Nedumudy Service Co-Operative Bank Ltd vs The Kerala Co-Operative Tribunal
2024 Latest Caselaw 13776 Ker

Kerala High Court

Nedumudy Service Co-Operative Bank Ltd vs The Kerala Co-Operative Tribunal on 28 May, 2024

Author: Sathish Ninan

Bench: Sathish Ninan

                IN THE HIGH COURT OF KERALA AT ERNAKULAM
                                PRESENT
                THE HONOURABLE MR. JUSTICE SATHISH NINAN
        TUESDAY, THE 28TH DAY OF MAY 2024 / 7TH JYAISHTA, 1946
                        WP(C) NO. 26068 OF 2014
 AGAINST THE JUDGMENT DATED 23.04.2014 IN APPEAL NO.25 OF 2013 OF
               KERALA CO-OP.TRIBUNAL, THIRUVANANTHAPURAM.
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PETITIONERS:

    1       NEDUMUDY SERVICE CO-OPERATIVE BANK LTD.NO.A 87,
            NEDUMUDY P.O, ALAPPUZHA DISTRICT, REPRESENTED BY ITS
            SECRETARY

    2       THE BOARD OF DIRECTORS OF THE NEDUMUDY SERVICE CO-
            OPERATIVE BANK LTD. NO A 87
            NEDUMUDY P.O, ALAPPUZHA DISTRICT, RERPESENTED BY ITS
            PRESIDENT

            BY ADVS.
            SRI.V.G.ARUN
            SRI.T.R.HARIKUMAR



RESPONDENTS:

    1       THE KERALA CO-OPERATIVE TRIBUNAL
            THIRUVANANTHAPURAM 695001

    2       THE KERALA CO-OPERATIVE ARBITRATION COURT
            THIRUVANANTHAPURAM 695001

    3       T.K. RAMAN PILLAI
            THATHERIL HOUSE, THOTTUVATHALA, NEDUMUDY P.O,
            ALAPPUZHYA 688508

            BY ADVS.
            SRI.R.AZAD BABU




     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
28.05.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
                         SATHISH NINAN, J.
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                    W.P.(C) No.26068 of 2014
               = = = = = = = = = = = = = = = = = =
               Dated this the 28th day of May, 2024

                             J U D G M E N T

Order of reinstatement of the third respondent in

the services of the petitioner Bank with back wages, as

affirmed in appeal, are under challenge in this writ

petition.

2. The third respondent was employed as the

Secretary of the petitioner Bank. In the year 1985, the

Government introduced an insurance scheme for farmers

with regard to paddy crops. The societies were to

collect the premium and pay the same in the District Co-

operative Bank. Though the third respondent collected

the premium for the period 1985-86, it was remitted

beyond the prescribed time. The third respondent was

suspended from service on 13.10.1987 pending enquiry.

3. In the domestic enquiry the third respondent was

found guilty. He was dismissed from service on

11.02.1989. The third respondent preferred an appeal

under the Shops and Commercial Establishments Act. The

authority allowed the appeal and directed reinstatement.

The Bank challenged the same before this Court in OP

3725/1997. In the meanwhile, the Bank has also filed an

arbitration case to recover the alleged loss caused to

the Bank. However, the arbitration case was dismissed

finding that no loss resulted to the Bank. The Bank

challenged the same before this Court in OP 9111/1996.

This Court considered both the original petitions

together and dismissed OP 9111/1996 and allowed OP

3725/1997. In OP 3725/97 it was held that the authority

under the Shops and Commercial Establishments Act does

not have the jurisdiction to entertain the appeal.

4. On 29.03.2004 the third respondent approached

the Joint Registrar under Rule 176 of the Co-operative

Societies Rules to rescind the resolution. The Joint

Registrar as per Ext.P5 order rescinded the resolution

and directed reinstatement of the third respondent with

back wages. The Bank challenged the same before this

Court in W.P.(C) 12582/2007. This Court allowed the writ

petition as per Ext.P6 judgment holding that, consequent

to the amendment to Section 69 of the Co-operative

Societies Act with effect from 02.01.2003, it is the Co-

operative Arbitration Court which has the power to deal

with service matters.

5. Thereafter the third respondent approached the

Co-operative Arbitration Court in ARC 112/07. The

Arbitration Court allowed the ARC as per Ext.P7 order.

The third respondent was directed to be reinstated with

back wages. Since the third respondent had retired in

the meanwhile, it was directed that his pensionary

benefits will also be disbursed without delay. The Bank

challenged the same in appeal before the Tribunal. The

Tribunal, as per Ext.P8 judgment dismissed the appeal.

It is challenging Exts.P7 and P8 that this writ petition

has been filed.

6. I have heard Sri.T.R.Harikumar, the learned

counsel for the petitioner and Sri.Bijoy Chandran, the

learned Senior Government Pleader.

7. The Arbitration Court and the Tribunal found

that, in terms of Rule 198(4) the authority to impose

punishment of dismissal from service is the sub

committee. The Board is the appellate forum. In the

instant case the punishment was imposed by the Board

thus depriving the third respondent of the appellate

forum. This Court had in President Puthupariyaram Co-operative

Society v. Rugminiamma 1996 (1) KLT 100 and in K.P.Chidambaran v.

Registrar of Co-operative Societies 1996(1) KLJ 752 has held that

such imposition of punishment is contrary to the

provisions of Kerala Co-operative Societies Rules. It

was held that the right of appeal is a valuable right

and that when the statute provides such a right it

cannot be scuttled or frustrated by the authorities.

8. So also the arbitration court as well as the

Tribunal found that no loss resulted to the bank

consequent on the alleged irregularity committed by the

third respondent. The amounts collected by the third

respondent was remitted by him in the District Co-

operative Bank. The findings of the Arbitration Court

and the Tribunal warrants no interference.

Resultantly, the writ petition fails and is

dismissed.

Sd/-

SATHISH NINAN JUDGE

kns/-

//True Copy// P.S. to Judge APPENDIX OF WP(C) 26068/2014

PETITIONER EXHIBITS

EXHIBIT P1 TRUE COPY OF THE ENQUIRY REPORT DATED 10-01-1989

EXHIBIT P2 A TRUE COPY OF THE JUDGMENT DATED 05-12-2003 IN OP NO 3725 OF 1997

EXHIBIT P3 A TRUE COPY OF THE PETITION FILED BY 3RD RESPONDENT BEFORE THE JOINT REGISTRAR OF CO-OPERATIVE (GENERAL), ALAPPUZHA DATED 29-03-2004

EXHIBIT P4 TRUE COPY OF THE OBJECTION FILED BY THE PETITIONER BEFORE THE JOING REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL), ALAPPUZHA

EXHIBIT P5 A TRUE COPY OF THE ORDER NO C.R.P(2) 1393/04/K. DIS DATED 05-01-2007 OF THE JOINT REGISTRAR OF CO-OPERAGIE SOCIETIES (GENERAL), ALAPPUZHA

EXHIBIT P6 A TRUE COPY OF THE JUDGMENT IN WPC NO 12582 OF 2007 DATED 26-09-2007

EXHIBIT P7 TRUE COPY OF THE AWARD DATED 25-07-2012 IN ARC NO 112 OF 2007 OF THE 2ND RESPONDENT

EXHIBIT P8 TRUE COPY OF THE JUDGMENT DATED 23-04-2014 IN A.P NO 25 OF 2013 OF THE IST RESPONDENT

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