Bombay HC Stays Disqualification Of Dadar Housing Society Committee, Calls Action 'Wholly Disproportionate'

Mumbai: The Bombay High Court has stayed the disqualification of a Dadar-based housing society’s managing committee and the appointment of an administrator, calling the action ‘wholly disproportionate.’

Petitioner Challenges Orders

Petitioner Dhananjay Raghunath Daund, secretary of Desai Harmony Co-Operative Housing Society, had challenged two orders – one disqualifying the committee and another appointing an authorised officer to take over.

Complaint Sparks Legal Battle

The committee was disqualified on a complaint by one of the members. Daund challenged this before the appellate authority, which admitted his appeal, but refused interim relief. Hence he approached the HC.

Arguments and HC Observation

The complainant’s advocate argued that the matter was already heard by the appellant authority and a decision was expected soon. But Justice Amit Borkar refused to adjourn the plea, observing: “To defer the matter would result in perpetuation of a manifest injustice, which the law does not countenance.”

Court Cites Excessive Punishment

The judge noted the committee was disqualified only for not submitting two financial statements – an unaudited statement of affairs and an income and expenditure account. Even the show-cause notice, he pointed out, referred to different documents.

Spirit of Co-operative Movement

Calling the punishment excessive, the court said: “The disqualification of the entire committee and supersession of its elected mandate on the basis of non-furnishing of two financial statements, without establishing mala fides, fraud, or misappropriation, runs contrary to the spirit of the co-operative movement.”

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Principle of Proportionality Emphasised

Justice Borkar added that elected bodies should not be superseded for ‘minor procedural lapses’ and stressed the principle of proportionality – that the punishment must match the lapse.

Interim Relief Extended

The HC has stayed the orders until the appellate authority delivers its decision. Even if it rules against the committee, the interim relief will continue for six weeks to allow them time to appeal further.

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