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2015 Supreme(Ker) 1035

IN THE HIGH COURT OF KERALA AT ERNAKULAM
ASHOK BHUSHAN & A.M.SHAFFIQUE, JJ.
THE PRESIDENT, PEECHI SERVICE CO-OPERATIVE BANK PEECHI, PATTIKKAD P.O, THRISSUR DISTRICT -680 652. – Appellant
Vs.
TESSY VARGHESE, VATTAMKONDATHIL HOUSE, ASSARIKADU PO, THRISSUR -680751 & Anr. – Respondents
WA.NO. 1895 OF 2015
Decided on : 23.9.2015

Advocates:
Advocate Appeared:
For the Appellant : SRI.GEORGE POONTHOTTAM
For the Respondent: SHRI M.P.ASHOK KUMAR, SHRI D.SOMASUNDARAM

Headnote:

Kerala Co-operative Societies Act 1969 - Sections 17( 1) & 17( 2) - Rules Co-operative Societies Rules 1969 - Rule 18 - Statutory violation - Expulsion from primary membership of the Co-operative Society -Power of the general body to expel a member - Held, Rule 176 is to annihilate an autonomous institution which enjoins a constitutional status cannot be accepted. Statutory regulation has been provided on the functioning of the society and entrusting the Registrar with the power to rescind any resolution which is contrary to the Act cannot be said to be any act towards annihilating the autonomous institution - parameters of exercise of power under Rule 176 are engrained in the rule. We do not thus approve the view of the learned Single Judge that Rule 176 could not have been resorted against the resolution passed by the Committee of Management or general body of the society

Judgment :

Ashok Bhushan, C.J.

This Appeal has been filed by a Co-operative Bank and its President who were respondent Nos.5 and 4 to the Writ Petition filed by three petitioners, members of the Managing Committee of the Bank, challenging the proceedings initiated by the Bank for their expulsion from primary membership of the Bank. The learned Single Judge allowed the Writ Petition directing that the petitioners shall continue to be the members of the Bank.

2. The parties shall be referred to as described in the Writ Petition.

3. Brief facts of the case giving rise to this Writ Appeal are:

Writ Petitioners were elected as members of the Managing Committee of the Bank (Directors of Board of Management of the Bank) on 05.09.2012. Petitioners 1 to 3 and other members of the Managing Committee sent a complaint dated 15.07.2013 to the Joint Registrar of Cooperative Societies, Thrissur making allegations against the Secretary of the Bank. Again a complaint dated 07.09.2013 was submitted by the petitioners complaining against the President and Secretary who according to petitioners were not permitting them to sign the attendance register. The Joint Registrar issued an order dated 21.04.2014 on the complaint submitted by the petitioners after hearing all the parties. The Joint Registrar observed that President and Secretary should recognize the rights of the complainants as members of the Managing Committee, the Bank should also make available the petitioners the monthly income and expenditure account of the Bank. A first information report was also lodged by the second petitioner against the Secretary and President of the Bank under Sections 509, 294B, 506(i) and 34 of the Indian Penal Code. The Board of Directors passed a resolution on 02.05.2015 taking a decision to expel the petitioners from the primary membership of the Bank under Section 17 of the Kerala Cooperative Societies Act, 1969 (hereinafter referred to as “the Act”) read with Rule 18 of the Kerala Co-operative Societies Rules, 1995 (hereinafter referred to as “the Rules') by convening an extraordinary general body meeting before which an explanation was also sought within 15 days, from the petitioners. Petitioners aggrieved by the resolution dated 02.05.2015 filed appeal before the Registrar of Co-operative Societies under Rule 176 of the Rules praying for rescinding the resolution dated 02.05.2015. The Bank issued a show cause notice dated 05.05.2015 to all the petitioners alleging that petitioners have been working against the interest of the Bank. Seven instances were narrated in the show cause notice on which explanation of the petitioners was asked within 15 days after receipt of the notice failing which it was to be deemed that petitioners have no explanation to be given and further proceedings will be taken under Section 17 of the Act read with Rule 18 of the Rules. Notice was received by the petitioners on 08.05.2015. By letter dated 09.05.2015 petitioners prayed for some documents to be given. It was prayed that time limit be also extended for a period of 30 days. Forty four documents sought for by the petitioner were given to them on 28.05.2015. By letter dated 12.06.2015 petitioners further prayed that they be given 30 days' time from that day for submitting reply to the show cause notice dated 05.05.2015. In reference to the show cause notice and reply dated 12.06.2015, petitioners were informed that documents having already been forwarded to them, their prayer for granting further 30 days' time cannot be accepted. Bank issued a notice dated 20.06.2015 for convening special general body meeting of the Bank on 28.06.2015 at 3.00 p.m. Agenda of the meeting included the matter regarding expelling the primary membership of the petitioners. Petitioners filed W.P(C) No.19146 of 2015 praying for the following reliefs:

i. Issue a writ of mandamus or other appropriate writ order or quashing Ext.P5 and Ext.P8 series of show cause notices.

ii. Declare that the board of di















































































































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