IN THE HIGH COURT OF KERALA AT ERNAKULAM
GOPINATH P., J.
D.G. Rethnakumaraged, S/o. Govindan Nadar – Petitioner
Versus
The Joint Registrar Of Co-Operative Societies (General), Thiruvananthapuram and Ors. – Respondents
WP(C) No. 15113 Of 2023, WP(C) No. 15147 Of 2023
Decided On : 21-07-2023
The court referred to the provisions of the Kerala Co-operative Societies Act, 1969 and the by-laws of the Primary Bank. The court discussed the quorum requirement for meetings, the role of the Convener, and the provisions regarding selection of delegates. The court also referred to relevant case law to support its interpretation of the legal provisions.
Fact of the Case:
The petitioner is a member of the Administrative Committee constituted for the management of the Neyyattinkara Primary Cooperative Agricultural and Rural Development Bank Ltd. The committee selected the petitioner as the delegate to the elections of the Apex Bank. However, the Convener of the committee filed a complaint, leading to an order rescinding the decisions taken in the meeting. The petitioner challenged the order and the rejection of his nomination to the Apex Bank elections.
Finding of the Court:
The court examined whether the meeting of the administrative committee was validly constituted, the absence of the Convener invalidated the meeting, the decision to select the petitioner as the delegate was legal, and if the order rescinding the decisions was valid. The court held that the meeting was valid, the absence of the Convener did not invalidate the meeting, the decision to select the petitioner was legal, and the order rescinding the decisions was invalid due to a violation of natural justice.
Ratio Decidendi: The court held that the meeting of the administrative committee was validly constituted, the absence of the Convener did not invalidate the meeting, the decision to select the petitioner as the delegate was legal, and the order rescinding the decisions was invalid due to a violation of natural justice.
Result: The court quashed the order rescinding the decisions and directed that the vote cast by the petitioner in the Apex Bank elections be counted.
JUDGMENT :
1. The petitioner is common in both the Writ Petitions. As the issues arising for consideration are identical, these Writ Petitions can be disposed of by common judgment. The parties and the exhibits referred to in this judgment are as they appear/are marked in W.P (C) 15113/2023 unless otherwise indicated. The petitioner is one among the members of the three-member Administrative Committee constituted for the management of the Neyyattinkara Primary Cooperative Agricultural and Rural Development Bank Ltd. (hereinafter also referred to as 'the Primary Bank') in terms of Ext.P.6 order dated 17-04-2023. An administrative committee had to be appointed on account of the fact that the term of the managing committee of the Primary Bank was to expire on 13-04-2023. Though the election to elect a new managing committee for the Primary Bank was notified, the same was subsequently cancelled. Apprehending that for one reason or the other, the elections to the managing committee of the Primary Bank will not be held before 13-04-2023, W.P (C) Nos.9342/2023, 9772/2023 and 9980/2023 were filed before this Court. By an interim order dated 13-04-2023 (Ext.P5), and for reasons indicated in that order, this Court had directed the constitution of an administrative committee consisting of the President, Vice President and another member of the then Managing Committee of the Primary Bank as its members. On 17-04-2023, in furtherance of the said order of this court, an administrative committee consisting of the President and Vice President (the petitioner herein) and the 2nd respondent in this writ petition was constituted by the Joint Registrar of Co-operative Societies (General), Thiruvananthapuram. The 2nd respondent was also appointed as the Convener of the administrative committee.
2. The Primary Bank is a member of the Kerala State Co-operative Agricultural and Rural Development Bank Ltd. (hereinafter also referred to as the 'Apex Bank') and is, as such, entitled to nominate a delegate to the elections to be held to the Managing Committee/Board of Directors of the Apex Bank. The delegate of the Primary Bank could also contest in the election to the Managing Committee/Board of Directors of the Apex Bank. Following the constitution of the administrative committee in terms of Ext.P6 order, the said committee took charge on 18-04-2023, as is evident from Ext.P7. On 19-04-2023, the Secretary of the Primary Bank called for a meeting of the Administrative Committee to be held on 25-04-2023 at 10 a.m. in the bank's Board room at Neyyattinkara. The agenda for the meeting, as can be seen from Ext.P1, were the following:-
(ii) Loan disbursal and status of dues.
On 25-04-2023, the members constituting the administrative committee other than the Convener met and Ext.P9 minutes were drawn up. Ext.P9 records that the former President of the Primary Bank (who was also one of the administrative committee members) would be the Chairman of the meeting. In that meeting, one of the decisions was to nominate the petitioner as the delegate to the elections to the Managing Committee/Board of Directors of the Apex Bank scheduled on 15-05-2023. It appears that the 2nd respondent (Convener of the administrative committee) filed a complaint before the Assistant Registrar of Co-operative Societies (Neyyattinkara), which is on record as Ext.R2 (a), pointing out that the meeting held on 25-04-2023 in his absence is illegal, and the resolutions taken thereon must be rescinded. Acting on Ext.R2 (a), which was submitted on 25-04-2023, the Joint Registrar of Co-operative Societies (General), Thiruvananthapuram, issued Ext.P13 order in exercise of jurisdiction under Rule 176 of the Kerala Cooperative Societies Rules, 1969 (hereinafter referred to as 'the 1969 Rules' for short) rescinding all the decisions taken in the meeting of the administrative committee held on 25-04-2023. This 0rder (Ext.P.13) is under challenge in W.P (C) No.15113/2023. The rejection of
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