HIGH COURT OF KERALA
Devan Ramachandran, J
THE KUMBLA SERVICE CO-OPERATIVE BANK – Appellant
Versus
THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL – Respondent
WRIT PETITION (CIVIL) 5656/2017
Show Cause - Co-operative Societies - Kerala Co-operative Societies Act, 1969 - Section 32(1) - The court held that the issuance of a fresh show cause notice under Section 32(1) was permissible after the prior proceedings were deemed concluded. The necessity for the petitioner to respond was affirmed, ensuring due process.
Fact of the Case:
The petitioner, a society under the Kerala Co-operative Societies Act, challenged a show cause notice purporting to initiate supersession proceedings despite existing unresolved actions related to a prior notice.
Finding of the Court:
The court found that the first notice's proceedings had concluded, allowing for the issuance of a fresh notice under Section 32(1) based on a new complaint, and emphasized the need for a fair opportunity for the petitioner to respond.
Issues: Whether a new show cause notice can be issued under Section 32(1) when proceedings from a previous notice are still pending.
Ratio Decidendi: The court concluded that the prior proceedings had ceased, thereby permitting the issuance of a new notice and ensuring the petitioner had the chance to defend against it.
Final Decision: The writ petition was ordered to allow the petitioner to respond to the new show cause notice.
JUDGMENT
The issue in this case is very short.
The petitioner is a society registered under the provisions of the Kerala Co-operative Societies Act, 1969 (for short, KCS Act). Proceedings were taken by the respondents to supersede the Society by first issuing Ext.P1 notice which was dated 12.01.2016. The petitioner challenged Ext.P1 by filing W.P.(C) No.2957 of 2016 before this Court. This Court had decided the matter earlier and delivered a judgment in the following terms;
2.The petitioner Bank assails Ext.P4 communication from the respondent on the ground that though it is styled as a show cause notice, it has been pre-
meditated, a fait accompli.
3. In response to the submissions made by the learned counsel for the petitioner, the learned Government Pleader has submitted that sufficient opportunity has been given to the petitioner Bank to place its defence before the respondent, who will ensure that an order is passed after following the due procedure.
4. Placing reliance on Siemens Ltd. v. State of Maharashtra1, the learned counsel for the petitioner, in reply, has submitted that the Apex Court has categorically held that once an authority has applied its mind and formed an opinion, the subsequent issuance of the notice, though termed as show cause, is only an empty formality.
5. Be that as it may, I am of the considered opinion that Ext.P4 cannot be termed as a fait accompli; indeed, the respondent has given an opportunity to the petitioner to place before the said authority its defence, if any.
In the facts and circumstances, given the fact that the petitioner has an apprehension that after passing orders based on Ext.P4 show cause, the respondent authority may proceed further by enforcing it forthwith, this Court disposes of the writ petition with the following directions:
1.The petitioner is at liberty to submit its explanation in response to Ext.P4 show cause notice.
2.Once the respondent authority passes an order taking into account the explanation to be submitted by the petitioner, it shall not be given effect to for two weeks from the date of its receipt by the petitioner Bank.
2.The petitioner says that in obedience to the directions in Ext.P2 judgment, they had preferred Ext.P3 objection before the Joint Registrar of Co-operative Societies (General) Kasaragod. According to the petitioner, after they showed sufficient cause against the proposal for supercessation as per Ext.P3 objection, the respondents had virtually decided not to take any further action. According to the petitioner, this stands established by the fact that the Joint Registrar of Co-operative Societies did not issue any further orders based on Ext.P1 as of now. While so, according to the petitioner, the same Registrar has issued Ext.P4 which is purported to be another notice under Section 32 (1) of the KCS Act. The petitioner says that Ext.P4 notice, when proceedings pursuant to Ext.P1 are still not completed, is illegal and unlawful. They, therefore, assail Ext.P4 notice on the ground that it is incompetent.
3.I have heard Sri.P.N.Mohanan, the learned counsel appearing for the petitioner and Sri.Aravinda Kumar Babu, the learned Senior Government Pleader appearing on behalf of the 1st respondent and the learned counsel appearing for the 2nd respondent.
4.I have examined the pleadings on record and I see that the submissions of Mr.Mohanan, the learned counsel appearing for the petitioner, is that no action pursuant to Ext.P1 has been completed even as on date and that such fact is conceded by the way Ext.P4 notice has been issued.
5.I notice that Ext.P4 has been issued on 16.02.2017, which is more than one year after Ext.P2 judgment was delivered by this Court. If any action had been taken pursuant to Ext.P1, obviously it could have been done only in terms of the judgment of this Court. Ext.P4 does not mention anywhere that any further action pursuant to Ext.P1 had been completed. In such a view of the matter, I can only view Ext.P4 to be a fresh action in
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