Thomas M.K vs Govt. Of Kerala
2026 Latest Caselaw 2214 Ker

Kerala High Court

Thomas M.K vs Govt. Of Kerala on 25 March, 2026

Author: N.Nagaresh

Bench: N.Nagaresh

                                            2026:KER:26204

        IN THE HIGH COURT OF KERALA AT ERNAKULAM

                           PRESENT

          THE HONOURABLE MR.JUSTICE N.NAGARESH

                              &

         THE HONOURABLE MR. JUSTICE JOHNSON JOHN

  WEDNESDAY, THE 25TH DAY OF MARCH 2026 / 4TH CHAITHRA,

                            1948

                   WA NO. 3019 OF 2025

        AGAINST THE JUDGMENT DATED 29.10.2025 IN WP(C)

        NO.16450 OF 2025 OF HIGH COURT OF KERALA

APPELLANT/PETITIONER:

         THOMAS M.K
         AGED 70 YEARS
         MUTTAPPALLIL; KURAVILANGAD P.O. ;
         MOB: 9447420634; WATTSAPP 8848249106;
         [email protected];,
         PIN - 686633


         BY ADV.
         THOMAS M.K(PARTY-IN-PERSON)


RESPONDENTS/RESPONDENT :

    1    GOVT. OF KERALA
         REPRESENTED BY ITS CHIEF SECRETARY,
         ROOM NO 202 SECRETARIAT,
         NORTH SANDWICH BLOCK, THIRUVANTHAPURAM
         KERALA E-MAIL: [email protected],
         PIN - 695001

    2    COOPERATION DEPARTMENT OF KERALA
         REPRESENTED BY ITS SECRETARY
         ROOM NO.397; 1ST FLOOR;
         MAIN BLOCK; SECRETARIAT;
                                             2026:KER:26204
WA No.3019 of 2025

                              2


          THIRUVANANTHAPURAM
          E-MAIL: [email protected],
          PIN - 695001

    3     REGISTRAR (GENERAL) OF CO-OPERATIVE SOCIETIES,
          KERALA
          OFFICE OF THE REGISTRAR OF CO-OPERATIVE
          SOCIETIES, JAWAHAR SAHAKARAN BHAVAN;
          DPI JUNCTION; JAGATHY; THYCAUD P.O.;
          THIRUVANANTHAPURAM
          E-MAIL: [email protected],
          PIN - 695014

    4     ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES
          [GENERAL]
          OFFICE OF THE ASSISTANT REGISTRAR [GENERAL],
          MINI CIVIL STATION, PALA P.O.
          KOTTAYAM
          E-MAIL: [email protected];
          [email protected], PIN - 686575

    5     SPECIAL SALE OFFICER
          OFFICE OF THE CO-OPERATIVE SOCIETIES ASSISTANT
          REGISTRAR [GENERAL],
          MINI CIVIL STATION, PALA P.O.
          KOTTAYAM DT., PIN - 686575

    6     KURAVILANGAD SERVICE CO-OPERATIVE BANK; LTD
          1049
          REPRESENTED BY ITS SECRETARY.
          KURAVILANGADP.O. KOTTAYAM DT.
          E-MAIL: [email protected],
          PIN - 686633

    7     UNION OF INDIA
          REPRESENTED BY ITS SECRETARY,
          MINISTRY OF COOPERATION,
          ATAL AKSHAY URJA BHAWAN; 8TH FLOOR;
          CGO COMPLEX; LODHI ROAD;
          BEHIND NIA BUILDING; NEW DELHI.
          E-MAIL: [email protected],
          PIN - 110003
                                                2026:KER:26204
WA No.3019 of 2025

                              3


    8     CGM-IN-CHARGE AND SECRETARY.
          SECRETARY'S DEPARTMENT
          RESERVE BANK OF INDIA, 16TH FLOOR,
          CENTRAL OFFICE BUILDING,
          SHAHID BHAGAT SINGH MARG, MUMBAI
          E-MAIL: [email protected],
          PIN - 400001


          BY ADVS.
          SRI.P.C.HARIDAS,R6
          SRI.K.ARJUN VENUGOPAL, CGC,R7
          SRI.MILLU DANDAPANI,R8
          SRI.IMAM GREGORIOS KARAT,SPL.GOVERNMENT PLEADER

     THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON
25.03.2026, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
                                                 2026:KER:26204
WA No.3019 of 2025

                                 4



                                                          CR
                           JUDGMENT

Dated this the 25th day of March, 2026

Nagaresh,J.

The appellant, party-in-person, filed W.P.(C)

No.16450/2025 seeking to declare that "the Kerala State Co-

operative Societies Act, 1969" and "the Kerala State Co-

operative Agricultural Development Banks Act, 1984" are

unconstitutional and illegal. The appellant also sought to issue

a writ of mandamus and to declare that the "Co-operative

Arbitration Court" and the jurisdiction made under "the Kerala

State Co-operative Societies Act 1969" and "the Kerala State

Co-operative Agricultural Development Banks Act, 1984"

misused for banking are unconstitutional and illegal and so

void from the commencement and enactment of the Acts.

2. Before the learned Single Judge, the appellant

urged that the functioning of the Co-operative Bank outside 2026:KER:26204

the regulatory framework of the Banking Regulation Act, 1949

is illegal and unconstitutional. Relying on Article 246 of the

Constitution of India, the appellant submitted that 'Banking' is

a subject in List-I of the 7th Schedule of the Constitution of

India and that the enactment of the Kerala Co-operative

Societies Act, 1969 and the Kerala State Co-operative

Agricultural Development Banks Act, 1984 enabling banking

activity in the co-operative sector, is beyond the legislative

competence of the State Legislature.

3. The appellant urged that by virtue of sub-clause (2)

of Article 13 of the Constitution of India, any law that takes

away or abridges the rights conferred by Part-III of the

Constitution shall be void to the extent of contravention. The

appellant also relied on Article 254 of the Constitution of India

and submitted that where the State law is inconsistent with

any Central law, the State law shall be void to the extent of

inconsistency. On these grounds, the appellant contended

that the Kerala State Co-operative Societies Act, 1969 and the 2026:KER:26204

Kerala State Co-operative Agricultural Development Banks

Act, 1984 are illegal and unconstitutional.

4. The learned Single Judge considered the

arguments raised by the appellant and held that this Court has

considered the issue in Lathif U.A., MLA and another v.

State of Kerala and others [ILR 2023 (4) Kerala 673] and

that contention of the petitioner that Co-operative Banks and

the Kerala State Co-operative Agricultural and Rural

Development (CARD) Bank are functioning without licence

and without being regulated in any manner by the Bank

Regulation Act, 1949, does not appear to be tenable.

5. The learned Judge further found that the Act

contains provisions either excluding the jurisdiction of Civil

Courts or granting the power of Civil Court to adjudicating

authorities under the Act, cannot be a ground to hold that the

provisions are unconstitutional. The exclusion of jurisdiction of

Civil Courts is permissible in law. On these premises, the

learned Single Judge found that the writ petition is liable to be 2026:KER:26204

dismissed in limine and it was ordered accordingly.

6. Aggrieved by the judgment dated 29.10.2025, the

appellant has preferred this Appeal. The appellant contends

that the banking business comes under the Union List and

any Bank can function only as per the law framed by the

Union relating to Banking. A Co-operative Society, which

comes under a different Entry in the State List cannot be

banking business, that may be ultra vires.

7. The appellant would further urge that under the

provisions of the Kerala State Co-operative Societies Act,

1969 and the Kerala State Co-operative Agricultural

Development Banks Act, 1984 the ordinary remedy of citizen

for approaching Civil Court stands excluded. Adjudication has

been entrusted with the arbitrators thereby denying the

citizens basic right of adjudication by competent Civil Courts.

Exclusion of jurisdiction of the Civil Court is also highly illegal,

arbitrary and unconstitutional, contended the appellant.

2026:KER:26204

8. The appellant further pointed out that the provisions

of the Act, 1969 and the Act, 1984 are used to exploit the

common man and certain vested interest are infiltrated with

the Co-operative governance system for unconstitutional and

illegal banking of Co-operative Societies particularly in the

nature of revenue recovery of the farmers and producers. The

purpose of the Co-operative Societies is defeated and the Co-

operative Societies are functioning creating debt traps for the

members of the Co-operative Society.

9. We have heard the appellant, the learned

Government Pleader representing respondents 1 to 4, the

learned Central Government Counsel representing the 7 th

respondent and the respective learned Standing Counsel

representing respondents 6 and 8.

10. The issue of illegality of the Co-operative Societies

running banking business came up for consideration in the

Constitution Bench judgment in Pandurang Ganpati

Chaugule v. Vishwasrao Patil Murgud Sahakari Bank 2026:KER:26204

Limited [ (2020) 9 SCC 215]. The Constitution Bench held

that in all aspects relating to banking, Co-operative Banks

would be the subject matter of regulation under the provisions

of the Banking Regulation Act, 1949. Section 3 of the Banking

Regulation Act, 1949 was amended as noticed after the

judgment of the Hon'ble Apex Court.

11. In the judgment in Greater Bombay Co-operative

Bank Limited. v. United Yarn Tex (P) Limited [ (2007) 6

SCC 236], the Hon'ble Apex Court again considered the

issue. The Apex Court held that for the proper financing and

effective functioning of the Co-operative Societies, there must

also be Co-operative Societies that do banking business to

facilitate the working of other Co-operative Societies. Merely

because they do banking business, such Co-operative

Societies do not cease to be Co-operative Societies, when

otherwise they are registered under the Co-operative

Societies Act, and are subjected to the duties, liabilities and

control of the provisions of the Co-operative Societies Act.

2026:KER:26204

12. As regards the alleged conflict between Entry

No.45 in the Union List and Entry No.43 in the State List, the

Hon'ble Bombay High Court in Nagpur District Central Co-

operative Bank Limited, Nagpur v. Divisional Joint

Registrar, Co-operative Societies, Nagpur [ AIR 1971 Bom

365] ]held that Entry No.43 excludes all Co-operative

Societies including the trading, banking, insurance and

financial Co-operative Societies and those are put in Entry

No.32 of List-II. There is no necessity to say that Entry No.43

excludes only non-banking Co-operative Societies, but

includes the banking Co-operative Societies. If that were so,

when there was no need for Entry No.45.

13. The argument of the appellant that the Co-

operative Banks and the Kerala Agricultural Rural

Development Banks are functioning without licence and

without being regulated in any manner by the Banking

Regulation Act, is unacceptable. As regards the exclusion of

jurisdiction of the Civil Court alleged by the appellant, as 2026:KER:26204

rightly pointed out by the learned Single Judge, the exclusion

of jurisdiction of the Civil Court is permissible in law. The grant

of specified powers conferred on the Civil Court under the

CPC to adjudicating authorities is a common feature in many

Statutes. For that reason also, it cannot be said that the

Kerala Co-operative Societies Act and the Kerala State Co-

operative Agricultural Development Banks Act, 1984 are

illegal or ultra vires.

14. We do not find any illegality in the judgment

delivered by the learned Single Judge. We further find that the

prayers made by the appellant in the writ petition are in the

nature of a public interest litigation. Though the appellant

would orally submit that he is highly aggrieved by certain

actions of the Co-operative Banks, the petitioner has not

made any prayer in the writ petition for redressal of such

grievances. The prayer in the writ petition is only to declare

certain Acts as unconstitutional. If that be so, the writ petition

acquires the status of a public interest litigation. The writ 2026:KER:26204

petition has not been filed in compliance of the forms required

for filing public interest litigation.

For all the afore reasons, we do not find any merit in the

Writ Appeal. The Writ Appeal is therefore dismissed.

Sd/-

N. NAGARESH

JUDGE

Sd/-

JOHNSON JOHN

JUDGE

hmh