K.Mohanan vs State Of Kerala
2021 Latest Caselaw 18879 Ker

                IN THE HIGH COURT OF KERALA AT ERNAKULAM
                                PRESENT
              THE HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P.
    FRIDAY, THE 10TH DAY OF SEPTEMBER 2021 / 19TH BHADRA, 1943
                        WP(C) NO. 26687 OF 2012
PETITIONER:

          K.MOHANAN, AGED 52 YEARS
          S/O.KANNAN, PRESIDENT, PUNALUR SCHEDULED CASTE SERVICE
          CO-OPERATIVE SOCIETY LTD NO.Q489,
          PUNALUR P.O.,KOLLAM

          BY ADVS.
          SRI.LEO GEORGE
          SRI.T.T.RAKESH
          SRI.K.N.SASIDHARAN NAIR


RESPONDENTS:

    1     STATE OF KERALA
          REP.BY THE CHIEF SECRETARY TO GOVERNMENT,
          GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM-695001

    2     THE REGISTRAR OF CO-OPERATIVE SOCIETIES,
          THIRUVANANTHAPURAM-695001

    3     THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES,
          KOLLAM-691001

    4     THE ASSITANT REGISTRAR OF CO-OPERATIVE
          SOCIETIES(GENERAL), PUNALUR-691305

    5     NATIONAL CO-OPERATIVE DEVELOPMENT CORPORATION
          REP.BY ITS REGIONAL DIRECTOR, NATIONAL CO-OPERATIVE
          DEVELOPMENT CORPORATION, 5TH FLOOR, CO-BANK TOWERS,
          THIRUANANTHAPURAM-695033




          SNR. GP. SRI. PREMCHAND R NAIR


     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
10.09.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 WP(C) NO. 26687 OF 2012                    2




                             JUDGMENT

The petitioner, the President of the Punalur Scheduled Caste

Service Co-operative Society had applied to the National Co-

operative Development Corporation for financial assistance to

establish a computer form manufacturing unit. The application

was submitted through the State Government. The National Co-

operative Development Corporation sanctioned financial

assistance to the tune of Rs.16,20,000/-, which was accorded

based on the recommendations of respondents 2 and 3. Under the

scheme, the State government had to disburse the loan to the

Society and has to claim reimbursement from the Corporation.

Accordingly, administrative sanction was also granted to release

the financial assistance to the Society. By Ext.P4, the Government

authorised the Registrar of Co-operative Societies to draw the

amount and to disburse the same to the Society. The 2 nd

respondent, later, recommended to the Government to cancel the

administrative sanction given for releasing the financial assistance

mentioned above on the ground that there were serious

irregularities in the functioning of the Society. Holding so, and

without hearing the petitioner, the Government accepted Ext.P8

report, which recommended the cancellation and passed Ext.P12

order. The petitioner submitted a representation requesting the

Government to review Ext.P12. The same is also rejected by

Ext.P13 and the prayer in the above writ petition is to quash

Exts.P12 and P13.

2. Heard the learned counsel on either side.

3. The petitioner submits that Exts.P12 and P13 are

passed without affording an opportunity of hearing. He further

submits that the financial assistance granted to him, after

complying all the formalities, was cancelled without taking note of

his contentions or granting an opportunity of hearing to him. He

says that the order has to be set aside on the short ground of

violation of the principles of natural justice.

4. The learned Government Pleader submits that before

disbursement, there were inspections by the 4 th respondent

wherein he reported certain irregularities and accordingly an

enquiry under Section 65 of the Kerala Co-operative Societies Act

and Rules was ordered. Since the enquiry was ordered against the

Society, the 2nd respondent recommended the 1 st respondent to

withdraw the decision for granting financial assistance sanctioned

by National Co-operative Development Corporation. In the nature

of the order to be passed, I am not going into the correctness or

otherwise of the contentions raised on behalf of the Government.

It is not in dispute that Ext.12 was passed without hearing the

petitioner. Ext.P12 certainly has the effect of affecting the rights

of the petitioner and as such a hearing before passing the order

was absolutely necessary. In the absence of the same, Ext.P12

order cannot be sustained. I quash Ext.P12 and direct the

Government to hear the petitioner and to pass a speaking order

dealing with the contentions of the petitioner within a period of

three months from today. The petitioner is also permitted to

produce documents to substantiate his contentions. Consequently,

Ext.P13 is also quashed.

The Writ Petition is allowed as above.

Sd/-

MOHAMMED NIAS C.P.

JUDGE ab

APPENDIX OF WP(C) 26687/2012

PETITIONER EXHIBITS

EXHIBIT P1 TRUE COPY OF THE COMMUNICATION SENT BY NATIONAL CO-OPERATIVE DEVELOPMENT CORPORATION TO THE STATE GOVERNMENT DATED 23/11/2009.

EXHIBIT P2 TRUE COPY OF THE RECOMMENDATION OF THE THIRD RESPONDENT AS FORWARDED BY HIM TO THE SECOND RESPONDENT DATED 24/07/2008.

EXHIBIT P3 TRUE COPY OF THE RECOMMENDATION OF THE SECOND RESPONDENT AS FORWARDED BY HIM TO THE GOVERNMENT DATED 05/01/2009.

EXHIBIT P4 TRUE COPY OF GO(RT) NO.145/2000 DATED 06/03/2010.

EXHIBIT P5 TRUE COPY OF THE PROCEEDINGS OF THE SECOND RESPONDENT DATED 26/03/2010.

EXHIBIT P6 TRUE COPY OF THE REPRESENTATION SUBMITTED BY THE SOCIETY TO THE FOURTH RESPONDENT DATED 08/05/2010.

EXHIBIT P7 TRUE COPY OF THE JUDGMENT IN WPC NO.24771/2010 DATED 31/08/2010.

EXHIBIT P8 TRUE COPY OF THE COMMUNICATION ISSUED BY THE SECOND RESPONDENT TO THE GOVERNMENT DATED 06/06/2011.

EXHIBIT P9 THE AMENDMENT OF THE BYE-LAWS APPROVED BY THE GENERAL BODY HELD ON 03/09/2011.

EXHIBIT P10 TRUE COPY OF THE APPEAL SUBMITTED BY THE PETITIONER BEFORE THE GOVERNMENT DATED 11/01/2012.

EXHIBIT P11 TRUE COPY OF THE COMMUNICATION SENT BY

THE PETITIONER TO THE THIRD RESPONDENT DATED NIL.

EXHIBIT P12 TRUE COPY OF GO(RT) NO.469/2011 DATED 17/08/2011.

EXHIBIT P13 TRUE COPY OF THE COMMUNICATION RECEIVED BY THE PETITIONER FROM THE GOVERNMENT DATED 21/06/2012.

RESPONDENTS NIL EXHIBITS :