Judges : VISWANATHA IYER
Gregory - Appellant
Versus
Secretary Manimala Service Co-op.Bank Ltd. - Respondent
Case No : O.P. No. 7224 of 1989
Decided On : 10/26/1989
Advocates Appeared :
P.P. Mathew; For Petitioner Pathrose Mathai; K.K. Raveendranath; For Respondents
Co-operative Society - Removal of President - Kerala Co-operative Societies Act, 1969 - S.16 of the Interpretation and General Clauses Act, 1125 - Bye-law 38(a - The court upheld the power of the managing committee to remove the President after passing a motion of no confidence, citing S.16 of the Interpretation and General Clauses Act, 1125 and the decision in Narayanan Nair v. Joint Registrar, 1982 KLT 602. The court also found that the meeting convened on June 23,1989, for the motion of no-confidence was validly convened as per bye-law 38(a, and thus the resolution to remove the President was not assailable on this ground.
Fact of the Case:
The petitioner, President of a Co-operative Society, was facing a motion of no confidence by seven members of the managing committee. The petitioner challenged the validity of the meeting and the motion of no confidence, but the Joint Registrar rejected the petition. The petitioner then filed a writ petition, which was dismissed by the court.
Finding of the Court:
The court found that the managing committee had the power to remove the President after passing a motion of no confidence, and that the meeting for the motion of no confidence was validly convened as per the bye-law. The court also criticized the Joint Registrar's narrow interpretation of R.176, which allows rescission of resolutions against the provisions of the Act, Rules, or Bye-laws.
Issues: Validity of the motion of no confidence and the meeting convened for it, interpretation of R.176, and the power of the managing committee to remove the President.
Ratio Decidendi: The court upheld the power of the managing committee to remove the President after passing a motion of no confidence, and found that the meeting for the motion of no confidence was validly convened as per the bye-law. The court also clarified the scope of R.176, allowing rescission of resolutions against the provisions of the Act, Rules, or Bye-laws.
Final Decision: The original petition was dismissed by the court.
1. Parties are agreed that the original petition itself may be taken up and disposed of. Counsel for the first respondent submits that the counter affidavit filed in C.M.P. NO.21931 of 1989 may be treated as the counter affidavit in the original petition.
2. The petitioner was the President of the Manimala Service Co-operative Bank Limited (hereinafter referred to as the Bank), a Co-operative Society registered under the Kerala Co-operative Societies Act, 1969 (the Act). On certain allegations of misconduct, seven out of the thirteen members of the managing committee of the Bank made requisition to the first respondent, Secretary of the Bank, to convene an extraordinary meeting of the managing committee to consider a motion of no confidence against the petitioner. The first respondent felt obliged by bye-law 38(a) of the bye-laws of the Bank to convene the meeting of the managing committee, since the requisition was made by more than one-third of the members of the committee. He accordingly convened a meeting of the Board on June, 23,1989 and served notice thereof on the petitioner on June 20,1989.
3. The petitioner thereupon moved the Assistant Registrar of Co-operative Societies to stop the meeting on the ground that it was not properly convened. But, the latter did not take any action. The meeting was held on June 23, at which the seven requisitionists attended, the others boycotted, and the motion of no confidence was passed. The petitioner then received another notice Ext.P2 dated June 23,1989 from the first respondent Secretary convening a meeting of the managing committee on June 27,1989 to elect a new President. The petitioner moved the Assistant Registrar to stop the meeting, but this time also no action was taken. Thereupon, he filed writ petition O.P.No.5312 of 1989 in this court complaining about the inaction of the Assistant Registrar. The Government Pleader, who appeared submitted before this court that the Assistant Registrar "had not granted permission" to hold the meetings on 23rd or 27th June. This court noted the submission, and closed the original petition with the observation that the petitioner may move the appropriate authority under R.176 of the Kerala Co-operative Societies Rules, 1969 (the Rules) to rescind the resolution passed on June, 23. A copy of the judgment of this court dated July 3,1989 is Ext.P4.
4. The petitioner moved the Joint Registrar accordingly under R.176, raising two points in substance. Firstly he contended neither the Act, the Rules nor the bye-laws contemplated a motion of no confidence for removal from office of the President of a Co-operative Society. Secondly it was stated that the meeting which was held on June 23,1989, at which the motion of no-confidence was passed, had not been validly convened as the Secretary, who convened it, had no authority to do so, either under the Act, the Rules or the bye-laws. The motion of no-confidence passed at such a meeting was therefore null and void.
5. The Joint Registrar rejected the petition by his proceedings Ext.P8. He held that when the managing committee is entitled to elect a President, it was equally competent for them to remove him from office, on principles underlying S.16 of the Interpretation and General Clauses Act, 1125. The decision of this court in Narayanan Nair v. Joint Registrar, 1982 KLT 602 holding likewise was relied on. On the second point, the Joint Registrar took an extreme view. He noted that the challenge to the resolution was based on the invalidity of the meeting at which it was passed. Such invalidity of a meeting, because of lack of quorum, or irregularity in its convening or otherwise, does not fall within the purview of R.176, which permitted recession of a resolution only on certain specified and limited grounds. The petition under R.176 was not therefore, maintainable on the second ground alleged by the petitioner. The petition was therefore rejected.
6. Petitioner challenges Ext.P8, raising the s
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