The Kerala High Court extended the time granted to a co-operative bank to conclude arbitration proceedings against suspended employees and depositors by six months, quashing an order with a tight deadline.
Quashed Exhibit P4 order and directed the 3rd respondent to conclude ARC 1/ 2017 within six months.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE RAJA VIJAYARAGHAVAN V
FRIDAY, THE 18TH DAY OF DECEMBER 2020 / 27TH AGRAHAYANA, 1942 WP(C).No.28414 OF 2020(B)
PETITIONER:
MAVELIKKARA TALUK CO-OPERATIVE BANK LTD. NO. 707, PULIMOOD JUNCTION, MAVELIKKARA P.O., ALAPPUZHA-690101, REPRESENTED BY ITS SECRETARY.
BY ADV. SRI.K.C.SANTHOSHKUMAR
RESPONDENTS:
1 STATE OF KERALA, REPRESENTED BY THE SECRETARY TO GOVERNMENT, CO-OPERATIVE DEPARTMENT, GOVERNMENT OF KERALA, THIRUVANANTHAPURAM-695001.
2 THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL), OFFICE OF THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL), MULLAKKAL P.O., ALAPPUZHA-688011.
3 THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL), OFFICE OF THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL), MAVELIKKARA P.O., ALAPPUZHA-690101.
4 SMT. JYOTHI MADHU, AGED 54 YEARS, W/O. MADHUSUDHANA KURUP, THAZHAVANA, PUTHANKOTTAKAKAM, THRIPERUNTHURA GRAMA PANCHAYATH, THRIPERUNTHURA VILLAGE (MANAGER UNDER SUSPENSION), MAVELIKKARA TALUK CO-OPERATIVE BANK LIMITED NO.707, PULIMOOD JUNCTION, MAVELIKKARA P.O., ALAPPUZHA-690101.
5 SMT. BINDU G. NAIR, AGED 45 YEARS, APPINETHU, THAKADIYIL, VETTIYAR MURI, VETTIYAR P.O., (SENIOR CLERK UNDER SUSPENSION), MAVELIKKARA TALUK CO-OPERATIVE BANK LIMITED NO.707, PULIMOOD JUNCTION, MAVELIKKARA P.O., ALAPPUZHA-690101.
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7 MANOHARI AMMA, W/O. PRABHAKARAN PILLAI V., KOTTAPPURATHU VEEDU, MATTOM SOUTH, THATHARAMBALAM P.O., PIN-690103.
11 SREEDEVI, D/O. PRABHAKARAN PILLAI V., KOTTAPPURATHU KARTHIKA, MATTOM SOUTH, THATHARAMBALAM P.O., PIN-690103.
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16 JAYAKRISHNAN V., S/O. PONNAPPAN CHETTIYAR, NAMBOTHIL THAKKETHIL WEST FORT, MAVELIKKARA-690101.
18 P.K. MAHINDRAN, MEMBER NO.6820, FORMER DIRECTOR BOARD MEMBER, UPPUKARAN PARAMBIL, PONNARAMTHOTTAM, MAVELIKKARA P.O., PIN-690101.
20 SUJA JOSHUA, MEMBER NO.11527, FORMER DIRECTOR BOARD MEMBER, OTTATHENGIL CHENNITHALA SOUTH, P.O. CHENNITHALA, PIN-690105.
24 ANNAMMA MATHEW,
EX. CHIEF EXECUTIVE OFFICER, MAVELIKKARA TALUK COOPERATIVE BANK LIMITED NO.707, MAVELIKKARA P.O., ALAPPUZHA, NOW RESIDING AT THOMMAN PARAMBIL, THAZHAKKARA P.O., MAVELIKKARA, PIN-690101.
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SRI BIMAL K NATH SR GP
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.12.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
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JUDGMENT
The Mavelikkara Taluk Co-operative Bank Ltd. is the petitioner in this writ petition filed under Article 226 of the Constitution of India. They have approached this Court seeking the following reliefs:
i) Issue a writ of mandamus or any other appropriate writ, order or direction to the 3rd respondent to give sufficient time to the petitioner enabling the bank to make an effective contest in ARC No.1/2017.
ii) Issue a writ of mandamus or any other appropriate writ, order or direction to the 3rd respondent to accept Ext.P5 application on file and pass appropriate orders thereon as expeditiously as possible or within a time frame to be stipulated by this Honourable Court.
iii) Issue a writ of mandamus or any other appropriate writ, order or direction to the 3rd respondent to serve notice/summons in respect of all the pending proceedings against the petitioner bank as provided under the relevant statute.
Case No.1 of 2017 before the Assistant Registrar of Co-operative Societies and the respondents 4 to 24 herein are the defendants in the said proceeding.
of the Kerala Co-operative Societies Act into the constitution, working and
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financial condition of the petitioner Society. The enquiry revealed that large scale misappropriation, forgery and falsification of accounts were committed by the erstwhile managing committee members with the help and assistance of the employees of the society and caused huge loss to the society. A crime was registered in the year 2017 which was later transferred to the CBCID. Later ARC.NO.1/2017 was preferred before the 3rd respondent seeking to realise a sum of Rs.34,81,00,000/- from the defendants and for incidental reliefs.
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circumstances that they submitted Ext.P5 application before the Arbitrator seeking further time to complete the steps and also to file an application for a joint trial. Complaining that no action has been taken by the 3rd respondent on their application, the petitioner is before this Court seeking directions.
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that in modification to the directions issued by this Court in Exhibit P2 judgment, the time granted to the 3d respondent to conclude the proceedings can be extended by a further period of six months.
In the result, this petition is disposed of quashing Exhibit P4 order and with a further direction to the 3rd respondent to conclude ARC 1/ 2017 pending on its files within a period of six months from today.
SD/-
RAJA VIJAYARAGHAVAN V
JUDGE
IAP
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APPENDIX
PETITIONER'S EXHIBITS:
EXHIBIT P1 TRUE COPY OF THE PLAINT IN ARC NO.1/2017 NOW PENDING BEFORE THE 2ND RESPONDENT.
EXHIBIT P2 TRUE COPY OF THE JUDGMENT DATED 02/07/2019 IN WPC NO.25444/2018 AND CONNECTED MATTERS PASSED BY THIS HONOURABLE COURT. EXHIBIT P3 TRUE COPY OF THE JUDGMENT DATED 22/09/2020 IN WPC NO.4425/2020 PASSED BY THIS HONOURABLE COURT. EXHIBIT P4 TRUE COPY OF THE NOTICE DATED 25/11/2020 ISSUED BY THE 3RD RESPONDENT.
EXHIBIT P5 TRUE COPY OF THE AFFIDAVIT FILED IN SUPPORT OF THE PETITION FOR GRANTING SUFFICIENT TIME SUBMITTED BEFORE THE 3RD RESPONDENT.
RESPONDENTS EXHIBITS:NIL
P.A TO JUDGE
2 issues framed by the court
Whether to grant additional time to the petitioner to conclude the arbitration proceedings effectively.
Whether the exhibit P4 order directing conclusion of arbitration by a specific date should be quashed to allow more time.
Mavelikkara Taluk Co-operative Bank Ltd.
State of Kerala
Joint Registrar of Co-operative Societies (General)
Assistant Registrar of Co-operative Societies (General)
Smt. Jyothi Madhu
Smt. Bindu G. Nair
Raja Vijayaraghavan V
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
