The main legal point established in the judgment is that the power given to the administrator under S.32 of the Kerala Co-operative Societies Act, 1969, does not include the power to enroll new members to the society.

Headnote:
Registrar of Co-operative Societies - Powers of Administrator to Enroll New Members - Kerala Co-operative Societies Act, 1969, S.32 - The court considered the scope of the power of an administrator appointed under S.32 of the Kerala Co-operative Societies Act, 1969, in supersession of a committee of a Society to enroll new members to the Society. The court analyzed the provisions of S.32 and discussed the conflicting views expressed by the Division Bench in 1985 KLT 836 and the decision of the Supreme Court in JT 1997 (5) SC 680. The court concluded that the power given to the administrator under S.32 does not include the power to enroll new members to the society.
Fact of the Case:

The court considered the question of whether the administrator appointed under S.32 of the Kerala Co-operative Societies Act, 1969, has the power to enroll new members to the society.
Finding of the Court:

The court found that the power given to the administrator under S.32 does not include the power to enroll new members to the society. The court concluded that the view expressed by the Division Bench in 1985 KLT 836, which held that the administrator has the power to enroll new members, has been impliedly over-ruled by the Supreme Court in JT 1997 (5) SC 680.
Issues: The main issue was the scope of the power of an administrator appointed under S.32 of the Kerala Co-operative Societies Act, 1969, in supersession of a committee of a Society to enroll new members to the Society.
Ratio Decidendi: The court held that the power given to the administrator under S.32 does not include the power to enroll new members to the society. The court relied on the decision of the Supreme Court in JT 1997 (5) SC 680, which clarified that the administrator has no power to enroll new members.
Final Decision: The court answered the question referred by concluding that the power given to the administrator under S.32 does not include the power to enroll new members to the society. The court remitted the Original Petitions for being heard by appropriate Benches on other individual issues involved.

Judgment :-

K.K. Usha, J.

The question referred for consideration of Full Bench is whether the view expressed by a Division Bench of this Court in George v. Joint Registrar, 1985 KLT 836 on the powers of the Registrar of Co-operative Societies to enroll new members to the society, have been impliedly over-ruled by the Supreme Court in K. Shantharaj & Am. v. M.L. Nagaraja & Ors., JT 1997 (5) SC 680.

2. We heard learned counsel appearing on behalf of the petitioners in these original petitions, learned Advocate General and counsel for party respondents. We also heard learned counsel Sri. George Poonthottam and Sri. Somasundaram who are appearing for petitioners in other original petitioners where similar points are raised, but are not posted before us. We heard learned counsel Sri. K. Radhakrishnan who is appearing on behalf of the respondents in O.P. 7311/98, which is not posted before us, but where similar contentions are raised by the petitioners.

3. The issue to be considered is the scope of the power of an administrator appointed under S.32 of the Kerala Co-operative Societies Act, 1969, in supersession of a committee of a Society to enroll new members to the Society. S.32 of the Kerala Co-operative Societies Act, 1969 thereinafter referred to as 'the Act') reads as follows:

"32. Supersession of Committee:

(1) If the Registrar is satisfied that the committee of any society persistently makes default or is negligent in the performance of the duties imposed on it by this Act or the rules or bye-laws or commits any act which is prejudicial to the interests of the society or wilfully disobeys or wilfully fails to comply with any lawful order or direction issued under this Act or the rules, the Registrar may, after giving the committee an opportunity to state its objections, if any, by order in writing remove the committee and

(a) appoint a new committee consisting of not more than three members of the society in its place; or

(b) appoint one or more administrator or administrators who need not be a member or members of the society, to manage the affairs of the society for a period not exceeding one years as may be specified in the order, which period may, at the discretion of the Registrar, be extended from time to time, so however that the aggregate period does not exceed two years.

" (2) The Registrar shall consult the financing bank and Circle Co-operative Union or State Co-operative Union as the case may be before passing an order under sub-s.(1).

(3) Not withstanding anything contained in sub-s.(1) or sub-s.(2) it shall not be necessary to give an opportunity to the committee to state its objections and to consult the Unions and financing banks, in case where the Registrar is of the opinion that it is not reasonably practicable to do so, subject however to the condition that in such cases the period of supersession shall generally be for six months and in case a new committee, cannot be constituted or enter upon office in accordance with the bye-laws of the society within the period of supersession the period may be extended for a further period not exceeding six months-fa) in the case of a co-operative society only after consulting the circle co-operative union concerned; and

(b) in the case of an Apex Society or a Central Society only after consulting the State Cooperative Union.

(4) The committee or administrator or administrators so appointed shall, subject to the control of the Register and to such instructions as he may from time to time give, have power to exercise all or any of the functions of the committee or of any officer of the society and take all such action as may be required in the interests of the society.

(5) The committee or administrator or administrators shall before the expiry of its or his or their term of office, arrange for the constitution of a new committee in accordance with the bye-laws of the society.

(6) Every order made by the Registrar under sub-s.(1) shall be communicated to the circle co-operative u

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1998 Supreme(Ker) 368

The main legal point established in the judgment is that the power given to the administrator under S.32 of the Kerala Co-operative Societies Act, 1969, does not include the power to enroll new members to the society.

Cases Referred (2)