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IN THE HIGH COURT OF KERALA AT ERNAKULAM
SHAJI P. CHALY, J.
The Board of Directors of The Decent Junction Service Co-Operative Bank Ltd. - Petitioner
Versus
The Registrar of Co-Operative Societies, Thiruvananthapuram & Others - Respondents
W.P.(C) Nos. 24376 & 27980 of 2017
Decided On : 04-10-2017
Election Dispute - Cooperative Bank - Kerala Co-operative Societies Act, Rules 16(3) and 35A - The court resolved an election dispute related to the Decent Junction Service Co-operative Bank Ltd., Kollam. The judgment discussed the provisions of Kerala Co-operative Societies Act and Rules 16(3) and 35A, highlighting the authority of the managing committee to remove ineligible members and the powers of the electoral authorities to remove ineligible members from the voters list. The court issued a direction to conduct the election and appointed an administrative committee to manage the affairs of the society.
Fact of the Case:
The writ petitions were filed by the Board of Directors and members of the Decent Junction Service Co-operative Bank Ltd., Kollam, regarding the conduct of the bank's election. The dispute arose from the enrollment of members residing outside the area of operation of the society and the subsequent actions taken by the 3rd respondent.
Finding of the Court:
The court found that the election to the Board of Directors of the society should be conducted sufficiently earlier to the expiry of the Board of Directors, as per the Kerala Co-operative Societies Act and Rules. It also determined that an administrative committee should be appointed to manage the affairs of the society on the expiry of the term of the managing committee.
Issues: The main issue was whether a direction should be issued to conduct the election to the Board of Directors of the society and the nature of the administrative committee to take over the management of the society.
Ratio Decidendi: The court held that the managing committee has the power to remove ineligible members from the membership of the committee, and the electoral authorities have the power to remove ineligible members from the voters list. It also determined that an administrative committee should be appointed to manage the affairs of the society on the expiry of the term of the managing committee.
Final Decision: The court allowed the writ petitions to the extent of issuing a direction to conduct the election and appointing an administrative committee to manage the affairs of the society.
1. These writ petitions are filed by the Board of Directors of the Decent Junction Service Co-operative Bank Ltd., Kollam, and the members of the said bank respectively. The basic reliefs sought for in the writ petition are in respect of conduct of election to the aforesaid bank. Since the writ petitions have common feature, I have heard them together and propose to deliver a common judgment. Facts discernible from W.P.(C) No.24376 of 2017 are described in order to dispose of both the writ petitions.
2. Petitioner is the Board of Directors of the Bank specified above. The main activities of the bank is disbursing agricultural and non-agricultural loans to its members, and receiving deposits from members and non-members etc. etc. The area of operation of the society is within Thazhuthala Village of Thrikovilvattom Grama Panchayat. The total number of members is 11374 and the total deposit is Rs.128 Crores. The total loan amount is Rs.21 Crores, and the bank is running on profit from the year 2000 onwards. The bank is also classified as Class-I Special Grade.
3. The bye-law of the society was approved by the 2nd respondent, in which the area of operation of the society is clearly mentioned in clause 5, evident from Ext.P1. Initially, the area of operation of the society was in one ward of the Thrikovilvattom Panchayat, when the total number of wards were only 7. At present there are 23 wards in Thrikovilvattom Panchayat after several bifurcations. Thus the area of operation is now in three wards of Thrikovilvattom Panchayat, and the area of operation of Thrikovilvattom Service Cooperative Bank, which was established prior to the petitioner society is extended to 20 wards.
4. As per the bye-law of the society, petitioner is entitled to enroll members who acquired the qualification as per clause 5(a) of the bye-law. The existing Board of Directors of the bank were elected in the election conducted on 07.10.2012. The 3rd respondent vide proceedings dated 07.10.2012 approved the voters list prepared by the then managing committee, who are qualified to exercise their franchise in the election to the managing committee. The members who are included in the voters list are members of the bank for the past several years and they have voted in several elections conducted during the past. The 5th respondent filed a complaint against Mohanan Pillai, a member of the managing committee of the society, alleging that the said Mohanan Pillai is not residing within the area of operation of the society. On the basis of the complaint, the 3rd respondent issued a notice dated 15.05.2017, to show cause as to why his membership shall not be cancelled. Mohanan Pillai filed W.P.(C) No.17004 of 2017 before this Court and obtained a stay, evident from Ext.P2, and the said writ petition is still pending consideration.
5. The managing committee of the society took resolution No.7 dated 08.07.2017 resolving to conduct election to the managing committee of the society on 17.09.2017, and forwarded the resolution along with supporting documents to the 4th respondent through the 3rd respondent on 13.07.2017, evident from Ext.P3. The power to conduct election is vested with the 4th respondent and the resolution shall be forwarded only through the Assistant Registrar as per the Rules, which thus means, the Assistant Registrar shall forward the resolution immediately to the Election Commission to take a decision regarding the conduct of election.
6. However, the society received a notice from the 3rd respondent on 12.07.2017, stating that the 3rd respondent received a complaint from the 5th respondent alleging that more than 3200 ineligible members are enrolled from outside the area of operation of the society. It is also stipulated thereunder that the managing committee shall remove those persons who are enrolled as members and who are residing outside the area of operation of the society, and report within 15 days to the 3rd respondent, evident from Ext.P4.
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