01Facts
The Petitioners challenged a Resolution passed by the Managing Committee of Padmavati Nagar CHS Ltd. and endorsed by the Deputy Registrar, removing Petitioner No. 2 from the post of Chairman via a no-confidence motion
¶ 2The Society had 9 committee members when a requisition for the motion was sent on 6 April 2026
¶ 20On 12 April 2026, Petitioner No. 1 was co-opted as the 10th member
¶ 21The Deputy Registrar convened a special meeting on 15 April 2026 but issued notices only to the original 9 members, excluding Petitioner No. 1
¶ 20, 25In the meeting, 6 members voted for the motion and 3 against
¶ 23The Deputy Registrar declared the motion passed by a 2/3rd majority, assuming a total strength of 9
¶ 24A new Chairman was subsequently elected on 2 May 2026
¶ 502Issues
i.1. Whether the no-confidence motion passed on 15 April 2026 was valid under Section 154B-24 read with Section 73-ID of the Maharashtra Co-operative Societies (MCS) Act, 1960, given the non-participation of a newly appointed 10th member?
¶ 13ii.2. Whether the requirement of a "two-third majority" was met when 6 out of 10 entitled members (though only 9 were invited) voted in favor?
¶ 27-3103Law Applied
The court applied Section 154B-24 of the MCS Act, which stipulates that an officer of a housing society ceases to hold office only if a no-confidence motion is passed by not less than a two-third majority of the committee members who are "present and entitled to vote"
¶ 15, 17It noted that while Section 73-ID(1) applies to general societies, Section 154B-24 is a specific provision for housing societies
¶ 16The court relied on the precedent Radhakishan Sadarangani v. Deepa Rohera, establishing that the two-third majority requirement must be construed strictly, fractions cannot be rounded down, and any violation renders the motion void
¶ 6, 30Provisions in the judgment · 1 · Linked ones open on LawLens
Maharashtra Co-operative Societies Act, 1960 Section 73
04Reasoning
The court reasoned that although the Deputy Registrar is prohibited from adjourning meetings under Section 73-ID(5), this does not authorize the exclusion of a member entitled to vote
¶ 27, 32Petitioner No. 1 became a member on 12 April 2026, and the Registrar was notified on 13 April 2026; thus, she was "entitled to vote" on 15 April 2026
¶ 22, 26The expression "present and entitled to vote" must include those who were legally entitled to be invited; holding a meeting behind a member’s back by failing to issue notice is an illegality
¶ 29, 34With Petitioner No. 1 included, the total strength was 10. A 2/3rd majority of 10 is 6.67
¶ 30Since only 6 members voted in favor, the statutory threshold of "not less than two-third" was not met
¶ 31The court emphasized that because removal attaches a stigma, strict compliance with the numerical requirement is mandatory
¶ 27, 3005Holding
The Court held that the Resolution dated 15 April 2026 and the Deputy Registrar’s certificate are illegal and void ab initio
¶ 35, 37Consequently, the post of Chairman never fell vacant, and the subsequent election of a new Chairman on 2 May 2026 is also void. The Court directed that Petitioner No. 2 continues to occupy the position of Chairman. However, it clarified that the Managing Committee remains at liberty to move a fresh requisition for a no-confidence motion, as the current setting aside does not constitute a "rejection" under Section 73-ID(7). Relief for a stay on the judgment was rejected
¶ 35, 37, 38, 40Original Court PDF
Madhavi Vilas GosalvivsRajesh Mishra
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