeds accordingly. The society was informed by the petitioner that he had by three separate instruments on 8-5-1996 gifted the flat to his two sons Vikrant and Sangram and daughter Monika. The society, accordingly, acted upon these gift deeds and transferred the flat to the names of Vikrant, Sangram and Monika as the owners of the flat. The three childrens names were entered on to the duplicate share certificate as the petitioner claimed that he had misplaced the original. Changes were accordingly made by respondent No. 5 society in the registers maintained in due course of business, that is, T and J form registers. The petitioners son Vikrant was admitted as a member on 4-6-1996 and form T of the register of members was endorsed accordingly. Form J also showed that Vikrant, Sangram and Monika were members of the society. The maintenance bills were also issued in their names. The petitioner had ceased to be a member of the society on 4-6-1996. It appears that the petitioner then decided to revoke the gift deeds and informed the society in February 1997 that the gift deeds were revoked. Assuming that he automatically, on the revocation of the gift deeds, had become a member of the society again, on 14-3-1997 the petitioner chaired the meeting of the Managing Committee when a resolution was passed including the petitioners son Sangram and his wife Leena as Associate Members and, accordingly, necessary changes were made on the share certificate. This share certificate was the original share certificate which did not bear the endorsement that the petitioner had already ceased to be a member in view of the fact that he had executed the gift deeds, in favour of the children.

(3.) A show-cause notice came to be issued to the petitioner in July, 1998 calling upon him to show cause as to why he could not be removed as a Managing Committee member of respondent No. 5 society in view of the fact that he ceased to be a member of the society from 4-6-1996 pursuant to the gift deeds. The petitioner replied to this show-cause notice giving his explanation and contending that no shares could have been transferred pursuant to the gift deeds since although there was an instrument of transfer, it was not properly stamped under the Bombay Stamp Act nor was it registered. It was the petitioners contention that in view of these conditions not having been fulfilled, the gift deeds could not take effect and no changes could have been made in the register maintained by the co-operative society. According to the petitioner, he continued to be a member once the gift deeds were revoked and in any event the deeds having no force of law, could not have been acted upon by the society. Superingly, although all these contentions were raised by the petitioners he continued as the Chairman of the society.