Citation : 2024 Latest Caselaw 30907 Ker
Judgement Date : 23 October, 2024
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2024:KER:81183
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE AMIT RAWAL
&
THE HONOURABLE MR. JUSTICE EASWARAN S.
WEDNESDAY, THE 23RD DAY OF OCTOBER 2024 / 1ST KARTHIKA, 1946
WA NO. 1692 OF 2024
AGAINST THE ORDER DATED 22.10.2024 IN WP(C) NO.35963 OF
2024 OF HIGH COURT OF KERALA
APPELLANTS/RESPONDENTS 1 TO 3 IN WPC:
1 THE KARAYAVATTAM SERVICE CO-OPERATIVE BANK LTD
NO.F 793,REPRESENTED BY ITS SECRETARY,
KARAYAVATTOM P.O, VALAPPAD, THRISSUR DISTRICT,
PIN - 680567.
2 THE BOARD OF DIRECTORS OF THE KARAYAVATTAM
SERVICE CO-OPERATIVE BANK LTD NO.F 793
,REPRESENTED BY ITS PRESIDENT, KARAYAVATTOM P.O,
VALAPPAD, THRISSUR DISTRICT, PIN - 680567
3 THE PRESIDENT
KARAYAVATTAM SERVICE CO-OPERATIVE BANK LTD NO.F
793, KARAYAVATTOM P.O, VALAPPAD, THRISSUR
DISTRICT, PIN - 680567
BY ADVS.
NISHA GEORGE
ANSHIN K.K
GEORGE POONTHOTTAM (SR.)
RESPONDENTS/WRIT PETITIONERS & RESPONDENTS 4 AND 5 IN WPC:
1 SINDHU P.D.
AGED 50 YEARS
W/O.MITTATHULLY CHANDRASEKHARAN, KIZHUTHANI,
THANISSERY P.O., THRISSUR DISTRICT, PIN - 680701
2
WA No.1692/2024
2024:KER:81183
2 THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES
(GENERAL), CHAVAKKAD,
OFFICE OF THE ASSISTANT REGISTRAR OF CO-OPERATIVE
SOCIETIES (GENERAL), PALAYUR, FRIENDSHIP NAGAR,
CHAVAKKAD, THRISSUR DISTRICT, PIN - 680506
3 THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES
(GENERAL), THRISSUR,
AYYANTHOLE, THRISSUR DISTRICT, PIN - 680003
SR GP SRI T K VIPINDAS
THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON
23.10.2024, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
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WA No.1692/2024
2024:KER:81183
AMIT RAWAL & EASWARAN S., JJ.
---------------------------------------------------------
W.A.No.1692 of 2024
-----------------------------------------------------------
rd
Dated this the 23 day of October, 2024
JUDGMENT
Amit Rawal, J.
Present writ appeal has been filed against the interim order
dated 22.10.2024 arising out of W.P.(C)No.35963/2024 at the
instance of the 1st respondent - writ petitioner, wherein following
reliefs were sought:
"i) To declare that the observation made by the enquiry officer in Section 66 report, as reproduced in Ext-P2 order, to initiate criminal action against the petitioner, is without competence and jurisdiction;
ii) To declare that no adverse proceedings can be initiated against the petitioner by respondents 1 to 3, on the basis of observation made by the enquiry officer in Section 66 report, as reproduced in Ext-P2 order, before the completion of proceedings under Section 68 of the Kerala Co-operative Societies Act;
iii) To declare that initiation of criminal or disciplinary proceedings against the petitioner by respondents 1 to 3, on the basis of observation made by the enquiry officer in Section 66 report, as reproduced in Exhibit-P2 order, is against the law laid down in Exhibit-P5 Division Bench Judgement;
iv) To issue a writ, direction or order in the nature of prohibition or such other appropriate writ, direction or order restraining
2024:KER:81183 respondents 1 to 3 from initiating action against the petitioner, criminal or otherwise, on the basis of observation made by the enquiry officer in Section 66 report, as reproduced in Exhibit- P2 order;
v) to dispense with filing of the translation of vernacular documents; and
vi) to grant such other relief's as this Honourable Court may deem fit in the circumstances of this case."
2. During the pendency of the aforementioned writ petition,
1st respondent was suspended vide order dated 17.10.2024,Ext.P6
and vide an interim application, stay was sought. Learned Single
Judge stayed the aforementioned order.
3. Sri.George Poonthottam - learned Senior Counsel
assisted by Sri.Anshin K.K. appearing for the appellants, submitted
that the suspension order cannot be stayed for, as per the Enquiry
Report Ext.P2, it is evident that Respondent No.1 had candidly
admitted the tampering of the proceedings of the society against
the instructions of Registrar's Circular bearing No.26/2014.
4. Our attention has been drawn to the following relevant
portion of the enquiry report:
"Secretary P.T.Sindhu deposed that the same was true and this was done solely due to the pressure by the former president. However, the fact that the secretary did not show any dissent or take any follow-up action cannot be accepted."
2024:KER:81183
5. It is contended that the wordings of suspension order is
connected with the proposed action to be taken under Section 68 of
the Kerala Co-operative Societies Act, 1969, i.e. surcharge
proceedings, and therefore the order is not liable to be stayed.
6. Sri.Arjun Raghavan takes notice and submitted that as
per the findings of the report Ext.P2, no charge, except the one
extracted above has been attributed to the 1 st respondent - writ
petitioner. Even otherwise, the alleged loss has already been
recouped as evident from receipt, Ext.P3, whereby an amount of
Rs.13,15,767/- alleged to be short fall, has been deposited.
Therefore, the surcharge proceedings as contemplated under Section
68 cannot be initiated and prayed for dismissal of the writ appeal.
7. We have heard counsel for the parties and appraised the
paper book.
8. Noticing the aforementioned facts and order of
suspension, we are of the view that the genesis of the order of
suspension had been only on the basis of the report under Section
66 with a contemplated action under Section 68. But the fact
2024:KER:81183
remains that the contemplated action under Section 68 cannot be
initiated in view of the deposit of the amount as reflected in Ext.P3.
At the best, appellant - Society can initiate the disciplinary action as
provided under Rule 198 of the Co-operative Societies Rules against
the delinquent/respondent no.1, if so advised, in accordance with
law, independent of the suspension notice.
Writ appeal stands disposed off with aforesaid observations.
Sd/-
AMIT RAWAL, JUDGE
Sd/-
EASWARAN S., JUDGE ACR
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