Kerala High Court
P V Haridas vs Joint Registrar Of Co-Operative ... on 22 October, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
2024:KER:78427
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
TUESDAY, THE 22ND DAY OF OCTOBER 2024 / 30TH ASWINA, 1946
WP(C) NO. 40562 OF 2023
PETITIONER:
P V HARIDAS,
AGED 59 YEARS
FORMER SECRETARY,
PERAVOOR CO-OP HOUSE BUILDING SOCIETY LTD
NO. C-1004, S/O PV CHATHUKUTTY R/AT HARITHASREE,
CHEVIDIKKUNNU, PO PERAVOOR
KANNUR DISTRICT, PIN - 670673
BY ADVS.
SURESH KUMAR KODOTH
K.P.ANTONY BINU
RESPONDENTS:
1 JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES
(GENERAL),
KANNUR DISTRICT, PIN - 670002
2 ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES
(GENERAL),
IRITTY, KANNUR DISTRICT, PIN - 670703
3 PERAVOOR CO-OP HOUSE BUILDING SOCIETY
LTD NO. C-1004;
REPRESENTED BY ITS SECRETARY IN CHARGE, PO
PERAVOOR KANNUR DISTRICT, PIN - 670673
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WP(C) No.40562 of 2023
2
4 MANAGING COMMITTEE,
PERAVOOR CO-OP HOUSE BUILDING SOCIETY LTD
NO. C-1004; REPRESENTED BY ITS PRESIDENT,
PO PERAVOOR, KANNUR DISTRICT, PIN - 670673
BY ADVS
SMT.LEENA C
SMT.SHEEJA C.S., SENIOR GOVERNMENT PLEADER
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 22.10.2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
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WP(C) No.40562 of 2023
3
JUDGMENT
Dated this the 22nd day of October, 2024
The petitioner, who was working as Secretary of the
3rd respondent-Society, is facing inquiries under the Kerala Co-
operative Societies Act, 1969 as well as Arbitration
proceedings initiated under Section 69 of the Act, 1969. The
petitioner has filed this amended writ petition seeking to direct
respondents 1 and 3 to provide copy of documents to the
petitioner as sought for in Exts.P13 and P15 applications for
the purpose of participating in Ext.P12 proceedings. The
petitioner also seeks to quash Ext.P1 proceedings pending
before the 2nd respondent.
2. The petitioner would submit that he was
proceeded against invoking the provisions of Section 68 of the
Kerala Co-operative Societies Act, 1969 for alleged loss of
about ₹2 Crores. Ext.P1 ARC proceedings were initiated on
31.12.2022. The petitioner states that the respondents
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proceeded with inquiry under Section 65 of the Kerala Co-
operative Societies Act, 1969 against the Managing Committee
members as well as the petitioner. Section 65 enquiry report
implicated the petitioner as well as the Managing Committee
members.
3. Thereafter, surcharge proceedings were
initiated by the respondents invoking Section 68 of the Act,
1969. A report under Section 68(1) was submitted in which the
petitioner was found liable for an amount of ₹1,08,87,725/-.
4. The petitioner states that he has not
committed any misconduct in his service as Secretary and he
has not caused any loss to the Society. Therefore, in order to
effectively defend the report under Section 68(1), the petitioner
sought copies of certain documents. Those documents are not
provided to the petitioner.
5. The petitioner stated that during Section 68(1)
proceedings, the petitioner had no opportunity to adduce
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evidence or to establish his innocence before the authorities.
It is only after a report is submitted under Section 68(1) that
the petitioner gets a notice. In the circumstances, unless the
petitioner is provided with all requisite documents to effectively
defend the proceedings, the petitioner will be put to untold
hardship and loss. This is a case, where the petitioner is
proposed to be surcharged for an amount of ₹1,08,87,725/-.
6. Counsel for the petitioner further argued that
the 2nd respondent-Assistant Registrar conducted Section 65
inquiry. At present, the ARC proceedings are being conducted
by the very same officer. The conduct of ARC proceedings by
the very same Assistant Registrar would be fraught with bias
and against the principles of natural justice. For that reason
also, ARC proceedings are liable to be quashed. At any rate,
when Section 68(1) surcharge proceedings are pending and a
notice under Section 68(1) has been issued on the petitioner,
there is no justification for the respondents to proceed ahead in
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the Arbitration proceedings.
7. Respondents 3 and 4 filed a counter affidavit
and submitted that the documents available with the Co-
operative Society has been given to the petitioner as is
evidenced from Ext.P17. The surcharge proceedings are
initiated by the Government and the Bank has no control over
that. The Society has a right to realise the loss caused by the
petitioner. Therefore, Arbitration proceedings were initiated.
8. Respondents 3 and 4 further submitted that
there is no violation of any statute in the matter of ARC
proceedings. Ext.P1 proceedings and surcharge proceedings
are not on the same ground as alleged. Arbitration
proceedings against the petitioner are therefore maintainable.
The writ petition is without any merit and it is liable to be
rejected.
9. I have heard the learned counsel for the
petitioner, the learned Government Pleader representing
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respondents 1 and 2 and the learned Standing Counsel
representing respondents 3 and 4.
10. The first prayer of the petitioner is to direct
respondents 1 and 3 to provide copies of relevant documents
the petitioner has sought for in Exts.P13 and P15 applications.
As huge liability is sought to be imposed on the petitioner
through surcharge proceedings, the petitioner has a right to
defend the proceedings under Section 68(2), for which the
petitioner requires relevant documents. If the petitioner makes
an application to the Joint Registrar for any document relevant
to the proceedings, copies of the same shall be issued to the
petitioner as per law.
11. The officer, who made Section 65 inquiry, had
submitted a report in which the petitioner is implicated. The
said officer is the Arbitrator now proceeding with Ext.P1 ARC.
Government Pleader submits that at the time of
commencement of ARC, the Assistant Registrar who
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conducted the enquiry was not the enquiry officer and only with
effect from 04.10.2023, the present Assistant Registrar has
taken over the Arbitration proceedings. If an officer who has
already conducted an inquiry and who has already come to a
conclusion, is appointed as Arbitrator, that will obviously result
in bias and would be in gross violation of the principles of
natural justice. Therefore, the 1st respondent is directed to
depute another Assistant Registrar, who has not dealt with the
case earlier, for conducting the Arbitration proceedings.
The writ petition is disposed of as above. All other
legal issues are left open.
Sd/-
N.NAGARESH
JUDGE
spk
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APPENDIX OF WP(C) 40562/2023
PETITIONER EXHIBITS
Exhibit P1 TRUE COPY OF THE MEMORANDUM OF THE
Exhibit P2 TRUE COPY OF REPLY DATED 28/10/2022
Exhibit P3 TRUE COPY OF ORDER DATED 23/9/2020
ISSUED BY 2 ND RESPONDENT
Exhibit P4 TRUE COPY OF RELEVANT PAGES OF THE
REPORT DATED 23/12/2020 FILED BY THE
SENIOR INSPECTOR
Exhibit P5 TRUE COPY OF THE EXPLANATION DATED
10/7/2021 SUBMITTED BY THE COMMITTEE
Exhibit P6 TRUE COPY OF THE EXPLANATION DATED
28/7/2021 SUBMITTED BY PETITIONER
Exhibit P7 TRUE COPY OF ORDER DATED 4/8/2021
ISSUED BY 1 ST RESPONDENT
Exhibit P8 TRUE COPY OF THE REPORT DATED
29/10/2020
Exhibit P9 TRUE COPY OF NOTICE DATED 27/12/2021
Exhibit P10 TRUE COPY OF THE REPLY DATED 14/1/2022
Exhibit P11 TRUE COPY OF REPORT NO.648/22/PVR
Exhibit P12 TRUE COPY OF THE NOTICE DATED
12/12/2022
Exhibit P13 TRUE COPY OF THE SAID REQUEST LETTER
DATED 20/12/2022
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Exhibit P14 TRUE COPY OF LETTER DATED 6/1/2023
ISSUED BY 1 ST RESPONDENT
Exhibit P15 TRUE COPY OF LETTER DATED 17/1/2023
SUBMITTED BY PETITIONER BEFORE
SECRETARY
Exhibit P16 TRUE COPY OF LETTER DATED 16/2/2023
SUBMITTED BY PETITIONER BEFORE
SECRETARY IN CHARGE
Exhibit P17 TRUE COPY OF LETTER DATED 21/2/2023
ISSUED BY SECRETARY
Exhibit P18 TRUE COPY OF LETTER DATED 25/2/2023
SUBMITTED BY PETITIONER BEFORE 1 ST
RESPONDENT
Exhibit P19 TRUE COPY OF REPRESENTATION DATED
23/3/2023 SUBMITTED BY PETITIONER
BEFORE 1 ST RESPONDENT
Exhibit P20 TRUE COPY OF REPRESENTATION DATED
11/5/2023 SUBMITTED BY PETITIONER
BEFORE 1 ST RESPONDENT
Exhibit P21 TRUE COPY OF REPRESENTATION DATED
17/10/2023 SUBMITTED BY PETITIONER
BEFORE 1 ST RESPONDENT
Exhibit P22 TRUE COPY OF THE ORDER ISSUED BY THE
1ST RESPONDENT TO THE PETITIONER
