IMPORTANT POINTS
It was not practical for seeking the opinion of the Financing Bank and Circle Co-operative Union or issuing notice to the Society, which would give more time to make corrections and manipulations in the records-The Managing Committee of the 3rd respondent Society was placed under suspension for a period of six months invoking Section 32(3) of the Act and the management of the 3rd respondent Society was entrusted to the 2nd respondent Administrator-Considering the nature of fraud, misappropriation, and mismanagement found in the preliminary enquiry conducted based on Ext.P8(a) petition made by the 3rd respondent Society, it cannot be said that the 1st respondent Joint Registrar invoked the provisions under Section 32(3) of the Act on extraneous considerations.

Anil K. Narendran, J.

1. The petitioner is the President of the Managing Committee of the Kerala Government Secretariat Staff Housing Co-operative Society No.P.732, the 3rd respondent herein. By Ext.P14 order dated 25.10.2017 of the 1st respondent Joint Registrar of Co-operative Societies, the Managing Committee of the 3rd respondent Society has been placed under suspension for a period of six months and the Assistant Registrar of Co-operative Societies has been appointed as the Administrator, invoking the provisions under Section 32 of the Kerala Cooperative Societies Act, 1969 by following the course provided under Section 32(3) of the said Act. The petitioner is before this Court in this Writ Petition filed under Article 226 of the Constitution of India seeking a writ of certiorari to quash Ext.P14 order. He has also sought for a declaration that Ext.P14 order has been passed in total disregard to the mandate of law and without authority, and therefore bad in law.

2. On 2.11.2017, when this Writ Petition came up for admission, the learned Government Pleader took notice for the 1st respondent and urgent notice was ordered to respondents 2 and 3. This Court has also granted an interim stay of operation of Ext.P14 for a period of two months.

3. A counter affidavit has been filed on behalf of the 1st respondent contending, inter alia, that Ext.P14 order has been passed in compliance of the provisions contained in Section 32 of the Act and as such, no interference is warranted. The 2nd respondent, the Administrator of the 3rd respondent Society appointed vide Ext.P14 order, has also filed a counter affidavit raising identical contentions. The petitioner has filed reply affidavits to the counter affidavits filed by the 1st and 2nd respondent and also I.A.No.19808 of 2017 seeking an order to accept as Ext.P15 a true copy of the remand report in Crime No.1394/2017 of Cantonment Police Station, filed before the Judicial First Class Magistrate Court-III, Thiruvananthapuram.

4. Heard the learned counsel for the petitioner, the learned Advocate General for the 1st respondent-Joint Registrar and also the learned Special Government Pleader for the 2nd respondent-Administrator of the 3rd respondent Society.

5. Going by the averments in the Writ Petition, there is no paid Secretary for the 3rd respondent Society. As decided by the elected Board, one Mr.S.R.Raveendran Nair, who is a member of the Board of Directors of the Society was functioning as its Honorary Secretary. The said Raveendran Nair had enrolled several unqualified persons as members of the Society. He used fake seal and signature of the Controlling Officers of Government Secretariat for showing the authenticity of the applicants. Exts.P1 and P2 are the membership applications submitted by one Nisha M.S. and Vinod S. respectively, who are unqualified to be members of the Society. The applications were never placed before the Committee for grant of membership. Such applications were not further verified since they were countersigned by the Controlling Officer, by affixing seal. The loan applications preferred on behalf of fake members were sanctioned by Raveendran Nair himself. Ext.P3 is the loan application made by Vinod S., the applicant in Ext.P2 membership application. As discernible from the records maintained by the Society, Vinod S. applied for loan for Rs.1,50,000/- showing some fictitious members as sureties. In this manner, Raveendran Nair caused monetary loss to the Society to the tune of Rs.1,01,00,000/-. After playing such fraud, Raveendran Nair availed leave for 60 days, with effect from 28.9.2017, by submitting Ext.P4 application. Without realising the fraud played upon the Society, the Managing Committee in its meeting held on 4.10.2017 decided vide Ext.P5 minutes to grant him leave and one Smt.Sajitha Kumari R., another member of the Managing Committee was given the charge of the Secretary.

5.1. On inspection of the relevant records, the Secretary-in-Charge