HARISH ARORA Vs. DEPUTY REGISTRAR OF COOPERATIVE SOCIETIES

JUDGEMENT

(1.) By way of the present petition instituted under Article 227 of the Constitution of India, the petitioners, who were members of the managing committee of respondent No.9-Society, have assailed the legality, validity, and propriety of three separate but interrelated orders passed by respondent No.1, the Deputy Registrar, Cooperative Societies. First, the petitioners impugn the order dtd. 11/2/2025 passed under Sec. 79A(3) of the Maharashtra Cooperative Societies Act, 1960 (hereinafter referred to as "the MCS Act " or "the said Act " for the sake of brevity), whereby they have been disqualified from continuing as members of the managing committee for a period of six years. Second, they also question the consequential order dtd. 20/2/2025 passed under Sec. 77A of the said Act, whereby an Authorized Officer has been appointed to take charge of the affairs of the society in place of the elected managing committee. Third, the petitioners challenge the interim order passed by respondent No.10 on 20/2/2025 in pending revision proceedings, directing the parties to maintain status quo in relation to the subject matter arising from the order dtd. 1/2/2025 passed under Sec. 79A(3) of the said Act.

(2.) Before adverting to the legal questions involved, it would be appropriate to set out in brief the facts giving rise to the present controversy. The factual matrix reveals that the predecessor managing committee of respondent No.9-housing society had initiated the process of redevelopment of the society's property. To that end, a Special General Body Meeting (SGBM) was convened on 10/7/2023, wherein a resolution was passed to commence the redevelopment process. Thereafter, the Project Management Consultant engaged by the society prepared the tender documents, and invitations were issued to prospective developers to submit their proposals. However, allegations of mismanagement surfaced against the then committee, including certain petitioners and respondents herein. Consequently, by an order dtd. 29/11/2023, an Administrator was appointed to manage the affairs of respondent No.9-society. The Administrator assumed charge on 18/12/2023.

(3.) Subsequently, the election process was initiated, and on 25/8/2024, elections were duly held under the supervision of the Election Officer. The petitioners, along with respondent Nos.3 and 4, were elected as members of the new managing committee of the society. The newly elected committee assumed charge on 1/9/2024 and chose to continue with the redevelopment process earlier initiated. In the course of redevelopment, the newly onstituted committee proceeded to short-list developers and called upon them to submit revised and improved offers. Accordingly, on 9th and 10/10/2024, a Special General Body Meeting was held, in which two developers, MIC/LLP and Narang Realty, presented their enhanced proposals before the general body. Thereafter, a subsequent Special General Body Meeting was held on 16/10/2024, wherein the general body resolved to short-list MIC/LLP and Narang Realty as the final contenders. In continuation of the said process, a managing committee meeting was held on 24/10/2024 to take a final call regarding appointment of MIC/LLP as the developer.