Bombay High Court

Bombay HC: Cooperative Society's Leadership Invalid After Mass Resignations

Updated
Dec 24, 2025 7:07 PM
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Quick Summary: A legal fight in Mumbai has started over whether a cooperative society's managing group is still allowed to run things after several people quit. The High Court of Bombay decided that the group couldn't keep working because they didn't have enough members to make decisions, showing how important fair processes are in cooperative societies.

The Case Begins: Dispute Over Resignations

In a cooperative society located in Andheri (East), Mumbai, a disagreement started when Sudhir Agarwal said that the managing group wasn't valid anymore. The problem began on August 4, 2024, when seven members quit, leaving the group with fewer members than needed. This led to a legal challenge about whether the group could still work.

Court's Decision: Committee Not Properly Formed

On December 5, 2025, Judge Amit Borkar announced that the group wasn't properly formed after the resignations. The rules say that more than two-thirds of the group must be elected members. With only 12 elected members left, the group didn't have the required 13, causing a legal deadlock.

"The group must always have more than two-thirds of its allowed number as elected members." - Judge Amit Borkar

The Resignation Saga: A Timeline

  • December 11, 2022: Elections were held for 19 spots, but only 18 members were chosen.
  • June 25, 2023: Ajay Chavan quit, leaving an empty spot.
  • August 4, 2024: Seven members quit together, causing a big drop in the group's numbers.
  • September 14, 2024: They tried to bring in new members, but the group still didn't have enough elected members.

Legal Arguments: Elected vs. Co-opted Members

The court pointed out the difference between elected and added members, saying that adding members can't replace the fair election process. Rule 74 limits adding members to one-third of the group's allowed number, making sure elected members stay in charge.

"Adding members is like filling temporary gaps. It cannot rebuild the foundation." - Judge Amit Borkar

The Court's Ruling: Upholding Fair Principles

The court rejected the requests to let the group keep working, reinforcing the importance of keeping a properly formed group according to the rules. The decision makes sure that the society stays under the control of its elected leaders.

Summary of the Verdict

The court's decision ensures that cooperative societies follow the rules and maintain their fair nature. This case shows how important it is to keep elected bodies honest and effective in running things.