Judges : K.K.NARENDRAN
CHERANELLUR CO-OPERATIVE SOCIETY LTD. - Appellant
Versus
DEPUTY REGISTRAR - Respondent
Case No : O. P. No. 4019 of 1974
Decided On : 04/07/1976
Advocates Appeared :
Siby Mathew; For Petitioner Government Pleader; For Respondent
Enquiry - Co-operative Society - The court quashed the proceedings ordering an enquiry into the constitution, working, and financial conditions of the petitioner-society under S.65 of the Kerala Co-operative Societies Act, 1969, as the specific points for the enquiry were not indicated in the proceedings, contravening R.66(1)(c) of the Rules.
Fact of the Case:
The petitioner, a co-operative society, challenged the proceedings of the Assistant Registrar of Co-operative Societies ordering an enquiry into the society's constitution, working, and financial conditions. The petitioner contended that the proceedings were vitiated due to non-compliance with R.66(1)(c) of the Kerala Co-operative Societies Rules, 1969.
Finding of the Court:
The court found that the proceedings ordering the enquiry were not sustainable as they did not specify the specific point or points on which the enquiry was to be conducted, as required by R.66(1)(c) of the Rules. Consequently, the court quashed the proceedings and allowed the original petition with no order as to costs.
Issues: The main issue was the compliance with R.66(1)(c) of the Kerala Co-operative Societies Rules, 1969 in the proceedings ordering an enquiry into the petitioner-society.
Ratio Decidendi: The court held that the specific point or points on which an enquiry is to be made must be indicated in the proceedings ordering the enquiry, as insisted by R.66(1)(c) of the Rules. Without such indication, no proper enquiry would be possible, and the proceedings cannot be sustained.
Final Decision: The original petition was allowed, and the court quashed the proceedings ordering the enquiry into the petitioner-society, with no order as to costs.
1. The petitioner in this original petition is a co-operative society represented by its President. The grievance of the petitioner is against Ext. P1 proceedings of the 2nd respondent-Assistant Registrar of Co-operative Societies ordering an enquiry into the constitution, working and financial conditions of the petitioner - society under S.65 of the Kerala Co-operative Societies Act, 1969 for short the Act. The main contention of the petitioner is that Ext P-1 proceedings is vitiated for the reason that R.66 (1) (c) of the Kerala Co-operate Societies Rules, 1969, for short the Rules, is not complied with. societies
2. The election to the Board of Management took place on 23 91973 and the present Board assumed office on 7-10-1973. As per the bye-laws of the society, two members were to be nominated by the Registrar and accordingly two members of (he society who were defaulters and hence disqualified to be nominated were, as a matter of fact, nominated. This was challenged by the petitioner before this Court in O.P. No. 3965 of 1973 and the nomination questioned therein was stayed by this Court as per order dated 12-12-1973. According to the petitioner, the 1st respondent-Deputy Registrar of Co-operative Societies and the other officers of the department began to take an antagonistic attitude towards the society in view of the filing of the above original petition The petitioner's further case is that Ext. P1 proceedings of the 2nd respondent ordering an enquiry under S.65 of the Act is the result of the above unhelpful attitude of the respondent.
3. A counter-affidavit has been filed on behalf of the 1st respondent and in Para.11 of the above counter-affidavit the allegation of mala fides against the respondent is denied.
4. Shri Siby Mathew, learned counsel for the petitioner, contends that the 2nd respondent cannot overlook the mandatory provisions contained in R.66 (1) of the Rules in issuing the proceedings like Ext. P-1 orderings an enquiry under S.65 of the Act. R.66 (1) of the Rules reads:
"66. Procedure for the conduct of inquiry and inspection. (1) (i) An order, authorising inquiry under S.65 or inspection under S.66 shall among other things, contain the following:
(a) the name of the society whose affairs are to be inquired into or whose books of accounts are to be inspected;
(b) the name of the person authorised to conduct the inquiry or inspection;
(c) the specific point or points on which the inquiry or inspection is to be made, the period within which the inquiry or inspection is to be completed and report submitted to the Registrar;
(d) costs of inquiry or inspection;
(e) any other matter relating or pertaining to the inquiry or inspection."
Learned Government Pleader has no specific answer to the above contention raised by the learned counsel for the petitioner. The stand taken by the learned Government Pleader is that there are charges of misappropriation in the petitioner-society which are being enquired into by the Vigilance Department and in the above circumstances an enquiry under S.65 of the Act cannot be said to be out of place.
5. No doubt, under S.65 of the Act, the Registrar or any other officer of the department to whom the powers of the Registrar are delegated by the notification can order an enquiry. But in ordering an enquiry the specific point or points on which the enquiry is to be made are to be made known in the proceedings that is issued. This is what is insisted by R.66 (1)(c) of the Rules. Not only that, without indicating in the proceedings that is to precede an enquiry, the point or points on which enquiry is to be conducted, it goes without saying that no proper enquiry will be possible. Again, for the society and its office bearers to face the enquiry in a just manner the indication of the pointer points on which the enquiry is to be conducted in the proceedings is only essential. In this view of the matter, Ext. P-1 proceedings cannot be sustained.
Hence I quash Ext. P-1.
6. The origina
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.