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2021 Supreme(Online)(KER) 24079
HIGH COURT OF KERALA
Sathish Ninan, J
THE THIRURANGADI CO-OPERATIVE – Appellant
Versus
THE REGISTRAR OF CO-OPERATIVE SOCIETIES, – Respondent
WP(C)/17062/2021
Statutory remedies should be exhausted before judicial intervention can be considered appropriated.
Headnote:
Co-operative - Gold Loan Business - Bye-Laws - Appeals
Fact of the Case:
The petitioner, a primary cooperative society, sought to conduct a gold loan business at a sub-office, requiring funds for a strong room. The request for funds was denied, and the petitioner was instructed to cease operations without sanction.
Finding of the Court:
The court found that the appealable nature of Ext.P5 order indicated that judicial review was not appropriate at this stage. The petitioner's rights to appeal and respond to Ext.P7 were upheld.
Issues: Whether the petitioner was correctly denied the sanction to conduct gold loan business despite the bye-laws allowing such activities.
Ratio Decidendi: Statutory appellate remedies should be utilized before seeking relief through writ petitions. The court emphasized that objections called for by the second respondent must be addressed.
Final Decision: The writ petition was dismissed without prejudice to the petitioner's rights.
J U D G M E N T
The petitioner is a primary co-operative society.
As per Ext.P2 bye-laws of the Society, one of the objects of the Society is “grant of gold loan”. The petitioner has a sub-office at Ariyallur, a place within the area of operation of the Society since 2013. The petitioner intends to conduct gold loan business at the sub-office and for the said purpose needs to construct a strong room. To expend funds of the Society for construction of the strong room, the petitioner submitted an application before the second respondent. As per Ext.P5 order, the request was declined by the second respondent. Further, as per Ext.P7, the second respondent required the petitioner to forthwith stop the gold loan business commenced by the petitioner without sanction. Ext.P7 further called for objections/
explanations from the petitioner as to why proceedings should be initiated against the petitioner. It is challenging Exts.P5 and P7 that the petitioner has approached this Court.
2. Heard Sri.George Poonthottam, learned Senior Counsel appearing for the petitioner and Smt.Sheeja C.S., the learned Senior Government Pleader.
3. The learned senior counsel would contend that, when the bye-laws itself provide for conducting business in gold loan, the sanction could not have been refused. The Government Pleader on the other hand would point out that, the request of the petitioner was declined not for the reason that the bye-laws of the Society does not provide for conduct of gold loan business, but for the reason that the sub-office in question does not have the status of a branch.
4. Ext.P5 order is appealable in nature. In view of the existence of the statutory appellate remedy, there is no reason to entertain the challenge against Ext.P5 in a writ petition. As regards Ext.P7, as mentioned therein and noted supra, objections/explanations have been called for from the petitioner with regard to the action proposed therein, for which, the petitioner can submit his explanations. Challenge against Ext.P7 is also not liable to be entertained by this Court, at this stage.
Accordingly the writ petition is dismissed without prejudice to the rights of the petitioner as noted above.
Sd/-
SATHISH NINAN JUDGE kns/-
//True Copy// P.S. to Judge APPENDIX OF WP(C) 17062/2021 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE ORDER NO. CLT(3)6333/2013 DATED 28/06/2013 ISSUED BY THE ADDITIONAL REGISTRAR (CREDIT) OF CO-OPERATIVE SOCIETIES.
Exhibit P2 TRUE COPY OF THE RELEVANT PAGES OF THE BYE-
LAWS OF THE PETITIONER SOCIETY DETAILING THE TYPES OF LOANS PERMITTED TO BE ISSUED BY THE PETITIONER BANK.
Exhibit P3 TRUE COPY OF THE CIRCULAR NO. 1/2013 DATED
11/01/2013 ISSUED BY THE 1ST RESPONDENT.
Exhibit P4 TRUE COPY OF THE APPLICATION SUBMITTED BY THE PETITIONER BANK TO THE 2ND RESPONDENT DATED
22/04/2021.
Exhibit P5 TRUE COPY OF THE COMMUNICATION NO.
JRMPM/1111/2021 CRB L.DIS DATED 23/07/2021 OF THE 2ND RESPONDENT.
Exhibit P6 TRUE COPY OF THE CIRCULAR NO. P1/INT/2019-
2020 DATED 030/09/2020 ISSUED BY THE KERALA STATE CO-OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK LIMITED.
Exhibit P7 TRUE COPY OF THE ORDER NO. JRMPM/1111/2021-
CRB DATED 12/08/2021 ISSUED BY THE 2ND RESPONDENT.
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