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2024 Supreme(Online)(KER) 36102
HIGH COURT OF KERALA
N. NAGARESH, J
PRASAD PERINGATT – Appellant
Versus
THE MUKKOM SERVICE CO-OPERATIVE BANK LTD – Respondent
WP(C) 28609/2024
P.P.JACOB, MARIYAM JACOB, JAIBY PAUL, ANITA GLENDA PHILIP(K/356/2001), SMT. RESMI THOMAS, GOVERNMENT PLEADER
Disputes regarding election and membership in co-operative societies must be resolved through statutory remedies rather than writ petitions.
Headnote:(A) Kerala Co-operative Societies Act - Section 69 - Dispute regarding election and membership - Petitioners challenged the conduct of the Administrative Committee in relation to election and membership issues - Court held that grievances must be addressed through alternate remedies under the Act, rendering the writ petition not maintainable. (Paras 1, 12)
(B) Election Disputes - The court emphasized that disputes regarding the inclusion or exclusion of members in the voters list are to be resolved through statutory provisions rather than through writ petitions. (Paras 11, 12)
Facts of the case:
The petitioners, members of the Mukkom Service Co-operative Bank, contested the legitimacy of the Administrative Committee's actions regarding membership and election processes, alleging fraud and manipulation of records.
Findings of Court:
The court found that the petitioners must pursue alternate remedies under the Kerala Co-operative Societies Act for their grievances regarding membership and election disputes.
Issues: The main issue was whether the petitioners could challenge the Administrative Committee's actions through a writ petition or if they should seek remedies under the Act.
Ratio Decidendi: The court ruled that the appropriate course for the petitioners was to utilize the remedies provided under the Kerala Co-operative Societies Act, as the matter pertained to election disputes.
Result: The writ petition is dismissed.
| Table of Content |
|---|
| 1. notification for upcoming election (Para 2 , 3 , 4 , 5) |
| 2. counter affidavit by 1st respondent (Para 6) |
| 3. supersession of board of directors (Para 7 , 8) |
| 4. financial issues faced by the bank (Para 9) |
| 5. enrollment of new members (Para 10 , 11) |
| 6. court's view on grievances (Para 12) |
JUDGMENT
The petitioners are members of the 1 st respondent- Mukkom Service Co-operative Bank. The petitioners state that they are aggrieved by the arbitrary conduct of the Bank and Administrative Committee in manipulating the records of the Society in relation to election.
2. The petitioners state that election to the Managing Committee of the Bank was held on 11.11.2018. The managing Committee passed a resolution to increase the share value to
₹500/-. It was decided to amend the bye-laws accordingly. A general body was convened for this purpose on 05.12.2015 after publication in two newspapers. The general body unanimously approved the amendment. The Joint Registrar granted registration to the amendment of bye-laws as per Ext.P6.
3. Thereafter, notice was published in leading dailies requiring the members to pay the balance share amount. On 25.06.2018, the Managing Committee passed a resolution to cancel the membership of those persons who have not paid enhanced share value. In the meanwhile, the elected Committee was suspended with effect from 28.12.2020 and an Administrative Committee was appointed.
4. The petitioners would allege that the Administrative Committee committed fraud and concocted applications for membership. The elected Committee gave a police complaint. The Administrative Committee accepted the enhanced share value from 444 persons. The petitioners would submit that their names are to be removed from the list of members. The Administrative Committee has illegally given fresh membership to 354 persons. They should also be excluded from membership.
5. The petitioners state that the State Co-operative Election Commission has issued Ext.P15 Notification fixing the election on 06.10.2024. The Administrative Committee have enrolled 1441 members illegally. The petitioners therefore pray that respondents 1 to 4 be directed not to include the names of 354 members vide membership Nos.21841 to 22197. The petitioners also seek to direct respondents 1 to 4 not to include the names of 444 members as evident from Ext.P11. The petitioners have also sought for certain incidental reliefs.
6. The 1 st respondent filed counter affidavit. The 1 st respondent submitted that the erstwhile Board of Directors was superseded during the year 2020 and Administrator was appointed due to the allegations regarding illegal appointments, maladministration and misappropriations by the elected Managing Committee. Several allegations were raised by the members, Board of Directors and candidates who were included in various posts in the service of the Bank. In connection with that, several writ petitions were filed before this Court.
7. At the instance of the erstwhile Board of Directors, the former Secretary was also suspended without any legal basis. While so, the Bank was superseded as stated above. In the light of the decision of this Court, the former Secretary was reinstated. Subsequently, the erstwhile Board of Directors was also reinstated. But, thereafter, in a series of writ petitions in connection with complaints of members on the maladministration by the erstwhile Managing Committee and the candidates in the selections process to the service of the Bank, this Court directed the 5 th respondent-Joint Registrar to conduct hearing and pass orders on the complaints against the erstwhile Board of Directors.
8. In pursuance of the decision, the reinstated Board of Directors was again superseded. The respondents appointed an Administrator and the Administrator took charge on 20.07.2023. Thereafter, the Departmental authorities had appointed the 2 nd respondent-Administrative Committee and the charge was taken on 23.12.2023. A vigilance enquiry was ordered
