Back
IN THE HIGH COURT OF KERALA AT ERNAKULAM
N. NAGARESH, J.
Mookannur Service Co-Operative Bank, Ltd. Represented By Its Secretary and Anr. – Petitioners
Versus
State Of Kerala, Represented By Secretary To Government, Department Of Co-Operation and Ors. – Respondents
WP(C) No. 28636 Of 2022
Decided On : 04-10-2024
Revision - Co-operative Societies - Kerala Co-operative Societies Act - Sections 65, 87 - The court held that a revision petition under Section 87 against an enquiry report under Section 65 is not maintainable, as the report does not constitute a decision or order subject to revision.
Fact of the Case:
The petitioners, a Co-operative Society and its President, challenged the rejection of their revision petition against an enquiry report that revealed irregularities in the Society's functioning, arguing that the report's findings had serious consequences and that they were denied an opportunity to defend themselves.
Finding of the Court:
The court found that the enquiry report under Section 65 does not constitute a decision or order that can be revised under Section 87, as the statutory framework does not provide for an appeal against such reports, and the affected parties would have opportunities to contest findings in subsequent proceedings.
Issues: Whether a revision petition under Section 87 of the Kerala Co-operative Societies Act is maintainable against an enquiry report under Section 65.
Ratio Decidendi: The court concluded that since Section 65 reports do not constitute decisions or orders, they are not subject to revision under Section 87, and the petitioners would have opportunities to challenge the findings in future proceedings.
Result: The writ petition is dismissed.
JUDGMENT :
(N. Nagaresh, J.) :
The question arising for consideration in this writ petition is whether Ext.P17 order of the 1st respondent rejecting Ext.P15 statutory Revision Petition filed under Section 87 of the Kerala Co-operative Societies Act challenging Ext.P14 Enquiry Report under Section 65 is justifiable or not?
2. The 1st petitioner is a Co-operative Society/Bank. The 2nd petitioner is the President of the Society. By an order dated 01.01.2017, the Joint Registrar of Co-operative Societies ordered enquiry under Section 65 in respect of disbursement of loans by the Society and the financial structure and security of the Society. The 3rd respondent-Assistant Registrar, who was the Enquiry Officer, submitted Ext.P14 report. Ext.P14 report disclosed irregularities in the functioning of the Society.
3. The petitioners came to know about Ext.P1 Enquiry Report only when an order was issued under Section 68(1). The petitioners thereupon filed Ext.P15 Revision Petition before the Government. The Government rejected Ext.P15 Revision Petition stating that there is no provision under Section 87 of the Kerala Co-operative Societies Act for filing revision against Ext.P15 Enquiry Report. The petitioners are challenging Ext.P17 order of the Government.
4. The petitioners state that as per Section 87, the Government has revisional power in respect of any proceeding, not being a proceeding in respect of which an appeal to the Tribunal is provided by Section 82, to satisfy himself or themselves as to the regularity of such proceeding, or the correctness, legality or propriety of any decision passed or order made thereon, an if in any case, it appears to the Government that any such decision or order should be modified, annulled, reversed or remitted for reconsideration, the Government may pass orders accordingly. The petitioners contend that since an appeal is not provided by Section 82 against a Section 65 Enquiry Report, Ext.P15 Revision Petition is legal and maintainable. The petitioners also pleaded that the findings in the Section 65 report are without application of mind, illegal, perverse and hence Ext.P14 Enquiry Report is liable to be set aside.
5. The 2nd respondent-Joint Registrar resisted the writ petition filing counter affidavit. The 2nd respondent stated that Section 87 deals with powers of revision of Registrar and Government. The Revision Petition filed against an Enquiry Report is not maintainable. Ext.P14 Enquiry Report is neither any proceeding nor any decision or order. It is only an enquiry report.
6. The 2nd respondent pointed out that inquiry under Section 68(1) is going on to find out the loss caused to the Society by the overvaluation of mortgaged landed property in 78 loans. The petitioners will be getting opportunity to controvert the findings in the Enquiry Report in the inquiry under Section 68(1). The writ petition is therefore liable to be dismissed.
7. The counsel for the petitioner relied on the judgment of this Court in K.T. Velayudhan v. State of Kerala and others [AIR 2000 Ker 125] to urge that a Revision Petition will lie under Section 87 against any proceedings against which no appeal lies. The question whether a Revision Petition would lie against an order of the Director of Co-operative Audit came up for consideration before a Division Bench in W.A. No.288/2018 and the Division Bench directed the Government to consider the Revision Petition filed under Section 87 against the order of the Director of Co- operative Audit. Going by the said direction given by the Division Bench of this Court, a Revision Petition is maintainable against Section 65 enquiry report also, urged the counsel for the petitioner. In the judgment in Peroor Service Co-operative Society Limited v. State of Kerala and others [2017 (4) KLT SN 110], a Single Bench of this Court also held that since there is no provision to file appeal against an Audit Certificate, a review petition is maintainable before the Registrar of Co-operative
A revision petition under Section 87 of the Kerala Co-operative Societies Act is not maintainable against an enquiry report under Section 65, as such reports do not constitute decisions or orders.
Petitioners must raise their contentions before the competent authority upon issuance of show cause notice under the Kerala Co-operative Societies Act, 1969, as they cannot contest the inquiry report....
The court established that parties must wait for further actions based on inquiry reports before raising objections, promoting procedural fairness under the Kerala Co-operative Societies Act.
The court affirmed that the investigation process under the Kerala Co-operative Societies Act is a complete code, and the remedy of revision is not maintainable until proceedings under Section 68(2) ....
The authority must provide opportunity for hearing post-inquiry before enforcing actions under cooperative society regulations.
Right to challenge inspection findings arises only post-show cause notice under Section 68(2) of the Kerala Co-operative Societies Act, ensuring fairness in proceedings.
Special Report under Section 81(5B) and order directing Section 88 inquiry are preliminary administrative steps, not orders/decisions affecting rights, hence not amenable to revision under Section 15....
Petitioners cannot challenge inquiry reports under Section 65 directly but may raise issues during subsequent proceedings as per the Act.
Findings in re-audit reports under the Maharashtra Co-operative Societies Act do not constitute a 'decision' or 'order' and are not subject to revision under Section 154.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
