IN THE HIGH COURT OF KERALA AT ERNAKULAM
JUSTICE AMIT RAWAL, JUSTICE K. V. JAYAKUMAR, JJ
Managing Committee Paravur Co-operative Bank Ltd – Appellant
Versus
State Of Kerala, Represented By Secretary To Government, Department Of Co-Operation – Respondent
JUDGMENT :
(Amit Rawal, J.)
1. The present writ appeal is directed against the judgment of the Single Bench in W.P.(C)No.24688 of 2023 challenging the order of the Government Ext.P2 dated 09.01.2023 whereby the revision petition preferred against the proceedings initiated under Section 68(i) of the Kerala Co-operative Societies Act against the members of the Managing Committee has been rejected on the ground of maintainability.
2. Succinctly, the facts in brief for adjudication of the intra court appeal are enumerated hereinbelow:
On the basis of complaint made by few people regarding benami land transactions and income tax evasion in Paravur Co-operative Society, registered under the provisions of the Co-operative Societies Act and Rules framed thereunder, the Registrar of Co-operative Societies ordered an investigation to be conducted by the Assistant Registrar (General) as enshrined under Section 66 of the Kerala Co-operative Societies Act. The gamut of the investigation to be conducted under Section 66 was on the following two counts:
(i) Total expenditure incurred by the bank on income tax auditing and filing fees.
(ii) Disbursement of loan involving Smt.Shainaja Sudheer Kumar and S
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) ....
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.
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.
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....
If a respondent in an appeal does not choose to avail benefit of Rule 22 of Order 41, it is not obligatory for court to examine correctness of finding rendered against him in impugned judgment.
The authority must provide opportunity for hearing post-inquiry before enforcing actions under cooperative society regulations.
The court upheld the validity of inquiry proceedings under the Kerala Co-operative Societies Act, confirming that affected parties are entitled to a hearing before any adverse action is taken.
Proceedings under the Kerala Co-operative Societies Act do not conclude unless further actions are initiated after a show cause notice.
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.
Duty of the officers and chief executive of a society and the nature of offences and penalties mentioned in [sub-section (4A)] shall be applicable to this sub-section also.
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