Supersession of co-operative society committee invalid without prior consultation with financing bank and circle co-operative union under Section 32(2).

JUDGMENT This writ petition has been filed challenging Ext.P4 order superseding the elected Managing Committee of the 7^th respondent Society as also the consequential Ext.P5 order handing over charge of the management of the Society to a Part Time Administrator. 2. The learned counsel appearing for the petitioners would submit that apart from the contentions on merits, the petitioners have a case that Ext.P4 order is contrary to law and is an order issued in violation of the provisions of Section 32 of the Kerala Co-operative Societies Act, 1969 (hereinafter referred to as ‘the 1969 Act’) as there has been no consultation with the Circle Co-operative Union and the Financing Bank before issuing the order of Supersession. It is submitted that on this short ground and without going into any other aspect of the matter, Ext.P4 order is liable to be set aside.

3. The learned Government Pleader submitted that since the Administrator has already taken charge, she may be given some time to file a detailed counter affidavit in the matter. However, I am not inclined to adjourn this matter to enable the learned Government Pleader to file a counter affidavit as it is seen from Ext.P4 that the contention of the learned counsel for the petitioners that there has been no consultation with the Circle Co-operative Union and the Financing Bank appears to be correct.

4. Section 32 of the 1969 Act to the extent it is relevant reads thus:-

“(2)The Registrar shall consult the financing bank and circle cooperative union or State Co-operative Union, as the case may be, before passing an order under sub- section (1).”

Any order passed in violation of the provisions of sub-section (2) of Section 32 of the 1969 Act cannot be sustained in law.

5. Therefore, without going into the merits of the allegations which led to Ext.P4 order, I am inclined to allow this writ petition by setting aside Ext.P4, making it clear that the setting aside of Ext.P4 will not prevent the competent authority from taking any further action, in accordance with the law. As a consequence of the setting aside of Ext.P4, Ext.P5 was also set aside, it is directed that the Administrator shall forthwith hand over charge to the elected Managing Committee. It is also made clear that I have not examined the merits of the allegations which led to Ext.P4 order and the competent authority will be entitled to take further action, in accordance with the law, if there is any reason for doing so.