Petitioners must raise their contentions before the competent authority upon issuance of show cause notice under the Kerala Co-operative Societies Act, 1969, as they cannot contest the inquiry report at this stage.

JUDGMENT

This writ petition has been filed challenging Ext.P7 enquiry report under Section 65 of the Kerala Co-operatie Societies Act, 1969 (hereinafter referred to as the 1969 Act), Ext.P9 (a) order issued by the competent authority under sub-section (1) of Section 68 of the 1969 Act, and Ext.P10 which is the consequent show cause notice issued to the 1stpetitioner by the Enquiry Officer appointed by the competent authority.

2. The learned Government Pleader and the learned counsel appearing for the party respondents would submit that, going by the law laid down by the Full Bench of this court inKudayathoor Service Co- operative Bank Ltd. v. Joint Registrar of Co-operative Societies (General) 2022 (3) KLT 222 (F.B.) the petitioner cannot challenge the proceedings at this stage and it is for the petitioners to take all contentions before the competent authority, if and when a show cause notice is issued to the petitioners under the provisions of sub-section (2) of Section 68 of the 1969 Act.

3. Having heard the learned counsel for the petitioners, the learned senior Government Pleader, the learned counsel appearing for the party respondents, I am of the view that there is considerable merit in the contentions taken by the learned Government Pleader and the learned counsel appearing for the party respondents that the petitioners cannot at this stage challenge the enquiry report prepared under the provisions of Section 65 of the 1969 Act and also the order directing the initiation of proceedings under Section 68 of the 1969 Act. In paragraph 17 of the judgment in Kudayathoor Service Co-operative Bank Ltd. (supra) reads thus:-

“17. As noted, Section 66 of the Act empowers the Registrar, on his own motion or on the application of a creditor of a society, to inspect or direct any person authorised by him by order in writing in its behalf to inspect the books of the society. Similarly, Section 65 empowers the Registrar, on his own motion or on any of the circumstances mentioned in clauses (b) to (f) of sub-section (1) of , to order an inquiry by himself or by a person authorised by an order in writing into the constitution, working and financial condition of the society, if he is satisfied that it is necessary to do so. also empowers the Registrar to supersede the Managing Committee of a society in accordance with the provisions contained in Section 32, if any major defect in the constitution or working or financial condition of the society is noticed in an inquiry under (1). Section 68 provides that if in the course of an inquiry or inspection it is found that any person who is or was entrusted with any organisation or management of co-operative societies or who is or has at any time been an officer or an employee of the society has made any payment contrary to the Act or the Rules or the bye-laws or has caused to any loss or damage in the assets of the society by breach of trust or wilful negligence or mismanagement or has misappropriated or fraudulently retained any money or other property belonging to such society or has destroyed or caused the destruction of the records, the Registrar may, on his own motion, or on the application of the committee, liquidator or any creditor, inquire himself or direct any person authorised by him by an order in writing in this behalf, to inquire into the conduct of such person. (2) provides that where an inquiry is made under sub-section (1), the Registrar may, after giving the person concerned an opportunity of being heard, by order in writing, require him to repay or restore the money or other property or any part thereof, with interest at such rate or to pay contribution and costs or compensation to such extent, as the Registrar may consider just and equitable. The aforesaid provisions would indicate that the Registrar would be competent to supersede the Managing Committee of the society under Section 32 of the Act or surcharge the members of the Managing Committee or others under based o