JUDGMENT :

1. Questions posed for consideration in this Writ Petition filed by the Managing Committee of the Vellathooval Service Cooperative Bank Ltd. No. K71 (the ‘Bank’ for short) is whether the order of super-session of the Managing Committee invoking the exceptional powers of the Registrar under Section 32(3) of the Kerala Cooperative Societies Act, 1969 (‘the Act’ for short) is justified in the facts and circumstances. The incidental question is whether the discretion exercised by the Registrar to proceed with the suspension of the Managing Committee without providing an opportunity to the Committee to state its objections and without consulting the Unions and financing Banks is arbitrary and liable to be interfered with by this Court.

2. To appreciate the grievance voiced by the Committee, few relevant facts which led to the exercise of such powers by the Registrar are required to be stated:

(a) The present Board of Directors of the Society was elected to office on 30.12.2018 and they assumed charge on 1.1.2019.

(b) During the tenure of the previous committee, based on various complaints which were received, an inquiry was conducted and it was noticed that the bank had failed to