Kerala High Court
Chandran vs State Of Kerala on 17 February, 2021
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE RAJA VIJAYARAGHAVAN V
WEDNESDAY, THE 17TH DAY OF FEBRUARY 2021 / 28TH MAGHA,1942
WP(C).No.12844 OF 2020(E)
PETITIONER/S:
1 CHANDRAN,
AGED 47 YEARS,
S/O.LATE SANKARAN.C, KOOTTAKALUNGAL HOUSE,
KUMMINIPARAMBA.P.O, KONDOTTY VIA, MALAPPURAM-673638
2 SUNDARAN M.,
AGED 65 YEARS,
S/O.ANDI.M, M.S. NIVAS BY PASS JUNCTION, P.O,
RAMANATTUKARA, KOZHIKODE-673633.
3 K.P.SURESH KUMAR,
AGED 48 YEARS,
S/O.DAMODARN, THAKKUMPARAMB, KUMMINIPARAMBA.P.O,
KONDOTTY VIA, MALAPPURAM-673638.
BY ADVS.
SRI.KALEESWARAM RAJ
SRI.VARUN C.VIJAY
KUM.A.ARUNA
KUM.THULASI K. RAJ
SMT.MAITREYI SACHIDANANDA HEGDE
RESPONDENT/S:
1 STATE OF KERALA,
REPRESENTED BY ITS SECRETARY, DEPARTMENT OF
CO-OPERATION, GOVERNMENT SECRETARIAT,
THIRUVANANTHAPURAM-695001.
2 REGISTRAR OF CO-OPERATIVE SOCIETIES,
THIRUVANANTHAPURAM-695001.
3 THE JOINT REGISTRAR OF CO-OPERATIVE
SOCIETIES(GENERAL),
OFFICE OF THE JOINT REGISTRAR (GENERAL), UP HILL,
MALAPPURAM, KERALA-676505.
4 THE ASSISTANT REGISTRAR (GENERAL),
OF CO-OPERATIVE SOCIETIES, OFFICE OF THE JOINT
REGISTRAR(GENERAL), UP HILL, MALAPPURAM, KERLA-676505
WP(C).No.12844 OF 2020(E) 2
5 UNIT INSPECTOR,
AREEKODE, ASSISTANT REGISTRAR OF CO-OPERATIVE
SOCIETIES(GENERAL), MANJERI, MALAPPURAM-676121.
6 KONDOTY VANITHA CO-OPERATIVE SOCIETY LTD,
NO.M 661, ALUNGAL.P.O, KONDOTTY-676304.
R1 TO R5 BY GOVERNMENT PLEADER SMT MABLE C KURIAN
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON
17.02.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C).No.12844 OF 2020(E) 3
JUDGMENT
Instant writ petition is filed seeking the following reliefs:
"i. Declare that the Registrar is duty bound to take actions on Ext.P10 inquiry
report and Ext.P12 recommendation either as per Section 68 or as per
Section 71 of the Act.
ii. Issue a writ of mandamus directing the respondent nos.2 and 3 to issue
orders of Surcharge based on Ext.P10 report against those persons to
be held liable in the said report as per the procedure prescribed in S.68
of the Act.
iii. Issue a writ of mandamus directing respondents 2 and 3 to issue necessary
orders for winding up the 6th respondent society based on Ext.P10
report under S.71 of the Act with a view to enable recovery of the
deposit amounts from the delinquent persons and to distribute it to the
petitioners.
iv. Issue a writ of mandamus directing respondents 2 and 3 to issue
necessary orders for cancelling the registration of the 6th respondent
Society on winding up of the society as per Section 74 of the Act."
2. In the counter affidavit dated 6.8.2020 it is stated that an
enquiry under Section 65 of the Act was ordered and based on the report
submitted, proceedings for surcharge under Section 68 (1) have been
initiated. Notice has been issued to the persons responsible for causing
diminishment of the assets of the Society by misappropriation of amounts
and mismanagement. The proceedings were stated to be pending. It is
further stated that the 3rd respondent shall take follow up action strictly in
tune with the provisions of the Kerala Co-operative Societies Act and the
Rules framed thereunder.
3. The learned counsel appearing for the petitioners submitted that
though the notice under Section 68(1) of the Act was issued, no further
steps were taken to take it to its logical conclusion. In view of the said
submission, the 3rd respondent was ordered to file a statement detailing
the stage of proceedings.
4. In tune with the said direction, a statement has been filed by the
3rd respondent. Paragraph Nos.2 and 3 of the statement is extracted
below for convenience.
"2. It is submitted that the surcharge proceedings under Section
68(2) of the Kerala Co-operative Societies Act, 1969 was issued by
this respondent through an order numbered JRMPM 374/2020-HMC
on 08.01.2021 against 20 individuals who were included in both the
reports issued under sections 65 and 68(1) of the KCS Act. The
total loss to the society against which surcharge order was issued is
Rs.3,28,72,688.90.
3. It is submitted that the total loss arrived at and charged under
section 68(2) was calculated by adding an interest also at the rate of
13% per annum from 01.04.2015 to 31.03.2019."
5. In that view of the matter, no further orders are required to be
passed insofar as relief (i) and (ii) are concerned. Insofar as relief (iii) and
(iv) are concerned, the 2nd respondent shall act in terms of Section 71 of
the Act, if he is satisfied that the said course should be followed.
This writ petition is accordingly disposed of leaving open all
contentions of the petitioners and reserving their right to either move the
statutory forum or this Court at a later stage, if so warranted.
SD/-
RAJA VIJAYARAGHAVAN V
JUDGE
DSV
APPENDIX
PETITIONER'S/S EXHIBITS:
EXHIBIT P1 TRUE COPY OF THE FD RECEIPT FOR AN AMOUNT
OF RS.2 LAKHS BY THE 1ST PETITIONER DATED
31.10.2013.
EXHIBIT P2 TRUE COPY OF THE FD RECEIPT FOR AN AMOUNT
OF RS.2 LAKHS BY MS.MINI, THE WIFE OF THE
1ST PETITIONER DATED 3.09.2014.
EXHIBIT P3 TRUE COPY OF THE FD RECEIPT FOR AN AMOUNT
OF RS.5 LAKHS BY MS. MINI, THE WIFE OF THE
1ST PETITIONER DATED 10.07.2014.
EXHIBIT P4 TRUE COPY OF THE FD RECEIPT FOR AN AMOUNT
OF RS.5 LAKHS BY MS.MINI, THE WIFE OF THE
1ST PETITIONER DATED 29.03.2014.
EXHIBIT P5 TRUE COPY OF THE BANK RECEIPT OF THE FIRST
PETITIONER.
EXHIBIT P6 TRUE COPY OF THE FD RECEIPT OF THE 2ND
PETITIONER DATED 27.12.2012.
EXHIBIT P7 TRUE COPY OF THE FD RECEIPT OF THE 2ND
PETITIONER DATED 02.11.2014
EXHIBIT P8 TRUE COPY OF THE FD RECEIPT OF THE 3RD
PETITIONER DATED 29.09.14.
EXHIBIT P9 TRUE COPY OF THE FD RECEIPT DATED 29.5.15.
EXHIBIT P10 TRUE COPY OF THE RELEVANT PAGES OF THE
ENQUIRY REPORT DATED 10.12.2015.
EXHIBIT P11 TRUE COPY OF THE LETTER DATED 22.10.19.
EXHIBIT P12 TRUE COPY OF THE RELEVANT PAGES OF THE
LETTER DATED 31.3.2019 FROM THE ASSISTANT
REGISTRAR(GENERAL), MANJERI TO JOINT
REGISTRAR (GENERAL), MALAPURAM.
EXHIBIT P13 TRUE COPY OF THE REPRESENTATION SUBMITTED
BY THE 2ND PETITIONER ON 13.01.2020 BEFORE
THE COOPERATIVE SOCIETIES JOINT
REGISTRAR(GENERAL).
RESPONDENT'S/S EXHIBITS:
EXHIBIT R3 A A TRUE COPY OF THE NOTICE ISSUED BY THE 3RD
RESPONDENT
//TRUE COPY// P.A.TO JUDGE
