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2012 Supreme(Ker) 512

HIGH COURT OF KERALA
P.N. RAVINDRAN, J.
Cheranallur Service Co-Operative Bank Ltd.
Versus
State of Kerala, represented by the Secretary to Government, Department of Co-operation
WP(C) No.15440 of 2012 (D)
Decided On : 06-07-2012

Advocates Appeared:
For the Petitioner:N.K. Subramanian, S. Ananthakrishnan, Advocates.
For the Respondent: D. Soamsundram, Spl. Government Pleader.

Headnote:A. Kerala Co-operative Societies Act, 1969, Sections 69(2)(d)- Jurisdiction to entertain the suit is with the arbitration court or with the registrar-registrar is not superior of the co-operative court.

JUDGMENT

1. The petitioner, a co-operative society registered under the Kerala Co-operative Societies Act, 1969, has filed this writ petition challenging Ext.P2 order passed by the Co-operative Arbitration Court constituted under section 70A of the Kerala Co-operative Societies Act, 1969 (hereinafter referred to as "the Act" for short), over ruling the preliminary objection raised by the petitioner society to the maintainability of an Arbitration Case instituted by the fifth respondent and Ext.P1 order passed by the Kerala Co-operative Tribunal on appeal filed by the petitioner society, upholding Ext.P2. The brief facts of the case are as follows:

2. The fifth respondent herein, who entered service as Junior Clerk in the petitioner society on 18.10.1979, was appointed Secretary of the petitioner society with effect from 21.10.1995. He was placed under suspension on 12.6.2007 pending disciplinary action. Months later, a memo of charges dated 23.2.2008 was served on him. On 1.11.2008, the fifth respondent submitted a written statement of defence denying and disputing the allegations levelled against him. A domestic enquiry was held and the enquiry officer submitted a report dated 30.3.2009 finding him guilty. Thereupon, the sub committee of the petitioner society issued a show cause notice dated 27.4.2009 to the fifth respondent and he submitted a detailed reply dated 27.5.2009. The sub committee of the petitioner society that met on 1.6.2009 resolved to dismiss the fifth respondent from service with effect from 12.6.2007, the date on which he was placed under suspension. Though the fifth respondent filed an appeal before the Managing Committee of the petitioner society on 26.9.2009, the appeal was rejected on 5.12.2009.

3. Aggrieved by the order passed by the sub committee dismissing him from service and the order passed by the Managing Committee rejecting his appeal, the fifth respondent instituted A.R.C.No.29 of 2010 under section 69 of the Act, before the Cooperative Arbitration Court. The petitioner society, which is the defendant in the Arbitration Case, filed Ext.P4 written statement dated 19.1.2011 wherein it did not question the jurisdiction of the Co-operative Arbitration Court to entertain the dispute. Simultaneously, the petitioner society filed Ext.P5 preliminary objections wherein it was contended that as the definition of the term "dispute" does not take in disciplinary action, the Arbitration Case is not maintainable. It was contended that clause (d) of sub-section (2) of section 69 of the Act does not relate to disciplinary proceedings, or a dispute raised by a dismissed employee of a co-operative society and therefore, the Cooperative Arbitration Court does not have jurisdiction to entertain the dispute. The petitioner society also filed Ext.P6 application (I.A.No.13 of 2011) requesting the Cooperative Arbitration Court to take up the issue regarding the maintainability of the Arbitration Case as a preliminary issue and to decide it, before proceeding to decide the Arbitration Case on the merits.

4. The Co-operative Arbitration Court considered the preliminary objection raised by the petitioner society and I.A.No.13 of 2011 filed by the petitioner society to take up preliminary issue for consideration and passed Ext.P2 order dated 11.8.2011 overruling the preliminary objection. The Co-operative Arbitration Court held that it had jurisdiction to entertain the dispute raised by the fifth respondent by virtue of the provisions contained in clause (d) of sub-section (2) of section 69 of the Act. Aggrieved thereby, the petitioner society filed an appeal before the Kerala Co-operative Tribunal. By Ext.P1 order passed on 9.5.2012, the Kerala Co-operative Tribunal dismissed the appeal and confirmed Ext.P2 order. Hence this writ petition seeking the following reliefs:

(i) Call for the records leading to Ext.P1 and Ext.P2 passed by 3rd and 4th respondents respectively, by issuing a writ in the nature of certiorari or an






















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