K. N. Saikia, J. - (1.) Pursuant to the Notification issued in June 1986 the elections of Directors to the District Central Co-operative Bank, Chandra-pur, hereinater referred to as the Bank the appellant filed his nomination papers in July 1986, and he was elected on 18-8-1986 as one of the Directors of the Bank from the Brahmapuri Agricultural Sales and Purchase Society. His election was not called in question according to the procedure prescribed by the Maharashtra Co-operative Societies Act, 1960, hereinafter referred to as the Act.
(2.) On 8-1-1987, the District Deputy Registrar of the Co-operative Societies, Chandrapur, hereinater referred to as the Deputy Registrar, issued a notice to the appellant under S.78(1) of the Act to show cause within 15 days as to why he should not be removed from the Board of Directors of the Bank as per the provisions of S.73FF, and directed him to remain present on 2-2-1987 at 11 a.m. in the Deputy Directors office. The notice stated that the appellant had borrowed a loan of total Rs. 10,000/- (Rs.7,000/- as debt and Rs.3,000/- subsidy) from the Bank and he kept the loan constantly in arrears till 21-10-1986 and being elected as Director of the Bank on 18-8-1986, till then he was working as the Director of the Bank. The notice further said : "Because you have remained in arrears of the loan instalments as referred above to the Maharashtra State Cooperative Land Development Bank, under S.73FF(1)(i)(b) of the Maharashtra State Co-operative Societies Act, 1960, you are disqualified to be elected or to continue as Director or Executive Committee Member of the Executive Committee of a Co-operative Society and u/S.73FF(2) of Maharashtra State Co-operative Societies Act, 1960 a person committing defaults ceased to be the Executive Committee (member) or Director. From the information above given because the loan instalments of Maharashtra State Co-operative Land Development Bank remained due from you on the date of filing nomination papers for the election of post of Director of Chandrapur District Central Co-operative Bank and also on the date of your election and thereafter, you are disqualified to contest the election to the post of Director of Chandrapur District Central Co-operative Bank as also to be elected and to continue as Director. And therefore under powers given to me by S. 78(1) of Maharashtra State Co-operative Societies Act, 1960 and order No.CSL/1481/24982/ 15-C(87) dated 1-7-81 of Agriculture and Cooperation Department of Maharashtra State Government. I, K.M. Deshpande, District Dy. Registrar, Co-operative Societies, Chandrapur hereby ask you to show cause in writing as to why you should not be removed from the Board of Directors of Chandrapur District Central Co-operative Bank and from the Executive Committees of the other co-operative societies in the District. Your explanation in writing should be submitted to this office within 15 days from the receipt of this notice." The appellant showed cause and also filed an additional reply on 10-11-1987 stating that he "had not committed any default after the amended S. 73FF came into existence."
(3.) The Assistant Registrar, Cooperative Societies, Chandrapur by his order dated 7-12-1987 removed the appellant from the Committee of Directors of the Bank holding that the appellant was defaulter on 31-1-1986, on 31-3-1986 and he became defaulter under the provisions of S. 73FF(1) of the Act, and rejected the appellants contention that S. 73FF became applicable from 6-8-1986 as per the Government Notification issued on 18-4-1986 and that as he had accepted that he paid the dues on 21-10-1986, on 18-8-1986 when he was elected as Director, he was defaulter under S. 73FF(1) of the Act.;