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2023 Supreme(Online)(KER) 299
HIGH COURT OF KERALA
N. NAGARESH, J
V.Sudhakaran – Appellant
Versus
KARTHIKAPPALLY CO-OPERATIVE AGRICULTURAL & RURAL DEVELOPMENT BANK LTD.NO. A 326 REPRESENTED BY ITS SECRETARY – Respondent
WP(C) 41675/2023
SHRI. P.N.MOHANAN, SHRI. C.P.SABARI, SHRI. AMRUTHA SURESH, SHRI. GILROY ROZARIO, SHRI.T.R.HARIKUMAR, SHRI.ARJUN RAGHAVAN(K/1277/2012), SHRI.C.M.NAZAR, SC SMT. SHEEJA C.S.
Membership and voting rights in co-operative societies are contingent upon timely remittance of required share capital as per governing rules.
Headnote:
Co-operatives - Membership Rights - Kerala Co-operative Societies Act - Sections 11, 60 ; Rules 16(3), 35A(4) - Petitioners were denied inclusion in the electoral voters list due to late remittance of share value; court interpreted rules and upheld the denial based on compliance requirements.
Fact of the Case:
Petitioners sought inclusion in the preliminary voters list and issuance of ID Cards after remitting enhanced share value late. The Managing Committee had set a deadline for remittance which the petitioners missed, leading to denied membership status.
Finding of the Court:
The court found no merit in the petitioners' claims as they failed to meet the remittance deadline, which was essential for voting rights. The availability of election process provided adequate remedy for any grievances regarding membership rights.
Issues: Whether the petitioners were entitled to inclusion in the voters list despite missing the remittance deadline for enhanced share value.
Ratio Decidendi: Only members who have remitted the entire share capital necessary 60 days prior to the election are entitled to be listed as voters; the election process cannot be interfered with outside of election petitions.
Final Decision: Writ petition dismissed.
J U D G M E N T
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The petitioners, who are members of the 1st respondent-Karthikappally Co-operative Agricultural and Rural Development Bank, have filed this writ petition seeking to direct the 1st and 2nd respondents to include the name of the petitioners in the preliminary voters list and to issue ID Cards to the 2nd petitioner. The petitioners also seek to direct the 4th respondent-Registrar of Co-operative Societies to consider and pass orders on Ext.P7 before publication of the preliminary voters list.
2. Election to the Karthikappally Co-operative Agricultural and Rural Development Bank has been notified as per Ext.P4 Notification dated 27.11.2023. The preliminary voters list is to be published on 11.12.2023. Objections to the preliminary voters list will be received till 18.12.2023. Objections will be considered on 19.12.2023 and final voters list is to be published on 21.12.2023.
3. The petitioners state that the 1st petitioner is a former employee of KSFE and the 2nd petitioner was an employee of the Bank. Both of them retired on superannuation. The 2nd petitioner submitted application for membership in the Bank and it was sanctioned. The 2nd petitioner has not been issued with ID Card so far. The Managing Committee of the Bank enhanced share value from ₹50/- to ₹100/-. A time limit was prescribed to remit balance share value. The petitioners did not notice the same. When the petitioners came to know about the enhancement of share value, they remitted the balance share value on 08.10.2021.
4. The 2nd petitioner thereafter approached the Bank to get ID Card as provided in the Kerala Co-operative Societies Rules . The ID Card was denied to the 2nd petitioner stating that the last date for remittance of the enhanced share value was 06.10.2021 and the 2nd petitioner remitted the money only on 08.10.2021. In the case of other members who failed to remit the enhanced share value, their share amount was transferred to a suspense account.
5. As the petitioners were denied membership in spite of remittance of balance share value, the petitioners submitted Ext.P6 complaint dated 21.10.2023 to the Minister for Co-operation. The petitioners submitted Ext.P7 representation to the Joint Registrar also. Exts.P6 and P7 have not been positively responded to.
6. The counsel for the petitioners argued that both the petitioners have remitted the enhanced share value on 08.10.2021. As per Section 11 of the Kerala Co-operative Societies Act , enhanced share value can be remitted at any point of time. Membership has to be granted after fulfilling all the conditions provided in Section 60 read with Rule 60 of the Kerala Co-operative Societies Rules . The 1st petitioner is interested to contest in the election. Therefore, direction should be given to the 1st and 2nd respondents to include the name of the petitioners in the preliminary voters list and to issue ID Card to the 2nd petitioner.
7. Standing Counsel entered appearance on behalf of respondents 1 and 2 and resisted the writ petition. On behalf of respondents 1 and 2, it is submitted that the Managing Committee of the Society passed a resolution on 21.12.2019 resolving to enhance share value from ₹50/- to ₹100/-. The amendment was registered as per Ext.R2(a) Certificate of Registration dated 20.01.2021. The amendment provided that the enhanced share value shall be remitted by the members within a period of six months and that the membership of the persons who failed to remit the balance amount will lose their membership and the share value will be transferred to the suspense account.
8. Respondents 1 and 2 further submitted that a notice was published in Mathrubhumi Daily and Veekshanam Daily on 06.04.2021 intimating the shareholders to remit the enhanced share value before 06.10.2021. The petitioners did not remit the balance share value by 06.10.2021. The staff of the Bank mistakenly collected enhanced share value from the petitioners on 08.10.2021. From 23000 members, th
