Kerala High Court
M.Muhammed Mustaffa vs The Assistant Registrar Of ... on 6 September, 2024
Author: Murali Purushothaman
Bench: Murali Purushothaman
2024:KER:68233
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN
FRIDAY, THE 6TH DAY OF SEPTEMBER 2024 / 15TH BHADRA, 1946
WP(C) NO. 21160 OF 2024
PETITIONER(S):
1 M.MUHAMMED MUSTAFFA
AGED 59 YEARS
S/O KUNHAMMED MASTER ASSISTANT SECRETARY (RETIRED),
PERINTHALMANNA SERVICE CO-OPERATIVE BANK
LTD.NO.P.534,RESIDING AT MEEMBIDI HOUSE, KUNNAPPALLY POST,
PERINTHALMANNA, MALAPPURAM, PIN - 697 322.
2 K.T.HANEEFA
AGED 59 YEARS
CHIEF ACCOUNTANT (RETIRED) PERINTHALMANNA SERVICE CO-
OPERATIVE BANK LTD.NO.P.534, RESIDING AT KADANTHODI HOUSE,
PATTKKAD P.O, MALAPPURAM., PIN - 679 325.
3 P.MUHAMMED IBRAHIM
AGED 58 YEARS
BRANCH MANAGER (RETIRED) PERINTHALMANNA SERVICE CO-
OPERATIVE BANK LTD.NO.P.534, RESIDING AT PALLIPPURAM HOUSE,
CHERAKKAPARAMBA.P.O, MALAPPURAM., PIN - 679 321.
BY ADVS.
P.N.MOHANAN
C.P.SABARI
AMRUTHA SURESH
GILROY ROZARIO
RESPONDENT(S):
1 THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES
(G), OFFICE OF THE ASSISTANT REGISTRAR OF CO-OPERATIVE
SOCIETIES (G), MINI CIVIL STATION, PERINTHALMANNA,
WP(C) NO. 21160 OF 2024 : 2 :
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MALAPPURAM , PIN - 679 322.
2 PERINTHALMANNA SERVICE CO-OPERATIVE BANK LTD
NO.P.534,P.B.NO.14, OOTTY ROAD, PERINTHALMANNA,
MALAPPURAM, REPRESENTED BY SECRETARY IN CHARGE,
PERINTHALMANNA, MALAPPURAM., PIN - 679 322.
3 KERALA STATE CO-OPERATIVE EMPLOYEES' PENSION BOARD,
REPRESENTED BY ITS SECRETARY, JAWAHAR SAHAKARANA BHAVAN,
7TH FLOOR, DPI JUNCTION, THYCAUD P.O., THIRUVANANTHAPURAM
PIN - 695 014.
4 CONCURRENT AUDITOR
(ASSISTANT REGISTRAR), PERINTHALMANNA SERVICE CO-OPERATIVE
BANK LTD.NO.P.534, P.B.NO.14, OOTTY ROAD, PERINTHALMANNA,
MALAPPURAM., PIN - 679 322.
BY ADVS.
A.L.NAVANEETH KRISHNAN
M.SASINDRAN
ASWATHY KRISHNAN(K/000603/2017)
V.K. SUNIL, SENIOR GOVERNMENT PLEADER.
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 06.09.2024,
THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
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JUDGMENT
The petitioners were employees of the 2 nd
respondent Co-operative Bank. The petitioners 1 and 2
retired from service on 31.05.2023 as Assistant Secretary
and Chief Accountant, respectively and the 3 rd petitioner
retired from service on 31.05.2024 as Branch Manager.
The grievance of the petitioners is that the pension
dockets in respect of the petitioners submitted before the
Assistant Registrar (General), the 1 st respondent, have
been returned by Exts.P4 and P5 stating that the non-
liability certificates (NLCs) are not countersigned by the
Concurrent Auditor. It is contended that when the NLCs
have been issued in terms of Rule 198 (8) of the Kerala
Co-operative Societies Rules,1969 (for short 'the Rules'),
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there is no need for any countersignature by the
Concurrent Auditor.
2. The learned Government Pleader submits that
as per Para 27 (2) of the Kerala Co-operative Societies
Employees Self-Financing Pension Scheme, 1994 (Pension
Scheme), the Assistant Registrar has to scrutinize as to
whether the documents are in order before forwarding
the same to the Pension Board. When the pension
dockets of the petitioners were submitted, the 1 st
respondent made enquiries with the Concurrent Auditor
and found that the petitioners have incurred liabilities
and the pension dockets were returned.
3. Rule 198 (8) of the Rules reads as follows:-
"R.198 (8). In respect of all employees save
the Chief Executive Officer of a society, no
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retirement benefits shall be sanctioned and
disbursed until after the due issuance of a
Non-liability Certificate by the Chief
Executive Officer and approval of the same
by the committee of the society within
thirty days from the date of retirement of
such employee. In the event of the
retirement of the Chief Executive Officer,
the Non-liability Certificates shall be issued
by the committee of the society. For any
loss to the society due to the non
adherence of the forgoing procedure, the
Chief Executive Officer along with the
committee of the society shall be held
responsible collectively and severally in
respect of the issuance of Non-liability
Certificate to any employee other than the
Chief Executive Officer and the members of
the committee shall be held collectively and
severally responsible for the issuance of
Non-liability Certificate to the Chief
Executive Officer]".
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4. It is submitted by the learned Counsel for the
petitioners that since the petitioners 1 and 2 were
holding the charge of Chief Executive Officer for some
time, Exts.P6 and P7 non-liability certificates pertaining
to them were issued by the President of the Society on
behalf of the committee and Ext.P8 NLC in respect of the
3rd petitioner, who retired as Branch Manager, was issued
by the Secretary of the Society. It is contended by the
petitioners that nowhere in the pension scheme or in the
Kerala Co-operative Societies Act, 1969 or the Rules, it
is provided that the NLC has to be countersigned by the
Concurrent Auditor. Para 27 (2) of the Pension Scheme
reads as follows:-
"The application under sub-paragraph (1)
shall be submitted to the Chief Executive of
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the Society who shall scrutinise it and
forward the same to the Board with
relevant records and verification certificate
of Taluk/District/Regional Officers of the
concerned Department."
The Pension Scheme provides for scrutiny of the
pension docket by the Chief Executive Officer of the
Society before forwarding the same to the Pension Board
with relevant records. It shall also be accompanied by
verification certificate of the Assistant Registrar (General)
of the Taluk. The Pension docket provides for column
for remarks of the Assistant Registrar and reads as
under:-
" I have verified the above entries with the
service book of the employee and other
relevant records in the Society/Bank and
found them to be correct. The
classification of the society/bank as per
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Section 80(1) and Rule 182 of the Kerala
Co-operative Societies Act, 1969 is......
Sanction of Pension of Rs......./and
Family Pension of Rs.......are
recommended"
5. Rule 198 of the Rules provides that the
authority competent to issue NLC referred to therein
shall be held collectively and severally responsible in
respect of the issuance of NLC to the employees.
Accordingly, this Court directed the 2nd respondent to file
an affidavit as to whether Exts.P6 to P8 NLCs have been
issued in terms of Rule 198(8) of the Rules.
6. An affidavit has been filed by the 2 nd
respondent accompanied by Exts.R2 (a), R2(b) and R2 (f)
resolutions whereby Exts.P6 to P8 NLCs issued by the
President and the Chief Executive Officer respectively
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have been ratified by the committee. In that view of the
matter, the responsibility in respect of the NLCs issued to
the petitioners is on the Chief Executive Officer and the
committee of the Society in terms of Rule 198 of the
Rules. The power conferred on the Assistant Registrar
(General) under paragraph 27 of the Pension Scheme is
to verify the entries in the pension docket with the
service book of the employees and other records in the
society. It is for the Chief Executive Officer of the
Society to scrutinize the application for pension and
forward the same to the Pension Board with relevant
records and the verification certificate of the Assistant
Registrar (General) of the Taluk.
Accordingly, this writ petition is disposed of with
the following directions:-
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(i) The 2nd respondent shall resubmit the
applications of the petitioners for
pension/ pension dockets with relevant
records to the 1st respondent within two
weeks from the date of receipt of a copy
of this judgment.
(ii) On receipt of the same, the 1 st
respondent shall endorse/ issue
verification certificate without insisting
for counter signature of the Concurrent
Auditor on the NLC, and if the
applications are otherwise in order,
within a period of two weeks from the
date of resubmission of the pension
dockets by the Society.
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(iii) The 2nd respondent shall forward
the pension dockets with relevant
records and verification certificates
issued by the 1st respondent to the 3rd
respondent Board within one week of
receipt of verification certificate from
the 1st respondent.
(iv) On receipt of the applications for
pension, the 3rd respondent shall process
the same expeditiously and in
accordance with law.
Sd/-
MURALI PURUSHOTHAMAN
JUDGE
SRJ
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APPENDIX OF WP(C) 21160/2024
PETITIONER EXHIBITS
EXHIBIT P1 TRUE COPY OF THE PENSION DOCKET IN RESPECT OF
THE FIRST PETITIONER.
EXHIBIT P2 TRUE COPY OF THE PENSION DOCKET IN RESPECT OF
SECOND PETITIONER.
EXHIBIT P3 TRUE COPY OF THE PENSION DOCKET IN RESPECT OF
THE THIRD PETITIONER.
EXHIBIT P4 TRUE COPY OF THE ORDER DATED 19.05.2023 OF THE
FIRST RESPONDENT.
EXHIBIT P5 TRUE COPY OF THE ORDER DATED 26.02.2024 ISSUED
BY THE FIRST RESPONDENT.
EXHIBIT P6 TRUE COPY OF THE NON-LIABILITY CERTIFICATE DATED
06.04.23 ISSUED BY THE BANK IN THE CASE OF FIRST
PETITIONER.
EXHIBIT P7 TRUE COPY OF THE NON-LIABILITY CERTIFICATE
06.04.2023 ISSUED BY THE BANK IN THE CASE OF
SECOND PETITIONER.
EXHIBIT P8 TRUE COPY OF THE NON-LIABILITY CERTIFICATE DATED
01.03.2024 ISSUED BY THE BANK IN THE CASE OF
THIRD PETITIONER.
EXHIBIT P9 TRUE COPY OF THE LETTER DATED 27.05.2024 ISSUED
BY THE JOINT DIRECTOR OF CO-OPERATIVE AUDIT.
EXHIBIT P10 TRUE COPY OF THE RELEVANT PORTION OF THE BYE-
LAW.
EXHIBIT P11 TRUE COPY OF THE SUB RULES DATED 15.04.2013
APPROVED BY THE JOINT REGISTRAR.
EXHIBIT P12 TRUE COPY OF THE CIRCULAR NO.54/2008 DATED
02.08.2008 ISSUED BY THE REGISTRAR OF CO-
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OPERATIVE SOCIETIES.
EXHIBIT P13 TRUE COPY OF THE JUDGMENT OF PHILIP VS.
REGISTRAR OF CO-OPERATIVE SOCIETIES REPORTED IN
2018 (3) KHC 780.
EXHIBIT P14 TRUE COPY OF THE JUDGMENT OF Y.R.VINCENT V.
JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES
REPORTED IN ILR 2024 (1) KER 344.
EXHIBIT P15 TRUE COPY OF THE ORDER DATED 13.01.2023 OF THE
ASSISTANT REGISTRAR.
EXHIBIT P16 TRUE COPY OF THE DEMAND NOTICE DATED
19.04.2024.
EXHIBIT P17 TRUE COPY OF THE REPLY DATED 24.01.2023 ALONG
WITH ACKNOWLEDGMENT.
EXHIBIT P18 TRUE COPY OF THE RESOLUTION DATED 30.09.2023.
EXHIBIT P19 TRUE COPY OF THE CERTIFICATE OF THE FIRST
PETITIONER RECEIVED FROM MVR CANCER CENTER,
KANNUR DATED 29.04.2021.
RESPONDENTS' EXHIBITS
EXHIBIT R2(a) A TRUE COPY OF THE RESOLUTION NO.6A/23 OF THE
MANAGING COMMITTEE DATED 06.04.2023.
EXHIBIT R2(b) A TRUE COPY OF THE RESOLUTION NO.171A/23 DATED
23.06.2023 OF THE MANAGING COMMITTEE.
EXHIBIT R2(c) A TRUE COPY OF THE LETTER NO. ARGPNA/793/2023UI
(1) DATED 05.04.2023 OF THE ASSISTANT REGISTRAR,
PERINTHALMANNA.
EXHIBIT R2(d) A TRUE COPY OF THE LETTER NO. ARGPNA/292/2024UI
(1) DATED 26.02.2024 OF THE ASSISTANT REGISTRAR,
PERINTHALMANNA.
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EXHIBIT R2(e) A TRUE COPY OF THE NON-LIABILITY CERTIFICATE
DATED 17.04.2024 OF THE BANK IN RESPECT OF THE
THIRD PETITIONER.
EXHIBIT R2(f) A TRUE COPY OF THE RESOLUTION NO.246A/24 DATED
18.06.2024 OF THE BANK.
