August 8th 2023.
The Aurangabad bench of the Bombay High Court recently ruled that the Registrar cannot dissolve the board of directors of a society merely because half of the members resigned before the society officially accepted their resignations. Justice Kishore C Sant quashed the registrar's order and allowed a petition filed by the chairman of the society, Vinayak Chavhan.
Justice Sant observed that the registrar had acted hastily in passing the order as the society's bylaws were duly accepted and in force. The judge noted that the meeting to discuss the resignations was scheduled for February 16, 2022, and until then, no resignations were accepted. The court also found that proper procedure was not followed in accepting the resignations and that the registrar hadn't issued any notice inviting objections and suggestions with respect to the proposed order.
Thus, the judge concluded that the registrar's order was premature, as the resignations had not been accepted by the society itself. He also noted that the order was passed hastily and without proper adherence to the society's bylaws and procedural requirements.
The Bombay High Court ruling is a reminder that the registrar's power to appoint a committee or authorised officer under the Act should only be exercised with due consideration of the relevant procedures. It also reminds us that proper procedure should be followed before such powers are exercised, including displaying notices for objections and suggestions.
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