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2025 Supreme(Ker) 2595

IN THE HIGH COURT OF KERALA AT ERNAKULAM
S.MANU, J.
Natarajan Nadar, S/o.Balakrishnan Nadar – Appellant 
Versus 
State Of Kerala – Respondent 
WP(C) No. 14360 of 2011
Decided on : 26-08-2025

Advocates Appeared:
For the Appellant : SMT.NISHA GEORGE, SRI.GEORGE POONTHOTTAM (SR.)
For the Respondent: ADV SHRI.G.S.REGHUNATH, ADV.TONY AUGUSTINE,GP

The Registrar of Co-operative Societies has the authority to direct the return of property based on historical ownership agreements and factual findings, reaffirming that judicial review should ensure no arbitrariness or illegality in administrative decisions.

Headnote:(A) Kerala Co-operative Societies Act, 1969 - Sections 27 and 83 - Writ petitions concerning property rights and loan repayment - Petitioners claimed ownership based on prior agreements; Bank contended property was foreclosed due to default - Registrar of Co-operative Societies directed Bank to convey property back to petitioners; Government upheld this directive. (Paras 4-10)

(B) Jurisdiction and Powers - Registrar's authority under the Act includes setting aside sales and directing property registration based on factual determinations - Writ jurisdiction does not entail appellate review but ensures absence of arbitrariness or illegality in lower decisions. (Paras 6, 10)

Facts of the case:
Petitioners purchased properties in 1972 but faced foreclosure due to seller's default. They deposited funds as per Bank's directive for property return which was not executed. The Registrar intervened, favoring the petitioners, and this led to the disputes resolved by the Court.

Findings of Court:
Petitioners are directed to receive property back as per the Registrar's order, confirmed for lawful existence; Bank's appeal dismissed.

Issues: Whether the Registrar acted within jurisdiction to direct property conveyance and if the petitioners are entitled to ownership despite foreclosure.

Ratio Decidendi: The Registrar's decision was justified based on the Bank's prior knowledge of ownership and the petitioners’ longstanding possession, establishing that the sale was effectively annulled.

Result: Writ petition allowed; Bank to convey property within two months.

Table of Content
1. ownership and transfer of property rights (Para 1 , 2 , 3 , 4)
2. arguments for and against ownership transfer (Para 6 , 7)
3. analysis of decision-making authority and process (Para 8 , 9 , 10 , 11)
4. final orders on property conveyance (Para 12)

JUDGMENT :

S.MANU, J.

Since common issues are involved in these writ petitions they were heard together and are being disposed of by this common judgment. Reference to the parties in this judgment is as per the cause title in W.P.(C)No.14360/2011.

2. First petitioner claims to be the absolute owner of 31.12 Ares of property comprised in Re.Sy.Nos.306/9, 306/22, 307/3 and 307/4 in Kanjiramkulam Village, Neyyattinkara Taluk. Second petitioner is the wife of the first petitioner. She claims to be the absolute owner of the property comprised in Re.Sy.No.307/15 having an extent of 4.25 Ares in the same Village. The said properties were originally owned by one Nadesan Nadar, Syamalakumari and one Antony. They executed sale deeds in favour of the petitioners on an understanding that their liabilities arising out of a loan transaction with the 7th respondent Co-operative Bank will be cleared by the petitioners. They had availed a loan of Rs.2,000/- on 26.6.1968 from the Bank. Properties were transferred to the petitioners on 1972.

3. The dues arising from the loan transaction were not repaid. The Bank proceeded against the property and in the public auction it was bid in the name of the Bank. However, mutation was not effected and physical possession was not taken. The first petitioner approached the 7th respondent to set aside the sale and to convey the property to the petitioners. According to the petitioners, they were instructed by the 7th respondent, on the basis of a decision taken on the request of the petitioners, to remit an amount of Rs.30,000/- for settlement of the loan account and return of the property by executing appropriate deeds. They claim that as evident from Ext.P4 receipt dated 19.9.1996 an amount of Rs.30,000/- was paid which was kept in a suspense account. However, the property was not conveyed to the petitioners. Later, they came to know that the 7th respondent was attempting to get the property mutated in its favour.

4. Petitioners approached the 2nd respondent and requested to intervene in the matter by directing the 7th respondent to annul the sale and to register the property in the name of the petitioners. They also sought a direction to refund excess amounts after calculating the interest for the loan amount. The 2nd respondent, after considering the issue comprehensively, issued Ext.P6 directing the 7th respondent to appropriate double the loan amount with interest from the amount kept in the suspense account and to return the balance to the petitioners. The bank was also directed to register the property in favour of the petitioners. The bank approached the Government against Ext.P6 issued by the Registrar of Co- operative Societies. Government rejected the appeal of the bank by order dated 27.5.2013. In W.P.(C)No.14360/2011 petitioners are seeking implementation of Ext.P6. In W.P. (C)No.15724/2013 the bank is challenging the order of the Registrar of Co-operative Societies and the order passed by the Government upholding the same.

5. Heard Sri.Siddharth.R., learned counsel for the petitioners in W.P.(C)No.14360/2011 and Sri.G.S.Raghunath, learned counsel appearing for the petitioner in W.P. (C)No.15724/2013. Sri.Tony Augustine, the learned Government Pleader appearing for the State and its officers also addressed the court.

6. Sri.Siddharth submitted that the properties were purchased by the petitioners in 1972. Petitioners are still in possession and enjoyment of the properties. He relied on the report dated 11.1.2023 of the Advocate Commissioner appointed by this Court in this regard. He submitted that the report clearly shows that the property is in possession of the petitioners and the same is essential for access to their residence. He also sub

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