Continuous disregard for statutory duty to furnish society records warrants disqualification of committee members under Section 154B-23.

The Petitioners were elected members (Chairman, Secretary, and Treasurer) of the Vaishali Nagar Mahalaxmi Co-operative Housing Society for the 2022-2027 term

Respondent No. 4, a fellow committee member, requested copies of the minutes of 13 monthly meetings and a video recording of the 2023 AGM, tendering cheques for copying fees in October 2023

Despite several directions from the Deputy Registrar dated 20 November 2023 and 19 December 2023, the Petitioners failed to provide the documents within the statutory 45-day period

The Petitioners eventually deposited the documents with the Deputy Registrar’s office in early 2024 rather than giving them to Respondent No. 4

Consequently, the Deputy Registrar disqualified the Petitioners and debarred them from the committee for five years via order dated 6 May 2025

This order was upheld by both the Joint Registrar and the Hon’ble Minister (Co-operation)

1. Whether the failure to furnish demanded society records to a member within the stipulated timeframe entails disqualification under the MCS Act

2. Whether the Petitioners demonstrated "substantial compliance" sufficient to avoid the harsh penalty of disqualification

The Court applied Section 154B-8 of the Maharashtra Co-operative Societies (MCS) Act, 1960, which mandates that a society must furnish copies of specific documents (including minutes of committee meetings) to a member within 45 days of payment of fees

It further applied Section 154B-23(1)(iii), which stipulates that a committee member held responsible for violating Section 154B-8(2) incurs disqualification and becomes ineligible for re-election or co-option for five years

The Court also referenced Shahid Tamboli v. Divisional Joint Registrar, emphasizing that while the time limit is imperative, the Registrar must determine if the default was intentional or lacked bona fides

The Court found that the 45-day statutory window commenced in October 2023 when Respondent No. 4 submitted his request and cheques

The Petitioners’ argument that fees were not "paid" because the society chose not to encash the cheques was rejected

The Court noted that the Petitioners ignored two direct orders from the Deputy Registrar to supply the records, only depositing them months later with a third party (the Registrar) rather than the applicant

This conduct demonstrated a "deliberate refusal" rather than a technical delay

The Court observed that the records were likely suppressed because vital decisions—such as increasing cash-on-hand limits in violation of bye-laws—had been taken behind Respondent No. 4's back

Consequently, the Petitioners failed the "substantial compliance" test established in Shahid Tamboli

It held that the Petitioners incurred disqualification under Section 154B-23(1)(iii) for failing to comply with Section 154B-8(2)

The five-year debarment from being appointed, nominated, elected, or co-opted as committee members was confirmed

The ad-interim stay previously granted was vacated