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2008 Supreme(Ker) 551

Judgename : THOTTATHIL B.RADHAKRISHNAN
Managing Committee of Kandalloor - Appellant
Versus
Joint Registrar of Co-Operative Societies - Respondents
Case No : WP(C).No. 4661 of 2008 (E) & 7339 OF 2008-W
Decided On : 10/17/2008

Advocates Appeared:For the Petitioner:George Poonthottam, Advocate. For The Respondent:K. Ramakumar (Sr.), Advocate.

Headnote:

Kerala Co-operative Societies Act, 1969 - S. 32(1) - Writ Petitions are by the managing committee of a Co-operative Bank. committee was superseded as per order - Issuance of Ext.P4 notice and Ext.P11 order under S. 32 lacks jurisdictional foundation and is arbitrary and mala fide - Held, employer society, going by the scheme of the Act and Rules, is empowered to decide on appeals in exercise of statutory power. This is done through the committee after the sub-committee decides on the punishment. If there is failure in exercising a statutory power, it would well be within the Registrar's authority to interfere with that. Merely because the punishment that was ultimately given is unsustainable in the views of the Joint Registrar, that cannot, by itself, lead to a situation of supervisory lapse. Not only that, without the delinquent being put to notice, there is no conceivable ground on which there could be a review by any statutory authority on that issue. Similar is the case of promotion given to certain staff. The said issue also essentially calls for a decision only with the junction of the concerned employee. Still further, that is a matter which the Registrar could have rectified in exercise of statutory power. Similarly, there is no answer in Ext.P11 to the objections in Ext.P10 that amendments to Feeder Category Rules still continue to lie on the table of the first respondent without being attended to. The specific objections given on the question of procurement of coconut and other matters, including the question of computerization, have also not been, obviously, considered. These materials are noticed from among those in Ext.P11, only to notice that no major defect as contemplated in sub-s.(6) of S.65 was noticed by the Joint Registrar at any point of time before, or at least while, issuing Ext.P4.- Hence order lacks jurisdictional support and is vitiated in law and is hence, arbitrary - Petition allowed.

Judgment :-

"CR"

1. These writ petitions are by the managing committee of a Co-operative Bank. That committee was superseded as per order dated 20-2-2008 which is marked Ext.P11 in WP(C).7339/2008. WP(C). 4661/2008 was filed challenging the notice dated 29-1-2008 issued under Section 32(1) of the Kerala Co-operative Societies Act, 1969, hereinafter referred to as the "Act". That document is Ext.P4 in WP(C).7339/2008. Noticing the different contentions in WP(C).4661/2008, an interim order was issued on 8-2-2008 in that case. It was thereafter that the order impugned in WP(C).7339/2008, Ext.P11 therein, was issued by the Joint Registrar exercising the powers of the Registrar. The implementation and all further proceedings pursuant to that order stand stayed as per interim order dated 3-3-2008 granted at the stage of admission of WP(C).7339/2008.

2. Having regard to the pleadings, materials and the issues arising for decision, these writ petitions are heard jointly and are being decided as per this common judgment by making reference to the documents as are placed in WP(C).7339/2008.

3. In the gist, the contentions of the petitioner are that the issuance of Ext.P4 notice and Ext.P11 order under Section 32 lacks jurisdictional foundation and is arbitrary and mala fide. It is contended that in answer to Ext.P2 notice under Section 65(5) of the Act, the petitioner submitted Ext.P3 reply and no decision was rendered thereon; but what ultimately followed was Ext.P4 notice under Section 32 and that the same cannot be the outcome of a proceedings under Section 65(5). It is further contended that the specific objections placed as per Ext.P10, with reference to the ten enumerated grounds in Ext.P4, have not been considered, while issuing Ext.P11 as is expected of an administrative authority, bestowed with statutory power. It is submitted that the impugned decision has been made without adverting to and considering relevant materials.

4. The official respondents have placed counter affidavits. The additional respondent, impleaded at his instance, also contests.

5. Heard.

6. It is argued that Ext.P4 notice under Section 32 has been issued without jurisdiction in so far as the proceedings were not concluded after the enquiry in terms of Section 65(5) on the basis of Ext.P3 objections to Ext.P2 notice under Section 65 and still further, that the impugned order has been passed even when the Circle Co-operative Union, a consultant in terms of Section 32, has recommended against supersession, while the other consultant, the District Co-operative Bank, going by Ext.P11, did not provide any opinion. It is argued on behalf of the petitioner that the committee superseded as per Ext.P11 had come into office only in November, 2003 and though none of the members of that committee was member of the previous committee, Ext.P4 notice has been issued levelling seven allegations therein as regards conducts attributable exclusively to the previous committee.

7. Onbehalf of the respondents, in particular, on behalf of the impleaded respondent, it is argued that having regard to the scope of the jurisdiction under Article 226, this Court is not to sit in appeal on the findings contained in Ext.P11 which have been rendered on the basis of the materials and in the absence of any situation of lack of jurisdiction or absence of materials, the visitorial jurisdiction of this Court would not extend to erase the impugned order passed under Section 32.

8. In considering the rival contentions, it needs to be noticed at the outset that Ext.P2 notice was issued for an enquiry under Section 65(5) of the Act. This is beyond dispute in view of the statements in the opening paragraph of Ext.P4. Ext.P3 is the reply given by the petitioner to that notice. Going by Ext.P4, it appears that after Ext.P3 reply dated 30-11-2007, the Joint Registrar had obtained report dated 22-1-2008 from the Assistant Registrar (General) Karthikappally which, on a reading of the first paragraph of














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