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IN THE HIGH COURT OF KERALA AT ERNAKULAM
N.NAGARESH, J
Punnoose P.p. S/o P.j Punnoose – Appellant
Versus
Joint Registrar Of Co-operative Societies (G), – Respondent
JUDGMENT :
The petitioner is the former Secretary of the Ranni Employees Co-operative Society Limited. He has filed this writ petition seeking to set aside Exts.P1 to P5, P7 and P8.
2. The petitioner states that the Managing Committee of the Society increased collection of Fixed Deposits. The Committee appointed a Collection Agent for daily collection. Thereafter, discrepancies in collection were noted. Though the petitioner complained about the discrepancies, no action was taken. However, the Auditor issued proceedings against the petitioner demanding Rs.4,00,000/- from the petitioner.
3. CC No.375/2013 was filed against the petitioner in the Chief Judicial Magistrate's Court, Ranni. Two other criminal complaints were lodged in the Ranni Police Station. The petitioner was arrested and later released on bail. The Committee suspended him on 04.01.2018 initiating disciplinary proceedings. Ultimately, the services of the petitioner were terminated with effect from 04.01.2018, as per order dated 16.07.2019.
4. In the meanwhile, the Joint Registrar of Co-operative Societies ordered inspection under Section 66(1) of the Kerala Co-operative Societies Act, as per Ext.P1. Ext.P2 report dated 22
The Joint Registrar must provide all relevant materials to the affected person before proceeding with surcharge under Section 68(2) to uphold principles of natural justice.
Procedure for conduct of inquiry and inspection - A person can be proceeded against and vested with liability only if an objective assessment of evidence and materials available on record leads to ir....
The court upheld the finding of willful negligence against the petitioner under the U.P. Cooperative Societies Act, yet remitted the surcharge quantum for reconsideration due to lack of justification....
Surcharge proceedings under Section 68(2) of the KCS Act require specific findings on individual liability and compliance with statutory requirements. Liability cannot be fixed on deceased persons wi....
Liability under Section 68(1) of the Kerala Co-operative Societies Act must be fixed individually, not jointly, ensuring compliance with statutory provisions.
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.
The main legal point established in the judgment is that the enquiry under Section 68(1) of the Kerala Cooperative Societies Act can only be against individuals and not a committee, in line with the ....
Point of law: it is clear that, to pass surcharge order under Section 87 of the Act, appellants should have done an actionable wrong either by commission or omission in a deliberate and reprehensible....
Section 68 of the Kerala Co-operative Societies Act allows imposing surcharges on management members for mismanagement, without requiring proof of willfulness, based on statutory obligations.
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