Allowed

The Cheruvathur Farmers Services Co-Operative Bank Limited v. the State of Kerala

Kerala HC5 Jun 2024WA/326/2022

Case brief

AI extract

What is this about?

Batch of writ appeals against a Single Judge's declaration that Section 7(1)(c) of the Kerala Co-operative Societies Act was unconstitutional. The Division Bench, following the Supreme Court's judgment in Union of India v. Rajendra N. Shah, held the provision valid and set aside the impugned judgments.

What did the court decide?

Writ appeals allowed; judgments under challenge set aside; writ petitions restored for consideration of issues other than validity of Section 7(1)(c); no costs.

The Cheruvathur Farmers Services Co-Operative Bank… — Cooperative Societies | Kerala HC (2024)

¶1

IN THE HIGH COURT OF KERALA AT ERNAKULAM

¶2

PRESENT

¶3

THE HONOURABLE MR. JUSTICE AMIT RAWAL

¶4

¶5

THE HONOURABLE MR. JUSTICE EASWARAN S.

¶6

WEDNESDAY, THE 5TH DAY OF JUNE 2024 / 15TH JYAISHTA, 1946
WA NO. 1680 OF 2016

¶7

AGAINST THE ORDER/JUDGMENT DATED 09.08.2016 IN WPC NO.12728
OF 2013 OF HIGH COURT OF KERALA

¶8

APPELLANT/PETITIONER:

¶9

KALPETTA CO-OPERATIVE URBAN SOCIETY LTD
NO.W228, KALPETTA, WAYANAD, REP. BY ITS
SECRETARY.

¶10

BY ADV SRI.P.C.SASIDHARAN

¶11

RESPONDENTS/RESPONDENTS:

¶12

1 JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL), OFFICE OF THE JOINT REGISTRAR OF COOPERATIVE SOCIETIES, WAYANAD-673121.

¶13

2 THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL) OFFICE OF THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES, SULTHANBATHERY, VYTHIRI, WAYANAD, PIN-673121

¶14

3 SULTHANBATHERY CO-OPERATIVE URBAN BANK LIMITED SULTHANBATHERY, WAYANAD-673 121,REP. BY ITS SECRETARY

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OTHER PRESENT:

¶16

SR GP SRI T K VIPINDAS; SRI.P.N.MOHANAN FOR R3

¶17

THIS WRIT APPEAL HAVING BEEN FINALLY HEARD ON
05.06.2024, ALONG WITH W.A.Nos.1683, 1684, 2005 & 2222 of
2016, 930 of 2017 and 326 of 2022, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:

¶18

W.A.Nos.1680/2016

¶19

¶20

IN THE HIGH COURT OF KERALA AT ERNAKULAM

¶21

PRESENT

¶22

THE HONOURABLE MR. JUSTICE AMIT RAWAL

¶23

¶24

THE HONOURABLE MR. JUSTICE EASWARAN S.

¶25

WEDNESDAY, THE 5TH DAY OF JUNE 2024 / 15TH JYAISHTA, 1946
WA NO. 326 OF 2022

¶26

AGAINST THE ORDER/JUDGMENT DATED 7.12.2021 IN WP(C) NO.2745
OF 2021 OF HIGH COURT OF KERALA

¶27

APPELLANT/PETITIONER:

¶28

THE CHERUVATHUR FARMERS SERVICES CO-OPERATIVE
BANK LIMITED
CHERUVATHUR (PO) KASARAGOD DISTRICT, PIN-671 313.
REPRESENTED BY ITS MANAGING DIRECTOR MR VINAYA
KUMAR.

¶29

BY ADVS.
JAWAHAR JOSE
CISSY MATHEWS
JAISON ANTONY

¶30

RESPONDENTS/RESPONDENTS:

¶31

1 THE STATE OF KERALA REPRESENTED BY ITS SECRETARY, DEPARTMENT OF COOPERATION, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM, PIN-695 001.

¶32

2 THE REGISTRAR OF COOPERATIVE SOCIETIES, JAWAHAR SAHAKARANA BHAVAN, D.P.I. JUNCTION, THYCAUD (PO), THIRUVANANTHAPURAM, PIN-695 014.

¶33

3 THE JOINT REGISTRAR OF COOPERATIVE SOCIETIES, CIVIL STATION, VIDYANAGAR (PO) KASARAGOD, PIN-671 121

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4 THE THIMIRI SERVICE COOPERATIVE BANK REPRESENTED BY ITS SECRETARY, THIMIRI (PO) CHERUVATHOOR (VIA), KASARAGOD DISTRICT , PIN 670 581.

¶35

BY SR GP SRI T K VIPINDAS

¶36

THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON
05.06.2024, ALONG WITH WA.1680/2016 AND CONNECTED CASES, THE

¶37

COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

¶38

W.A.Nos.1680/2016

¶39

¶40

IN THE HIGH COURT OF KERALA AT ERNAKULAM

¶41

PRESENT

¶42

THE HONOURABLE MR. JUSTICE AMIT RAWAL

¶43

¶44

THE HONOURABLE MR. JUSTICE EASWARAN S.

¶45

WEDNESDAY, THE 5TH DAY OF JUNE 2024 / 15TH JYAISHTA, 1946

¶46

WA NO. 930 OF 2017

¶47

AGAINST THE ORDER/JUDGMENT DATED 09.08.2016 IN WPC NO.37829
OF 2015 OF HIGH COURT OF KERALA

¶48

APPELLANT/PETITIONER:

¶49

MANANTHAVADY CO-OPERATIVE URBAN SOCIETY,
REPRESENTED BY ITS SECRETARY, LATIN CHURCH
BUILDING, MANANTHAVADY, WAYANAD DISTRICT.
BY ADVS.
SRI.P.K.RAMKUMAR
SMT.ANITHA MENON

¶50

RESPONDENTS/RESPONDENTS:

¶51

1 REGISTRAR OF CO-OPERATIVE SOCIETIES, THIRUVANANTHAPURAM – 695 001.

¶52

2 JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL), WAYANAD DISTRICT, P.O.KALPETTA, WAYANAD-673121.

¶53

3SULTHAN BATHERY CO-OPERATIVE URBAN BANK LIMITED
NO.D2034, SULTHAN BATHERY, REPRESENTED BY ITS
SECRETARY, P.O. SULTHAN BATHERY, WAYANAD DISTRICT
– 673 592.
BY ADVS.
SMT.NAMITHA JYOTHISH
SRI.T.A.SHAJI SR.,
SR GP SRI T K VIPINDAS

¶54

THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON

¶55

05.06.2024, ALONG WITH WA.1680/2016 AND CONNECTED CASES, THE

¶56

COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

¶57

W.A.Nos.1680/2016

¶58

¶59

IN THE HIGH COURT OF KERALA AT ERNAKULAM

¶60

PRESENT

¶61

THE HONOURABLE MR. JUSTICE AMIT RAWAL

¶62

¶63

THE HONOURABLE MR. JUSTICE EASWARAN S.

¶64

WEDNESDAY, THE 5TH DAY OF JUNE 2024 / 15TH JYAISHTA, 1946

¶65

WA NO. 1683 OF 2016

¶66

AGAINST THE ORDER/JUDGMENT DATED 9.8.2016 IN WPC NO.925 OF
2016 OF HIGH COURT OF KERALA

¶67

APPELLANT/4TH RESPONDENT:

¶68

KALPETTA CO-OPERATIVE URBAN SOCIETY LTD.NO.W228
KALPETTA, WAYANAD, REPRESENTED BY ITS SECRETARY.
BY ADV SRI.P.C.SASIDHARAN

¶69

RESPONDENTS/PETITIONER & RESPONDENTS 1 TO 3 & 5:

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1 SULTHAN'S BATTERY CO-OPERATIVE URBAN BANK LTD. NO.D2034, SULTHAN BATHERY, WAYANAD DISTRICT 673592, REPRESENTED BY ITS GENERAL MANAGER.

¶71

2 STATE OF KERALA REPRESENTED BY THE PRINCIPAL SECRETARY TO GOVERNMENT, CO-OPERATION (C) DEPARTMENT, THIRUVANANTHAPURAM, PIN:695001.

¶72

3 THE JOINT REGISTRAR (GENERAL) OF CO-OPERATIVE SOCIETIES, WAYANAD, P.O. KALPETTA, PIN:673121.

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4 THE REGISTRAR OF CO-OPERATIVE SOCIETIES THIRUVANANTHAPURAM, PIN:695001.

¶74

5 MANANTHAVADI CO-OPERATIVE URBAN SOCIETY LTD. NO. W-221, LATIN CHURCH BUILDINGS, WAYANAD DISTRICT, REPRESENTED BY ITS SECRETARY, PIN:670645.

¶75

BY ADV SRI.T.A.SHAJI SR.,
SMT.NAMITHA JYOTHISH FOR R1;
SR GP SRI T K VIPINDAS; SRI.P.K.RAMKUMAR FOR R5

¶76

THIS WRIT APPEAL HAVING BEEN FINALLY HEARD ON
05.06.2024, ALONG WITH WA.1680/2016 AND CONNECTED CASES, THE
COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

¶77

W.A.Nos.1680/2016

¶78

¶79

IN THE HIGH COURT OF KERALA AT ERNAKULAM

¶80

PRESENT

¶81

THE HONOURABLE MR. JUSTICE AMIT RAWAL

¶82

¶83

THE HONOURABLE MR. JUSTICE EASWARAN S.

¶84

WEDNESDAY, THE 5TH DAY OF JUNE 2024 / 15TH JYAISHTA, 1946

¶85

WA NO. 1684 OF 2016

¶86

AGAINST THE ORDER/JUDGMENT DATED 09.08.2016 IN WPC NO.925 OF
2016 OF HIGH COURT OF KERALA

¶87

APPELLANT/5TH RESPONDENT:

¶88

MANANTHAVADY CO-OPERATIVE URBAN SOCIETY
REPRESENTED BY ITS SECRETARY VINOJ K.J.,
AGED 35 YEARS, KUNNATH HOUSE, EDAVAKA VILLAGE,
MANANTHAVADY TALUK, WAYANAD DISTRICT.

¶89

BY ADVS.
SRI.P.K.RAMKUMAR
SMT.ANITHA MENON

¶90

RESPONDENTS/PETITIONER & RESPONDENTS 1 TO 4:

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1 THE SULTHAN BATHERY CO-OPERATIVE URBAN BANK LTD. NO:D2034, SULTHAN BATHERI, REPRESENTED BY ITS SECRETARY P.O., SULTHAN BATHERI, WAYANAD DISTRICT-673592.

¶92

2 STATE OF KERALA REPRESENTED BY THE PRINCIPAL SECRETARY TO GOVT., CO-OPERATION (C) DEPARTMENT, THIRUVANANTHAPURAMPIN:695001.

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3 JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL), WAYANAD DISTRICT, P.O. KALPETTA, WAYANAD DISTRICT, PIN:673121.

¶94

4 THE REGISTRAR OF CO-OPERATIVE SOCIETIES THIRUVANANTHAPRUAM, PIN:695001.

¶95

W.A.Nos.1680/2016

¶96

¶97

5KALPETTA CO-OPERTIVE URBAN SOCIETY LTD.NO.W-228
LATIN CHURCH BUILDING CALICUT ROAD, WAYANAD
DISTRICT, REPRESENTED BY ITS SECRETARY, PIN-
670645.
BY ADVS.
SMT.NAMITHA JYOTHISH
SRI.T.A.SHAJI SR. FOR R1;
SRI.P.C.SASIDHARAN FOR R5;
SR GP SRI T K VIPINDAS

¶98

THIS WRIT APPEAL HAVING BEEN FINALLY HEARD ON
05.06.2024, ALONG WITH WA.1680/2016 AND CONNECTED CASES, THE
COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

¶99

W.A.Nos.1680/2016

¶100

¶101

IN THE HIGH COURT OF KERALA AT ERNAKULAM

¶102

PRESENT

¶103

THE HONOURABLE MR. JUSTICE AMIT RAWAL

¶104

¶105

THE HONOURABLE MR. JUSTICE EASWARAN S.

¶106

WEDNESDAY, THE 5TH DAY OF JUNE 2024 / 15TH JYAISHTA, 1946
WA NO. 2005 OF 2016

¶107

AGAINST THE ORDER/JUDGMENT DATED 9.8.2016 IN WPC NO.925 OF
2016 OF HIGH COURT OF KERALA

¶108

APPELLANTS/RESPONDENTS 1 TO 3:

¶109

1 STATE OF KERALA REPRESENTED BY THE PRINCIPAL SECRETARY TO GOVERNMENT, CO-OPERATION(C)DEPARTMENT, THIRUVANANTHAPURAM-695001.

¶110

2 THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL) WAYANAD.P.O, KALPETTA,PIN-673121.

¶111

3 THE REGISTRAR OF CO-OPERATIVE SOCIETIES THIRUVANANTHAPURAM-695001.

¶112

BY ADV SRI T K VIPINDAS, SR.GOVERNMENT PLEADER

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RESPONDENTS/PETITIONER & RESPONDENTS 4 & 5:

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1 SULTHAN BATHERY CO-OPERATIVE URBAN BANK LTD.D.2034, SULTHAN BATHERY, WAYANAD DISTRICT673592, REPRESENTED BY ITS GENERAL MANAGER.

¶115

2 KALPETTA CO-OPERATIVE URBAN SOCIETY LTD.NO.W-228 LATIN CHURCH BUILDING, CALICUT ROAD, P.O.MANANTHAVADI, WAYANAD DISTRICT, REPRESENTED BY ITS SECRETARY, PIN-670645.

¶116

3 MANANTHAVADI CO-OPERATIVE URBAN SOCIETY LTD.NO.W W-221, LATIN CHURCH BUILDING, WAYANAD DISTRICT, REPRESENTED BY ITS SECRETARY, PIN-670645.

¶117

W.A.Nos.1680/2016

¶118

¶119

BY ADVS.
SMT.NAMITHA JYOTHISH FOR R1
SRI.P.K.RAMKUMAR FOR R3
SRI.P.C.SASIDHARAN FOR R2
SRI.T.A.SHAJI SR.

¶120

THIS WRIT APPEAL HAVING BEEN FINALLY HEARD ON
05.06.2024, ALONG WITH WA.1680/2016 AND CONNECTED CASES, THE
COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

¶121

W.A.Nos.1680/2016

¶122

¶123

IN THE HIGH COURT OF KERALA AT ERNAKULAM

¶124

PRESENT

¶125

THE HONOURABLE MR. JUSTICE AMIT RAWAL

¶126

¶127

THE HONOURABLE MR. JUSTICE EASWARAN S.

¶128

WEDNESDAY, THE 5TH DAY OF JUNE 2024 / 15TH JYAISHTA, 1946

¶129

WA NO. 2222 OF 2016

¶130

AGAINST THE ORDER/JUDGMENT DATED 9.8.2016 IN WPC NO.15889 OF
2013 OF HIGH COURT OF KERALA

¶131

APPELLANT/PETITIONER:

¶132

MANATHAVADY CO-OPERATIVE URBAN SOCIETY
REPRESENTED BY ITS SECRETARY, LATIN CHURCH
BUILDING, CALICUT ROAD MANANTHAVADY P.O. WAYANAD.
BY ADVS.
SRI.P.K.RAMKUMAR
SMT.ANITHA MENON

¶133

RESPONDENTS/RESPONDENTS 1 TO 3:

¶134

1 THE REGISTRAR OF CO-OPERATIVE SOCIETIES THIRUVANANTHAPURAM - 695001

¶135

2 JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL); WAYANAD DISTRICT, P.O. KALPETTA, WAYANAD DISTRICT – 673121.

¶136

3 THE SULTHAN BATHERI CO-OPERATIVE URBAN BANK LIMITED NO. D2034, SULTHAN BATHERI, REPRESENTED BY ITS SECRETARY, P.O. SULTHAN BATHERI, WAYANAD, DISTRICT – 673592.

¶137

4 WAYANAD DIST. CO- OPERATIVE BANK LTD., P.B.NO.7, KALPETTA NORTH. P.O, WAYANAD - 673122, REPRESENTED BY ITS GENERAL MANAGER.

¶138

BY ADV SRI.MILLU DANDAPANI FOR R4; SR GP SRI T K VIPINDAS

¶139

THIS WRIT APPEAL HAVING BEEN FINALLY HEARD ON
05.06.2024, ALONG WITH WA.1680/2016 AND CONNECTED CASES, THE

¶140

COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

¶141

W.A.Nos.1680/2016

¶142

¶143

AMIT RAWAL & EASWARAN S., JJ.

¶144

W.A.Nos.1680, 1683, 1684, 2005 & 2222 of 2016, 930 of 2017 and 326 of 2022

¶145

Dated this the 5^th day of June, 2024

¶146

J U D G M E N T

¶147

Easwaran S.,J.

¶148

This orders of ours shall dispose of these seven writ appeals.

¶149

The facts leading to W.A.No.1680/2016, which arises from WP(C) No.12728/2013, are dealt with. The writ appellant was the petitioner in the writ petition. The writ petition was filed for a writ of certiorari calling for the records leading to Ext.P9 and for restraining the 1^st respondent from registering the amended bye-law of the 3^rd respondent Society, since according to the appellant, the said amendment would be in violation of Section 7(1)(c) of the Kerala Co-operative Societies Act, 1969. The writ petition was considered, along with a batch of writ petitions challenging the constitutional validity of Section 7(1)(c) of the Kerala Co-operative Societies Act, 1969, since it is a

¶150

W.A.Nos.1680/2016

¶151

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fundamental right under Article 19(1)(c) of the Constitution

¶153

of India to carry out the business. The learned Single Judge by the judgment impugned in these writ appeals had declared Section 7(1)(c) of the Kerala Co-operative Societies Act, 1969 as ultra vires and unconstitutional, since it falls foul of Article 19(1)(c) of the Constitution of India. In arriving at the said finding, the learned Single Judge had relied on the provisions contained in the 97^th amendment of the Constitution of India. While holding Section 7(1)(c) of the Kerala Co-operative Societies Act, 1969 as ultra vires to the 97^th Constitutional amendment, the learned Single Judge had not touched the other core issues raised in the writ petitions. Further, a direction was issued to the authorities to consider the applications for registration without reference to the constitutional invalidated Section 7(1)(c) of the Kerala Co-operative Societies Act, 1969. It is in this context, the various Co-operative Societies, who have questioned the registration of new societies, have come up in these writ appeals.

¶154

W.A.Nos.1680/2016

¶155

¶156

W.A.No.2005/2016 is also preferred by the State Government aggrieved by the judgment of the learned Single Judge in having declared the provisions of Section 7(1)(c) of the Kerala Co-operative Societies Act, 1969 as ultra vires and unconstitutional.

¶157

When the matter was taken up for consideration today, Sri.Vipindas, the learned Senior Government Pleader appearing for the appellants in W.A.No.2005/2016 pointed out the judgment of the Hon’ble Supreme Court in Union of India v. Rajendra N. Shah [AIR 2021 SC 4905] , wherein the Hon’ble Supreme Court has upheld the judgment of the Gujarat High Court to the extent of striking down Part-IXB of the Constitution of India.

¶158

We have perused the judgment of the Supreme Court and are of the considered view that the learned Single Judge had completely erred in declaring Section 7(1)(c) of the Kerala Co-operative Societies Act, 1969 as ultra vires to the 97^th amendment to the Constitution of India. Even at

¶159

the time of consideration of the writ petitions, it was the

¶160

specific case of the appellant in W.A.No.1680/2016 that the

¶161

W.A.Nos.1680/2016

¶162

¶163

judgment of the Gujarat High Court was holding the field insofar as the 97^th amendment to the Constitution of India is concerned.

¶164

In normal circumstances, all the writ petitions should have to be dismissed, insofar the challenge to Section 7(1)(c) of the Kerala Co-operative Societies Act, 1969 is concerned, but Sri. Vipindas, learned Senior Government Pleader, would submit before us that the other issues raised in the writ petition have not been considered by the learned Single Judge in view of the striking down of Section 7(1)(c) of the Kerala Co-operative Societies Act, 1969.

¶165

In view of the above, we hereby allow all these Writ Appeals following the judgment of the Supreme Court in Rajendra N. Shah (supra) and set aside the judgment of the learned Single Judge, which are under challenge in these writ appeals, holding Section 7(1)(c) of the Kerala Cooperative Societies Act, 1969 as ultra vires. The challenge to the constitutional validity of Section 7(1)(c) of the Kerala

¶166

Co-operative Societies Act, 1969 is hereby thus rejected.

¶167

W.A.Nos.1680/2016

¶168

¶169

Resultantly, all the writ petitions, the judgment of which are under challenge in these writ appeals, are restored back to the file and Registry is directed to list these writ petitions before the learned Single Judge as per roster for consideration of other issues raised therein, except the challenge to Section 7(1)(c) of the Kerala Co-operative

¶170

Societies Act, 1969.

¶171

These Writ Appeals are allowed. No order as to costs.

¶172

Sd/- AMIT RAWAL JUDGE

¶173

Sd/- EASWARAN S. JUDGE

¶174

jg

The Cheruvathur Farmers Services Co-Operative Bank Limited v. the State of Kerala

Case brief

What is this about?

What did the court decide?

The Cheruvathur Farmers Services Co-Operative Bank Limited v. the State of Kerala

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

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