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2025 Supreme(Ker) 1999

IN THE HIGH COURT OF KERALA AT ERNAKULAM 
AMIT RAWAL, K. V. JAYAKUMAR, JJ.
State Of Kerala - Appellant 
Versus 
Joe Thomas - Respondent 
WA No. 12 of 2025
Decided on : 28-05-2025

Advocates:
Advocate Appeared:
For the Appellant : SRI. K.GOPALAKRISHNA KURUP (AG), SRI. T.K VIPINDAS (SR.GP), SRI. P.P THAJUDEEN (SPL.GP), SRI. N.MANOJ KUMAR (STATE ATTORNEY), SRI. IMAM GRIGORIOUS KARAT (GOVT. PLEADER),
For the Respondent: SRI. C.M NAZAR

The right to contest elections is a statutory right, not a fundamental right, and arbitrary term restrictions violate the autonomy of co-operative societies.

Headnote:(A) Kerala Co-operative Societies Act, 1969 - Section 28(2A) - Amendment struck down by Single Bench declared unconstitutional - Amendment forbidding election of a committee member for more than three consecutive terms was found to be arbitrary and discriminatory, infringing the autonomy of co-operative societies. (Paras 36-56)

(B) Right to contest elections - Determined to be a statutory right and not a fundamental right; restrictions based on time limits do not violate constitutional provisions. Paramount importance given to the principles of democratic control, autonomy, and voluntary participation in cooperative management. (Paras 52-54)

Facts of the case:
The State of Kerala appealed against a judgment striking down the amendment to Section 28(2A) of the Kerala Co-operative Societies Act which imposed a term limit on committee members of credit societies. The Single Bench deemed this amendment to violate autonomy and existing constitutional rights associated with co-operatives.

Findings of Court:
The Court found the amendment arbitrary and unconstitutional for interfering with the democratic functioning and autonomy of co-operative societies.

Issues: Whether the right to contest elections is a fundamental right or a statutory right subject to legislative limitations.

Ratio Decidendi: The court ruled that legislation regarding elections to co-operative societies must adhere to statutory boundaries, emphasizing that the imposition of arbitrary eligibility restrictions infringes upon the expected autonomous functioning of these societies.

Result: Writ appeals allowed.

Table of Content
1. overview of the amendments to the kerala co-operative societies act. (Para 1 , 2 , 3)
2. constitutional provisions regarding co-operative societies and elections. (Para 4 , 5 , 6 , 7)
3. discussion on the nature of the right to contest elections. (Para 8 , 9)
4. challenge to the amendment restricting election terms for committee members. (Para 10)
5. final judgment and order regarding the appeals. (Para 11 , 22)

JUDGMENT

Amit Rawal, J.

This order shall dispose of thirty three (33) Intra Court appeals preferred by the State of Kerala against the judgment of the Single Bench wherein the respondent- petitioner had challenged the various amendments caused in the Kerala Co-operative Societies Act, Act No.9 of 2024 by inserting Section 14AA, Section s.28 (2A), 32, 33, 34A, 56, 57E and was successful viz-a-viz striking down the amendment in sub Section 2A of Section 28 and challenge with regard to the remaining amendment of the Act No.9 of 2024 under the Kerala Co-operative Societies Act did not find favour.

2. Thus we are only confined to the portion of the order starting from paragraphs 36 to 56 of the judgment under challenge pertaining to the findings of the Single Bench on the amendment introduced by sub Section 2 A of Section 2 8 of the Act. The amendment caused by introduction of sub Section 2 A of Section 2 8 inserted by Act No.9 of 2024 reads as under:

2A) Notwithstanding anything to the contrary contained in the Act, rules or in the bye-laws of a credit society, no member of the Committee of a society shall be eligible for election to the Committee for more than three consecutive terms, irrespective of whether the term is in full or in part.

Explanation For the purpose of this sub-section, "credit society" means the Kerala State Co-operative Bank Limited, Primary Agricultural Credit Societies, Service Co-operative Banks, Regional Co-operative Banks, Rural Banks, Farmer's Service Co-operative Banks, Urban Co-operative Banks, The Kerala State Co- operative Agricultural and Rural Development Bank Limited, Primary Co-operative Agricultural and Rural Development Bank, Urban Co-operative Societies, Agricultural Improvement Co-operative Societies, Employees Credit Societies, Rural Cooperative Societies, Primary Housing Co-operative Societies and Kerala State Housing Federation.

3. The aforementioned amendment reveals that no member of the Committee of the Society shall be eligible for election to the Committee for more than three consecutive terms, irrespective of whether the term is in full or in part. The said amendment as per the explanation only relates to the credit societies indulging into extending the facility of loan. The credit societies which would mean the Kerala State Co-operative Bank Limited, Primary Agricultural Credit Societies, Service Co-operative Banks, Regional Co-operative Banks, Rural Banks, Farmer's Service Co-operative banks, Urban Co-operative Banks, the Kerala State Co-operative Agricultural and Rural Development Bank Limited, Primary Co-operative Agricultural and Rural Development Bank, Urban Co- operative Societies, Agricultural Improvement Co-operative Societies, Employees Credit Societies, Rural Co-operative Societies, Primary Housing Co-operative Societies and Kerala State Housing Federation.

4. By way of 97th amendment in 2011 inserted with effect from 15.2.2012, PART IX-B was introduced in the Constitution of India by inserting Article 243-ZH to ZT. Article 243-ZJ deals with the number and term of members of board prescribing that the maximum number of directors of a Co-operative Society shall not exceed twenty-one (21) and term of office of elected members of the board and its office bearers shall be five years from the date of election and the election as per Article 243-ZK has to be conducted before the expiry of the term of the board.

5. The superintendence, direction and control of the preparation of electoral rolls for, and the conduct of, all elections to a co-operative Society shall

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