The Managing Committee vs Joint Registrar Of Co-Operative ...
2021 Latest Caselaw 19429 Ker

               IN THE HIGH COURT OF KERALA AT ERNAKULAM
                               PRESENT
               THE HONOURABLE MR. JUSTICE SATHISH NINAN
   THURSDAY, THE 16TH DAY OF SEPTEMBER 2021 / 25TH BHADRA, 1943
                       WP(C) NO. 19136 OF 2021
PETITIONER:

          THE MANAGING COMMITTEE, THE ITTITHANAM SERVICE
          COOPERATIVE BANK LTD. NO. 476, MALAKUNNAM P.O.,
          CHANGANASSERY, KOTTAYAM DISTRICT-686535, REPRESENTED BY
          ITS PRESIDENT.

          BY ADVS.
          GEORGE POONTHOTTAM (SR.)
          NISHA GEORGE



RESPONDENTS:

    1     JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL),
          OFFICE OF THE JOINT REGISTRAR OF CO-OPERATIVE
          SOCIETIES, COLLECTORATE BULDING, KOTTAYAM-KUMILY ROAD,
          COLLECTORATE, KOTTAYAM DISTRICT-686002.

    2     THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES
          (GENERAL),OFFICE OF THE ASSISTANT REGISTRAR OF CO-
          OPERATIVE SOCIETIES, CHANGANASSERY, CIRCLE CO-OP UNION
          BUILDINGS, CHANGANASSERY, ARAMANAPPADY, CHANGANASSERY
          P.O., KOTTAYAM DISTRICT-686101.

    3     RESHMI M.K.,ARBITRATION AND EXECUTION INSPECTOR - I,
          OFFICE OF THE ASSISTANT REGISTRAR OF CO-OPERATIVE
          SOCIETIES, CHANGANASSERY, CIRCLE CO-OP UNION BUILDINGS,
          CHANGANASSERY, ARAMANAPPADY, CHANGANASSERY P.O.,
          KOTTAYAM DISTRICT-686101.

    4     THE STATE OF KERALA,REPRESENTED BY THE CHIEF SECRETARY,
          GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM-695001.

          SR.GP SMT.SHEEJA C.S


     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
16.09.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 WP(C) NO.19136 OF 2021
                                 2



                            JUDGMENT

Pursuant to an inspection held under Section

66(2) of the Co-operative Societies Act, an enquiry

under Section 68 was ordered against the petitioner.

The same is under challenge in this writ petition.

2. Heard Sri. George Poonthottam, learned

counsel for the petitioner and Smt.C.S Sheeja,

senior Government Pleader on behalf of the

respondents.

3. The challenge is essentially on the ground

that, proceedings under Section 68 could not be

initiated without granting an opportunity of hearing

on the report under Section 66.

4. That the opportunity to challenge the report

enures in the course of hearing under Section 32 and

no prior hearing is contemplated, has been laid down

by a Division Bench of this Court in State of Kerala

v. Aravindakshan Nair (2010(3) KLT 11), and is the

law as it stands. Therefore, the challenge on the WP(C) NO.19136 OF 2021

said ground fails.

5. As regards the challenge against the notice

on the merits, the learned senior counsel drew my

attention to the statements in paragraphs 4 and 5 of

Ext P9 wherein it is stated that, "if any loss has

been caused to the bank, the same has to be

quantified and the persons liable are to be

identified", and argued that, in terms of Section

68(1) unless it is found that there has been breach

of trust, wilfull negligence or mismanagement or

misappropriation, a Section 68 proceeding could not

be initiated.

6. Though at the first blush the contention

appear attractive, it is to be noted that, in Ext P6

report under Section 66, findings are entered

regarding the loss caused to the Bank under the

schemes referred to in paragraph 4 and 5 in Ext P9

notice. That apart Ext P9 includes other findings of

irregularities also. Ext P9 is only a notice. Ext P6

which is the report, contains the findings based on WP(C) NO.19136 OF 2021

which proceedings under Section 68 are initiated.

Therefore the contention of the petitioner cannot be

accepted. It is open for the petitioner to challenge

the contents of Ext P6 report in the proceeding

under Section 68 of the Act. The challenge raised at

this stage is not liable to be entertained for the

reason stated supra.

Accordingly, the writ petition fails and is

dismissed.

Sd/-

SATHISH NINAN JUDGE vdv WP(C) NO.19136 OF 2021

APPENDIX OF WP(C) 19136/2021

PETITIONER EXHIBITS

Exhibit P1 TRUE COPY OF THE PROCEEDINGS BEARING NO.

CRP(2)/2884/19 DATED 28/01/2020 ISSUED BY THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES.

Exhibit P2 TRUE COPY OF THE PROCEEDINGS BEARING NO.

CRP(2)/2884/19 DATED 24/06/2020 ISSUED BY THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES.

Exhibit P3 TRUE COPY OF THE PROCEEDINGS BEARING NO.

CRP(2)/2884/19 DATED 31/07/2020 ISSUED BY THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES.

Exhibit P4 TRUE COPY OF THE PROCEEDINGS BEARING NO.

CRP(2)/2884/19 DATED 24/09/2020 ISSUED BY THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES.

Exhibit P5 TRUE COPY OF THE PROCEEDINGS BEARING NO.

CRP(2)/2884/19 DATED 11/11/2020 ISSUED BY THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES.

Exhibit P6 TRUE COPY OF THE INSPECTION REPORT DATED 14/12/2020 WITHOUT ANNEXURES.

Exhibit P7 TRUE COPY OF THE REQUEST SUBMITTED BY THE SECRETARY OF THE PETITIONER BANK TO THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES DATED 03/03/2020 ALONG WITH THE RESOLUTION.

Exhibit P8 TRUE COPY OF THE ACKNOWLEDGMENT CARD EVIDENCING THE RECEIPT OF EXHIBIT P6 AT THE OFFICE OF THE JOINT REGISTRAR ON 05/03/2020.

Exhibit P9 TRUE COPY OF THE PROCEEDINGS BEARING NO.

CRP(2)2884/19 DATED 18/08/2021 ISSUED BY THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES, WHICH WAS SERVED ON THE PETITIONER ON WP(C) NO.19136 OF 2021

31/08/2021.

Exhibit P10 TRUE COPY OF THE ORDER OF REFERENCE DATED 31/05/2021 IN WA NO.1751/2020 PASSED BY THIS HONOURABLE COURT.

Exhibit P11 TRUE COPY OF THE INTERIM ORDER IN WPC NO.15091/2021 DATED 29/07/2021 PASSED BY THIS HONOURABLE COURT.