A co-operative society lacks the legal authority to unilaterally apply for its own liquidation under the Kerala Co-operative Societies Act, 1969; winding-up must either follow the statutory member-resolution process or be initiated by the Registrar's motion.

JUDGMENT

The petitioner is a co-operative Society incorporated in the year 1960. The petitioner is before this Court stating that the Society is unable to conduct business and is presently under the management of an Administrative Committee. It is submitted in Court that despite best efforts, the Administrative Committee could not revive the business of the Society, and it has therefore approached the Joint Registrar of Co-operative Societies, Kottayam, seeking an order for the liquidation of the Society and for the appointment of a liquidator. It is submitted that this Court in Ext.P10 judgment (in W.P(C)No.25287 of 2019 and connected cases) has already directed the Joint Registrar of Co-operative Societies (General), Kottayam, to take a decision as to whether the Society should be liquidated. It is submitted that no decision has so far been taken pursuant to the directions contained in Ext.P10 judgment, and therefore, the petitioner has filed Ext.P12 application before the Joint Registrar (General), Kottayam, seeking orders for the liquidation of the Society.

2. The learned Government Pleader submits that in terms of the provisions contained in Section 71 of the Kerala Co-operative Societies Act, 1969 (hereinafter referred to as ‘the Act’), an application for winding up has to be filed by not less than three-fourths of the members of the Society (for voluntary winding up), and the Society itself cannot make any application for winding up. It is pointed out that the Registrar may also, of its own motion, direct the winding up of a Society for reasons set out in sub-section (2) of Section 71 of the 1969 Act. It is submitted that, insofar as the petitioner-Society is concerned, the department is considering whether there is any scope for revival of the Society. It is submitted that in such circumstances the request of the petitioner-Society cannot be considered.

3. Having heard the learned counsel for the petitioner and the learned Government Pleader, I am of the opinion that the learned Government Pleader is right in pointing out that in terms of the provisions contained in Section 71 of the 1969 Act, the Society by itself cannot approach the Joint Registrar seeking liquidation of the Society. The Joint Registrar may, of its own motion, order the liquidation of the Society for reasons set out in sub-section (2) of Section 71 of the 1969 Act. If the members of the Society apply for a voluntary winding up of the Society, such a request must be supported by a resolution as contemplated by the provisions of sub-section (1) of Section 71 of the 1969 Act. Thus, it is clear that the Society itself cannot apply for liquidation.

Accordingly, this writ petition is dismissed, making it clear that the dismissal of this writ petition will not prevent the filing of a proper application in terms of the provisions contained in sub-section (1) of Section 71 of the 1969 Act. It is also made clear that the dismissal of this writ petition will not prevent the Registrar or the Joint Registrar (exercising powers of the Registrar) to order liquidation of the Society if the circumstances for such an order exist.

The writ petition is ordered accordingly.