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High Court of Kerala
C.N. RAMACHANDRAN NAIR & BABU MATHEW P. JOSEPH
Koothali Service Co-Operative Bank Ltd. Rep. By Its President K. Rajan
Versus
The Electoral Officer/Assistant Registrar Co-Operative Societies, Quilandy Circle Office Of The Joint Registrar Of Co-Operative Societies (G) Kozhikode & Another
W.P.(C) Nos.6097 & 6404 of 2012
Decided On : 04-04-2012
Co-operative Societies Act - Inclusion of Additional Members in Voters List - Summary: The court addressed the controversy surrounding the inclusion of additional members in the voters list of a co-operative society. It emphasized the democratic scheme of management and the absolute control of the society by the general body, highlighting the importance of adequate publicity and opportunity for members to retain their membership. The court directed the society to publish the increase in share value, prepare the voters' list in accordance with the rules, and vacate the notification publishing the election, ensuring compliance with the judgment.
Fact of the Case:
The Co-operative Bank challenged the orders for inclusion of additional members in the voters list. The society had increased the face value of shares, leading to controversy over the membership and voting eligibility of the members.
Finding of the Court:
The court found that conducting an election with only 10% of the society members would defeat the purpose of the democratic scheme of management. It concluded that inadequate publicity about the increase in share value resulted in members losing their membership without their knowledge.
Issues: Controversy over inclusion of additional members in the voters list, conducting election with only 10% of the society members, and inadequate publicity about the increase in share value.
Ratio Decidendi: The absolute control of the society is with the general body, and election to the managing committee is from the general body. The democratic scheme of management will be defeated if 90% of the members are kept out of the voters list. Inadequate publicity about the increase in share value resulted in members losing their membership without their knowledge.
Final Decision: The court directed the society to publish the increase in share value, prepare the voters' list in accordance with the rules, and vacate the notification publishing the election, ensuring compliance with the judgment.
Ramachandran Nair, J.
1. The connected Writ Petitions are filed by the same Co-operative Bank challenging the orders issued by the Joint Registrar for inclusion of additional members in the voters list. In Ext.P9 produced in WPC 6404/2012 the Assistant Registrar directed inclusion of 263 persons as members of the society eligible to vote. The names of eligible members are given in Ext.P10. It is against this proceeding of the Assistant Registrar the society has filed W.P.(C) 6404/2012. In the other W.P.(C) order under challenge is the one issued by the Joint Registrar directing inclusion of 1700 persons as members of the society. We have heard counsel appearing for the appellants, Special Government Pleader for the Government and the statutory authorities and also counsel appearing for the contesting parties.
2. The facts leading to the controversy are the following. The petitioner-society has 1849 members and the face value of each share held by members was increased from Rs.50/- to Rs.100/- in 2007 which was paid by them. While so, a special general body was convened on 11.5.2011 for the purpose of increasing share value from Rs.100/-to Rs.500/-. Altogether 31 members participated in the general body meeting wherein the proposal was approved. Since the resolution was approved with the number of members in excess of minimum for quorum, the Joint Registrar registered the resolution on 5.8.2011. However, instead of giving wide publicity by publishing the increase in face value of share and giving opportunity to the members to contribute to the additional share value to retain their membership, the society published the notification on 5.8.2011 in two relatively unknown newspapers which admittedly do not have wide circulation in the area. Probably as a result of this, most of the members of the society could not pay up increased share value to retain their membership. As a result of this, the petitioner-society treated 1658 out of 1849 members as excluded from membership of the society retaining only 84 members entitled to vote which was subsequently increased by 106 making the total members eligible to vote at 190. The election now proposed is with 190 members which is only around 10% of the total members of the society namely, 1849. It is against the proposal to conduct election with around 10% of the members of the society, the statutory authorities have intervened which is the subject matter of challenge in these W.P.(C)s.
3. After hearing both sides, we are convinced that election to the managing committee with 10% members of the society will defeat the very purpose of election. Under Section 27 of the Kerala Co-operative Societies Act the absolute control of the society is with the general body and election to the managing committee is from the general body. The democratic scheme of management of the society will be defeated if 90% of the members are kept out of voters list. We are convinced that the inadequate publicity given about the increase in share value has resulted in the members losing their membership in the society without even knowing it. We, therefore, dispose of the Writ Petitions by issuing the following directions.
4. There will be direction to the society to publish the increase in share value in the notice boards of the society and it's branches, if any, and also in the local area by posters and give publication in one of the leading dailies namely, Malayala Manorama or Mathrubhoomi immediately after the strike by the newspaper agents is over giving atleast one month time to the members from the date of publication to pay up the balance share value in terms of the resolution registered by the Registrar. The voters' list will be prepared in accordance with the Rules after expiry of the time provided for remittance of balance share value by the members. The Notification publishing election will stand vacated and there will be direction to the Co-operative Election Commission to hold election a
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