Mumbai: Bombay high court stayed the disqualification of the managing committee of a housing society in Dadar (E) and the appointment of an administrator pending the decision of the divisional joint registrar of cooperative societies on challenges to them.“If the order of disqualification and supersession is allowed to operate in the meantime, the elected body of the society will stand displaced and an outsider will take charge as administrator. Such a course, if later found unsustainable, would cause irreparable prejudice not only to the petitioner but also to the democratic rights of members of the society,” said Justice Amit Borkar on Sept 12.The petition was by Dhananjay Daund, secretary of Desai Harmony Cooperative Housing Society. On a complaint by a member, Nimesh Bafna, that he was not furnished statements of unaudited accounts and income and expenditure, the assistant registrar on June 5 disqualified the managing committee and on June 9, appointed an administrator. The society filed revision and appeal before the divisional joint registrar who, on Aug 4, refused to stay both orders.Bafna’s advocate Akshay Patil urged the hearing be deferred as the divisional joint registrar is to deliver his order. But Justice Borkar said the facts disclosed are of “such a grave and exceptional nature” and “to defer the matter would result in perpetuation of a manifest injustice, which the law does not countenance”.Agreeing with Daund’s advocate Siddhesh Bhole, Justice Borkar said the show-cause notice referred to different documents than those relied upon in the June 5 order. Despite this, the managing committee was held liable and disqualified, said HC. Consequently, “an authorised officer was appointed, thereby superseding the democratically elected body”.Justice Borkar said “even at this stage” the alleged lapse and severity of punishment are “wholly disproportionate”. The disqualification and supersession of the entire committee “without establishing mala fides, fraud, or misappropriation, runs contrary to the spirit of the co-operative movement”. He further explained that the law contemplates “serious and exceptional” circumstances for supersession of an elected managing committee. Minor lapses of compliance, especially related to procedural or clerical defaults, “cannot be equated with misconduct warranting disqualification”.Justice Borkar said merely because the divisional joint registrar reserved the matter for orders, there is no ground to deny relief. “The balance of convenience is also in favour of the petitioner. The records do not disclose any allegation of misappropriation, fraud or diversion of funds,” he added. The disqualification, imposed solely for non-furnishing of two financial statements, by itself does not warrant such a “drastic measure” of supersession of the entire committee”. Hence, HC’s interference is “necessary to prevent injustice”. Justice Borkar directed that if the divisional joint registrar’s decision is against the housing society, interim protection shall remain in force for further six weeks.
