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2025 Supreme(Ker) 3094

IN THE HIGH COURT OF KERALA AT ERNAKULAM
K. Babu, J.
The Managing Committee Of Vallappuzha Service Cooperative Bank Ltd And Ors. – Petitioners
Versus
The Joint Registrar Of Co-Operative Societies - Respondent
WP(C) NO. 31103 OF 2024
Decided On : 17-11-2025

Advocates Appeared:
For the Petitioner: Shri.P.N.Mohanan, Sri.C.P.Sabari, Smt.Amrutha Suresh, Shri.Gilroy Rozario
For the Respondent: Sri.C.M.Mohammed Iquabal, Shri.Istinaf Abdullah, Shri.Nesamudheen, Sri.P.Abdul Nishad, Smt. T.H.Raihanath, Smt.Thasneem A.P., Smt.Dhilna Dileep, Smt.C.S.Sheeja, Sr.Gp

The appellate authority under the Kerala Co-operative Societies Act has the power to reconsider expulsion decisions, ensuring compliance with procedural fairness and the principles of natural justice.

Headnote:(A) Kerala Co-operative Societies Act, 1969 - Section 17, Section 83(1)(c), Rule 18, Rule 124 - Expulsion of members - Appellants challenged expulsion from membership by the Managing Committee on grounds of procedural adherences. The appellate authority set aside expulsion due to lack of evidence for allegations made against members, emphasizing authority to reappraise facts. (Paras 26, 29, 30)

(B) Power of appellate authority - The appellate authority can reconsider decisions made by the general body based on substantial grounds, without procedural irregularities. Appellate review entails full consideration of evidence unless tainted by irregularity or illegality (Paras 22, 30).

(C) Importance of natural justice - Members must be given the opportunity to defend against expulsion before any final resolution can take place (Paras 10, 30).

Facts of the case:
Respondent Nos. 2 to 5 were expelled from the bank for allegedly acting against its interests. They challenged the decision, citing an ongoing inquiry into the bank's management practices.

Findings of Court:
The appellate authority's decision was based on detailed evidence review, ultimately finding insufficient grounds for expulsion.

Issues: The court addressed whether the appellate authority possessed the jurisdiction to interfere with the general body's decision of expulsion.

Ratio Decidendi: The court ruled that the appellate authority has the right to scrutinize the general body's actions and substitute its findings where procedural fairness is not upheld, aiding in ensuring just outcomes.

Result: Writ Petition dismissed.

Table of Content
1. factual context for expulsion from society. (Para 1 , 2 , 3 , 4)
2. arguments presented by both parties. (Para 5 , 6 , 7 , 8 , 9)
3. examination of legal procedures and principles. (Para 10 , 11 , 12 , 13 , 14)
4. interpretation of appellate authority's power. (Para 15 , 18 , 19 , 20)
5. court's decision and dismissal of the petition. (Para 22 , 23 , 28 , 30)

JUDGMENT :

K. Babu, J.

1. Petitioner No.1 is the Managing Committee of the Vallappuzha Service Co-operative Bank. Petitioner No.2 is the Service Co- operative Bank. The petitioners challenge the order dated 17.08.2024 (Ext.P31) passed by the Joint Registrar of Co-operative Societies (General) [Respondent No.1] in an appeal filed by respondent Nos.2 to 5 under Section 83 (1)(c) of the Kerala Co- operative Societies Act, 1969 (hereinafter referred to as “the Act”), whereby the resolution of the general body dated 11.10.2023, expelling them from the membership of the Society, was set aside.

The relevant facts

2. The bank initiated steps to make an appointment to the post of a sub staff. Respondent Nos.2 to 5 convened a press conference on 08.12.2022 and raised certain allegations which were published in the print and visual media.

3. Some members of the bank filed complaints against respondent Nos.2 to 5. The Managing Committee, in its meeting held on 18.04.2023, decided to take action against respondent Nos.2 to 5. The Committee, on 25.04.2023, issued show cause notices to respondent Nos.2 to 5 (Exts.P5 to P8), calling upon them to explain why they should not be removed from the membership of the bank. Respondent Nos.2 to 5 submitted replies (Exts.P9 to P12) refuting the allegations. The Managing Committee considered the explanations submitted by them, in its meeting held on 20.05.2023 and decided to take action against them, holding that the replies submitted by respondent Nos.2 to 5 were not satisfactory. The Managing Committee, again on 23.05.2023, issued subsequent notices to respondent Nos.2 to 5 (Exts.P13 to P16) to show cause why they should not be removed from the membership of the bank. Respondent Nos.2 to 5 filed Exts.P17 to P20 explanations. After considering their replies, the Managing Committee, in its meeting held on 12.06.2023, decided to convene a special general body meeting on 11.10.2023 to consider the matter of removal of respondent Nos.2 to 5 from the membership of the bank.

4. Notices of the general body were published in various dailies dated 25.09.2023 and 26.09.2023, and were personally served on respondent Nos.2 to 5 (Exts.P22 to P25). They challenged Exts.P22 to P25 notices by filing W.P(C) No.31883 of 2023 before this Court. This Court dismissed the Writ Petition, holding that no procedural violations with regard to the moving of the resolution for expulsion had been alleged and the statutory procedure was not liable to be interfered with. Respondent Nos.2 to 5 did not appear in the special general body meeting held on 11.10.2023. The general body unanimously passed a resolution expelling respondent Nos.2 to 5 from the membership of the bank. Respondent Nos.2 to 5, in the meantime, challenged the judgment dated 10.10.2023 passed by this Court in W.P(C) No.31883/2023 by filing W.A No.1917/2023. The Division Bench of this Court closed the Writ Appeal, leaving liberty to respondent Nos.2 to 5 to prefer an appeal before the appropriate authority. Subsequently, respondent Nos.2 to 5 filed an appeal before respondent No.1 under Section 83 (1)(c) of the Act. Respondent No.1, in its order dated 17.08.2024, allowed the appeal and directed restoration of the membership of respondent Nos.2 to 5 (Ext.P31), which is under challenge in this Writ Petition.

5. I have heard Sri.P.N.Mohanan, the learned counsel for the petitioners, Sri.C.M.Mohammed Iquabal, the learned counsel for respondent Nos.2 to 5 and the learned Government Pleader.

6. The learned counsel for the petitioners submitted that an appellate authority is empowered to interfere with the decisi

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