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1997 Supreme(Ker) 368

Judges : T.V.RAMAKRISHNAN,A.S.VENKATACHALA MOORTHY
N.Gouthaman - Appellant
Versus
Joint Registrar & Ors. - Respondent
Case No : W.A. No. 1443 of 1997
Decided On : 12/03/1997
Advocates Appeared :
B. Suresh Kumar For Appellant Government Pleader (Jose Thettayil) For Respondents

Headnote:

Registrar's Power - Co-operative Society - Kerala Co-operative Societies Act, 1969, S.66(1)(a) - The court discussed the powers of the Registrar under S.66(1)(a) of the Act and settled the legal position that a Co-operative Society functions as an autonomous body within the limitations of the Act, Rules, bye-laws, and directions of the Registrar. The court held that the Registrar has the authority to issue suitable orders if the society violates the provisions and acts prejudicial to its interests.

Fact of the Case:

The appellant filed a writ appeal against the judgment dismissing the Original Petition filed by the appellant, which sought to quash an order and declare the entitlement of a Co-operative Society to fill up retirement vacancies. The society had issued a notification to fill the vacancies, but the Joint Registrar directed the society to stay the appointment, citing financial conditions.

Finding of the Court:

The court held that the society was well within its powers to proceed with the appointment process and that the order of the Joint Registrar was in excess of his powers and illegal. The court quashed the order and declared that the society could proceed to fill up the vacancies as per the Rules and Regulations.

Issues: The main issue was whether the Registrar had the power to pass the impugned orders under S.66(1)(a) of the Act or if it amounted to interference in the internal day-to-day administration of the society.

Ratio Decidendi: The court settled the legal position that a Co-operative Society functions as an autonomous body within the limitations of the Act, Rules, bye-laws, and directions of the Registrar. The court held that the Registrar has the authority to issue suitable orders if the society violates the provisions and acts prejudicial to its interests.

Final Decision: The appeal was allowed, and the court quashed the order of the Joint Registrar, declaring that the society could proceed to fill up the vacancies caused by the retirement of secretary and attender-cum-watchman as per the Rules and Regulations.

Judgment :-

A.S. Venkatachala Moorthy, J.

The unsuccessful petitioner in the Original Petition is the appellant herein. The writ appeal has been filed against the judgment in O.P. No. 14435 of 1997 dismissing the Original Petition filed by the

appellant/ petitioner praying the Court to quash the order made in Ext. P3 dated 4.6.1997 as illegal and for a declaration that the Quilon Processing and Marketing Co-operative Society Ltd., Kadappakada, Kollam is entitled to fill up the retirement vacancies.

2. It is necessary for the proper adjudication of the matter that the case of the respective parties are set out in detail.

3. In the Original Petition dated 16th August, 1997 the Quilon Processing and Marketing Co-operative Society Ltd., Kadappakada, representing by the President N. Gouthaman has stated that the society markets cement directly, supplied by companies like Malabar Cements Ltd. and Ramco and that apart the State Marketing Federation supplies different varieties of manure for mixing and distribution to various primary Cooperative Societies in Kollam, Thiruvananthapuram and Alappuzha Districts. According to the petitioner, after getting the supply of manure from Kerala State Marketing Federation, the same are mixed properly and distributed to the primary co-operative societies depending upon the requirement. The society get 23% margin in this activity. The further case set out in the petition is that the society is managed by 11 elected board of directors and that the society had a secretary, clerk and attender-cum¬watchman. While so, the Secretary retired on 30.4.1997 and the attender-cum-watchman retired on 31.5.1997. For the purpose of filling the said posts the society issued a proper notification as required under the relevant rules and bye-laws and that in response to the same the society received 26 valid applications for the post of secretary and 5 valid applications for the post of attender. The society was thereafter taking steps in the process of selection by conducting written test, interview, etc. as per the instructions contained in Circular No. 18/91 dated 7.6.1991 issued by the Registrar of Co-operative Societies. In such as the posts sought to be filled up are not new posts, no prior permission of the Registrar of Co-operative Societies is required. However, according to the petitioner, a communication, namely Ext. P3 dated 4.6.1997 was received by the society wherein the Joint Registrar, Kollam has stated that after 1992 the society is not functioning in accordance with the bye-laws and that the appointment be stayed for the time being since it is not beneficial to the society and that the present clerk in the society may be given the charge of secretary and that the appointment can be considered later after re-assessment of the financial conditions of the society. It is specifically contended in the Original Petition that the society was not given a copy of the report dated 23.5.1997 and That the present managing committee took charge only on 7.8.1996 from the Administrator who earlier took charge in 1988, whereas Ext. P3 mentions after 1992 the society is not functioning as per the bye-laws. It is specifically mentioned that after the present managing committee took charge the society continue to generate profits and that further the order Ext. P3 would in the facts and circumstances of the case amount to interference by the Registrar in the day-to-day affairs of the society for which he has no power or authority under the Act. A detailed representation dated 8.7.1997 was sent by the society to the Joint Registrar, Kollam to reconsider the Ext. P3 decision, which has been marked as Ext. P4. However, the said Joint Registrar by communication dated 31.7.1997 marked as Ext. P5 has directed the society to continue to function, with a further direction that the present clerk in employment can also look after the work of secretary and that as and when the financial situation of the society improves permission
























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