Kerala High Court
The Karamuck Service Co Operative Bank vs The Kerala Co Operative Ombudsman on 9 July, 2025
2025:KER:50242
WP(C) Nos. 41135 of 2017 & 18369 of 2019
-1-
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P.
WEDNESDAY, THE 9TH DAY OF JULY 2025 / 18TH ASHADHA, 1947
WP(C) NO. 41135 OF 2017
PETITIONER:
THE KARAMUCK SERVICE CO OPERATIVE BANK,
KARAMUCKU, KANDASSAMKADAVU P.O., THRISSUR,
REPRESENTED BY THE SECRETARY.
BY ADVS.
SRI.P.C.SASIDHARAN
SRI.P.E.SAJAL
RESPONDENTS:
1 THE KERALA CO OPERATIVE OMBUDSMAN,
THIRUVANANTHAPURAM,
REPRESENTED BY ITSSECRETARY-695001.
2 SMT. PHILOMINA
W/O LATE JOY M.K.,
VADAKKETHALA MUNDASSERY HOUSE,
KARAMUCKU, KANDASSAMKADAVU P.O.,
THRISSUR-680613.
BY ADV. DILIP J. AKKARA
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON
09.07.2025, ALONG WITH W.P.(C)NO.18369/2019, THE COURT ON
THE SAME DAY DELIVERED THE FOLLOWING:
2025:KER:50242
WP(C) Nos. 41135 of 2017 & 18369 of 2019
-2-
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P.
WEDNESDAY, THE 9TH DAY OF JULY 2025 / 18TH ASHADHA, 1947
WP(C) NO. 18369 OF 2019
PETITIONER:
PHILOMINA,
AGED 60 YEARS, W/O. LATE JOY M.K.,
VADAKKETHALA MUNDASSERY HOUSE,
KARAMUCKU, KANDASSANKADAVU P.O.,
THRISSUR-680 613
BY ADV.DILIP J. AKKARA
RESPONDENT:
THE SECRETARY,
KARAMUCK SERVICE CO-OPERATIVE BANK LTD.,
KARAMUKKU SERVICE CO-OPERATIVE BANK LTD NO.16,
KARAMUCKU, KANDASSANKADAVU P.O., THRISSUR-680 613
ADV. P.C.SASIDHARAN
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION
ON 09.07.2025, ALONG WITH W.P.(C) NO.41135/2017, THE COURT
ON THE SAME DAY DELIVERED THE FOLLOWING:
2025:KER:50242
WP(C) Nos. 41135 of 2017 & 18369 of 2019
-3-
MOHAMMED NIAS C.P., J.
----------------------------------------------------
W.P.(C) Nos. 41135 of 2017 & 18369 of 2019
---------------------------------------------------
Dated this the 9th day of July, 2025
JUDGMENT
W.P.(C) No.41135 of 2017:- This writ petition is filed by a
Primary Co-operative Society, running a co-operative Bank,
aggrieved by the order passed by the Kerala Co-operative
Ombudsman directing it to extend the benefit under the Risk Fund
Benefit Scheme, 2008, holding that the society can recover only the
balance amount after deducting the benefit received under the said
Scheme.
2. The primary contention raised in this writ petition is
that the 1st respondent does not have jurisdiction to decide the
complaint preferred by the 2nd respondent and that the Ombudsman
is constituted solely for the redressal of complaints relating to the
deficiencies in banking and other services rendered by the Co-
2025:KER:50242
WP(C) Nos. 41135 of 2017 & 18369 of 2019
operative Societies dealing with the banking issues, going by Section
69A of the Kerala Co-operative Societies Act.
3. The petitioner also relied on the judgment of this Court
in Kerala State Co-operative Bank Ltd., Tvm v. Kerala Co-
operative Ombudsman, Tvm [2016 (1) KHC 52]. Which held,
referring to Section 69 of the Kerala Co-operative Societies Act, in
particular, Clause 1(f) which mandates that notwithstanding
anything contained in any law for the time being in force, if a
dispute arises between the society and a person, other than a
member of the society, who has been granted a loan by the society
or with whom the society has or had business transactions or any
person claiming through such a person, the said dispute shall be
decided by the Co-operative Arbitration Court, which means that no
other court or authority shall have jurisdiction to entertain any suit
or other proceedings in respect of such dispute.
4. Reference is also made to the judgment of this Court in
W.P.(C) No.23981 of 2015 dated 29.06.2016, wherein this Court, after
2025:KER:50242
WP(C) Nos. 41135 of 2017 & 18369 of 2019
considering the powers of the Ombudsman under Section 69A of the
Kerala Co-operative Societies Act, held as follows:-
xxxx xxxx xxxx
6. The prime question to be considered is whether the
Ombudsman is vested with power under Section 69A of
the Act and the Scheme to consider the dispute by and
between the bank and its employee namely, the 2 nd
respondent. True, under Section 69A, Ombudsman is
provided with power for redressing all complaints
relating to deficiency in banking or other services
rendered by the Co-operative Societies dealing with
banking business, in accordance with the terms of the
Scheme. In order to regulate the functioning of the
Ombudsman only, the scheme was brought into effect
by the Government. Clause 7(2)(e) and 13(f) of the said
scheme inhibiting the power of Ombudsman are
relevant, which read thus:
"7(2)(e)The complaint is in the nature of a
dispute under Section 69 of the Act or in the
nature of an appeal petition under Section
82 and 83 of the Act.
13(f) one requiring consideration of
elaborate documentary and oral evidence
2025:KER:50242
WP(C) Nos. 41135 of 2017 & 18369 of 2019
and the proceeding before the Ombudsman
or Ombudsmen, as the case may be, are not
appropriate for adjudication of such
complaint."
7. Therefore, on a reading of said provisions of the
Scheme, it is categoric and clear that whenever there is
a dispute by and between the bank and its employees or
its members the power of the Ombudsman under
Section 69A and the Scheme is excluded.
5. Given the above, it is clear that the 1 st respondent did not
have jurisdiction to consider the dispute raised by the 2 nd
respondent.
Accordingly, the impugned order is quashed and the writ
petition is allowed, declaring that the Ombudsman, who is the 1 st
respondent, had no jurisdiction to entertain the complaint filed by
the 2nd respondent.
W.P.(C) No.18369 of 2019:- This writ petition is filed by the
2nd respondent in the connected writ petition, praying for a
direction to the respondent Bank to credit amounts to which the
2025:KER:50242
WP(C) Nos. 41135 of 2017 & 18369 of 2019
petitioner is entitled under the Kerala Co-operative Risk Fund
Benefit Scheme, 2008 and to permit her to close the loan account in
the name of late Joy M.K. by paying the balance due as from the date
of Ext.P1 application.
2. In this writ petition, an interim order was passed on
03.03.2025, making it clear that it will be open to the petitioner to
approach the Bank claiming the benefit of the One Time Settlement
Scheme. The petitioner had approached the Bank and had availed of
the One Time Settlement, repaying the amount due on the debts.
The only remaining issue was the grant of benefits under the Kerala
Co-operative Risk Fund Benefit Scheme. Accordingly, the Bank was
directed to consider the representation preferred by the petitioner.
3. It is pointed out by the Bank that the Bank had
considered the request of the petitioner and passed orders dated
29.05.2025, rejecting the request of the petitioner.
4. Under such circumstances, the writ petition is closed
without prejudice to the right of the petitioner to challenge the
2025:KER:50242
WP(C) Nos. 41135 of 2017 & 18369 of 2019
same before the appropriate authority. All contentions of the
petitioner are left open.
The Writ Petition is closed as above.
Sd/-
MOHAMMED NIAS C.P.
JUDGE
bpr
2025:KER:50242
WP(C) Nos. 41135 of 2017 & 18369 of 2019
APPENDIX OF WP(C) 41135/2017
PETITIONER'S EXHIBITS
EXHIBIT P1: TRUE COPY OF THE UNDERTAKING GIVEN BY
THE HUSBAND OF THE 2ND RESPONDNET DATED
22.9.2014.
EXHIBIT P2: TRUE COPY OF THE PETITION SUBMITTED BY
THE 2ND RESPONDENT BEFOR ETHE IST
RESPONDENT DATED 26.11.2016.
EXHIBIT P3: TRUE COPY OF THE STATEMENT FILED BY THE
RESPONDENT DATED 16.6.2017.
EXHIBIT P4: TRUE COPY OF THE ORDER OF THE IST
RESPONDENT DATED 20.11.2017.
RESPONDENTS' EXHIBITS
EXHIBIT R2(A) PHOTOCOPY OF COMMUNICATION
NO.C.R.P.10083/2015 (1) DATED 18.03.2016
ISSUED BY JOINT REGISTRAR (GENERAL)
THRISSUR.
EXHIBIT R2(b) PHOTOCOPY OF IDENTITY CARD IN FORM 6A
DATED 23/8/13 ISSUED BY THE PETITIONER
TO LATE JOY
2025:KER:50242
WP(C) Nos. 41135 of 2017 & 18369 of 2019
APPENDIX OF WP(C) 18369/2019
PETITIONER'S EXHIBITS
EXHIBIT P1 PHOTOCOPY OF PETITIONERS APPLICATION
DATED 4.12.15 BEFORE RESPONDENT
REQUESTING GRANT OF RISK FUND BENEFITS
EXHIBIT P2 PHOTOCOPY OF COMMUNICATION DATED 18.3.16
OF JOINT REGISTRAR (GENERAL)CO-OPERATIVE
SOCIETIES THRISSUR
EXHIBIT P3 PHOTOCOPY OF THE REPRESENTATION DATED
4.12.17 SUBMITTED BY PETITIONER TO THE
RESPONDENT
EXHIBIT P4 PHOTOCOPY OF ORDER DATED 20.11.17 OF THE
KERALA CO-OPERATIVE OMBUDSMAN
THIRUVANANTHAPURAM IN CO.NO.1073/16
EXHIBIT P5 PHOTOCOPY OF DEMAND NOTICE DATED 24.5.19
ISSUED BY RESPONDENT
RESPONDENTS' EXHIBITS
EXHIBIT R1(A) THE TRUE COPY OF THE REPRESENTATION
DATED 4/3/2025 SUBMITTED BY THE
PETITIONER
