The legislature having experienced and realised that the
members of the Managing Committee of different co-operative
societies were acting in an arbitrary manner, with a view to
have some accountability amongst the members of the Managing
Committee, have enacted a provision in the Maharashtra
Co-operative Societies Act, 1960 ("MCSA") mandating
every member of such Managing Committee to execute a bond
within 15 days from the date being elected as Committee member.
If the committee member fails to execute the bond within the
specified period, then such member shall be deemed to have
vacated his office as member of the Committee. This provision
has been given effect by Section 73(1AB) of the MCSA.
This legislation was recently challenged by a Writ Petition
filed in the Bombay High Court (Writ Petition No. 457 of 2007)
under Article 226 of the Constitution of India on the ground
that the same is ultra vires. However, the Bombay High Court
has upheld the legislature's act.
The intention of the legislature is to make the members
fully aware of their personal responsibility and liability
towards the society and its members. The time limit laid down
under section 73(1AB) is mandatory and the elected committee
members have to hand over the bond to the Deputy Registrar of
Co-operative Society within such stipulated time.
This ruling of the Bombay High Court in the aforesaid writ
petition emphasizes the basic principle of "ignorance of
law is not an excuse" i.e. being unaware of the provision
contained in Section 73(1AB) of the MCSA cannot be used an
excuse for the failure to execute the bond within the
The content of this article is intended to provide a
general guide to the subject matter. Specialist advice should
be sought about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
The Hon'ble High Court of Bombay has held that where a Scheme of Amalgamation is executed between two companies registered in two different states [...], then the said two orders are two independent instruments.
The Ministry of Corporate Affairs notified on June 5, 2015 that certain provisions of the Companies Act, 2013 shall not apply to private limited companies or shall apply with such exceptions or modifications as directed in the notification.
Whilst trade and barter have existed since early times, the modern practice of forming business relationships through the means of contract has come into existence only since the industrial revolution in the West.
The Supreme Court in Central Bureau of Investigation, Bank Securities and Fraud Cell and Others v. Ramesh Gelli and Others has held officers of private banks to be public servants under Prevention of Corruption Act, 1988.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).