HIGH COURT OF KERALA
Devan Ramachandran, J
CHENDAMANGALAM SERVICE CO-OPERATIVE BANK LTD (NO. 132 – Appellant
Versus
THE STATE OF KERALA, – Respondent
WP(C) 11004/2024
Cooperative - Kerala Co-operative Societies Act - Section 68 - The court discussed the provisions of Section 68 of the KCS Act regarding procedural requirements for actions against cooperative societies, emphasizing the importance of notice and opportunity to be heard, influencing its decision to dismiss the petition.
Fact of the Case:
The petitioner challenged a directive under the KCS Act citing lack of notice and the right to be heard before action could be initiated against them by the competent authority.
Finding of the Court:
The court found that the concerns about not being given an opportunity to be heard were unfounded, as procedural requirements under Section 68 would be followed, affirming the legitimacy of the governmental directive.
Issues: Whether the petitioner had a right to notice and a hearing before being subjected to proceedings under Section 68 of the KCS Act.
Ratio Decidendi: The right to be heard under Section 68(2) of the KCS Act is contingent upon the completion of an inquiry, and the court emphasized that any necessary proceedings would allow for this right to be exercised.
Final Decision: The court dismissed the writ petition, ruling that all procedural requirements would be adhered to in any future actions.
The petitioner says that they are aggrieved by Ext.P6 because the Government of Kerala has directed the competent Authority under the Kerala Co-operative Societies Act , 1969 (‘KCS Act’, for short) to proceed against them, under the provisions of Section 68 of the same, without even a notice being issued or an opportunity of being heard.
2. Sri.Anoop V.Nair - learned Standing Counsel for the writ petitioner, vehemently argued that, as is evident from the tenor of Ext.P6, it originated from another proceeding, but in which the Government has now issued a direction to the competent Authorities to initiate and complete action against his client under Section 68 of the ‘Act’, however, without following due procedure. He thus prayed that Ext.P6, to such extent, be set aside.
3. Smt.C.S.Sheeja - learned Senior Government Pleader, however, submitted that the afore apprehensions of the petitioner are wholly unfounded; and that, in fact, they appear to have approached this Court very mischievously.
She explained that the earlier proceedings - which culminated in the rescission of a resolution of the Society - are completely distinct from the one which is reflected in Ext.P6; and therefore, that every procedural requirement under Section 68 of the ‘KCS Act’ would be complied with and ensured. She reiterated that, after the inquiry under (1) of the ‘KCS Act’ is completed against the petitioner, if any further course is warranted, they will be issued necessary notice under (2) thereof and given an opportunity of being heard, as mandated under the statutory Scheme and by the various declarations of law by this Court.
4. I have no doubt that the afore submissions of the learned Senior Government Pleader would allay the apprehensions of the petitioner fully, if not substantially, because their fear - that they would not be heard at the stage of Section 68 (2) of the ‘KCS Act’, if it becomes so warranted - now becomes totally untenable.
In the afore circumstances, recording the afore submissions of the learned Senior Government Pleader, I close this Writ Petition, without entering into the merits of any of the rival contentions of the parties and leaving them all open, to be impelled and pursued by the petitioner, as and when it becomes warranted in future.
I further record the submissions of WP(C) NO. 11004 OF 2024 Smt.C.S.Sheeja that the inquiry under Section 68 of the ‘KCS Act’ mentioned in Ext.P6 relates to the proceedings therein and not to the one reflected in this judgment; and that, if at all any action is taken thereon, it will be independent and distinct.
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