Allowed

Pala Marketing Co-Operartive Society v. St. Thomas College Staff Cooperative Society (K434)

Kerala HC2 Jul 2024WP(C)/14929/2019

Case brief

AI extract

What is this about?

A marketing co-operative society challenged a Co-operative Ombudsman order and execution certificate for recovery of a fixed deposit, arguing such Section 69 disputes are outside the Ombudsman Scheme. The Court agreed, set aside the Ombudsman order and certificate, and permitted the complainant to pursue proceedings under Section 69.

What did the court decide?

Exts.P3 (Ombudsman order) and P4 (execution certificate) and further proceedings set aside; liberty to pursue Section 69 proceedings.

Pala Marketing Co-Operartive Society Vs St. Thomas… — Cooperative Societies | Kerala HC (2024)

¶1

IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR. JUSTICE M.A.ABDUL HAKHIM
TUESDAY, THE 2ND DAY OF JULY 2024 / 11TH ASHADHA, 1946

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WP(C) NO. 14929 OF 2019

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PETITIONER:

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PALA MARKETING CO-OPERARTIVE SOCIETY,
PALA, MEENACHIL, KOTTAYAM-686 577,
REPRESENTED BY ITS SECRETARY.

¶7

BY ADVS.
SRI.PAUL JACOB (P)
SRI.ENOCH DAVID SIMON JOEL
SRI.RONY JOSE
SRI.GEORGE A.CHERIAN
SRI.LEO LUKOSE
SMT.SUZANNE KURIAN

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RESPONDENTS:

¶9

1ST. THOMAS COLLEGE STAFF COOPERATIVE SOCIETY
(K434),ARUNAPURAM, MEENACHIL, PALA,
KOTTAYAM-686 577, REPRESENTED BY ITS SECRETARY.

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

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3 THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES, KOTTAYAM-686 001.

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*4 ADDL.M/S.SULABHA MARKETING PRIVATE LIMITED. [ADDITIONAL 4TH RESPONDENT IS IMPLEADED AS PER ORDER DATED 14.08.2020 IN I.A. NO.1 OF 2020]

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BY ADVS.
SRI.PHILIP T.VARGHESE
GOVERNMENT PLEADER
SRI.T.P.PRADEEP
SRI.THOMAS T.VARGHESE
SRI.S.SREEDEV
SMT.ACHU SUBHA ABRAHAM
SMT.V.T.LITHA
SMT.K.R.MONISHA
SMT.SHRUTHI SARA JACOB
SMT. NITYA R.
SHRI.AMALA PURUSHOTHAMAN
SMT.AMRUTHA RAMESH
SHRI.ADHIL P.
SRI.BIMAL K NATH-SR.GP

¶14

THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD
ON 02.07.2024, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:

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W.P.(C) No.14929 of 2019

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M.A.ABDUL HAKHIM

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--------------------------------------------------------W.P.(C) NO.14929 of 2019

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--------------------------------------------------------Dated this the 2^nd day of July, 2024

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JUDGMENT

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The petitioner is a Marketing Co-operative Society, challenging Ext.P3 order of the Kerala Co-operative Ombudsman and Ext.P4 certificate for execution, on the ground that the Co-operative Ombudsman does not have power or authority to adjudicate the dispute as per the provisions of the Kerala Co-operative Ombudsman Scheme, 2010 and in view of Section 69 of the Kerala Co-operative Societies Act. Ext.P3 is an order passed by the Ombudsman on a petition filed by the 1^st respondent for recovering the fixed deposit amount made by the 1^st respondent with the petitioner.

¶22

The 3^rd respondent Joint Registrar of Cooperative Societies has filed a counter affidavit dated 05.12.2019, supporting the petitioner.

¶23

W.P.(C) No.14929 of 2019

¶24

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I have heard the learned counsel for the petitioner and the learned Senior Government Pleader for the respondents.

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The counsel for the petitioner invited by attention to Clause 7 (2) (e) of the scheme, in which it is provided that no complaint to the Ombudsman shall lie, if the complaint is in the nature of a dispute under Section 69 of the Act or in the nature of an appeal petition under Sections 82 and 83 of the Act. He pointed out that the dispute considered in Ext.P3 order comes under Section 69 (1) (h) of the Kerala Co-operative Societies Act, as it is a dispute between the society and a creditor. He also pointed out that in view of the non-obstante clause in Section 69, the Scheme is not applicable to the dispute enumerated in Section 69 of the Kerala Co-operative Societies Act .

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The counsel for the 1^st respondent pointed out that going by Clause 7 (1) (a), the disputes squarely comes within the said clause namely non-payment of money in respect of deposit.

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The counsel for the petitioner cited the decision of this Court in Nadathara Farmers Service Co-operative Bank Ltd.No.34399 v. Kerala C-operative Ombudsman and others

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W.P.(C) No.14929 of 2019

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[MANU/KE/0930/2016] , which says that in view of the nonobstante clause in Section 69 of the Kerala Co-operative Societies Act and Clauses 7 (2) (e) and 13 (f) of the scheme, the disputes coming under Section 69 of the Act are not entertainable before the Ombudsman.

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I find from Ext.P7 that the 1^st respondent has already instituted proceedings under Section 69 of the Kerala Co-operative Societies Act. Hence, the 1^st respondent cannot content that the dispute does not come within the purview of Section 69 of the Kerala Co-operative Societies Act. That apart in view of the principle laid down in the aforesaid decision, the impugned orders are not sustainable.

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Accordingly, this writ petition is allowed setting aside Exts.P3 and P4 and all further proceedings thereon. It is made clear that the 1^st respondent can proceed with Ext.P7 filed under Section 69 of the Kerala Co-operative Societies Act.

Sd/-

M.A.ABDUL HAKHIM

JUDGE

sss

W.P.(C) No.14929 of 2019

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APPENDIX OF WP(C) 14929/2019

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`PETITIO`	`NER`	`EXHIBITS`
`EXHIBIT`	`P1`	`A TRUE`	`COPY`	`OF`	`PET`	`ITION DATED 15.9.`	`2015 IN`
		`COMPLAI` `KERALA`	`NT` `COOP`	`NO` `ERAT`	`107` `IVE`	`1 OF 2015 BEFO` `OMBUDSMAN.`	`RE THE`
`EXHIBIT`	`P2`	`A TRUE` `NO 1071` `COOPERA`	`COPY` `OF` `TIVE`	`OF` `2015` `OMB`	`THE` `ON` `UDSM`	`OBJECTION IN CO` `THE FILES OF THE` `AN.`	`MPLAINT` `KERALA`
`EXHIBIT`	`P3`	`A TRUE` `IN COM` `KERALA` `THIRUVA`	`COPY` `NO` `NANT`	`OF` `1071` `C0` `HAPU`	`THE` `/20` `-OP` `RAM`	`ORDER DATED 17.` `15 ON THE FILES` `ERATIVE` `OMB`	`10.2016` `OF THE` `UDSMAN,`
`EXHIBIT`	`P4`	`A TRUE` `8.3.201`	`CO` `7 IS`	`PY` `SUED`	`OF` `BY`	`THE CERTIFICATE` `THE KERALA CO-OP`	`DATED` `ERATIVE`
		`OMBUDSM`	`AN,`	`TH`	`IRUV`	`ANANTHAPURAM FO`	`R THE`
		`PURPOSE` `P3 ORDE`	`OF` `R`	`APP`	`LYIN`	`G FOR EXECUTION`	`OF EXT`
`EXHIBIT`	`P5`	`A TRUE` `OF SUB`	`COPY` `COUR`	`OF` `T, P`	`E.P` `ALA.`	`.NO.28/2017 ON TH`	`E FILES`
`EXHIBIT`	`P6`	`A TRUE` `E.P.NO.` `PALA.`	`COPY` `28/2`	`OF` `017`	`THE` `ON`	`ORDER IN E.A.82/` `THE FILES OF SUB`	`2018 IN` `COURT,`
`Exhibit`	`P7`	`A TRUE` `2020 ON` `OF CO-O`	`COPY` `THE` `PERA`	`OF` `FI` `TIVE`	`PLA` `LES` `(GE`	`INT IN A.R.C. NO.` `OF THE JOINT RE` `NERAL), KOTTAYAM`	`386 OF` `GISTRAR` `.`

Pala Marketing Co-Operartive Society v. St. Thomas College Staff Cooperative Society (K434)

Case brief

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Pala Marketing Co-Operartive Society v. St. Thomas College Staff Cooperative Society (K434)

Case brief

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What did the court decide?

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