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2022 Supreme(Ker) 900

IN THE HIGH COURT OF KERALA AT ERNAKULAM
Alexander Thomas, Shoba Annamma Eapen, JJ.
The Part-Time Administrator, Adat Farmers Service Cooperative Bank Ltd. And ors. - Appellant
Versus
Vipin K.Hari And Ors. – Respondents
WA NO. 1121 OF 2020
Decided On : 01-12-2022

Advocates:
Advocate Appeared:
For the Appellant : P.C.Sasidharan
For the Respondent: Smt.Nisha George(B/O), Sri. Saigi Jacob Palatty-Sr.GP

Point of Law : Sec.2(l) of KCS Act defines “member” as “member” means a person joining in application for registration of a co-operative society or a person admitted to membership after such registration in accordance with this Act, rules and bylaws and includes a nominal or associate member.

Headnote:

Kerala High Court Act – Section 5(i) - Kerala Co-operative Societies Act, 1969 – Section 104, 9, 32, 2(l), 16(1), (1)(b), 33(3), 68, 17(1) - Kerala Co-operative Societies Rules, 1969 - Rule 16 (2), (3), (1)(b), 176, 15(3) - Co-operative Society - Removal of Members - Notices are Illegal - Petitioners have taken plea that said impugned notices as per Exts.P-1 & P-2 are illegal and ultra vires and have been issued without authority, as Administrator has no jurisdiction to remove any members on grounds stated in notices – A decision on reasonableness or otherwise of mode of such intimation is to be taken on facts and circumstances of each case - Para 41.

Finding of the Court :

Court is now taking any final view as to whether mode of intimation given in terms of Exts.P1 & P2 for taking proposed action under Rule 16(3) as against petitioners, was a reasonable mode, in facts of this case - Appellants may issue such necessary intimation without much delay, preferably within one week from date of receipt of a copy of this judgment - Thereupon writ petitioners may give their explanations in matter, in writing, if they so desire - They will be at liberty to raise all contentions, factual and legal open to them other than issues already concluded in this judgment - It is also ordered that competent authority among appellants may also afford reasonable opportunity of being heard to writ petitioners - Issue as to whether membership granted to two writ petitioners by erstwhile administrator was Class A membership or Class C membership, etc. and such other related issues may also be canvassed by writ petitioners - Thereafter, competent authority among appellants may take a considered decision in matter, for proposed finalisation of proceedings under Rule 16(3) as against two writ petitioners, without much delay, preferably within a period of one month - Direction of learned Single Judge, quashing Exts.P1 & P2, to extent it is directed against writ petitioners will also stand set aside.

Result : Appeal disposed of.

JUDGMENT :

ALEXANDER THOMAS, J.

The instant intra court appeal has been instituted under Sec. 5(i) of the Kerala High Court Act, to impugn the judgment dated 10.8.2020, rendered by the learned Single Judge, disposing of the Writ Petition (Civil) WP(C). No. 9550/2020. The appellants herein are R-2 & R-3 in the WP(C). R-1 & R-2 in the appeal are the two writ petitioners and official respondent No.3 in the appeal is official respondent No.1 in the WP(C).

2. Heard Sri.P.C.Sasidharan, learned counsel appearing for the appellants in the W.A. [R-2 & R-3 in the WP(C)], Sri.George Poonthottam, learned senior counsel instructed by Ms.Hana Karnolia Madona Cyril, learned counsel appearing for R-1 & R-2 in the W.A. (writ petitioners) and Sri.Saigi Jacob Palatty, learned Senior Government Pleader appearing for official respondent No.3 in the W.A. (The Joint Registrar of Co-operative Societies).

3. It is the case of the two petitioners in the WP(C) that they are members of the appellant Co-operative Society and that, the Administrator of the said Co-operative Society has issued the impugned notices, as per Ext.P-1 dated 18.3.2020 and Ext.P-2 dated 18.3.2020, that 4464 members of the said Co-operative Society, including the two writ petitioners, have been directed to offer their explanation as to why they shall not be removed from the membership rolls of the said Society, as they were enrolled by the Part-Time Administrator during the period 2011 -2014 and that, they should give their explanation to the said notices within 10 days from the date of publication of such notices in newspapers. The writ petitioners have taken the plea that the said impugned notices as per Exts.P-1 & P-2 are illegal and ultra vires and have been issued without authority, as the Administrator has no jurisdiction to remove any members on the grounds stated in the notices and that, the proposed action for removal of such members, including the writ petitioners, will not come within the jurisdictional parameters of Rule 16(3) of the Kerala Co-operative Societies Rules, 1969 (hereinafter referred to as “The KCS Rules”) inasmuch as the appellants cannot have any case that the said members were either ineligible at the time of their admission or they have subsequently acquired any ineligibility, etc. Further that, the membership right is a personal right and any such drastic step of removal can only be on the basis of the statutory registered notice, in terms of Sec.104 of the Kerala Co-operative Societies Act, 1969 (hereinafter referred to as “The KCS Act or The Act”), which postulates registered notice and that, mere publication of such notices to 4464 members, without individual registered notices to each one of them, is illegal and ultra vires, etc. Further that, the writ petitioners and others were initially given only Class-C membership by the Administrator which is without voting rights and later, after the elected Committee had assumed power, their admissions to the membership rolls were regularized by the elected Managing Committee and later, was also approved by the General Body of the Society, etc. It is in the light of these aspects that respondents 1 & 2 herein have preferred the instant Writ Petition (Civil) with the following prayers:

    “i. Call for the records leading to Exhibit P1 and notices/publications and similar notices and to quash the same by issuing a writ of Certiorari.

ii. Call for the proceedings issued by the 1st respondent Joint Registrar directing the 2nd respondent Part Time Administrator to remove those 4464 members who were admitted to the rolls of the society by the then Part Time Administrator for the purpose of availing loans and whose enrollments were subsequently approved and ratified by the elected Managing Committee as well as the General Body of the 3rd respondent society.

iii. Declare that the 2nd respondent is not clothed with any po

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