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2014 Supreme(Ker) 680

KERALA HIGH COURT
ASHOK BHUSHAN, A. M. SHAFFIQUE , A. V. RAMAKRISHNA PILLAI , A. HARIPRASAD , A. K. JAYASANKARAN NAMBIAR, JJ.
Association of Milma Officers‚Thiru-vananthapuram and another – Appellant
vs
State of Kerala and others – Respondents
WP (C) No. 9981 of 2010
Decided On : 17/12/2014

Headnote:Co-operative Societies Act, Section - Co-operative Societies Act (Kerala), 1969 - Constitution of India, 1950 Article 12 and 226 Writ petition is not maintainable as corporative society come under the per view of article 12 but is maintainable if there is any statutory violation from the part of the society or breach of duty

Judgement Key Points

Key Points: - The judgment discusses maintainability of writ petitions under Article 226 against Co-operative Societies under Kerala Co-operative Societies Act, 1969. (!) - It holds that writ petitions are maintainable against Co-operative Societies only in specific circumstances such as violation of statutory provisions or public duty. (!) - It clarifies that when there is no breach of statutory or public duty, writ petitions against Co-operative Societies are not maintainable. (!) - It approves John and Bhaskaran jurisprudence to define the reach of Article 226 and its application to non-state bodies performing public duties. (!) (!) - It states that a Co-operative Society is not automatically an Article 12 "state," and writs under Article 226 can lie even if not under Article 12 if public duty or statutory violation is involved. (!) (!) - It emphasizes the broad, flexible scope of Article 226 to enforce statutory obligations and public duties, and rejects rigid limitations. (!) (!) - It notes that Staff Regulations of a Co-operative Society, if non-statutory, do not by themselves render writ petitions maintainable. (!) (!) - It concludes with dismissal of the present writ petition as not maintainable under Article 226. (!)

How to determine maintainability of a writ petition under Article 226 against Co-operative Societies?

What is the scope of Article 226 to issue writs to non-state bodies performing public duties?

What are the circumstances under which writ petitions against Co-operative Societies are maintainable or not?


JUDGMENT :

Ashok Bhushan, J. :

” This Larger Bench has been constituted to answer the reference made by a three Judge Bench vide referring order dated 09-01-2012. The Division Bench which heard the writ petition, in turn, made a reference by their order dated 18-10-2010 on which a three Judge Bench was constituted. It is useful to quote the reference order of the three Judge Bench dated 09-01-2012 which is to the following effect.

' Pursuance to reference made by a Division Bench of this Court, this case is posted before us today. We notice from the reference order that the Bench which referred the matter does not consider the Division Bench judgment in W.A.No.206/1982 and the decision reported in Bhaskaran & others v. Addl. Secretary & others, reported in 1987(2) KLT 903 : (AIR 1988 Ker 75) declaring that Co-operative Societies are not amenable to writ jurisdiction do not appear to be correct. In the reference order itself they have referred to decision of the Supreme Court in S.M.V.S.J.M.S.Trust v. V. R. Rudani reported in AIR 1989 SC 1607 and later decision of this Court in Secretary, Cannanore District Muslim Educational Association v. State of Kerala, reported in ILR 2010(2) Kerala 753. There is yet another Full Bench decision in John v. Liquidator, reported in 2006(1) KLT 11 : (2006 AIHC 604 (Ker)) holding the position that writ is not maintainable against a Co-operative Society. Besides the contrary position declared by the Supreme Court cited by the Division Bench in the reference order, we notice in the decision in Sumangalam Co-operative Housing Society Ltd. v. Suo Motu High Court of Gujarat, 2007(2) SCC 301 : (AIR 2007 SC 671) the Supreme Court proceeded to examine the matter on merit assuming that writ is maintainable against a society. Above all, we notice that there has been an amendment by Act 7 of 2010 amending Section 9 and simultaneously introducing Section 66A in the Co-operative Societies Act which gives substantial Government authority on societies. We, therefore, concur with the view taken by the Division Bench that the earlier view that writ is not maintainable against society may no longer be good law. However, since judgments rendered are by Full Bench, we feel a larger Bench should decide the matter. We, therefore, refer this matter for decision by a larger Bench. Registry will take orders from the Hon” ble Chief Justice and post the case.'

2. The learned counsel for the petitioners submits that the 7th respondent has attained the age of superannuation, hence reliefs claimed in the writ petition has virtually become infructuous. He, however, submits that reference having been made to the Larger Bench to answer the issues, the issues be considered on merit. Hence we proceed to consider the submissions for the purpose of deciding the questions.

3. Before we proceed to consider the submissions made and the issues raised by the parties, it is necessary to look into the relevant facts giving rise to the writ petition. The 1st petitioner is an Association of Officers working at Thiruvananthapuram Regional Co-operative Milk Producers Union Ltd., and the 2nd petitioner was working as Senior Manager in Charge of the said Union. Petitioners” case is that the 2nd respondent is a Society registered under the Kerala Co-operative Societies Act, 1969 and governed by its own bye laws. The objectives of the Union are to carry out the activities conducive to the socio-economic development of the Milk Producers. The apex body of the Union is the Board of Directors. It is further pleaded that rules and regulations regarding appointment, termination and other matters regarding the conditions of service of the 2nd respondent was governed by the Staff Regulations of the 2nd respondent which are annexed as Ext.P1. It is their case that even though the 2nd petitioner was eligible to be appointed in the post of Senior Manager (Dairy), respondents 3 and 4 were taking hasty steps to appoint the 7th respondent to the said post. Pet







































































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