Disposed

B.K.Prasad v. State of Kerala

Kerala HC22 Sept 2020WP(C)/4425/2020

Case brief

AI extract

What is this about?

The Court disposed of a writ petition challenging the Arbitrator's order allowing the impleading of additional defendants in arbitration proceedings without notice. The Court directed the Arbitrator to verify the necessity of impleaded parties and addressed maintainability questions to be decided on merits.

What did the court decide?

The Arbitrator is directed to verify the necessity of impleaded parties, address the maintainability of Section 69 proceedings against them on merits, and pass orders accordingly, disregarding earlier

B.K.Prasad 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 SATHISH NINAN

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TUESDAY, THE 22ND DAY OF SEPTEMBER 2020 / 31ST BHADRA, 1942

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WP(C).No.4425 OF 2020(C)

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PETITIONER:

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B.K.PRASAD

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MANAGING DIRECTOR, NAIVE PLUS SOFTWARE SOLUTIONS (P) LTD, 26/864, OPP. MUNICIPAL TOWN HALL, M.O. WARD, ALAPPUZHA 688 001.

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BY ADVS. SRI.KALEESWARAM RAJ SRI.VARUN C.VIJAY KUM.THULASI K. RAJ

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RESPONDENTS:

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1 STATE OF KERALA REPRESENTED BY THE SECRETARY TO GOVERNMENT, DEPARTMENT OF CO-ORATION, SECRETARIAT, THIRUVANANTHAPURAM 695 001.

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2 REGISTRAR OF CO-OPERATIVE SOCIETIES, THIRUVANANTHAPURAM 695 001.

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3 JOINT REGISTRAR OF CO-OPERTIVE SOCIETIES (GENERAL), MULLAKKAL P.O. ALAPPUZHA 688 011.

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4 ASSISTANT REGISTRAR OF CO-OPERTIVE SOCIEITIES (GENERAL), MAVELIKKARA P.O. ALAPPUZHA 690 101.

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5 MAVELIKARA TALUK CO-OPERATIVE BANK LTD REPRESENTED BY ITS SECRETARY, MAVELIKKARA P.O. ALAPPUZHA 690 101.

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R1-4 BY GOVERNMENT PLEADER SMT.MABLE C. KURIAN R5 BY ADV. SRI.K.C.SANTHOSHKUMAR R5 BY ADV. SMT.K.K.CHANDRALEKHA

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 22.09.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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SATHISH NINAN, J.

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= = = = = = = = = = = = = = = = = = W. P. (C) No.4425 of 2020

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= = = = = = = = = = = = = = = = = = Dated this the 22^nd day of September, 2020

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JUDGMENT

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Arbitration proceedings were initiated by the

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5^th respondent Co-operative Bank against its Manager, Senior Clerk, Junior Clerk and others alleging misappropriation. Pending the said proceedings, the Bank sought to implead additional defendants to the suit, including the petitioner who is the Managing Director for the company which provided software for the Bank. The Bank also sought to amend the plaint incorporating necessary allegations against the persons sought to be impleaded. The impleading and amendment applications were allowed by the Arbitrator as per Exts.P28 and 29 orders. The same are under challenge in this writ petition by a person impleaded as additional defendant.

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Heard learned counsel on both sides.

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It is not disputed that the applications for

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impleading additional defendants and to amend the

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W. P. (C) No.4425 of 2020

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:- 2 :-

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plaint were allowed without notice to the persons sought to be impleaded. The Arbitrator ought to have ordered notice on the applications, to the persons sought to be impleaded. Be that as it may, the applications having already been allowed, it shall be sufficient if the Arbitrator considers preliminary, as to whether the persons so impleaded are necessary or proper parties to the proceedings. This shall be done dehors any observations in Exts.P28 and P29 orders. If the Arbitrator finds that they are not necessary or proper parties they shall be removed from the party array.

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The petitioner contends that the proceedings

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under Section 69 will not lie nor is it maintainable against the additional parties impleaded. Such a contention if urged shall also be dealt with by the Arbitrator on merits while passing orders as above. Orders shall be passed uninfluenced by any of the observations in Exts.P28 and P29 orders and Ext.P32 communication by the Joint Registrar.

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W. P. (C) No.4425 of 2020

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:- 3 :-

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This writ petition is disposed of as above.

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Sd/- SATHISH NINAN JUDGE

kns/-

//True Copy//

P.S. to Judge

WP(C).No.4425 OF 2020(C)

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APPENDIX

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PETITIONER'S/S EXHIBITS:

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EXHIBIT P1	TRUE COPY OF 2704.2009 PUBL DATED 29.04.200	THE TENDER NOTICE DATED ISHED IN MATHRUBHUMI DAILY 9.
EXHIBIT P2	TRUE COPY OF 60089/2009 DAT ADDITIONAL REGI	THE ORDER NO. C.P. (2) ED 22.04.2010 ISSUED BY THE STRAR (CREDIT).
EXHIBIT P3	TRUE COPY OF T BETWEEN M/S. N PRIVET LIMITED	HE AGREEMENT DATED 22.06.2010 AIVE PLUS SOFTWARE SOLUTIONS AND RESPONDENT BANK.
EXHIBIT P4	TRUE COPY OF ASSESSMENT REP CO-OPERATIVE BA	THE RELEVANT PAGES OF THE ORT OF THE MAVELIKKARA TALUK NK.
EXHIBIT P5	TRUE COPY OF ISSUED BY THE THE RESPONDENT	THE BASIC BUSINESS OPERATION COMPANY OF THE PETITIONER TO BANK.
EXHIBIT P6	TRUE COPY OF ISSUED BY THE BANK.	THE LETTER DATED 23.12.2016 SECRETARY OF 5TH RESPONDENT
EXHIBIT P7	TRUE COPY OF ISSUED BY THE BANK.	THE LETTER DATED 30.12.2016 SECRETARY OF 5TH RESPONDENT
EXHIBIT P8	TRUE COPY OF ISSUED BY THE DIRECTORS OF TH	THE LETTER DATED 30.12.2016 SECRETARY/PRESIDENT/BOARD OF E 5TH RESPONDENT BANK.
EXHIBIT P9	TRUE COPY OF ISSUED BY THE PETITIONER.	THE LETTER DATED 05.1.2017 5TH RESPONDENT BANK TO THE
EXHIBIT P10	TRUE COPY OF ISSUED BY THE PETITIONER.	THE LETTER DATED 19.01.2017 5TH RESPONDENT BANK TO THE
EXHIBIT P11	TRUE COPY OF ISSUED BY THE	THE EMAIL DATED 20.01.2017 2ND RESPONDENT TOGETHER WITH
	ATTACHED LETTE 20.10.2017.	R NO. CP(2) 54951/16 DATED

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APPENDIX/ WP(C).No.4425 OF 2020(C)

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EXHIBIT P12	TRUE COPY OF THE LETTER DATED 20.01.2017 ISSUED BY THE ENQUIRY OFFICER OF MAVELIKARA TALUK CO-OPERATIVE BANK.
EXHIBIT P13	TRUE COPY OF THE LETTER ISSUED BY THE PETITIONER ACKNOWLEDGING THE RECEIPT OF DATA BASE BACKUP OF 5TH RESPONDENT BANK ON 21.01.2017.
EXHIBIT P14	TRUE COPY OF THE LETTER DATED 25.01.2017 ISSUED BY THE PETITIONER TO THE ENQUIRY OFFICER OF THE 5TH RESPONDENT BANK.
EXHIBIT P15	TRUE COPY OF THE EMAIL DATED 25.01.2017 ISSUED BY THE PETITIONER TO THE 2ND RESPONDENT.
EXHIBIT P16	TRUE COPY OF THE LETTER DATED 25.01.2017 ISSUED BY THE PETITIONER TO THE DEPUTY REGISTRAR (CREDIT) OF THE 2ND RESPONDENT.
EXHIBIT P17	TRUE COPY OF THE LETTER DATED 30.01.2017 SUBMITTED BY THE DEPUTY POLICE SUPERINTENDENT VIGILANCE AND ANTI CORRUPTION BUREAU, ALAPPUZHA TOGETHER WITH RECEIPT DATED 30.01.2017.
EXHIBIT P18	TRUE COPY OF THE LETTER DATED 209.02.2017 ISSUED BY THE SPECIAL SECRETARY, DEPARTMENT OF CO-OPERATION GOVERNMENT OF KERALA, THIRUVANANTHAPURAM.
EXHIBIT P19	TRUE COPY OF THE LETTER DATED 14.2.2017 ISSUED BY THE PETITIONER TO THE 2ND RESPONDENT.
EXHIBIT P20	TRUE COPY OF THE COMMUNICATION DATED 19.01.2017 ISSUED BY THE 3RD RESPONDENT TO THE DISTRICT POLICE CHIEF ALAPPUZHA.
EXHIBIT P21	TRUE COPY OF THE ORDER 26.12.2016 ISSUED BY THE 3RD RESPONDENT.
EXHIBIT P22	TRUE COPY OF THE ENQUIRY REPORT SUBMITTED UNDER SECTION 65 OF THE KERALA CO-OPERATIVE SOCIETIES ACT.
EXHIBIT P23	TRUE COPY OF THE LETTER DATED 23.12.2019 ISSUED BY THE 4TH RESPONDENT.

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APPENDIX/ WP(C).No.4425 OF 2020(C)

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EXHIBIT P24	TRUE COPY OF THE MEMORANDUM OF ARBITRATION SUIT FILED UNDER SECTION 69 OF 70 OF THE KERALA CO-OPERATIVE SOCIETIES ACT AND RULES BY THE 5TH RESPONDENT BANK.
EXHIBIT P25	TRUE COPY OF THE APPLICATION DATED 06.01.2020.
EXHIBIT P26	TRUE COPY OF THE I.A. NO. 1/2019 IN ARC 1/2017. FIELD BEFORE THE ASSISTANT REGISTRAR F CO-OPERATIVE SOCIETIES.
EXHIBIT P27	TRUE COPY OF THE I.A. NO. 2/2019 IN ARC 1/201 FILE BEFORE THE ASSISTANT REGISTRAR OC CO-OPERATIVE SOCIETIES.
EXHIBIT P28	TRUE COPY OF THE ORDER DATED 13/12/2019 IN I.A. NO. 1/2019 IN ARC 1/2017 PASSED BY THE ARBITRATOR.
EXHIBIT P29	TRUE COPY OF THE ORDER DATED 18/12/2019 IN I.A. NO. 2/2019 IN ARC 1/2017 PASSED BY THE ARBITRATOR.
EXHIBIT P30	TRUE COPY OF THE LETTER DATED 18.11.2019 ISSUED BY THE 4TH RESPONDENT TO THE 3RD RESPONDENT.
EXHIBIT P31	TRUE COPY OF THE AUSTEREST DATED 18.11.2019 ISSUED BY THE ADMINISTRATOR OF THE 5TH RESPLENDENT BANK THROUGH PROPER CHANNEL TO THE 2ND RESPONDENT.
EXHIBIT P32	TRUE COPY OF THE COMMUNICATION DATED 21.11.2019 ISSUED BY THE 3RD RESPONDENT TO THE 4TH RESPONDENT.
EXHIBIT P33	TRUE COPY OF THE CIRCULAR NO. 11/2017 DATED 23.1.2017.
EXHIBIT P34	TRUE COPY OF THE AGREEMENT DATED 27.01.2017 SINGED BY JYOTHI MADHU AND 6 OTHERS.
EXHIBIT P35	TRUE COPY OF THE NOTICE UNDER SECTION 68 (2) OF THE CO-OPERATIVE SOCIETIES ACT.

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APPENDIX/ WP(C).No.4425 OF 2020(C)

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RESPONDENT'S/S EXHIBITS:

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EXHIBIT R3(a): A TRUE COPY OF THE COMPLAINT OF THE SOCIETIES DATED 29/07/2019. EXHIBIT R3(b): A TRUE COPY OF THE REQUEST DATED 02/12/2019 BY THE RESPONDENT TO THE POLICE CHIEF, ALAPPUZHA. EXHIBIT R3(c): A TRUE COPY OF THE COMMUNICATION OF THE DISTRICT POLICE CHIEF NO.D1-78668/2019/A DATED 06/12/2019. EXHIBIT R3(d): A TRUE COPY OF THE HEARING NOTE DATED 11/12/2019 OF THE 3RD RESPONDENT.

B.K.Prasad v. State of Kerala

Case brief

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B.K.Prasad v. State of Kerala

Case brief

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