2013 Supreme(Ker) 873
IN THE HIGH COURT OF KERALA
A.M. SHAFFIQUE, J.
Aravindan J. and others - Appellant
Versus
State of Kerala and others - Respondent
Writ Petition (C) No's. 28628, 28874, 28875, 28876, 28959, 29108, 29460, 29679, 29743 of 2012
Decided On : 10-06-2013
For the Appellant : Thomas Abraham, Merciamma Mathew, K.S. Haridas, V. Renjith Kumar, P.C. Sasidharan, Aravinda Kumar Babu T. K., E.S. Ashraf, C.P. Pradeep, M. Sasindran, V. Venugopal, M.M. Monaye, M. Paul Varghese and Desi Matthai
For the Respondent: D. Somasundaram, (Senior Government Pleader), C.K. Jayakumar, (Standing Counsel, T.v.m Dist. Co-op. Bank Ltd.), Jacob P. Alex, (Standing Counsel, Pathanamthitta Dist Co-op. Bank Ltd.), I. Sheela Devi, (Standing Counsel, Ernakulam Dist. Co-op. Bank Ltd.), Joice George, (Standing Counsel, Idukki Dist. Co-op. Bank Ltd.), George Poonthottam, (Standing Counsel, Idukki Dist Co-op. Bank Ltd.), D. Sreekumar, (Standing Counsel, Thrissur Dist. Co-op. Bank Ltd.), M. Meena John, B.S. Swathy Kumar, V. Beena, K.V. Suprabha and P.P. Jacob
Headnote:Kerala Co-operative Societies (Amendment) Act, 2012, Sections 5(3) and 6 - Co-operative Societies (Amendment) Ordinance, 2012 - Actions taken in accordance to order 26 of 2012 is deemed as principal act under section 5(3) of Act 13 of 2012.
A.M. Shaffique, J.
1. These writ petitions raise common issues and hence decided by a common judgment. The challenge is with respect to the implementation of the provisions of the Kerala Co-operative Societies (Amendment) Act, 2012 (Act 13 of 2012) (hereinafter referred as Act 13 of 2012) with reference to certain District Co-operative Banks. In exercise of the powers conferred by clause (1) of Article 213 of the Constitution of India, the Governor of Kerala promulgated Ordinance No. 18/2012, by which the Kerala Co-operative Societies Act, 1969 (hereinafter referred as the Act) has been amended. Ordinance No. 18 of 2012 was replaced by Act 13 of 2012. Registrar of Co-operative Societies has given directions to District Co-operative banks to amend the bye-laws in accordance with Act 13 of 2012 and to conduct elections in accordance with the provisions contained in the Kerala Co-operative Societies Act, Rules and the bye-laws of the Bank.
2. Sections 2, 5 and 6 of the Act 13 of 2012 reads as under:
2. Amendment of Section 2.--In the Kerala Co-operative Societies Act, 1969 (21 of 1969) (hereinafter referred to as the principal Act), in Section 2,--
(i) for clause (ia), the following clause shall be substituted, namely:
(ia) "District Co-operative Bank" means a central society, the principal object of which is to raise funds to be lent to its members and individuals, with jurisdiction over one revenue district and having as its members any type of primary societies and Federal and Central societies having headquarters in such district
(ii) in clause (oc), for the existing proviso, the following proviso shall be substituted, namely:
Provided that no Primary Co-operative Agricultural and Rural Development Bank shall be registered without the bifurcation of assets and liabilities of the existing societies having the area of operation in more than one Taluk and the societies shall restrict their operation in the area of the respective society on such bifurcation.
(iii) after clause (qb), the following clause shall be inserted, namely:
(qc) "Special Officer" means an officer, not below the rank of an Assistant Registrar, appointed by the Registrar to take into custody the assets and liabilities of the society which secured registration without bifurcating the area of operation of an existing society and to register new societies and to constitute committees as provided in Section 28 of the Act.
5. Special provision in respect of the existing District Co-operative Banks.--
(1) Notwithstanding anything contained in the principal Act, or in any judgment, decree or order of any Court, Tribunal or other authority, on the commencement of the Kerala Co-operative societies (Second Amendment) Ordinance, 2012 (18 of 2012),--
(a) any primary society which had ceased to be a member of the District Co-operative Bank as on the commencement of the Kerala Co-operative Societies (Amendment) Act, 2008 (9 of 2009) shall be deemed to have become members of such District Co-operative Bank and the share amount, if any, of such society transferred to suspense account shall be deemed to be the share amount in respect of the said society;
(b) the nominal or associate member admitted after the commencement of the Kerala Co-operative Societies (Amendment) Act, 2008 (9 of 2009) shall cease to be the members of the District Co-operative Bank and shall apply for membership in the District Co-operative Bank afresh;
(c) the committee in office of the District Co-operative Bank at such commencement shall cease to exist and the Registrar shall be competent to appoint a new committee or one or more administrator or administrators who need not be members of the society, to manage the affairs of the Bank for a period not exceeding six months, as may be specified in the order, which period may, at the discretion of the Registrar, be extended from time to time, so however, that the aggregate period does not exceed one year.
(2) The committee or the administrator or the administr