Kerala High Court
Premakumar.M.K vs The Joint Registrar Of Co-Operative ... on 1 November, 2024
Author: N. Nagaresh
Bench: N.Nagaresh
2024:KER:80919
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
FRIDAY, THE 1ST DAY OF NOVEMBER 2024 / 10TH KARTHIKA, 1946
WP(C) NO. 31704 OF 2024
PETITIONER:
PREMAKUMAR.M.K.
AGED 55 YEARS
S/O AYAPPAN, ABHA NIVAS,
MALOOLKUNNU COLONY, MERIKUNNU.P.O.,
KOZHIKODE, PIN - 673012
BY ADVS.
B.S.SWATHI KUMAR
HARISANKAR N UNNI
ANITHA RAVINDRAN
K.MINI MOLE (M-1356)
NILEENA V.P.
AJMI M SHAJI
RESPONDENTS:
1 THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (G)
CIVIL STATION, PUTHIYARA,
KOZHIKODE, PIN - 673002
2 CHEVAYOOR SERVICE CO-OPERATIVE BANK LTD.NO.F.1245
NELLIKODE, CHEVARAMBALAM,
KOZHIKODE
REPRESENTED BY ITS GENERAL MANAGER,
PIN - 673017
2024:KER:80919
W.P.(C) No.31704/2024
:2:
3 THE MANAGING COMMITTEE OF THE CHEVAYOOR SERVICE
CO-OPERATIVE BANK LTD.NO. F. 1245
NELLIKODE, CHEVARAMBALAM,
KOZHIKODE
REPRESENTED BY ITS PRESIDENT,
PIN - 673017
4 VAHIDA
W/O SUNEENDRAN, KINARUKANDY HOUSE,
PIPELINE ROAD, KUTHIRAVATTOM.P.O.,
KOZHIKODE, PIN - 673016
5 ANANDHA KRISHNAN.T
S/O SREEDHARAN,
THEYYAMKANDY HOUSE, CHEVARAMBALAM,
KOZHIKODE, PIN-673017
6 DOMENIC.K.S.
S/O DEVASSIA, KOCHUPARAMBIL,
NETTURVAYAL, MARIKUNNU.P.O.,
KOZHIKODE, PIN - 673012
7 PREMAN.K.P.
S/O SREEDHARAN, KRISHNAPOYIL,
MEDICAL COLLEGE.P.O., KOZHIKODE,
PIN - 673008
ADDL.R8 THE ELECTORAL OFFICER/ASSISTANT REGISTRAR OF
CO-OPERATIVE SOCIETIES (G),
KOZHIKODE,
ELECTION TO THE MANAGING COMMITTEE OF THE
CHEVAYOOR SERVICE CO-OPERATIVE BANK LTD.
NO.F. 1245, NELLIKODE,
CHEVARAMBALAM, KOZHIKODE-673017
2024:KER:80919
W.P.(C) No.31704/2024
:3:
ADDL.R9 THE RETURNING OFFICER/UNIT INSPECTOR,
CIVIL STATION, KOZHIKODE,
ELECTION TO THE MANAGING COMMITTEE OF THE
CHEVAYOOR SERVICE CO-OPERATIVE BANK
LTD NO.F.1245, NELLIKODE,
CHEVARAMBALAM,
KOZHIKODE - 673017
(ADDITIONAL RESPONDENTS 8 AND 9 ARE IMPLEADED
AS PER ORDER DATED 25-10-2024 IN IA.4/24 IN WPC
31704/2024)
BY ADVS.
R.SUDHISH
M.MANJU(K/003562/1999)
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 29.10.2024, THE COURT ON 01.11.2024
DELIVERED THE FOLLOWING:
2024:KER:80919
W.P.(C) No.31704/2024
:4:
N. NAGARESH, J.
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W.P.(C) No.31704 of 2024
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Dated this the 1st day of November, 2024
JUDGMENT
~~~~~~~~~
Petitioner, who is an A Class member of the 2 nd
respondent-Chevayoor Service Co-operative Bank Limited,
has filed this writ petition seeking to declare that all actions
pursuant to Ext.P5 are illegal and cannot be implemented in
view of Ext.P6 interim order. The petitioner seeks to declare
that the action of the 2nd respondent in accepting ₹500/- as
share value weeks before the date of approval of the 1st
respondent is highly illegal. The petitioner also seeks to
declare that the enrollment of members enbloc without
verifying the credentials of each applicant is illegal, violative of
statutory scheme and hence null and void.
2024:KER:80919
2. The petitioner states that the previous election to
the Managing Committee of the Society held on 17.11.2019
was challenged by certain members filing ARC No.61/2019
and connected cases alleging that 1013 persons were
enrolled enbloc even without application forms in order to
manipulate the election. W.P.(C) No.6848/2020 was filed in
this Court in this regard and this Court passed Ext.P1 interim
order dated 06.03.2020 which restrained the Managing
Committee from taking policy decisions or enrolling new
members. W.P.(C) No.6848/2020 was later disposed of
directing the Arbitration Court to dispose of the ARC
expeditiously. ARC No.61/2019 was, however, dismissed
later for non-payment of legal benefit fund fees.
3. The petitioner states that the 3 rd respondent-
Managing Committee is going ahead with bulk enrollment of
members. The Managing Committee has accepted ₹500/- as
share amount and ₹10/- as admission fee from 426 persons
on 16.08.2024 and subsequent dates. The petitioner states
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that the application of the Managing Committee to enhance
share value was rejected by the Registrar. Appeal filed by the
Managing Committee was also rejected by the Government.
But, the Government, in a review petition, passed Ext.P5
order dated 29.07.2024 requiring the Bank to file a fresh
application after adopting a fresh resolution on enhancement
of share value. Ext.P5 order was challenged before this Court
filing W.P.(C) No.29901/2024 and this Court has passed
Ext.P6 interim order dated 04.09.2024 staying further
proceedings.
4. The 3rd respondent, however, published Ext.P7
advertisement in Malayala Manorama Daily dated 24.08.2024
stating that the 1st respondent has accorded sanction for
enhancing share value to ₹500/-. The said advertisement is
against Ext.P6 interim order of this Court. Respondents 2 and
3 are thus proceeding with bulk enrollment of members
illegally.
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5. The petitioner states that the action of the 3 rd
respondent in accepting ₹500/- as share value is illegal.
Ext.P5 order passed by the Government is also illegal
because the Government has no inherent power to review its
own order. The petitioner would further allege that bulk
enrollment of members is highly arbitrary and illegal.
6. The petitioner would specifically submit that on
19.09.2024, 355 persons were enrolled as members, on
20.09.2024, 586 persons were enrolled and on 23.09.2024,
11 members were enrolled. Such enrollment is in violation of
Ext.P6 interim order. The counsel for the petitioner relied on
the judgment of this Court in Nedumon Service Co-
operative Bank Limited, Pathanamthitta v. Joint Registrar
of Co-operative Societies (G), Pathanamthitta and others
[2014 KHC 582] wherein it has been held that resolution
passed by the Managing Committee for bulk enrollment of
members without following the statutory procedure is
unsustainable.
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7. Respondents 2 and 3 resisted the writ petition filing
counter affidavit. The respondents pointed out that in the
judgment in W.P.(C) No.6848/2020, this Court held that new
member with voting rights need not be enrolled till the
disposal of election petition pending before the Arbitration
Court. The Arbitration Court dismissed the election petition as
per Ext.R2(c) on 02.12.2021. This Court, as per Ext.R2(d)
judgment dated 24.09.2024 in W.P.(C) No.4242/2022, set
aside the order rejecting election petition and restored the
matter to the Arbitration Court. Ext.R2(d) judgment is being
challenged before Division Bench of this Court.
8. Respondents 3 and 4 submitted that Ext.P6 interim
order was passed on 04.09.2024. Ext.P7 advertisement was
published in Malayala Manorama Daily prior to that, on
24.08.2024. Therefore, Ext.P7 cannot be termed as violative
of Ext.P6. Respondents submitted that in deference to Ext.P6
interim order, the Managing Committee is not accepting
enhanced share value as of now. The respondents undertook
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that no fresh enrollment will be done from 13.09.2024.
9. Respondents 3 and 4 further submitted that since
13.09.2024 when this Court passed an interim order, the
respondents have not enrolled a single member. The last
resolution of the Managing Committee admitting members
was on 12.09.2024. Membership was granted to persons
who have submitted applications long ago. The writ petition is
therefore without any merit and it is liable to be dismissed.
10. I have heard the learned counsel for the petitioner,
the learned Government Pleader representing the 1st
respondent, the learned Standing Counsel representing
respondents 2 and 3 and the learned Standing Counsel
appearing for additional respondents 8 and 9.
11. The first prayer of the petitioner in the writ petition
is to declare that action pursuant to Ext.P5 is illegal. Ext.P5 is
an order of the Government which requires the 3 rd respondent
to resubmit application for enhancement of share value again.
As share value cannot be enhanced before the expiry of the
2024:KER:80919
tenure of the present Managing Committee, and since
respondents 2 and 3 have stated that enhanced share value
is not being accepted for the time being, I do not think any
orders are required in that regard.
12. The further prayer of the petitioner is to declare that
the enrollment of members enbloc without verifying the
credentials of each applicant is illegal and null and void. The
petitioner would point out Ext.P7 advertisement appeared in
Malayala Manorama Daily dated 24.08.2024 to contend that
enhanced share value is being collected in violation of Ext.P6
interim order in W.P.(C) No.29901/2024. It is to be noted that
Ext.P7 advertisement was published on 24.08.2024 and
Ext.P6 interim order was passed on 04.09.2024.
13. The petitioner would submit that more than 900
members members were newly enrolled in the eve of election
during the period from 19.09.2024 to 23.09.2024.
Respondents 2 and 3 would deny the said allegation.
Respondents 2 and 3 submit that not a single person has
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been enrolled subsequent to the interim order of this Court
passed on 13.09.2024. The last resolution enrolling members
was passed on 12.09.2024. In the circumstances, I do not
find any violation of the interim order dated 13.09.2024 of this
Court.
In the circumstances of the case, I do not find any
merit in the writ petition. The writ petition is therefore
dismissed. However, the petitioner will be at liberty to agitate
the issue of illegal membership invoking Section 69 of the
Kerala Co-operative Societies Act, if the petitioner is so
advised.
Sd/-
N. NAGARESH, JUDGE
aks/29.10.2024
2024:KER:80919
APPENDIX OF WP(C) 31704/2024
PETITIONER'S EXHIBITS
Exhibit P1 TRUE COPY OF THE ORDER IN W.P.(C)NO.
6848/2020 DATED 6-3-2020
Exhibit P2 TRUE COPY OF THE ORDER IN W.P.(C)NO.
27836/2023 DATED 22-8-2023
Exhibit P3 TRUE COPY OF THE ORDER IN W.P.(C)NO.
4963/2024 DATED 8-2-2024
Exhibit P4 TRUE COPY OF THE LIST OF MEMBERS FROM
WHOM THE SHARE AMOUNT HAS BEEN
ACCEPTED.
Exhibit P5 TRUE COPY OF THE ORDER NO. GO(MS)NO.
147/2024/CO-OP DATED 29-7-2024
Exhibit P6 TRUE COPY OF THE ORDER IN W.P.(C)NO.
29901/2024 DATED 4-9-2024
Exhibit P7 TRUE COPY OF THE ADVERTISEMENT
APPEARED IN MALAYALA MANORAMA DAILY
DATED 24-8-2024
Exhibit P8 TRUE COPY OF THE LIST EVIDENCING THE
ENROLLMENT OF 1930 MEMBERS OF THE 3RD
RESPONDENT.
Exhibit P9 TRUE COPY OF THE JUDGMENT IN W.P.
(C)NO. 4212/2022 DATED 24-9-2024
Exhibit P10 TRUE COPY OF THE REPLY NO. B2199/2022
DATED 22-10-2024 OF THE ADDITIONAL 8TH
RESPONDENT.
Exhibit P11 TRUE COPY OF THE LIST SHOWING THE
ENROLLMENT OF PERSONS OF THE 2ND
RESPONDENT SOCIETY.
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RESPONDENTS' EXHIBITS
Exhibit R2(a) TRUE COPY OF THE COMMON ORDER IN I.A.
NO.201 OF 2019, I.A.NO.204 OF 2019,
I.A.NO.202 OF 2019 AND I.A.NO.203 OF
2019 DATED 30.01.2020
Exhibit R2(b) TRUE COPY OF THE JUDGMENT OF THIS
HONOURABLE COURT IN W.P.(C) NO. 6848
OF 2020 DATED 17.09.2021
Exhibit R2(c) TRUE COPY OF THE ORDER OF THE
ARBITRATION COURT (NORTHERN) KOZHIKODE
IN I.A.NO.85 (A) OF 2021 IN A.R.C.NO.
A.R.C.NO.62 OF 2019 AND 85 (C) OF 2021
IN A.R.C.NO.69 OF 2019 DATED 2.12.2021
Exhibit R2(d) TRUE COPY OF THE JUDGMENT OF THIS
HONOURABLE COURT IN W.P.(C) NO. 4212
OF 2022 AND W.P.(C) NO. 4242 OF 2022
DATED 24.09.2024
Exhibit R2(e) TRUE COPY OF THE RELEVANT PAGE OF
MINUTES OF THE CHEVAYUR SERVICE CO-
OPERATIVE BANK LIMITED DATED 9.9.2024
Exhibit R2(f) TRUE COPY OF THE RELEVANT PAGE OF THE
MINUTES BOOK OF THE CHEVAYUR SERVICE
CO-OPERATIVE BANK LIMITED DATED
12.09.2024
Exhibit R2(g) TRUE COPY OF THE RELEVANT PAGES OF THE
MINUTES BOOK OF THE CHEVAYUR SERVICE
CO-OPERATIVE BANK LIMITED DATED
16.09.2024
Exhibit R2(h) TRUE COPY OF THE RELEVANT PAGE OF THE
MINUTES BOOK OF THE CHEVAYUR SERVICE
CO-OPERATIVE BANK LIMITED DATED
23.08.2024
