Disposed

The Ayavana Agricultural Improvement Co-Operative Society Ltd.No.E 1214 v. the Joint Registrar of Co-Operative Societies (G)

Kerala HC2 Feb 2024WP(C)/9231/2021

Case brief

AI extract

What is this about?

A co-operative society challenged orders refusing permission to engage a Managing Committee member as internal auditor on payment of Rs.15,000/- honorarium, on the basis of a circular barring appointment of retired officials. The Court found the Government had not considered Rule 49 regarding honorarium to committee members, quashed the Government order and remitted the appeal for fresh considerat

What did the court decide?

Ext.P10 quashed; second respondent directed to reconsider Ext.P8 appeal afresh after hearing the petitioner, keeping Rule 49 in mind, within four months.

The Ayavana Agricultural Improvement Co-Operative… — Cooperative Societies | Kerala HC (2024)

¶1

IN THE HIGH COURT OF KERALA AT ERNAKULAM

¶2

PRESENT

¶3

THE HONOURABLE MR. JUSTICE GOPINATH P.

¶4

FRIDAY, THE 2^ND DAY OF FEBRUARY 2024 / 13TH MAGHA, 1945 WP(C) NO. 9231 OF 2021

¶5

PETITIONER:

¶6

THE AYAVANA AGRICULTURAL IMPROVEMENT CO-OPERATIVE SOCIETY LTD.NO.E 1214 AYAVANA, MOOVATTUPUZHA, ERNAKULAM, REPRESENTED BY ITS SECRETARY, RESIDING AT VAMATTATHIL HOUSE, ENANALLOOR, AYAVANA P.O., MOOVATTUPUZHA.

¶7

BY ADVS. P.P.JACOB SRI.T.P.GOPAKUMAR

¶8

RESPONDENTS:

¶9

1 THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (G) ERNAKULAM, OFFICE OF THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (G), 5TH FLOOR, NEW BLOCK, CIVIL STATION, KAKKANAD, ERNAKULAM-682030.

¶10

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

¶11

BY ADV. SRI. VENUGOPAL V., GOVERNMENT PLEADER

¶12

THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 02.02.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

¶13

W.P.(C.)NO.9231 OF 2021

¶14

¶15

JUDGMENT

¶16

Dated this the 02^nd day of February, 2024

¶17

The petitioner Co-operative Society has approached this Court, seeking to quash Exts.P7 and P10 orders issued by the Joint Registrar of Co-operative Societies (General, Ernakulam), and the Government, in appeal against Ext.P7 order, rejecting the request of the petitioner to permit the engagement of a member of the Managing Committee of the petitioner as internal auditor, on payment of a sum of Rs.15,000/- (Rupees fifteen thousand only) as honorarium.

¶18

A reading of Ext.P10 Government Order will indicate that the main objection to the engagement as above, was the terms of Ext.P9 Circular issued by the Registrar of Co-operative Societies, which indicate that, no Society shall appoint any person, who has crossed the age limit for retirement or any retired Government/ State Government/ Central Government/ Public Sector officials to any post in any Society.

¶19

¶20

W.P.(C.)NO.9231 OF 2021

¶21

The learned Counsel appearing for the petitioner would submit, with reference to Rule 49 of the Kerala Societies Rules, 1969, that, there cannot be any objection in terms of Ext.P9 Circular, as the provisions of Rule 49 indicate that the Society may pay honorarium to any of its Managing Committee members, considering the work done by such a member. It is submitted that the payment of honorarium or the entrustment of work of internal auditor does not amounts to an appointment, which alone is prohibited in terms of Ext.P9 Circular. It is also submitted that the bylaws have been suitably amended, permitting the engagement as above.

¶22

The learned Government Pleader would submit that the very intend and purpose of Ext.P9 Circular was to ensure that the retired Government servants or officials of public sector undertakings are not appointed in Co-operative Societies. It is submitted that such a stipulation was necessary in order to ensure that, Government officials do not consider the Co-operative Societies as a sources of employment. It is submitted

¶23

W.P.(C.)NO.9231 OF 2021

¶24

¶25

that the Secretary of the petitioner Society is expected to do the work of the internal auditor, as per Rule 47 of the Kerala Co-operative Societies Rule, 1969. It is further pointed out that the engagement of a member of the Managing Committee as internal auditor will go against the approved staff pattern of the petitioner Society. It is also pointed out that the said engagement/appointment will be against the provisions of Rule 183(2) of the Cooperative Societies Rules, which indicate that, no person above the age of 58 can be appointed by a Society.

¶26

Having heard the learned Counsel for the petitioner and the learned Government Pleader, I am of the view that, the matter has not been considered by the Government, keeping in mind the provisions of Rule 49 of the Co-operative Societies Rules. The Government have proceeded on the basis that the engagement in question, is actually an appointment contrary to the stipulations to Ext.P9 Circular issued by the Registrar of Co-operative Societies. Therefore, I am of the view that the matter requires reconsideration at the hands of the

¶27

W.P.(C.)NO.9231 OF 2021

¶28

¶29

Government, keeping in mind the provisions of Rule 49. Therefore, Ext.P10 is quashed and the 2^nd respondent is directed to reconsider Ext.P8 appeal afresh, after affording an opportunity of hearing to the petitioner. I make it clear that, I have not expressed any opinion on the merits of the matter and it will be open to the 2^nd respondent to reconsider Ext.P8 appeal in accordance with law and untrammelled by any observations contained in this judgment. However, as directed, the 2^nd respondent shall also keep in mind the provisions of Rule 49, while disposing Ext.P8 appeal. The 2^nd respondent shall endeavour to dispose Ext.P8 appeal within a period of four months from the date of receipt of a certified copy of this judgment.

¶30

The Writ Petition is disposed of accordingly.

Sd/-

GOPINATH P.

JUDGE

NB/2-2

W.P.(C.)NO.9231 OF 2021

¶36

¶37

	APPENDIX OF WP(C) 9231/2021
PETITIONER EXHIBITS
EXHIBIT P1	TRUE PHOTOCOPY OF THE RELEVANT PAGES OF BYELAW COVER PAGE AND PAGES 17 TO 19.
EXHIBIT P2	TRUE PHOTOCOPY OF THE ORDER ISSUED BY THE FIRST RESPONDENT DATED 21.01.2017.
EXHIBIT P3	TRUE PHOTOCOPY OF THE ORDER DATED 09.08.2016 ISSUED BY THE JOINT REGISTRAR.
EXHIBIT P4	TRUE PHOTOCOPY OF THE AMENDED BYELAW ISSUED BY THE FIRST RESPONDENT DATED 30.12.2017.
EXHIBIT P5	TRUE PHOTOCOPY OF THE RELEVANT PORTION OF THE BUDGET APPROVED BY THE GENERAL BODY OF THE PETITIONER SOCIETY DATED 29.09.2018.
EXHIBIT P6	TRUE PHOTOCOPY OF THE RESOLUTION DATED 10.12.2018 SUBMITTED BY THE PETITIONER TO THE JOINT REGISTRAR.
EXHIBIT P7	TRUE PHOTOCOPY OF THE ORDER DATED 09.04.2019 ISSUED BY THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES.
EXHIBIT P8	TRUE PHOTOCOPY OF THE APPEAL DATED 15.05.2019 FILED BEFORE THE GOVERNMENT.
EXHIBIT P9	TRUE PHOTOCOPY OF THE CIRCULAR 20/87 DATED 13.05.1987.
EXHIBIT P10	TRUE PHOTOCOPY OF THE ORDER DATED 08.09.2020 ISSUED BY THE SECOND RESPONDENT.

¶38

RESPONDENTS EXHIBITS: NIL

¶39

TRUE COPY

¶40

P.A. TO JUDGE

The Ayavana Agricultural Improvement Co-Operative Society Ltd.No.E 1214 v. the Joint Registrar of Co-Operative Societies (G)

Case brief

What is this about?

What did the court decide?

The Ayavana Agricultural Improvement Co-Operative Society Ltd.No.E 1214 v. the Joint Registrar of Co-Operative Societies (G)

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

K.K.George., Vs Mavelikkara Taluk Co-Operative Bank Ltd.No. 707

Sharmila Surendran, Vs State of Kerala

Santhosh Kumar.S Vs the Registrar of Co-Operative Societies, Kerala State

Sheeba Silvia John Vs the Central Provident Fund Commissioner

The Kerala State Road Transport Corporation Vs K.O.Mathew

Binchu W.C Vs the District Police Chief