The Registrar of Cooperative Societies has supervisory authority under Section 66 to intervene in the appointment process of officers within cooperative societies.

1Petitioner in O.P.No.7186 of 1991 is the appellant. Appellant petitioner is the Board of Directors of the Trivandrum District Cooperative Bank which is a Cooperative Society. For appointment of officers in the Bank, a notification was issued, evidenced by Ext. P2, inviting applications from eligible candidates. The selection was to be made by a written test which is followed by an interview. While the date for the test and interview was fixed, by Ext. P3 order dated 3-7-1991, the Joint Registrar stayed all further proceedings in respect of the appointment, pending an enquiry into a complaint regarding the process of selection. Later, by Ext. P5 order dated 6-7-91, Government also stayed further proceedings in the matter. The writ petition under Art.226 was filed by the appellant to quash Exts. P3 and P5. Petitioner contended that the order Ext. P3 by the Joint Registrar is beyond his power under the provisions of the Kerala Cooperative Societies Act, 1969 (for short, 'the Act'). It is the further contention of the petitioner that the appointment of officers in the Bank is an internal matter and the Registrar has no jurisdiction to interfere in that matter under any of the provisions of the Act.

2The contention on behalf of the respondents was to the effect that under S.66 of the Act, the Registrar has supervisory power over the working and the affairs of every society and it was in exercise of that power that Ext. P3 order was passed. The learned Single Judge accepted the contention of the respondents and held that in such circumstances the Registrar has power to pass an order like Ext. P3, and accordingly dismissed the writ petition. The appeal is against the above judgment.

3Thus the only question to be decided is as to whether the Registrar has power or jurisdiction to interfere and pass orders like Ext. P3 in the circumstances of the case. S.66 of the Cooperative Societies Act deals with supervision and inspection of the working of every society by the Registrar. S.66(1)(a) is the relevant section and it reads as follows:
"66. Supervision and Inspection:-(1)(a) The Registrar shall supervise or cause to be supervised by a person authorised by him by general or special order in writing in this behalf, the working of every society as frequently as he may consider necessary."
The above section gives power or authority to the Registrar to supervise the working of every society as frequently as he may consider necessary. The working of the society will definitely include the appointment of necessary officers in the Bank and other ancillary matters and on a plain reading of the Section, we have no hesitation to agree with the learned Single Judge that the appointment of officers in a Cooperative Society is a matter which comes within the purview of S.66 of the Act and the Registrar has the necessary power to supervise the same. In exercise of that power, for effectively supervising the working of the society, certainly he will be entitled to pass appropriate orders which are necessary in the circumstances of the case.

4A learned Single Judge of this Court in Kurian v. Joint Registrar (1990 (1) KLT 618) has taken the same view and has held as follows:
"It is true that a cooperative society must have freedom of activities. Officers of the Department and the Government are not to take action interfering with the autonomy of the societies. This does not mean that the society can act in any manner ignoring the provisions of the Act and the directions given by the Registrar of Cooperative Societies. Only when a cooperative society acts within its jurisdiction, in conformity with the provisions of the Act and the general directions by the Registrar, can they claim freedom from interference. When they violate the provisions of the bye laws and the Act in an arbitrary manner, their actions will be subject to the supervisory control of the authorities under the Act. The committee cannot act against the interest of the society with immunity. If