Kerala High Court
Mookkannur Service Co-Op Bank ... vs State Of Kerala on 28 June, 2022
WP(C) No.20905/2022 1/4
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE T.R.RAVI
Tuesday, the 28th day of June 2022 / 7th Ashadha, 1944
WP(C) NO. 20905 OF 2022(K)
PETITIONERS:
1. MOOKKANNUR SERVICE CO-OP BANK LTD.NO.E.62, MOOKKANNUR P.O.,
ERNAKULAM, PIN - 683 577, REPRESENTED BY ITS SECRETARY.
2. K.P. BABY, PRESIDENT, BOARD OF DIRECTORS OF THE MOOKKANNUR SERVICE
CO-OPERATIVE BANK, MOOKKANNUR P.O., ERNAKULAM, PIN - 683 577,
RESIDING AT KAIPRAMBATTU HOUSE, KOKKUNNU, MOOKKANNUR P.O., PIN - 683
577.
RESPONDENTS:
1. STATE OF KERALA, REPRESENTED BY THE SECRETARY TO GOVERNMENT,
COOPERATION DEPARTMENT, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM -
695 001.
2. JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL), ERNAKULAM, PIN
- 682 030.
3. ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL), ALUVA, PIN
683 101.
Writ petition (civil) praying inter alia that in the circumstances
stated in the affidavit filed along with the WP(C) the High Court be
pleased to stay all further proceedings pursuant to Ext.P4 order, pending
disposal of the Writ Petition.
This petition coming on for admission upon perusing the petition and
the affidavit filed in support of WP(C) and upon hearing the arguments of
SRI.D.SOMASUNDARAM, Advocate for the petitioners and of GOVERNMENT PLEADER
for the respondents, the court passed the following:-
P.T.O.
WP(C) No.20905/2022 2/4
T.R.RAVI, J.
---------------------------------------------
W.P.(C) No.20905 of 2022
------------------------------------------------------
Dated this the 28th day of June, 2022.
ORDER
Admit. Government Pleader takes notice for the
respondents.
2. Respondents to place on record a counter affidavit.
3. The contention raised by the petitioners is that,
when ARC proceedings have already been initiated against
loanees under Section 69 of the Kerala Co-operative Societies
Act (for short 'the Act'), no surcharge proceedings can be
initiated against the members of the Committee with respect
to grant of the very same loans.
4. According to the petitioners, Section 68 of the Act
cannot be invoked with respect to payments made towards
loans and it can only be with regard to other kinds of
payments.
5. The Government Pleader submits that in view of the
judgment in Thrikkadavoor Service Co-op. Society Ltd. v.
Sivasankara Pillai reported in [1990(2) KLT 594] the
WP(C) No.20905/2022 3/4
W.P.C.No.20905 of 2022
provisions contained in Sections 68 & 69 are mutually
exclusive and there is no bar in initiating surcharge
proceedings. It is submitted that the report Ext.P3 has taken
into account several factual aspects which indicates
mismanagement and causing of loss and therefore notice
issued as Ext.P4 is fully justified.
I am of the opinion that the issue requires a detailed
consideration since I am informed by both sides that there is
no decided case on the question raised by the petitioners. It is
hence ordered that the respondents may complete the
proceedings initiated as per Ext.P1. However, no final orders
shall be issued without getting further orders from this Court.
Post on 14.07.2022.
H/o
Sd/-
T.R.RAVI
JUDGE
mpm
28-06-2022 /True Copy/ Assistant Registrar
WP(C) No.20905/2022 4/4
APPENDIX OF WP(C) 20905/2022
Exhibit P1 TRUE COPY OF THE ORDER NO. C.R.P(2) 1464/2021 DATED
6.09.2021.
Exhibit P3 TRUE COPY OF THE ENQUIRY REPORT SUBMITTED BY THE 3RD
RESPONDENT ON 26.02.2022.
Exhibit P4 TRUE COPY OF THE ORDER NO.CRP (2) 1464/2021 DATED
4.5.2022 OF THE 2ND RESPONDENT.
