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2009 Supreme(Ker) 1161

High Court of Kerala
Antony Dominic, J.
The President Thiruvalla East Co-Operative Bank Ltd - Appellant
Versus
The Joint Registrar Of Co-Operative Societies - Respondent
W.P.(C) No. 27925 of 2007
Decided On : 02-08-2009

The Registrar is bound to comply with the procedural formalities under Rule 66(5) of the Rules, including providing a reasonable opportunity of being heard to the society and the members of the Board of Directors before taking any action affecting them.

Headnote:

quash - Ext. P11 order - Kerala Co-operative Societies Act, 1969, Section 32 - The court discussed the provisions of Section 32 of the Kerala Co-operative Societies Act, 1969 and the procedural formalities under Rule 66 of the Rules. The court emphasized the mandatory nature of Rule 66(5) and held that the Registrar is bound to comply with the Rules, including providing a reasonable opportunity of being heard to the society and the members of the Board of Directors before taking any action affecting them.

Fact of the Case:

The President of Thiruvalla East Co-operative Bank Ltd. filed a writ petition to quash Ext. P11 order passed by the 1st respondent under Section 32 of the Kerala Co-operative Societies Act, 1969.

Finding of the Court:

The court found that the 1st respondent did not comply with the provisions of the Act and the Rules, and the order was passed in violation of the principles of natural justice. The court held that the Registrar should have complied with Rule 66(5) before passing Ext. P11, and therefore, the order was set aside. The court directed the 1st respondent to comply with Rule 66(5) by issuing notice to all concerned, hearing them, and passing orders on the report.

Issues: The main contentions raised were non-compliance with statutory provisions, violation of natural justice, and the grounds for superseding the committee.

Ratio Decidendi: The court emphasized the mandatory nature of Rule 66(5) and held that the Registrar is bound to comply with the Rules, including providing a reasonable opportunity of being heard to the society and the members of the Board of Directors before taking any action affecting them.

Final Decision: The court quashed Ext. P11 order, directed the 1st respondent to comply with Rule 66(5), and left other contentions to be adjudicated by the 1st respondent.

JUDGMENT

Antony Dominic, J.

1. The President of Thiruvalla East Co-operative Bank Ltd., (hereinafter referred to as 'the Bank' for short) has filed this writ petition praying to quash Ext. P11 order passed by the 1st respondent, in exercise of his powers under Section 32 of the Kerala Co-operative Societies Act, 1969 (hereinafter referred to as 'the Act' for short).

2 .Facts of the case are that election to the Board of Directors of the Bank was held in November, 2004 and the Board of Directors, of which the petitioner is the President, assumed office on 06/11 /2004. According to the petitioner, soon after they assumed office, the 3rd respondent filed complaint, (produced as Annexure I to IA No. 12926/07) to the 1st respondent making allegations against the Board of Directors. On the basis of the said complaint, the 1st respondent ordered an enquiry under Section 65 of the Act. Accordingly, the 2nd respondent conducted an enquiry and submitted Ext. P4 report, recommending a detailed enquiry under Section 65 of the Act. In pursuance to the recommendation in Ext. P4 report, the 1 st respondent issued Ext. P1 order, appointing the 2nd respondent to conduct an enquiry under Section 65 of the Act.

3. Challenging Ext. P1 order, the Board of Directors of the Bank filed WP (C) No. 15094 of 2007 before this Court, which was disposed of by Ext. P2 judgment, recording the submission of the learned Government Pleader that in case there is any proposal to supersede the Committee, the procedure contemplated under Section 32 of the Act will be followed. It is stated that accordingly an enquiry was conducted and a report was submitted by the 2nd respondent, copy of which was not served on the petitioner. However, along with the counter-affidavit filed by the 1st respondent, a copy of the report has been produced in this writ petition as Ext. R1(a). Based on Ext. R1(a) report, the 1st respondent issued Ext. P5 show cause notice under Section 32(1) of the Act calling upon the petitioner to show cause why the committee shall not be superseded under Section 32 of the Act for the nine charges which have been levelled to justify the proposed action. On receipt of Ext. P5, Ext. P8 reply was submitted by the petitioner.

4. At that stage, the petitioner filed W.P. (C) No. 19514 of 2007 challenging Ext. P5 show cause notice. That writ petition was disposed of by Ext. P7 judgment, directing that it will be open to the petitioner to appear before the 1st , raise his objections to the notice and that he will also be heard in person. It was further directed that a copy of the final order will be served on the petitioner and that if the final order is adverse to the petitioner, the same shall not be implemented for two weeks from the date of service of a copy thereof. Against the directions in Ext. P7 judgment, the 1st respondent filed WA No. 1967 of 2007, which was dismissed as per Ext. P9 judgment. It would appear that, in the meanwhile, in compliance with Section 32(2) of the Act, the 1st respondent consulted with the Circle Co-operative Union, Thiruvalla, which by Ext. P10 dated 06/07/2007, recommended against any proceedings under Section 32 of the Act against the petitioner. However, rejecting Ext. P10, the 1st respondent passed Ext. P11 order dated 14/09/2007, superseding the committee and it is seeking to quash Ext. P11 order, this writ petition is filed.

5. The main contentions raised by the petitioner are that while passing Ext. P11 order, the 1st respondent has not complied with the provisions of the Act and the Kerala Co-operative Societies Rules, 1969 (hereinafter referred to as 'the Rules' for short). It was also contended that the order was passed in violation of the principles of natural justice. Yet another contention raised was that the grounds on which the committee is ordered to be superseded, are acts/ omissions which were committed by the previous committee in office and that the committee presently in office, cannot be superseded for that r





















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