In Focus

Procedure for expulsion laid down in MCS Rules

By Gajanan Khergamker

Maharashtra Cooperative Societies Rule 29 lays down the procedure for expulsion of members:
(1) Where any member of a society proposes to bring resolution for expulsion of any other member he shall give a written notice thereof, to the Chairman of the society.

On receipt of notice or when the committee itself decides to bring in such resolution, the consideration of such resolution shall be included in the agenda for the next general meeting and a notice thereof shall be given to the member against who such resolution is proposed to be brought, calling upon him to be present at the general meeting to be held not earlier than a period of one month from the date of such notice and to show cause against expulsion to the general body of member. After hearing the member, if present, or after taking into consideration any written representation which he might sent, the general body of members shall proceed to consider the resolution.

(2) When a resolution passed in accordance with sub-rule (1) is sent to the Registrar or otherwise brought to his notice, the Registrar may consider the resolution and after making such inquiries as he may deem fit, give his approval and communicate the same to the society and the member concerned. The resolution shall be effective from the date of such approval.

In Vishwajeet Co-op. Society v. Damle, it was held that sub-rule (2) of rule 29 makes it obligatory on the Registrar to consider the merits of the resolution and not merely to see that formalities are observed. In Balwant A. Chitnis v. Vinayak Sahakari Griharachana Sanstha, it was held the resolution of expulsion passed in the general meeting held after 21 days of the date of the notice is illegal.

Also, it must be noted that requirement about notice is mandatory. Under the provisions of Rule 29 the procedure prescribed for expulsion of member are mandatory. It is clear from the language of Rule 29 that where society proposes to expel a member from membership he should be individually served with a notice and the meeting has to be help not earlier than a period of one month from the date of such notice.

If the meeting was help within a period of one month and the resolution of expulsion of the member was passed, then it is illegal. The High Court will most likely quash the order granting approval to the resolution of expulsion as was the case with Narayan Ramakrishna Embadwar v. Asst. Registrar Co-op Societies.

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