Ambalapad Service Co-Operative Bank ... vs The Assistant Registrar Of ...

Kerala High Court

Ambalapad Service Co-Operative Bank ... vs The Assistant Registrar Of ... on 21 May, 2024

Author: Devan Ramachandran

Bench: Devan Ramachandran

                 IN THE HIGH COURT OF KERALA AT ERNAKULAM
                                  PRESENT
               THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN
         TUESDAY, THE 21ST DAY OF MAY 2024 / 31ST VAISAKHA, 1946
                          WP(C) NO. 24773 OF 2023
PETITIONER

             AMBALAPAD SERVICE CO-OPERATIVE BANK LTD NO.759
             REPRESENTED BY ITS SECRETARY, KUNDUKADU P .O, THRISSUR
             DISTRICT., PIN - 680028
             BY ADVS.
             ARJUN RAGHAVAN
             T.R.HARIKUMAR
             POOJA PANKAJ


RESPONDENTS:

     1       THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES
             (GENERAL), THALAPPILLY
             VADAKKANCHERY P.O, THRISSUR DISTRICT., PIN - 680582
     2       THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL),
             THRISSUR, AYYANTHOLE, THRISSUR DISTRICT., PIN - 680003
     3       THE REGISTRAR OF CO-OPERATIVE SOCIETIES
             JAWAHAR SAHAKARANA BHAVAN, DPI JUNCTION, THYCAUD P.O,
             THIRUVANANTHAPURAM DISTRICT., PIN - 695014


             SMT MABLE C KURIEN-SR GP.


     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
21.05.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 WP(C) NO. 24773 OF 2023
                                      2

                                JUDGMENT

The petitioner, which is a Co-operative Society, calls into question the validity of Ext.P15 order issued by the Joint Registrar (General), Thrissur, whereby, they have been directed not to engage in the wholesale trade of medicines and other drugs, on the strength of the Drug Licence obtained by them earlier.

2. Sri.Arjun Raghavan - learned Standing Counsel for the petitioner - Society, argued vehemently that Ext.P15 is the product of misconception, issued without hearing his client and based on facts which are inaccurate and bereft of proper basis. He argued that his client has been engaging in the sale of drugs only through Government and Government agencies and hence that Ext.P15 was wholly unnecessary. WP(C) NO. 24773 OF 2023 3

3. However, in response, the learned Senior Government Pleader - Smt.Mable C.Kurian, submitted that, as evident from Ext.P15, the Joint Registrar has noticed objections raised by other competent Authorities, as to the manner of the business conducted by the petitioner, particularly because they have been operating without any specific authorisation having been given to them by the competent Authorities. She, however, added that she does not have instructions whether the petitioner was heard before Ext.P15 has been issued, but argued that this is immaterial because the Joint Registrar is authorised and obligated in law to take necessary action as and when any violation is found at the hands of any Co-operative Society.

4. Before I assess and evaluate the afore WP(C) NO. 24773 OF 2023 4 rival position of the parties, I must record that this Court had passed an interim order on 31.07.2023 to the following effect, when this writ petition was considered for admission;

"Learned Senior Government Pleader seeks time to get instructions.

Taking into consideration the submission of the learned counsel for the petitioner that Ext.P15 order was issued without hearing the petitioner and considering the fact that the effect of Ext.P15 will be a stoppage of business, which is stated to be running for nearly thirteen years, there will be an interim order as prayed for, for a period of two weeks.

Post after two weeks."

5. Subsequently, on 14.08.2023, the afore order was partially modified in the following manner:

WP(C) NO. 24773 OF 2023 5 "Interim order will continue for a period of six weeks.

However, the petitioner shall supply medicines only to the Government Health Institutions including Medical Colleges. Post after vacation."

6. Therefore, as matters now stand, the petitioner is enjoying the afore interim orders and that are supplying medicines only to Government Health Institutions, including Medical Colleges.

7. In the afore perspective, when one reads Ext.P15, it is not clear as to what the Joint Registrar meant by saying that the petitioner is engaging in wholesale business of drugs and medicines because, there is also a record therein that they were only honouring requisitions made by Government and its Agencies and institutions. If this be so, one fails to understand how the WP(C) NO. 24773 OF 2023 6 petitioner can be asked not to engage in their "wholesale business" if requisitions had been given to them solely by the Government Agencies or by its other departments. These aspects are completely untouched in Ext.P15, as also the facts that are specifically impelled before this Court. To exacerbate the problem, the petitioner had, admittedly, not been heard when it was issued.

8. I am, therefore, of the firm view that the matter must engage the attention of the Joint Registrar afresh and that he must act unfettered by what has been found by him in Ext.P15; however, adverting to the reports earlier obtained and after hearing the petitioner.

In the afore circumstances, I allow this writ petition, confirming the afore interim orders WP(C) NO. 24773 OF 2023 7 until such time as the Joint Registrar takes a fresh decision on the issues involved; which, however, shall be done dehors Ext.P15 and without being fettered or constrained by it; but with liberty to rely upon all reports that have been earlier obtained and to be obtained, on condition that the same shall be first made available to the petitioner for an effective response.

Needless to say, the petitioner will be heard during the afore process and a final decision shall take, adverting to Exts.P14 and P14(a); thus leading to an order to be issued by the Joint Registrar, as expeditiously as is possible, but not later than one month from the date of receipt of a copy of this judgment.

I, however, clarify that I have not entered into the merits of any of the rival contentions, WP(C) NO. 24773 OF 2023 8 including as to whether the petitioner was enjoined to obtain prior permission from the Registrar and such other competent Authorities; and all these are left open. It is further clarified and that my observations in this judgment are only intended to guide me to the course adopted as afore and hence that the parties are at full liberty to impel and invoke all their contentions and available remedies either before this Court or other competent Forums in future.

Sd/-

DEVAN RAMACHANDRAN JUDGE SAS WP(C) NO. 24773 OF 2023 9 APPENDIX OF WP(C) 24773/2023 PETITIONER'S EXHIBITS:

Exhibit P1 A TRUE COPY OF THE RELEVANT PAGES OF THE BYELAWS OF THE PETITIONER SOCIETY Exhibit P2 A TRUE COPY OF THE ORDER DATED 23-02-2010 ISSUED BY THE ADDL. REGISTRAR (CONSUMER) ON BEHALF OF THE 3RD RESPONDENT Exhibit P3 A TRUE COPY OF THE LICENCE BEARING NO.8/228/20/2010 DATED 17-06-2010 Exhibit P4 A TRUE COPY OF LICENCE BEARING NO.8/229/21/2010 DATED 17-06-2010 Exhibit P5 A TRUE COPY OF THE LICENCE RETENTION LETTER DATED 06-08-2020 Exhibit P6 A TRUE COPY OF THE LICENCE BEARING NO.8/501/20B/2010 DATED 30-12-2010 Exhibit P7 A TRUE COPY OF THE LICENCE BEARING NO.8/502/21B/2010 DATED 30-12-2010 Exhibit P8 A TRUE COPY OF THE LICENCE RETENTION LETTER DATED 22-01-2021 Exhibit P9 A TRUE COPY OF THE DEED OF INDEMNITY EXECUTED BY SMT.SABITHA DATED 20-09-2017 Exhibit P10 A TRUE COPY OF THE DEED OF INDEMNITY EXECUTED BY SRI.NAZEER DATED 20-09-2017 Exhibit-P11 A TRUE COPY OF CIRCULAR BEARING NUMBER DA1/93/2022 DATED 26-03-2022 Exhibit-P12 A TRUE COPY OF THE COMMUNICATION DATED 16-12- 2022 SUBMITTED BY THE PETITIONER SOCIETY TO THE 1ST RESPONDENT ALONG WITH THE DETAILS OF WHOLESALE BUSINESS Exhibit P13 A TRUE COPY OF THE COMMUNICATION DATED 10-01- 2023, ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER Exhibit-P13(a) A TRUE COPY OF THE COMMUNICATION DATED 16-01- 2023, ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER Exhibit-P14 A TRUE COPY OF THE EXPLANATION DATED 08-02- 2023 SUBMITTED BY THE PETITIONER SOCIETY WP(C) NO. 24773 OF 2023 10 BEFORE THE 2ND RESPONDENT Exhibit-P14(a) A TRUE COPY OF THE EXPLANATION DATED 03-05- 2023 SUBMITTED BY THE PETITIONER SOCIETY BEFORE THE 2ND RESPONDENT Exhibit-P15 A TRUE COPY OF THE STOP MEMO DATED 17-06-2023, ISSUED BY THE 2ND RESPONDENT