In Brief
A cooperative sugar factory in Maharashtra sought to remove approximately 2,000 members for failing to meet eligibility requirements under bye-laws. The Regional Joint Director issued a one-size-fits-all show cause notice and later disqualified 1,415 members without conducting individual enquiries or disclosing the Committee's investigative report to affected members. The High Court upheld this on jurisdictional grounds alone. The Supreme Court allowed the members' appeals, holding that natural justice requires individual consideration of each member's eligibility and disclosure of all relevant material. The Court set aside the orders and remitted proceedings for a fresh enquiry with proper disclosure and individual hearings.
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