Bombay High Court: No Interim Stay on Ordinance Giving Nominees Voting Rights

Bombay High Court: In an application pertaining to election of the Chairman of Gokul, i.e., Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd., the Vacation Bench of Neeraj P. Dhote, J., refused to stay the Maharashtra Co-operative Societies (Amendment) Ordinance, 2026, which provides for 4 Government-nominated members to have voting rights in meetings of the committee of certain federal cooperative societies. The Court observed that the Ordinance could not, at the prima facie stage, be considered tailor-made for Kolhapur Zilla Sahakari Dudh Utpadak Sangh Maryadit (Gokul), as the provision would also apply to three other federal societies in Maharashtra. The Court held that no case for interim stay of the Ordinance was made out, and directed that the election to the post of Chairman scheduled for 10 November 2026 would remain subject to the outcome of the pending writ petitions. The Court further directed the Election Officer to maintain separate ballot boxes for elected Directors and Government nominees and preserve the ballot papers and election records. The proceedings arose from two writ petitions and an interim application concerning the election of the Chairman of Kolhapur Zilla Sahakari Dudh Utpadak Sangh Maryadit (Gokul), a federal cooperative society having an annual turnover of more than 500 crore. The elections to the Board of Directors of the Society were held, and the results were declared on 19 October 2026. The names of the elected Directors were formally published on 21 October 2026. The Board comprised 25 elected Directors. A meeting to elect the Chairman was initially scheduled for 29 October 2026. However, the meeting was adjourned for want of the required quorum. Thereafter, Writ Petition No. 5762 of 2026 was instituted by 13 elected Directors. On 2 November 2026, the High Court directed that the election to the post of Chairman be convened on 10 November 2026, after issuing seven days prior notice to all 25 elected Directors. Pursuant to the direction, a notice dated 2 November 2026 was issued for the meeting. On 6 November 2026, the Governor of Maharashtra promulgated the Maharashtra Co-operative Societies (Amendment) Ordinance, 2026 , amending Section 73-AAA(2) , Maharashtra Co-operative Societies Act, 1960 . The Ordinance inserted a provision applicable to federal societies, other than District Central Co-operative Banks, having an annual turnover exceeding 500 crore and receiving government assistance in the form of share capital, loan, guarantee, grant, government land or any other form, whether in cash or kind. It provided for the inclusion of five Government-nominated members in the committee, comprising 1 government officer not below the rank of Assistant Registrar of Cooperative Societies and 4 persons having the requisite experience and qualifications. Although the nominated members were not eligible to be elected as office-bearers, the Ordinance provided that the 4 nominated persons, excluding the government officer, would have the right to vote in meetings of the committee, notwithstanding Section 27(9) Maharashtra Co-operative Societies Act and the bye-laws of the societies concerned. A petition was instituted by the same petitioners challenging the constitutional validity of the Ordinance. They sought, among other reliefs, a declaration that the Ordinance was manifestly arbitrary, ultra vires the Constitution and issued in colourable exercise of power, and a direction that government-nominated members had no right to vote in the election of the Chairman or in general meetings of the Society. The petitioners also sought interim stay of the Ordinance and a direction restraining the Government nominees from participating in the election of the Chairman or casting their votes in meetings of the Board. Separately, the elected Directors filed an interim application, seeking clarification that the High Courts order dated 2 November 2026 permitted only the 25 elected Directors to remain present and cast

Source: Original reporting via SCC Online Blog