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Sections 77A & 154B-19 of MC Societies Act & GR dated 3.1.2024

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The elections of the Managing Committee of the respondent no.4 society were held on 9.1.2022 upto 2026. 

Respondent Nos.5, 7 and 9 with Mrs.Ailani elected members had given their resignations.

The strength of 8 members of the Committee was reduced to 4 members only. Under the byelaws the quorum is 5 members.   Thus, the Committee was without quorum.

On 7.1.2024, the petitioners coopted two members to fill in the vacancies.

On 7.3.2024, the respondent nos.5 to 10 filed section 77A application for dissolving the Managing Committee and appointment of Administrator.

On 26.11.2024, the respondent no.3 passed the order.  The appeal and the revision of the petitioners were dismissed.

By the Government Resolution dated 3.1.2024 issued under Section 154B-19 of the MC Societies Act, the quorum for Managing Committee was prescribed as three members.  Therefore, cooption of two members was valid.

HELD that the guiding principle of cooperative law is self-governance by members.   Therefore, when vacancies are few and elected structure is otherwise working, the Registrar must prefer this minimal intervention under clause (i). Thus, clause (i) is 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.

However, instead of appointing outsider as authorized officer, the registrar ought to have appointed the remaining minority elected members by exercising powers under Section 77A(ii) of the Act.  The scheme of Section 77A shows that preference should be given to members of the society itself and outsides can be brought in only as a last resort.   The Registrar is expected to consider their appointment in preference to outsiders.  However, the order shows that no enquiry was made on these aspects.   There is no finding as to whether the petitioners were free from disqualification.

Judgment dated 6.10.2025 of the High Court of Bombay in Writ Petition No.11625 of 2025 of Vijay Lakhi and others   Vs.   Minister of Cooperation and others

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