Kerala High Court
Ratheesan .C vs Chevayur Service Co-Operative ... on 17 September, 2021
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE SATHISH NINAN
FRIDAY, THE 17TH DAY OF SEPTEMBER 2021 / 26TH BHADRA, 1943
WP(C) NO. 6848 OF 2020
PETITIONERS:
1 RATHEESAN .C.
AGED 56 YEARS
S/O.APPU, THARAMMAL HOUSE, CHEVAYUR, KOZHIKKODE DISTRICT.
2 SUDHEENDRADAS.K,
S/O.DHARMARAJ, IDAVAZHIPPURATH, KUTHIRAVATTAM, KOTTOLI,
KOZHIKKODE DISTRICT.
3 ABDUL KAREEM A.K.,
S/O.IMBICHI KOYA, ANCHUKANDATHIL, PAROPPADI, MERIKKUNNU
P.O., KOZHIKKODE DISTRICT.
4 SWAPNA K.P.,
D/O.VALSAN, MULLAMPARAMBATH, MERIKKUNNU P.O., KOZHIKKODE
DISTRICT.
5 SHEEBA K.,
D/O.SREENIVASAN, PARAPPIL, EAST DEVAGIRI, MEDICAL COLLEGE,
KOZHIKKODE DISTRICT.
6 SHYAM SACHITH P.V.,
S/O.P.V.DAMODHARAN, SNEEHAM, PANDARAPPARAMBA, PUTHIYARA
P.O., KOZHIKKODE.
7 SAJITHA K.,
D/O.RARICHAKKUTTY, KANDIYIL HOUSE, MANGOTTU VAYAL,
KOTTOOLI, KOZHIKKODE DISTRICT.
8 ABOOBACKER A.P.,
S/O.PAKKER HAJI, PANACHINGAL THAZHAM, NELLIKKODE,
KOZHIKKODE DISTRICT.
BY ADVS.
SRI.B.S.SWATHI KUMAR
SMT.ANITHA RAVINDRAN
SRI.HARISANKAR N UNNI
SMT.P.S.BHAGYA SURABHI
WP(C) NO. 6848 OF 2020 -2-
RESPONDENTS:
1 CHEVAYUR SERVICE CO-OPERATIVE BANK LTD NO.F 1245,
CHEVARAMBALAM, KOZHIKODE-673017, REPRESENTED BY ITS GENERAL
MANAGER.
2 THE ELECTORAL OFFICER/THE ASSISTANT REGISTRAR OF CO-
OPERATIVE SOCIETIES (GENERAL),
PUTHIYARA, KOZHIKODE, ELECTION TO THE MANAGING COMMITTEE OF
THE CHEVAYUR SERVICE CO-OPERATIVE BANK LTD.NO.F.1245,
CHEVARAMBALAM, KOZHIKODE-673017.
3 THE RETURNING OFFICER/UNIT INSPECTOR,
CIVIL STATION, OFFICE OF THE ASSISTANT REGISTRAR OF CO-
OPERATIVE SOCIETIES (G), KOZHIKODE, ELECTION TO THE
MANAGING COMMITTEE OF ELECTION TO THE MANAGING COMMITTEE OF
THE CHEVAYUR SERVICE CO-OPERATIVE BANK LTD.NO.F.1245,
CHEVARAMBALAM, KOZHIKODE-673017.
4 G.C.PRASANTH KUMAR,
S/O.GOVINDAN KUTTY NAIR, PRASANTHAM, NELLIKKODE HOUSING
COLONY, CHEVAYUR POST, CALICUT-673017.
5 PUSHPARAJ K.P.,
S/O.GOVINDAN K.P., KRISHNA POYIL HOUSE, MEDICAL COLLEGE
P.O., KOZHIKKODE-673008.
6 SADANANTHAN.P.,
S/O.PADMANABHAN, KIRAN NIVAS, 33/2400, POOLAN CHALIL,
MERIKKUNNU, KOZHIKKODE-673012.
7 MOHANDAS.P.,
S/O.APPUTTY, THOTTATHIL HOUSE, 28/245, NELLIKKODE P.O.,
KOZHIKKODE-673016.
8 ANIL KUMAR.C.,
S/O.KELUKKUTTY, CHALIL HOUSE, METHAL NANGOLATH, CHEVAYUR,
KOZHIKKODE-673017.
9 MOHANANDAS.P.,
S/O.NARAYANI AMMA, PUTHIYOTTIL, MERIKKUNNU P.O.,
KOZHIKKODE-673012.
10 PREMEELA.M.,
D/O.KESAVAN NAIR, CHIRAKKAL, 33/1860, MERIKKUNNU P.O.,
KOZHIKKODE-673012.
11 RAJI.T.,
D/O.IMBICHUNNI, THAROL HOUSE, MEDICAL COLLEGE P.O.,
KOZHIKKODE-673008.
WP(C) NO. 6848 OF 2020 -3-
12 SWARNALATHA,
D/O.VELAYUDHAN NAIR, ELAVANA PARAMBA, KOTTOOLI P.O.,
KOZHIKKODE-673016.
13 P.T.JANARDHANAN,
S/O.AYYAPPAN P.T., PULIYANGOTTU THAZHATH, CHEVARAMBALAM
P.O., KOZHIKKODE-673017.
14 P.K.SUBHASH CHANDRAN,
S/O.CHAPPAN PANICKER, CHANDRAKANTHAM, PINAKKARAMBATH,
MEDICAL COLLEGE P.O., KOZHIKKODE-673008.
15 ANJU.K.,
D/O.RAGHUNATH.K., DEEPAM, KOZHAKKE KOLATHAI PARAMBA,
IRINGALLUR DESOM, P.G.O.A COLLEGE, CALICUT-673014.
16 P.RAJESH,
S/O.RADHAKRISHNAN, VADAKKEYIL HOUSE, THIRICHILANGADI,
CHUNGAM, FEROKE COLLEGE P.O., KOZHIKKODE-673632.
17 THE CO-OPERATIVE ARBITRATION COURT(NORTHERN),
KOZHIKODE-673001.
18 SASIDHARAN K.,
S/O.BALAKRISHNAN NAIR, VIPANCHIKA, MAILAMBADI,
KUTHIRAVATTAM P.O., KOZHIKODE DISTRICT-673016.
BY ADVS.
SRI.GEORGE POONTHOTTAM (SR.)
SRI.R.SUDHISH
SMT.M.MANJU
SMT.NISHA GEORGE
BY SMT.SHEEJA C.S., SR. GOVT. PLEADER
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
17.09.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
SATHISH NINAN, J.
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W. P. (C) No.6848 of 2020
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Dated this the 17th day of September, 2021
J U D G M E N T
Petitioners are the members of the first respondent
Society. Election held to the managing committee of the
Society is under challenge by petitioners herein,
before the Arbitration Court in ARCs 61/2019 and ARCs
62/2019. In the ARCss, the petitioners filed
interlocutory applications, "to restrain the elected
members from taking policy decisions, from admitting new
members, appointing new employees, opening new branches
and from doing any financial transactions exceeding
Rs.20 lakhs", and, "for a direction for production of
CCTV footage, hard disk and hard copy from 10.09.2019 to
17.11.2019 without editing and original share
application form of member's Number from 35970 to 36982
and the minutes book taking resolution to sanction the
admission of new members from 35970 to 36982, day book,
share suspense receipt and share capital receipt from
W. P. (C) No.6848 of 2020
10.09.2019 to 17.11.2019". As per order dated 30.01.2020
(Ext.P6), the applications were dismissed. It is
challenging the said order that this writ petition is
filed.
2. Heard learned counsel on either sides.
3. A preliminary objection is raised by the
respondents that, the orders impugned are revisable
under Section 84 of the Co-operative Societies Act and
hence the petitioners are to be relegated to the
statutory remedy. They also relied on a judgment of this
Court in Sukumaran Pillai v. Co-operative Tribunal [1990 Vol 2 KLT
710], to canvass the contention. The writ petition was
filed as early as on 05.03.2020. It was entertained by
this Court and an interim order was granted. It had been
pending consideration of this Court till now. I do not
think it appropriate or necessary to relegate the
petitioners to the revisional remedy at this distance of
time.
W. P. (C) No.6848 of 2020
4. On the merits, according to the petitioners, the
election to the managing committee of the Society was
notified on 05.10.2019 and election was held on
17.11.2019. On the eve of notification of election i.e.
on 12.09.2019 and 16.09.2019, a total number of 1013
persons were enrolled as members. They were assigned
with membership numbers from 35970 to 36982. In the
ARCs, various grounds of challenge are urged, including
the alleged bulk enrollment. The petitioners would
contend that there has been no consideration of the
applications on the merits. On the reliefs sought for
against the functioning of the committee, the
Arbitration Court held that a prima facie case has not
been made out by the petitioners. According to the
petitioners, the Arbitration Court, to enter such a
finding, has solely stated that, the petitioners had
earlier approached this Court prior to the conduct of
election but this Court refused to interfere with the
W. P. (C) No.6848 of 2020
conduct of election, and that when they approached this
Court after the conduct of election by challenging the
refusal of the Arbitration Court to grant ex parte
interim relief, this Court only directed the elected
managing committee not to enroll new members without
imposing any further restrictions.
5. While it is true that the Arbitration Court has
made the above observations and that the same also seems
to have weighed with the Court, I do notice that the
Arbitration Court has also taken note of the fact that
an elected committee has assumed office and that it is
not proper to restrain the elected body from
administering the society till the election petition is
finally disposed of. It was also noticed that fixing a
ceiling for monitory transactions is also not the
interests of the Society. As regards the applications to
call for certain documents, the Arbitration Court
dismissed the same with liberty to file fresh
W. P. (C) No.6848 of 2020
application when the case is posted for steps and
production of documents.
6. I am of the opinion that the view expressed by
the Arbitration Court that the elected managing
committee which has assumed office is not to be
interfered with from exercising its functions till the
final disposal of the election petition, is correct. I
notice that, in the earlier round of litigation, this
Court in W.P.(C) No.34694/2019 as per judgment dated
18.12.2019 while directing the Arbitration Court to
consider the interlocutory applications in question,
restrained enrollment of new members. After the
dismissal of the applications by the Arbitration Court,
this Court in this writ petition passed an interim order
on 06.03.2020 directing the committee not to take any
policy decision or to enroll new members. The said
interim order is still in force.
W. P. (C) No.6848 of 2020
7. Taking note of the entire facts, it is ordered
that, new members with voting rights need not be
enrolled till disposal of the election petition. No
other rights of the managing committee are interfered
with.
8. As regards the prayer for calling for certain
documents, it was not necessary for the Arbitration
Court to have dismissed the applications reserving
liberty to move afresh. It would have been proper that
the applications were considered on merits and orders
passed.
9. Accordingly, the writ petition is allowed. The
impugned common order is set aside. The applications
will stand allowed as above. The Arbitration Court shall
make every endeavour to have the ARCs tried and disposed
of as expeditiously as possible and at any rate within a
period of three months from the date of receipt of a
copy of this judgment. If the respondents make a request
W. P. (C) No.6848 of 2020
for consideration of the maintainability of the ARCs as
a preliminary issue, then the same shall be considered
and appropriate orders passed without delay.
Sd/-
SATHISH NINAN
JUDGE
kns/-
//True Copy//
P.S. to Judge
APPENDIX OF WP(C) 6848/2020
PETITIONER EXHIBITS
EXHIBIT P1 TRUE COPY OF THE ARC NO.61/2019 DATED
28.11.2019 FILED BEFORE THE 17TH RESPONDENT.
EXHIBIT P2 TRUE COPY OF THE I.A.NO.201(A).2019 IN ARC
NO.61/2019 DATED 28.11.2019.
EXHIBIT P3 TRUE COPY OF THE I.A.NO.204/2019 IN ARC
NO.61/2019 DATED 28.11.2019.
EXHIBIT P4 TRUE COPY OF THE ORDER OF THE 17TH RESPONDENT
DATED 03.12.2019.
EXHIBIT P5 TRUE COPY OF THE JUDGMENT IN W.P.
(C)NO.34694/2019 DATED 18.12.2019.
EXHIBIT P6 TRUE COPY OF THE ORDER IN I.A.NO.201(A)/2019,
I.A.NO.20/2019 IN ARC NO.61/2019 DATED
30.01.2020.
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