IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P.

WEDNESDAY, THE 17^TH DAY OF JANUARY 2024 / 27TH POUSHA, 1945 WP(C) NO. 26709 OF 2015 PETITIONER:

THE SECRETARY, KODUVAYOOR URBAN CREDIT CO-OPERATIVE SOCIETY LTD NO.773, KODUVAYOOR, PALAKKAD DISTRICT.

BY ADVS.

SRI.K.MOHANAKANNAN SMT.A.R.PRAVITHA SMT.D.S.THUSHARA RESPONDENTS:

1 KERALA CO-OPERATIVE TRIBUNAL, THIRUVANANTHAPURAM - 695 001, REPRESENTED BY ITS SECRETARY.

2 ARBITRATOR / SENIOR INSPECTOR OF CO-OPERATIVE SOCIETIES, OFFICE OF THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL), CHITTUR, PALAKKAD - 678 101.

3 M.VIJAYAN, VISMAYA 29/362, NEAR SEVANA SAMAJAM, MOOTHANTHARA,VADAKANTHRA P.O., PALAKKAD DISTRICT - 678 012.

BY ADVS.

SRI.N.RAGHURAJ SRI.A.V.RAVI SRI.VENUGOPAL V, GP THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17.01.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

JUDGMENT The Secretary, Koduvayoor Urban Credit Co-operative Society Limited, has approached this Court challenging Ext.P4 order of the Kerala Co-operative Tribunal allowing appeal No.87 of 2014 filed by the 3^rd respondent challenging Ext.P2 award of the Arbitrator in proceedings under Section 69 of the Kerala Co-operative Societies Act, 1969.

The brief facts are as follows:-

2. The 3^rd respondent was working as the Secretary of the Koduvayoor Urban Credit Co-operative Society Limited (hereinafter referred to as ‘the Society’). The Society raised certain claims on account of losses suffered by the Society, alleging that the said losses were suffered by the Society on account of action or inaction on the part of the 3^rd respondent while working as the Secretary. The Arbitrator, by Ext.P2 award, found that in respect of two of the claims (out of the four raised before him) the 3^rd respondent was liable. The Arbitrator awarded Rs.1,19,026/- on account of loss allegedly sustained by the Society on account of the fact that the 3^rd respondent had returned the security documents (documents of title) in respect of a property offered as security for the loan extended by the Society to one Krishnaveni. He also awarded a sum of Rs.34,468/-, which was the loss sustained by the Society on account of delay in EPF remittance in respect of employees of the Society by the 3^rd respondent.

3. The 3^rd respondent filed appeal No.87/2014 before the Kerala Co-operative Tribunal under Section 82 of the Kerala Co- operative Societies Act, 1969 and the Tribunal by Ext.P4 order allowed the appeal. The Society is thus before this Court seeking to quash Ext.P4 order.

4. The learned counsel appearing for the petitioner would submit that Ext.P4 order of the Kerala Co-operative Tribunal allowing the appeal of the 3^rd respondent is clearly unsustainable in law. It is submitted that the Tribunal has proceeded on the basis that the Arbitrator has not marked the documents nor given their description, date, and number in the award. It is submitted that the finding of the Tribunal that the award was silent regarding the documents marked as Exhibits and the details regarding the witnesses examined by the Tribunal on behalf of the Petitioner, as well as the 3^rd respondent, is absolutely incorrect. It is submitted that the Tribunal has clearly come to the conclusion that the documents of title in respect of the property belonging to the aforesaid Krishnaveni had been returned by the 3^rd respondent. It is submitted that on the basis of the said finding, the Tribunal ought to have upheld the finding of the Arbitrator that the loss caused to the Society on account of the said action of the 3^rd respondent is recoverable from him. It is submitted that there is also clear material to suggest that on account of the delay in remitting PF dues, the Society had suffered a loss of Rs.34,468/-, which again was on account of lapses on the part of the 3^rd respondent. In such circumstances, the Tribunal ought to have dismissed the appeal filed by the 3^rd respondent and upheld the order of the Arbitrator, is t