Authorities must intervene to protect depositors' rights and ensure repayment schemes are formed under the provisions of applicable cooperative law.

JUDGMENT

[WP(C) Nos. 18601/2009, 33802/2009, 6948/2013, 8009/2013, 8194/2013, 21633/2013, 24333/2013, 24348/2013, 26806/2013, 28178/2013, 30845/2013,]

All these cases have been filed by depositors of money, under fixed deposits, with the Thakazhi Service Co-operative Bank Ltd. (hereinafter referred to as 'the Bank' for short).

2. Shorn of unnecessary details, it is conceded before me by all parties, including the Bank, that they are now unable to pay off the entire liability due to the various depositors and that they are trying their best to find resources to do so. However, it is on record that in spite of all such efforts for the last several years, no fruitful result has come out of it; consequently, that most of the depositors are now been left in the lurch; some of them have turned senior citizens and afflicted with illness on account of this persistent wait.

3. The learned Senior Government Pleader, Shri.Bimal K.Nath, appearing on behalf of the official respondents in all these cases, concedes that time has now come for the Competent Authorities to intervene in the matter and he adds that, in fact, on earlier occasions such interventions were made and orders were issued for the benefit of individual depositors, but admits that these have not yielded results to the extent that was expected. He says, therefore, that necessary action, either by the formulation of a scheme or to garner resources by liquidation of assets, will have to be thought of by the Competent Authorities.

4. Shri.P.N.Mohanan, the learned counsel appearing for the Bank, submits that a portion of their property had been sold earlier and that under the orders of a Division Bench of this Court, an approximate amount of Rs.46,00,000/- (Rupees Forty Six Lakhs only) has been deposited with the Alappuzha District Co-operative Bank Ltd., adding that this amount can certainly be used for the purpose of paying to the depositors. He, however, admits that this amount will not be sufficient to clear the liabilities of all the depositors and therefore, affirms that the competent Joint Registrar may now take action appropriately as per law, to ensure that maximum amounts are recovered so as to repay all the depositors.

5. Shri.P.C.Sasidharan, the learned Standing Counsel appearing for the Alappuzha District Co- operative Bank Ltd., affirms that some amounts from the Bank are with them, but says that it may not be justified or prudent for this Court to order the petitioners in these cases to be paid out of it, since large amounts are concededly due from the Bank to various other persons, some of whom have already obtained awards under Section 69 of the Kerala Co-operative Societies Act . He adds that certain amounts are, in fact, payable by the Bank even to his client. He, therefore, says that the Joint Registrar be directed to frame a scheme or to adopt such other methods, as sanctioned by law, to ensure that all depositors and creditors obtain their money fully, or at least substantially.

6. When I hear the learned counsel as afore, it becomes ineluctable that the only manner in which a proper resolution of the claims of the petitioners can be obtained in these cases is with the effective intervention of the Competent Authorities and in no other manner. Therefore, I am of the firm view that the Joint Registrar of Co-Operative Societies, Alappuzha, must immediately commence necessary proceedings to device a Scheme under which all the depositors and creditors can be repaid their money, if not fully but at least substantially.

7. For this purpose and as a measure of first instance, I direct the competent Joint Registrar to call a meeting of all the creditors and depositors, after obtaining the list of such depositors and creditors from the Service Co- operative Bank, within a period of two months from the date of receipt of a copy of this judgment, so that he can then assess their individual claims based on Deposit Receipts, Arbitration Awards or such other orders of the Co