Disposed

The Board of Directors v. the Joint Registrar of Co-Operative Societies [ General]

Kerala HC3 Dec 2018WP(C)/4475/2018

Case brief

AI extract

What is this about?

In this writ petition, the Kerala High Court disposed of the matter without deciding the disputed merits. The Court directed the 1st Respondent to provide the Society with an opportunity to explain any findings in an inspection report and mandated that final adverse orders be passed only after such an explanation was heard.

What did the court decide?

Directions to provide an opportunity to the Society to explain and pass final orders only after a hearing within two months.

The Board of Directors Vs the Joint Registrar of… — Company and Corporate | Kerala HC (2018)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR. JUSTICE ANIL K.NARENDRAN

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MONDAY ,THE 03RD DAY OF DECEMBER 2018 / 12TH AGRAHAYANA, 1940

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WP(C).No. 4475 of 2018

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PETITIONER/S:

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1 THE BOARD OF DIRECTORS THE THODUPUZHA TOWN SERVICE CO-OPERATIVE BANK LIMITED NO. I-233, THODUPUZHA P.O.,IDUKKI DISTRICT - 685 584,REPRESENTED BY ITS PRESIDENT.

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2 THE PRESIDENT THE THODUPUZHA TOWN SERVICE CO-OPERATIVE BANK LIMITED NO. I-233, THODUPUZHA P.O.,IDUKKI DISTRICT - 685 584.

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BY ADVS. SRI.GEORGE POONTHOTTAM SRI.ARUN CHANDRAN SRI.VISHNU B.KURUP

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RESPONDENT/S:

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1 THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES [GENERAL],OFFICE OF THE JOINT REGISTRAR OF COOPERATIVE SOCIETIES (GENERAL), PAINAVU P.O.,IDUKKI DISTRICT - 685584.

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2 THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL)

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OFFICE OF THE THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES [ GENERAL], THOUDUPUZHA, IDUKKI - 685 584.

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3 THE INQURIY OFFICER (UNIT INSPECTOR B),OFFICE OF THE THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES [ GENERAL], THOUDUPUZHA, IDUKKI - 685 584.

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4 THE STATE CO-OPERATIVE ELECTION COMMISSION REPRESENTED BY ITS SECRETARY/ADDITIONAL REGISTRAR,3RD FLOOR, CO-BANK TOWERS, VIKAS BHAVAN P.O.,THIRUVANANTHAPURAM - 695 033.

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BY SR.GOVERNMENT PLEADER SRI.K.P.HARISH

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 03.12.2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C).No. 4475 of 2018

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JUDGMENT

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The 1^st petitioner is the Board of Directors

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of Thodupuzha Town Service Co-operative Bank Ltd., which is a Society registered under the provisions of the Kerala Co-operative Societies Act, 1969 and the rules made thereunder and the 2^nd respondent is the President of that Society. The petitioners have filed this writ petition under Article 226 of the Constitution of India, seeking a writ of certiorari to quash Ext.P3 order dated 31.01.2018 by the 1^st respondent Joint Registrar, whereby enquiry under Section 66 of the Kerala Co-operative Societies Act has been ordered into the working of the Society regarding the matters enumerated therein. The petitioners have also sought for a declaration that Ext.P3 is not an order which satisfies the requirements of law and the same lacks the essential pre-requisites as mandated by Section 66 of the Act and that, the inspection ordered

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WP(C).No. 4475 of 2018

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vide Ext.P3 is a farce and a newspaper report

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cannot be a ground for initiating an

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inspection as mandated under Section 66 of the Act.

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On 09.02.2018, when this writ petition

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came up for admission, the learned counsel for the petitioner submitted that the 1^st respondent Joint Registrar ordered enquiry under Section 66 of the Kerala Co-operative Societies Act mainly based on the press reports. The learned Senior Government Pleader appearing for respondents 1 to 4 pointed out that based on the press report, an enquiry was conducted through the Assistant

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Registrar (General) Thodupuzha, the 2^nd respondent herein, who submitted a report on 12.01.2018 and based on that report Ext.P3 order has been issued. The learned Senior Government

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Pleader sought time to file counter affidavit producing relevant materials.

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On 12.04.2018, this Court passed the

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following order :

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WP(C).No. 4475 of 2018

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“The challenge in this Writ petition is against an order of the Joint Registrar directing the conduct of an inspection under Section 66 of the Kerala Co-operative Societies Act, 1969. it is stated by the petitioners that the term of the managing committee expired on 23.03.2018 and that a resolution for conduct of the election on 18.03.2018 had been taken by the committee. It is stated that the order impugned had been issued on 03.01.2018 with the specific intention of scuttling the election

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process.

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2. The learned Government Pleader contends that Section 66 inspection was unconnected with the election in the Society. It is stated that the election had been conducted in the Society on 18.03.2018 and a new committee has already assumed charge. It is stated that the inspection is almost complete and that further steps would be taken only in accordance with law and after serving copy of the inspection report to the Society and its committee members and no steps will be taken without hearing the objection of the Society and any person, against whom any action is contemplated on the basis of the inspection report.

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3. Having considered the contentions urged on either side, the respondents are directed to serve a copy of the inspection report on the Society and its office bearers. Final

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WP(C).No. 4475 of 2018

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orders adverse to the interest of the Society shall not be implemented for a period of two months from today.”

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The said interim order, which was extended from

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time to time, is still in force.

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respondent opposing the reliefs sought for in this writ petition. The petitioner has also

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filed a reply affidavit, which was followed by

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an additional statement filed by the 2^nd respondent.

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petitioner and also the learned Senior Government Pleader appearing for the

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respondents.

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As already noticed, on 12.04.2018, when

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this writ petition came up for consideration, this Court noticed that the inspection ordered as per Ext.P3 order dated 31.01.2018 of the 1^st respondent Joint Registrar is almost complete

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and further steps would be taken only in

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accordance with law and after serving a copy of

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WP(C).No. 4475 of 2018

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the inspection report to the Society and its committee members and no steps will be taken without hearing the objections of the Society and any person against whom any action is contemplated on the basis of the inspection report. After taking note of the said fact, the respondents were directed to serve a copy of the inspection report on the society and its office bearers. It was also made clear that the final orders adverse to the interest of the Society shall not be implemented for a period of two months from that date.

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The learned Senior Government Pleader

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would submit that in terms of the order of this Court dated 12.04.2018, a copy of the inspection report has already been served on the Society and its office bearers and that the explanation, if any, offered by them shall be considered with

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notice to those persons and after affording them an opportunity of being heard.

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The learned counsel for the petitioners

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WP(C).No. 4475 of 2018

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would submit that if the Society and the members

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of the Managing Committee, against whom there are findings in the enquiry report, are yet to file their explanation, the same shall be filed

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within two weeks from the date of receipt of a certified copy of this judgment.

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Having considered the submissions made by

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the learned counsel on both sides, this writ petition is disposed of with the following directions:

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other members in the Managing Committee of

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the Society, shall submit their

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explanation, if any, to the findings in

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the enquiry report submitted, under

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Section 66 of the Kerala Co-operative Societies Act, to the 1^st respondent Joint

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Registrar, within two weeks from the date of receipt of a certified copy of this judgment.

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ii) On receipt of such explanation, the 1^st

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WP(C).No. 4475 of 2018

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respondent shall decide the further course to be taken, based on the findings in the report, with notice to the petitioners and other members in the Managing Committee

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and after affording them an opportunity of being heard.

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iii) A decision in this regard shall be taken as expeditiously as possible, at any rate, within two months from the date of receipt of a certified copy of this judgment. The decision taken shall be communicated to

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the petitioners forthwith.

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All legal and factual contentions raised

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by the petitioners are left open to be raised

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before the 1^st respondent at appropriate stage.

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Sd/-

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ANIL K.NARENDRAN,JUDGE

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AV/5/12

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WP(C).No. 4475 of 2018

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APPENDIX

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PETITIONER'S EXHIBITS :

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EXT.P1	TRUE COPY OF THE AUDIT MEMORANDUM 23.09.2017	RELEVANT PAGES OF THE AND AUDIT REPORT DATED
EXT.P2	TRUE COPY OF THE 2018/S.C.E.C DATED	NOTIFICATION NO.E(1)179/ 19.01.2018
EXT.P3	TRUE COPY OF THE DATED 31.01.2018 RESPONDENT	ORDER NO.C.R.P.6922/2017 PASSED BY THE 1ST
EXT.P4	TRUE COPY OF PUBLISHED IN KER 18.12.2017.	THE NEWSPAPER REPORT ALA KOUMUDI DAILY DATED
EXT.P5	COPY OF THE AUDIT 2016-17.	CERTIFICATE FOR THE YEAR
EXT.P6	TRUE COPY OF THE R BYELAWS OF THE BAN	ELEVANT PORTION OF THE K.

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RESPONDENTS' EXHIBITS :

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ANNEXURE- R2(a) A TRUE COPY OF THE REPORT VIDE LETTER NO.C-2691/2017 DATED 12.01.2018 OF THE ASSISTANT REGISTRAR (GENERAL) THODUPUZHA TO THE 1ST RESPONDENT.

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ANNEXURE- R2(b) TRUE COPIES OF THE RELEVANT PAGES OF THE AUDIT NOTES OF 2014-2015, 2015-2016 AND 2016-2017.

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ANNEXURE- R2(c) TRUE COPIES OF THE RELEVANT PAGES OF THE FINAL AUDIT 2014-2015, 2015-2016 AND 20162017

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ANNEXURE- R2(d) TRUE COPIES OF THE AUDIT REPORT 2014-2015, 2015-2016 AND 2016-2017.

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WP(C).No. 4475 of 2018

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ANNEXURE- R2(e) TRUE COPIES OF THE LIABILITY REGISTER AS ON 03.01.2018 OF SIMLY ANTONY AND ANTONY JOSEPH ANNEXURE- R2(f) TRUE COPY OF THE LIABILITY REGISTER AS ON 03.01.2018 AND 30.11.2017 ANNEXURE- R2(g) TRUE COPY OF THE RECEIPT AND DISBURSMENT STATEMENT FOR THE YEAR 2014-2015 ANNEXURE- R2(h) TRUE COPY OF THE INTERIM REPORT DATED 07.02.2018. ANNEXURE- R2(K) TRUE COPIES OF THE APPLICATION FORMS AND VOTERS IDENTITY CARD OF MEMBERSHIP NOS.7517,7518 AND 7519. ANNEXURE- R2(L) TRUE COPY OF THE CIRCULAR NO.6 OF 2016 DATED 01.03.2016 ISSUED BY THE REGISTRAR OF CO-OPERATIVE SOCIETIES. ANNEXURE- R2(M) TRUE COPY OF THE CIRCULAR NO.2 OF 2017 DATED 03.01.2017 ISSUED BY THE REGISTRAR OF CO-OPERATIVE SOCIETIES. ANNEXURE- R2(N) TRUE COPY OF THE MASTER CIRCULAR INTEREST RATE ON RUPEES DEPOSITS FOR URBAN COOPERATIVE BANKS ISSUED BY RBI FOR THE YEAR 2015-16 ANNEXURE- R2(O) TRUE COPY OF THE CIRCULAR NO.33 OF 1988 DATED 20.08.1988 OF REGISTRAR OF COOPERATIVE SOCIETIES.

The Board of Directors v. the Joint Registrar of Co-Operative Societies [ General]

Case brief

What is this about?

What did the court decide?

The Board of Directors v. the Joint Registrar of Co-Operative Societies [ General]

Case brief

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What did the court decide?

What the court decided

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