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Judges : BALANARAYANA MARAR
Sasi - Appellant
Versus
Registrar of Co-operative Societies - Respondent
Case No : CM.P. No. 16686 of 1992 in O.P. 9596 of 1992
Decided On : 08/26/1992
Advocates Appeared :
M.K. Damodaran For Petitioner Addl. Advocate General (V.K. Beeran) & T.P. Kelu Nambiar For Respondents
Co-operative Societies Act - Appointment of Administrator - S.33 - S.34 - The court considered the appointment of an administrator under S.33 of the Co-operative Societies Act and the procedure for handing over charge of records and property under S.34. The court held that the administrator had not taken charge as the outgoing managing committee had refused to hand over the records and properties, and the administrator had not followed the procedure under S.34 to secure possession. The court also emphasized that assumption of charge without following the prescribed procedure creates administrative difficulties and is illegal and inoperative.
Fact of the Case:
The Registrar of Co-operative Societies appointed an administrator for a co-operative society due to a reduced managing committee quorum. The managing committee challenged the order, claiming they had not handed over charge to the administrator.
Finding of the Court:
The court found that the administrator had not taken charge as the managing committee had refused to hand over the records and properties. The court also held that assumption of charge without following the prescribed procedure under S.34 is illegal and inoperative.
Issues: The key issue was whether the administrator had taken charge of the society's management, and the interpretation of the procedure under S.34 for handing over charge of records and property.
Ratio Decidendi: The court emphasized that the procedure under S.34 must be followed when the outgoing managing committee refuses to hand over charge, and assumption of charge without following this procedure is illegal and inoperative.
Final Decision: The court held that the administrator had not taken charge, and the stay order on the appointment of the administrator would remain in operation until the disposal of the original petition.
The Registrar of Co-operative Societies by order dt. 24-7-1992 appointed the Joint Registrar of Co-operative Societies, Kannur as part-time administrator of Regional Agro-Industrial Development Co-operative Ltd. (RAIDCO for short) for a period of six months of till an elected Board" take charge, whichever is earlier. The administrator was directed to take charge immediately and take further urgent steps to constitute a new elected committee at the earliest. The reason for appointing a new administrator is stated to be that the strength of the members of the managing committee has been reduced to 3 and that cannot constitute the required quorum. The Registrar has therefore acted under S.33 of the Co-operative Societies Act .to remove the administrative stalemate in the society. Challenging this order the managing committee filed the O.P. seeking to quash the order and a direction permitting them and other elected members to continue in office. Along with the O.P. this C.M.P. was also filed-requesting stay of operation of the order of the Registrar. Notice was given to the Government Pleader. He rep resented that the administrator has taken charge. This was disputed by counsel for the petitioner who submitted that the administrator had not so far taken charge of the administrator. In the circumstances interim stay was granted on condition that the order will take effect only if the administrator has not taken charge by then.
2. A counter affidavit was filed by the administrator, the Joint Registrar of Cooperative Societies, Kannur wherein it is inter alia stated that he had been appointed as administrator to manage the affairs of RAIDCO. He had been to Thiruvananthapuram on the 23rd and 24th of July. Copies of the proceedings of the Registrar addressed to him and the General Manager of RAIDCO were handed over to him. He had proceeded to the office of RAIDCO on25-7-1992. At 10.30 a.m. the copies of the order were handed over to the General Manager. Since the General Manager refused to handover the minutes book of the society, he opened a new minutes book and the fact of taking charge as administrator on the fore-noon of 25-7-92 was recorded therein, The Registrar of Cooperative Societies was informed of taking charge. Various newspapers had also reported this fact. He attended the office on 27-7-92 and verified the daybook and vouchers and attested the daybook. The General Manager was not in the office at that time. The administrator is alleged to have been threatened over telephone. Accompanied by a team of policemen led by the Circle Inspector of Police he went to the office on 28-7-1992 at 4 p.m. A large crowd had gathered and they started threatening him. He proceeded to Ernakulam during the night of 28-7-1992 and gave instructions for preparing the counter affidavit.
3. The 4th respondent in the O.P., the General Manager of RAIDCO, is not a party to this civil miscellaneous petition. A counter affidavit was filed by him supporting the petitioners and denying the averments in the counter affidavit of the Joint Registrar regarding the taking charge of office on 25-7-1992. It is stated that he was away on 25-7-1992 and that none of the officers of the Department had gone to the office or handed over any order to him. He was present in the office during office hours on 27-7-1992. No order was served on him, nor did the administrator go to the society's office on that day. The Joint Registrar had gone there with the assistance of policemen at 4.30 p.m. on 28-7-92. He did not verify any records. He checked certain records and left the place. The minutes book and other relevant records were in the office. The Joint Registrar who was appointed as the administrator had not taken charge of the affairs of the society. The 4th respondent claims to be in management of the affairs of the society. Though the 4th respondent is not made a party to this C.M.P., the counter affidavit filed by him was received and Sri. T.P. Kelu Nambi
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