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Pulpatta Service Co-Operative Bank v. State of Kerala

Kerala HC6 Jan 2020WP(C)/24463/2018

Case brief

AI extract

What is this about?

The court held that the Malappuram District Co-operative Bank retains legal existence and the Administrator must conduct an election for the Board of Directors to uphold democratic control, directing a decision within two weeks. No election was barred by pending amendment notifications or the Administrator's inability to decide immediately.

What did the court decide?

The Administrator shall take a decision within two weeks to hold an election to the Managing Committee of MDCB and forward the same to the State Co-operative Election Commission.

Pulpatta Service Co-Operative Bank Vs State of Kerala — Cooperative Societies | Kerala HC (2020)

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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 A.MUHAMED MUSTAQUE

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MONDAY, THE 06TH DAY OF JANUARY 2020 / 16TH POUSHA, 1941

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WP(C).No.24463 OF 2018(G)

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PETITIONER/S:

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1 PULPATTA SERVICE CO-OPERATIVE BANK PULPATTA P.O., ERNANAD TALUK, MALAPPURAM DISTRICT,REPRESENTED BY THE PRESIDENT.

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2 KADANNAMANNA SERVICE CO-OPERATIVE BANK LTD.NO.10561 KADANNAMANNA P.O., MALAPPURAM DISTRICT,REPRESENTED BY THE PRESIDENT.

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BY ADVS. SRI.GEORGE POONTHOTTAM (SR.) SMT.NISHA GEORGE

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RESPONDENT/S:

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1 STATE OF KERALA REPRESENTED BY THE SECRETARY TO GOVERNMENTDEPARTMENT OF CO-OPERA RATION, GOVERNMENT SECRETARIAT,THIRUVANANTHAPURAM-695 001.

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2 THE REGISTRAR OF CO-OPERATIVE SOCIETIES RAJAJI NAGAR MARKET ROAD, STATUE, THYCAUD,THIRUVANANTHAPURAM, KERALA-695 001.

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3 THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES GENERAL 1ST FLOOR, CIVIL STATION, MALAPPURAM DISTRICT-676 505.

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4 MALAPPURAM DISTRICT CO-OPERATIVE BANK MANJERI ROAD, SH 71, UP HILL, MALAPPURAM,KERALA-676 505, REPRESENTED BY THE GENERAL MANAGER.

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5 THE ADMINISTRATOR MALAPPURAM DISTRICT CO-OPERATIVE BANK,MANJERI ROAD, SH 71, UP HILL, MALAPPURAM, KERALA-676 505.

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R5 BY ADV. SRI.I.V.PRAMOD

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R1-R4 S MUHAMED HASHIM SPL GP CO-OPERATION

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 06-01-2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C).No.24463 OF 2018(G)

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J U D G M E N T

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Dated this the 6^th day of January, 2020

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The petitioners, Primary Service Co-operative Banks, are the members of the Malappuram District Co-operative Bank (“MDCB” for short). MDCB is now administered by the sole Administrator, the fifth respondent herein. The Administrator is in-charge of MDCB ever since 10/4/2017. Though the petitioners challenged Exhibit P3 order of the Government as well as Ext.P4 order of the Registrar extending the term of appointment of the Administrator, their present prayer is confined to hold election to the Board of Directors of MDCB.

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The State Legislature brought an amendment to the Cooperative Societies Act, 1969 (“Act” for short). An amalgamation process by way of merger was brought in through Section 14A of the Act to amalgamate the District Co-operative Banks. As per Section 14A, the District Co-operative Banks which pass a resolution by a simple majority transfering all its assets and liabilities to the Kerala State Co-operative Bank could be

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WP(C).No.24463 OF 2018(G)

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amalgamated as per the procedure prescribed in Section 74H of the Act. In the State, there are 14 District Co-operative Banks and, except MDCB all other District Co-operative Banks have passed a resolution to transfer its assets and liabilities to the Kerala State Co-operative Bank.

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There were challenge against the amended provisions as well as the process of amalgamation before this Court in various writ petitions. This matter was also tagged along with the said writ petitions. This Court, by a common judgment in W.P. (C).No.39749/2017 and connected cases, dated 29.12.2019, negatived those challenges. Therefore, there is no impediment in considering the prayers urged in this writ petition.

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As revealed from the statutory provision, the process of amalgamation will have to be initiated by the District Cooperative Banks concerned. MDCB has decided not to transfer its assets and liabilities as referrable under Section 14A of the Act.

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The learned Special Government Pleader submitted that since the Act was amended by incorporating Section 2(ia) declaring that the District Co-operative Banks would cease to exist after the commencement of the amended Act, there is no

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WP(C).No.24463 OF 2018(G)

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legal existence for MDCB once the amended provisions are notified. It is submitted that the Government is proposing to notify the commencement of the amended Act and also taking remedial measures to include MDCB, and therefore, there is no scope in holding election to the managing committee of MDCB.

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The learned counsel for the Administrator submitted that in view of the process involved in taking remedial measures by the Government, the Administrator is not in a position to take a decision regarding holding election to the managing committee of MDCB.

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The legal existence of MDCB cannot be doubted. The Administrator is in-charge of MDCB for more than two years. The affairs of the co-operative society cannot be put in the hands of the Administrator for such a long period. This Court cannot consider the objection now raised referable to the future course of action that may be initiated as against entity forming MDCB. This Court has to uphold democratic control of the Society i.e, the spirit of the constitutional amendment and statutory provisions as contemplated under the Act. In such a situation, the Administrator is bound to take a decision regarding conduct of election and forward the same to the State Co-operative

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WP(C).No.24463 OF 2018(G)

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Election Commission. Accordingly, the Administrator is directed to take a decision within two weeks to hold election and forward

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the same to the State Co-operative Election Commission within the said period.

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The writ petition is disposed of as above.

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Sd/-

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A.MUHAMED MUSTAQUE, JUDGE

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WP(C).No.24463 OF 2018(G)

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APPENDIX

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PETITIONER'S/S EXHIBITS:

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EXT.P1:	TRUE COPY OF THE	ACT 14 OF 2017.
EXT.P2:	TRUE COPY OF THE W.A.NO.859/2017 D THIS HON'BLE COUR	JUDGMENT IN ATED 25.05.2017 PASSED BY T.
EXT.P3:	TRUE COPY OF THE DATED 06.04.2018.	G.O.(P)NO.38/2018/CO-OP
EXT.P4:	TRUE COPY OF THE (3)42204/16A(10) THE REGISTRAR OF	ODDER NO.C.B. DATED 10.04.2018 PASSED BY CO-OPERATIVE SOCIETIES.
EXT.P5:	TRUE COPY OF THE DATED 11.04.2017	ORDER NO.CB(3)42204/16(10) PASSED BY THE REGISTRAR.

Pulpatta Service Co-Operative Bank v. State of Kerala

Case brief

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Pulpatta Service Co-Operative Bank v. State of Kerala

Case brief

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