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2022 Supreme(Online)(KER) 8028

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE ALEXANDER THOMAS &

THE HONOURABLE MRS. JUSTICE SHOBA ANNAMMA EAPEN TUESDAY, THE 14TH DAY OF JUNE 2022 / 24TH JYAISHTA, 1944 WA NO. 1207 OF 2021 AGAINST THE JUDGMENT DATED 03.09.2021 IN WP(C) 17062/2021 OF HIGH COURT OF KERALA APPELLANT:

THE TIRURANGADI CO-OPERATIVE AGRICULTURAL & RURAL DEVELOPMENT BANK LTD. NO.M 858, CHEMMAD P.O., TIRURANGADI, MALAPPURAM DISTRICT, PIN CODE-

676 306, REPRESENTED BY ITS SECRETARY.

BY ADVS.

GEORGE POONTHOTTAM (SR.)

NISHA GEORGE RESPONDENTS:

1 THE REGISTRAR OF CO-OPERATIVE SOCIETIES, JAWAHAR SAHAKARAN BHAVAN, DPI JUNCTION, THYCAUD P.O., THIRUVANANTHAPURAM DISTRICT, PIN CODE-695 001.

2 THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL), OFFICE OF THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL), CIVIL STATION, MALAPPURAM, PIN CODE-676 505.

*ADDITIONAL R3 IMPLEADED.

3 ADDL.R3.STATE OF KERALA.

REPRESENTED BY SECRETARY TO GOVERNMENT,CO-OPERATION DEPARTMENT,GOVERNMENT SECRETARIAT BUILDINGS.THIRUVANANTHAPURAM-695 001.

*ADDITIONAL R3 IS SUO MOTU IMPLEADED AS PER ORDER DATED

14/07/2022 IN WA 1207/2021.

BY ADV GOVERNMENT PLEADER SRI. T.K.VIPINDAS-SR.GP THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 14.06.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

ALEXANDER THOMAS & SHOBA ANNAMMA EAPEN, JJ.

===================================

Writ Appeal No.1207 of 2021 [arising out of the judgment dated 03.09.2021 passed by the learned Single Judge in WP(C) No.17062 of 2021]

=========================================

Dated this the 14th of June, 2022

J U D G M E N T

Alexander Thomas, J.

The afore captioned intra-court appeal is directed against the impugned judgment rendered on 03.09.2021 by the learned Single Judge, disposing of Writ Petition (Civil), WP(C) No.17062/2021, whereby the learned Single Judge has relegated the petitioner to avail the appellate remedy under Section 83(1)(j) of the Kerala Co-operative Societies Act in relation to its challenge as against Ext.P5 order issued by the respondent Joint Registrar of Co-operative Societies. The appellant herein is the petitioner in the WP(C) and the respondents herein are the respondents in the WP(C).

2. Heard Sri.A.L.Navaneeth Krishnan, learned Counsel appearing for the appellant herein and Sri.T.K.Vipindas, learned Senior Government Pleader appearing for the respondents herein.

3. The prayers in the instant WP(C) No.17062 of 2021 are as follows:

“(i) To call for the records leading to Ext.P5 and Ext.P7 and to quash the same by issuing a writ of certiorari.

(ii) Declare that the bank is entitled to conduct gold loan business facility to its members at the Ariyallur sub office in accordance with the provisions of the approved bye-laws of the bank.

(iii) Issue a writ of Mandamus to the 2nd respondent directing him to grant permission to the petitioner society to install strong rooms and CCTV and allied installations at the Ariyallur sub office as the gold loan facility to be conducted is in tune with the provisions of the approved bye-laws.

(iv) Declared that the petitioner is entitled to get permission from the 2nd respondent to install strong rooms and CCTV and allied installations at the Ariyallur sub office as the gold loan facility to be conducted is in tune with the provisions of the approved bye-laws.

(v) Grant such other reliefs as this Court deems fit in the facts and circumstances of the case.”

4. The main challenge raised in the above writ proceedings is against Ext.P5 order dated 23.07.2021 rendered by the 2nd respondent Joint Registrar of Co-operative Societies (General), Malappuram, whereby, pursuant to a complaint given by another Co-operative Society, viz, Ariyallur Service Co-operative Bank, it has been ordered that the Appellant Society cannot be granted permission to utilize public funds for construction of a strong room facility to conduct gold loan transaction in the Ariyallur sub office, as such gold loan transaction can be conducted only in an approved branch and not in a sub office. A ancillary challenge is also raised as against Ext.P7 dated 12.08.2021, issued by the respondent Joint Registrar, whereby explanation has been called for from the appellant society as to how it could conduct gold loan transactions in their Ariyallur sub office.

5. A brief reference to the facts of this case would be appropriate. The appellant co-operative society is functioning as Agricultural & Rural Development Bank under the Apex Bank concerned, viz, Kerala State Co-operative Agricultural and Rural Development Bank Ltd, (KSCARD Bank) and it has a head office at Tiuruangai and a duly sanctioned Branch at Chemmad both in Malappuram District. Later, the appellant society has submitted Annexure A1 request dated 02.08.2012 before the respondent Joint Registrar seeking permission to open a new sub office at Ariyallur, to extent their banking activities. The respondent Joint Registrar has issued Ext.P1 order dated 28.06.2013, granting sanction to the appellant society to open a sub office at Ariyallur, with a rider that the services of the existing employees alone could be utilized for the said purpose. It is contended that as per the registered bye-laws of the appellant co- operative society, gold loan transactions is also one of its activities. That the appellant wanted to commence gold loan transactions in its Ariyallur sub office and in view of the restrictions in Ext.P3, that gold loan transactions can be conducted only if there is a strong room facility etc, the appellant had started the gold loan transactions and had submitt

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