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2013 Supreme(Ker) 961

IN THE HIGH COURT OF KERALA
K. VINOD CHANDRAN, J.
Benny Peruvanthanam - Petitioner
Versus
Kerala State Co-operative Consumer's Federation Ltd. rep. by its managing Director & others. - Respondent
W.P. (C) No. 17672 of 2013
Decided on : 21-11-2013

Advocates Appeared:
For the Petitioner:P. Ravindran, Sr. Advocate, M.R. Sabu, Advocate.
For the Respondent:Joy George, Standing Counsel, D. Somasundaram, Spl. Government Pleader, Sudhi Vasudevan, K. Pushpavathi, Jose Jones Joseph, Advocates, Raju Joseph, Sr. Advocate, J. Julian Xavier, Advocate.

Headnote:

Kerala Co operative Societies Act,1969 - Section. 31 - Constitution of India (97th Amendment), Part IXB and Article.243XJ( 2) - Power of nomination conferred on the Government- Manner run counter- Repugnant to the constitutional provisions- Statutory bar- Board of the Apex or Central Society- Pre-amended sub-section- Apex Society is confined to 2 and they still enjoy the pleasure of the Government.- Occupying an office of the Board despite- Unamended provisions- ultra vires the Constitution of India- Operation to Apex or Central Societies- Government to bring in retrospective exemption -Held, prohibiting nomination in any other manner and it only confers the power on the Board to nominate from the same class of members, in the event of casual vacancy. The power of co-option conferred under clause (3) of Art.243ZJ also cannot be said to be a prohibition on nomination of members to the Board-Government or authority could nominate by reducing it from 3 to 2. A nomination made under the pre-amended sub-s.(1) necessarily would continue after the amendment too, provided the number of nominated persons in an Apex Society is confined to 2 and they still enjoy the pleasure of the Government-statutory prohibition in any nominated member from occupying an office of the Board, despite his/her election as per the unamended provisions, the same would cease to have effect from the date of such prohibition. The prospective nature of the amendment does not at all aid the respondents 3 and 5 to continue in the office to which they were elected. Neither the nomination nor the election to the office of the President or Vice-President can be said to have created vested rights on the respondents 3 and 5. On sub-s.(2A) coming into the statute book,- The Government is empowered to exempt any of the societies from the provisions of the Act or apply such provisions with such modifications as may be specified. An exercise of the power under S.101 to exempt any society from the rigour of sub-s.(2A) of S.31 is perfectly within the jurisdiction of the Government-intention of the Government also was to see that the elected office bearers may be continued till the expiry of the term of office, is the plea. In law, not touching upon policy, the best of intentions would fail in the context of sheer absence of power.

JUDGMENT :

K. Vinod Chandran, J.

The question raised herein is whether the persons nominated by the Government under Section 31 of the Kerala Co-operative Societies Act, 1969 (hereinafter referred to as "the Act") to the Apex or Central Society is entitled to continue after the coming into force of Kerala Co-operative Societies (Amendment) Act, 2013 (hereinafter referred to as "the Amendment Act") in the teeth of the prohibition under sub-section (2A) of Section 31. It is also to be resolved as to whether if the above questions are answered in the negative, would S.R.O. No. 508/2013, issued by the Government under Section 101 of the Act, save the position in so far as permitting such nominees and office bearers to continue till the date of next elections.

2. Admittedly respondents 3 and 5, now alleged to be continuing as the President and Vice-President of the 1st respondent-Society, were nominated under the unamended Section 31 of the Act and were also elected to the aforesaid offices of the Board of the 1st respondent. While they were continuing, the Amendment Act came into force and the petitioner, who is the President of an Employees' Association of the 1st respondent, filed a complaint before the Joint Registrar contending that the President of the 1st respondent-Society, the 3rd respondent herein, is dis-entitled to continue in the said post by reason of the amendments made. A learned Single Judge, by Exhibit P4, also directed consideration of the representation expeditiously. The Government, by Exhibit P8 S.R.O., purportedly invoked the powers under Section 101 of the Act to remedy the situation.

3. I have heard the learned Senior Counsel Sri. P. Ravindran appearing for the petitioner, learned Senior Counsel Sri. Raju Joseph appearing for the 5th respondent, learned counsel Sri. Sudhi Vasudevan appearing for the 3rd respondent as also the Special Government Pleader (Co-operation) Sri. D. Somasundaram.

4. The learned Senior Counsel appearing for the petitioner would contend that the intention in bringing out the Amendment Act is to make the Act in tune with the Constitution 97th Amendment Act, 2011, which included Part IXB in the Constitution of India. Going by the Constitutional provisions, the power to nominate is exclusively on the Board [proviso to Article 243ZJ(2)] and the power to co-opt members having knowledge in specialised subjects is also conferred on the Board [Art. 243ZJ(3)]. Article 243ZK, by providing for "election of a Board", contemplates only members who are elected to a validly constituted Board, as distinguished from "election to a Board". Article 243ZT mandates that the law relating to Co-operative Societies in force in the State running contrary to Part IXB, shall be valid only for an year or till the same is amended or repealed in consonance with Part IXB. Hence the Amendment Act was brought in.

5. Section 31 was also amended to make it in consonance with the Constitutional provisions and by introduction of sub-section (2A), there is a bar in so far as the nominated members under sub-section (1) of Section 31 continuing to hold office, inter alia, as the President or Vice-President of the Board. On 14.02.2013, when the Amendment Act came into effect, respondents 3 and 5 ceased to hold their respective offices in the Board. Exhibit P8 notification purportedly invoking powers under Section 101 of the Act is assailed as a colorable exercise of power and being bereft of any public interest, on satisfaction of which alone the Government could invoke such powers. The purported action exempting the Societies, in effect, is one exempting the individuals and as such ultra vires the powers conferred under Section 101 of the Act. Section 101 for repugnancy with the Constitutional provisions, could not be invoked by the Government for remedying a disability which flows directly from the pro visions of the Constitution, is the argument. Finally it is also urged that in any event, respondents 3 and 5 having ceased to











































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