Ambalapad Service Co-Operative Bank ... vs The Assistant Registrar Of ...
2024 Latest Caselaw 12513 Ker

Kerala High Court

Ambalapad Service Co-Operative Bank ... vs The Assistant Registrar Of ... on 21 May, 2024

Author: Devan Ramachandran

Bench: Devan Ramachandran

                 IN THE HIGH COURT OF KERALA AT ERNAKULAM
                                  PRESENT
               THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN
         TUESDAY, THE 21ST DAY OF MAY 2024 / 31ST VAISAKHA, 1946
                          WP(C) NO. 24773 OF 2023
PETITIONER

             AMBALAPAD SERVICE CO-OPERATIVE BANK LTD NO.759
             REPRESENTED BY ITS SECRETARY, KUNDUKADU P .O, THRISSUR
             DISTRICT., PIN - 680028
             BY ADVS.
             ARJUN RAGHAVAN
             T.R.HARIKUMAR
             POOJA PANKAJ


RESPONDENTS:

     1       THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES
             (GENERAL), THALAPPILLY
             VADAKKANCHERY P.O, THRISSUR DISTRICT., PIN - 680582
     2       THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL),
             THRISSUR, AYYANTHOLE, THRISSUR DISTRICT., PIN - 680003
     3       THE REGISTRAR OF CO-OPERATIVE SOCIETIES
             JAWAHAR SAHAKARANA BHAVAN, DPI JUNCTION, THYCAUD P.O,
             THIRUVANANTHAPURAM DISTRICT., PIN - 695014


             SMT MABLE C KURIEN-SR GP.


     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
21.05.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 WP(C) NO. 24773 OF 2023
                                      2

                                JUDGMENT

The petitioner, which is a Co-operative

Society, calls into question the validity of

Ext.P15 order issued by the Joint Registrar

(General), Thrissur, whereby, they have been

directed not to engage in the wholesale trade of

medicines and other drugs, on the strength of the

Drug Licence obtained by them earlier.

2. Sri.Arjun Raghavan - learned Standing

Counsel for the petitioner - Society, argued

vehemently that Ext.P15 is the product of

misconception, issued without hearing his client

and based on facts which are inaccurate and

bereft of proper basis. He argued that his client

has been engaging in the sale of drugs only

through Government and Government agencies and

hence that Ext.P15 was wholly unnecessary. WP(C) NO. 24773 OF 2023

3. However, in response, the learned Senior

Government Pleader - Smt.Mable C.Kurian,

submitted that, as evident from Ext.P15, the

Joint Registrar has noticed objections raised by

other competent Authorities, as to the manner of

the business conducted by the petitioner,

particularly because they have been operating

without any specific authorisation having been

given to them by the competent Authorities. She,

however, added that she does not have

instructions whether the petitioner was heard

before Ext.P15 has been issued, but argued that

this is immaterial because the Joint Registrar is

authorised and obligated in law to take necessary

action as and when any violation is found at the

hands of any Co-operative Society.

4. Before I assess and evaluate the afore WP(C) NO. 24773 OF 2023

rival position of the parties, I must record that

this Court had passed an interim order on

31.07.2023 to the following effect, when this

writ petition was considered for admission;

"Learned Senior Government Pleader seeks time to get instructions.

Taking into consideration the submission of the learned counsel for the petitioner that Ext.P15 order was issued without hearing the petitioner and considering the fact that the effect of Ext.P15 will be a stoppage of business, which is stated to be running for nearly thirteen years, there will be an interim order as prayed for, for a period of two weeks.

Post after two weeks."

5. Subsequently, on 14.08.2023, the afore

order was partially modified in the following

manner:

WP(C) NO. 24773 OF 2023

"Interim order will continue for a period of six weeks.

However, the petitioner shall supply medicines only to the Government Health Institutions including Medical Colleges. Post after vacation."

6. Therefore, as matters now stand, the

petitioner is enjoying the afore interim orders

and that are supplying medicines only to

Government Health Institutions, including Medical

Colleges.

7. In the afore perspective, when one reads

Ext.P15, it is not clear as to what the Joint

Registrar meant by saying that the petitioner is

engaging in wholesale business of drugs and

medicines because, there is also a record therein

that they were only honouring requisitions made

by Government and its Agencies and institutions.

If this be so, one fails to understand how the WP(C) NO. 24773 OF 2023

petitioner can be asked not to engage in their

"wholesale business" if requisitions had been

given to them solely by the Government Agencies

or by its other departments. These aspects are

completely untouched in Ext.P15, as also the

facts that are specifically impelled before this

Court. To exacerbate the problem, the petitioner

had, admittedly, not been heard when it was

issued.

8. I am, therefore, of the firm view that

the matter must engage the attention of the Joint

Registrar afresh and that he must act unfettered

by what has been found by him in Ext.P15;

however, adverting to the reports earlier

obtained and after hearing the petitioner.

In the afore circumstances, I allow this writ

petition, confirming the afore interim orders WP(C) NO. 24773 OF 2023

until such time as the Joint Registrar takes a

fresh decision on the issues involved; which,

however, shall be done dehors Ext.P15 and without

being fettered or constrained by it; but with

liberty to rely upon all reports that have been

earlier obtained and to be obtained, on condition

that the same shall be first made available to

the petitioner for an effective response.

Needless to say, the petitioner will be heard

during the afore process and a final decision

shall take, adverting to Exts.P14 and P14(a);

thus leading to an order to be issued by the

Joint Registrar, as expeditiously as is possible,

but not later than one month from the date of

receipt of a copy of this judgment.

I, however, clarify that I have not entered

into the merits of any of the rival contentions, WP(C) NO. 24773 OF 2023

including as to whether the petitioner was

enjoined to obtain prior permission from the

Registrar and such other competent Authorities;

and all these are left open. It is further

clarified and that my observations in this

judgment are only intended to guide me to the

course adopted as afore and hence that the

parties are at full liberty to impel and invoke

all their contentions and available remedies

either before this Court or other competent

Forums in future.

Sd/-

DEVAN RAMACHANDRAN JUDGE

SAS WP(C) NO. 24773 OF 2023

APPENDIX OF WP(C) 24773/2023

PETITIONER'S EXHIBITS:

Exhibit P1 A TRUE COPY OF THE RELEVANT PAGES OF THE BYELAWS OF THE PETITIONER SOCIETY Exhibit P2 A TRUE COPY OF THE ORDER DATED 23-02-2010 ISSUED BY THE ADDL. REGISTRAR (CONSUMER) ON BEHALF OF THE 3RD RESPONDENT Exhibit P3 A TRUE COPY OF THE LICENCE BEARING NO.8/228/20/2010 DATED 17-06-2010 Exhibit P4 A TRUE COPY OF LICENCE BEARING NO.8/229/21/2010 DATED 17-06-2010 Exhibit P5 A TRUE COPY OF THE LICENCE RETENTION LETTER DATED 06-08-2020 Exhibit P6 A TRUE COPY OF THE LICENCE BEARING NO.8/501/20B/2010 DATED 30-12-2010 Exhibit P7 A TRUE COPY OF THE LICENCE BEARING NO.8/502/21B/2010 DATED 30-12-2010 Exhibit P8 A TRUE COPY OF THE LICENCE RETENTION LETTER DATED 22-01-2021 Exhibit P9 A TRUE COPY OF THE DEED OF INDEMNITY EXECUTED BY SMT.SABITHA DATED 20-09-2017 Exhibit P10 A TRUE COPY OF THE DEED OF INDEMNITY EXECUTED BY SRI.NAZEER DATED 20-09-2017 Exhibit-P11 A TRUE COPY OF CIRCULAR BEARING NUMBER DA1/93/2022 DATED 26-03-2022 Exhibit-P12 A TRUE COPY OF THE COMMUNICATION DATED 16-12- 2022 SUBMITTED BY THE PETITIONER SOCIETY TO THE 1ST RESPONDENT ALONG WITH THE DETAILS OF WHOLESALE BUSINESS Exhibit P13 A TRUE COPY OF THE COMMUNICATION DATED 10-01- 2023, ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER Exhibit-P13(a) A TRUE COPY OF THE COMMUNICATION DATED 16-01- 2023, ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER Exhibit-P14 A TRUE COPY OF THE EXPLANATION DATED 08-02- 2023 SUBMITTED BY THE PETITIONER SOCIETY WP(C) NO. 24773 OF 2023

BEFORE THE 2ND RESPONDENT Exhibit-P14(a) A TRUE COPY OF THE EXPLANATION DATED 03-05- 2023 SUBMITTED BY THE PETITIONER SOCIETY BEFORE THE 2ND RESPONDENT Exhibit-P15 A TRUE COPY OF THE STOP MEMO DATED 17-06-2023, ISSUED BY THE 2ND RESPONDENT