IMPORTANT POINT
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) commence.

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 Smt.Saras Mohanan.

3. Investigation under the aforementioned provisions of the Act was completed as per the report dated 09.01.2023, wherein it was noticed that investigation under Section 68(1) of the Kerala Co-operative Societies Act would be necessary to identify the individuals responsible for the financial loss and establish their liability.

4. As per the provisions of the aforementioned Act as well as the judgment of the Full Bench, all the investigations are conducted without calling the delinquent officer by examining the records of the society. Even the investigation as envisaged under Section 68(1) of the Kerala Co-operative Societies Act is to ascertain the truthfulness in the enquiry conducted under Section 66 of the Kerala Co-operative Societies Act.

5. The competent Officer with authority empowered under Section 68(1) of the Act if finds that investigation conducted is found to be correct can initiate the stepson the basis of its own report as provided under Section 68(2) of the Act by issuing show cause notice to the erring officers who had been instrumental in causing the alleged loss. The persons who are involved in the aforementioned alleged misappropriation have a remedy to rebut and lead evidence in support of their respective stand.

6. Against the order under Section 66(2), petitioners preferred a revision by invoking the provisions of Section 87 of the Act vide Ext.P3 and the same has been dismissed vide Ext.P4 dated 19.06.2023 on the ground that revision petition is not maintainable as it is not a final verdict; much less, proceedings under Section 68(2) are yet to commence whereby the petitioners would have a remedy to lead evidence in support of their purported defence. The said order Ext.P4 was assailed before the Single Bench. Another writ petition bearing No.21514 of 2021 filed by one of the members of the Paravur Co-operative Society seeking relief for taking action against the members of the society on the basis of the complaint was also tagged. Since action had already been culminated into one report of 09.01.2023 considering the fact that an enquiry under Section 68(1) of the Act had already been completed as per the report dated 10.08.2022, which is not though filed by the petitioners but came on record through Sri.Yeshwanth Shenoy, learned counsel representing the respondents, learned Single Bench noticing the fact that the procedure prescribed under Section 65, 66 and 68 of the Kerala Co-operative Societies Act is a complete code itself, the order passed in respect of an investigation as prescribed under Section 66 of the Act would not be assailable under Section 87, dismissed the writ petition and rendered other writ infructuous.

7. Sri.P.C.Sasidharan, learned counsel appearing on behalf of the petitioners submitted that