A.Krishnan v. Kerala State Co-operative Marketing Federation Ltd. & Others; Karthikappally Taluk Marketing Co-operative Society Ltd. v. Kerala State Co-operative Marketing Federation Ltd. & Others

Case Details & Bench

Court: High Court of Kerala
Hon'ble Judges: AMIT RAWAL
Judgment Date: 2021-07-28
Court Decision / Holding: Writ petitions dismissed. The court held that the petitioners lacked the requisite qualifications and locus standi to challenge the appointment of the MD, and that no effective relief could be granted in their favor.
Final Disposition: Writ petitions dismissed.

Parties to the Case

Appellants / Petitioners

A. Krishnan
Karthikappally Taluk Marketing Co-operative Society Ltd.

Respondents

Kerala State Co-operative Marketing Federation Ltd.
The State of Kerala
The Registrar of Co-operative Societies
Sanil S. K.

Legal Representation & Advocates

Counsels for Petitioners

• Rinny Stephen ChamaparamPill

Counsels for Respondents

• B. Ashok Shenoy
• K. K. Ravindranath
• N. N. Sugunapalan (Sr.)
• S. Sujin
• C. G. Preetha
• Navaneeth D. Pai
• P. S. Gireesh
• Riyal Devassy
• Dr. Abhilash O.U.

Case Synopsis & Summary

This joint writ petition judgment concerns two petitions challenging the appointment of Sanil S.K. as Managing Director of the Kerala State Co-operative Marketing Federation Ltd. (KSFE). WP(C) No.14176/2020 is filed by A. Krishnan, a member/shareholder, while WP(C) No.11259/2020 is by the Karthikappally Taluk Marketing Co-operative Society Ltd. The core grievance is that the MD appointment violated the bye-laws, subsidiary rules, and service regulations of KSFE, and that the appointee did not possess the requisite qualifications (e.g., IAS cadre or Gazetted officer) or appropriate experience. The petitions allege that, in 2018, the 4th respondent’s appointment was made in contravention of established rules; his bio-data showed he was not in IAS cadre and held only an MBA from IGNOU, raising questions of eligibility. The respondents contest maintainability, arguing the petitioners lacked locus standi since they were not aspirants in the selection process; no Qo-warranto relief was prayed for, and the proper remedy, if any, lay elsewhere. The court, relying on R.K. Jain v. Union of India, held that third parties not being candidates have no locus to challenge such appointments, and concluded that the petitioners lacked the requisite qualification and locus standi. Consequently, the petitions were dismissed for lack of merit and relief. The judgment thus upholds the MD appointment under the governing rules and rules out collateral challenges by the petitioners.

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners contended that the MD appointment violated the bye-laws, subsidiary rules and service regulations, and that the appointee lacked the requisite qualifications (e.g., IAS cadre or Gazetted status); they asserted locus standi as share-holders/members and sought quashing of the appointment. They argued the selection and appointments contravened governing rules, and that relief should be available through appropriate writ or Qo-warranto.

Contentions of Respondents

The respondents argued that the petitioners had no locus standi since they were not aspirants in the selection; no Qo-warranto or direct relief was sought; the appointment was in line with bye-laws and government rules; given the lack of qualification to challenge, the petitions fail on merit.

Cited Precedents (1)

Case Name	Citation	Treatment	Explanation
R.K. Jain v. Union of India	[(1993) 4 SCC 119]	Positive	Cited to support the proposition that a third party not being a candidate has no locus standi to challenge an appointment.

Extracted Judgment Text

Exact text extracted from official judgment records.

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT** ## **THE HONOURABLE MR. JUSTICE AMIT RAWAL WEDNESDAY, THE 28[TH] DAY OF JULY 2021 / 6TH SRAVANA, 1943 WP(C) NO. 14176 OF 2020** **PETITIONER/S:** A.KRISHNAN, AGED 73 YEARS S/O KUNHAN, POKKAT HOUSE, MADAKKIMALA P.O., PARALIKKUNNU, WAYANAD DISTRICT 673122. BY ADV RINNY STEPHEN CHAMAPARAMPIL **RESPONDENT/S:** 1 THE KERALA STATE CO-OPERATIVE MARKETING FEDERATION LTD., REPRESENTED BY ITS MANAGING DIRECTOR, P. B.NO.2024, GANDHI NAGAR, KOCHI-682020. 2 THE STATE OF KERALA, REPRESENTED BY THE SECRETARY TO THE GOVERNMENT, DEPARTMENT OF CO-OPERATION, SECRETARIAT, THIRUVANANTHAPURAM-695001. 3 THE REGISTRAR OF CO-OPERATIVE SOCIETIES, OFFICE OF THE CO-OPERATIVE SOCIETIES, JAWAHAR SAHAKARANA BHAVAN, THIRUVANANTHAPURAM-695014. 4 SANIL S. K. NO. 11,RELCON VILLAS, T. D. SANNIDHI ROAD, KARANAKODAM, THAMMANAM P.O., KOCHI-682032. BY ADVS. SRI.B.ASHOK SHENOY SRI.K.K.RAVINDRANATH, ADDL.ADVOCATE GENERAL SRI.S.SUJIN SMT.C.G.PREETHA SRI.NAVANEETH D.PAI SRI.P.S.GIREESH SRI.RIYAL DEVASSY ## **OTHER PRESENT:** GP SRI B HARISH KUMAR THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 28.07.2021, ALONG WITH WP(C).11259/2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: **WP(C) NO. 14176 OF 2020 and 11259/20** **2** **IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL WEDNESDAY, THE 28[TH] DAY OF JULY 2021 / 6TH SRAVANA, 1943 WP(C) NO. 11259 OF 2020** **PETITIONER/S:** KARTHIKAPPALLY TALUK MARKETING CO-OPERATIVE SOCEITY LTD. NO. A 147, HARIPAD P.O, ALAPPUZHA DISTRICT 690 514 REPRESENTED BY ITS SECRETARY, ANITHA MANOJ, AGED 34 YEARS, W/O. MANOJ, RESIDING AT PUTHENPURATHEKKETHIL, KANDHALLOOR P.O, KAYAMKULAM 690 535 BY ADV RINNY STEPHEN CHAMAPARAMPIL ## **RESPONDENT/S:** 1 THE KERALA STATE CO-OPERATVE MARKETING FEDERATION LTD. REPRESENTED BY ITS MANAGING DIRECTOR, P.B NO. 2024, GANDHI NAGAR, KOCHI 682 020 2 THE STATE OF KERALA, REPRESENTED BY THE SECRETARY TO GOVERNMENT, DEPARTMENT OF COOPERATION, SECRETARIAT, THIRUVANANTHAPURAM 695 001 3 THE REGISTRAR OF CO-OPEREATIVE SOCIETIES, OFFICE OF THE CO-OPERATIVE SOCIETIES, JAWAHAR SAHAKARANA BHAVAN, THIRUVANANTHAPURAM 695 014 4 SANIL S.K, NO. 11, RELCON VILLAS, T.D SUNNIDHI ROAD, KARANAKODAM, THAMMANAM P.O, KOCHI 682 032 BY ADVS. SRI.B.ASHOK SHENOY SRI.K.K.RAVINDRANATH, ADDL.ADVOCATE GENERAL SRI.N.N.SUGUNAPALAN (SR.) SMT.C.G.PREETHA SRI.S.SUJIN GOVERNMENT PLEADER SRI.RIYAL DEVASSY SHRI.DR.ABHILASH O.U. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 28.07.2021, ALONG WITH WP(C).14176/2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: **WP(C) NO. 14176 OF 2020 and 11259/20** **3** ## **JUDGMENT** **[WP(C) Nos.14176/2020, 11259/2020]** This order of mine shall dispose of two writ petitions; W.P.(C) No.11259 of 2020 titled as Karthikappally Taluk Marketing Co-operative Society v. Kerala State Co-operative Marketing Federation Ltd. & Others and W.P.(C) No.14176 of 2020 titled as A.Krishnan v. Kerala State Co-operative Marketing Federation Ltd. & Others whereby challenge has been laid to the appointment of one Sri.Sanil S.K as Managing Director. 2. The first respondent Society (W.P.(C) No.11259 of 2020) has ninety three (93) member Societies and the petitioner is one among them. The activity of the petitioner's Society was collecting, storing and processing of COPRA in huge quantity. The Managing Director is the Chief Executive Officer of the 1st respondent and as per the bye-laws of the 1st respondent, the Managing Director shall be appointed by the Board of Directors in consultation with the Government on WP(C) NO. 14176 OF 2020 4 such terms and conditions and for such period as may be decided. The 1[st] **WP(C) NO. 14176 OF 2020 and 11259/20** **4** respondent by proceedings dated 9.6.1978 mandated that the Managing Director of the 1st respondent shall be appointed by deputation of an officer by the Government in the I.A.S, cadre in the senior time – Scale. The subsidiary Rules envisaged same very procedure. While the 1[st] respondent Society was being managed very efficiently, after the present ruling dispensation, 4th respondent appointed as the Managing Director on 25.5.2018. The 4th respondent entered into various contracts on behalf of the 1st respondent and ordered the work for crores of Rupees. On noticing the bio-data of the 4th respondent, it surfaced that 4th respondent was not an I.A.S Cadre in the Senior Time-Scale and was working as Deputy General Manager in the Kerala State Financial Enterprises Ltd. 3. In other writ petition (W.P.(C) No.14176 of 2020), the petitioner has also challenged the appointment of Managing Director on the ground that it was in violation of Rules and Regulations governing the Societies. The 4th respondent was a WP(C) NO. 14176 OF 2020 5 merely MBA holder from IGNOU. In other-words, he was not even a Gazetted Officer. 4. The locus standi of both the petitioner is on account of the **WP(C) NO. 14176 OF 2020 and 11259/20** **5** fact that they are the share holders whereas the petitioner in W.P.(C) No.14176 of 2020 is the member of the South Wayanad Co-operative Rubber and Agricultural Society affiliated to the 1st respondent. 5. Counsel for the respondents raised the objection qua maintainability of the writ petition on the locus standi of the petitioners as there were not the aspirants or participants in the selection process qua 4th respondent. The relief sought in both the writ petition is for quashing of the appointment without any prayer of Qo-warranto and the remedy, if any, of the petitioners would lie elsewhere. In service matter, such type of petitions relating the public interest cannot be presented. In support of the aforementioned contentions, relied judgment of the Supreme Court reported in R.K Jain v. Union of India [(1993) 4 SCC 119]. 6. I have heard the learned counsel for the parties and WP(C) NO. 14176 OF 2020 6 appraised the paper book. A person who do not have any requisite qualification or not a candidate, would not have locus standi to challenge the appointment of the 4th respondent. The view of mine is derived from the judgment in R.K Jain (supra), wherein the challenge was made to the appointment **WP(C) NO. 14176 OF 2020 and 11259/20** **6** of a President of CEGAT on the ground that as per convention, a sitting or a retired judge of the High Court was to be appointed in consultation with the Chief Justice of India which was totally disregarded. It was held that the third party, not being a candidate not appointed, has no locus standi to challenge the appointment of any persons. In the instant case both the petitioners lacks the qualification to be eligible for 0appointment to the post of Managing Director. They cannot be permitted to challenge the appointment of Sri. Sanil S.K as the Managing Director. In such a situation, no effective relief can be granted. There is no merit in the writ petition and is accordingly dismissed. Sd/- sab **AMIT RAWAL** **JUDGE** **WP(C) NO. 14176 OF 2020 and 11259/20** **7** ## **APPENDIX OF WP(C) 11259/2020** PETITIONER EXHIBITS - EXHIBIT P1 TRUE COPY OF THE RELEVANT PAGES OF THE BYELAWS OF THE 1ST RESPONDENT - EXHIBIT P2 TRUE COPY OF THE RELEVANT PAGES OF THE SUBSIDIARY RULES AND SERVICE REGULATIONS OF THE 1ST RESPONDENT - EXHIBIT P3 A TRUE COPY OF THE QUOTATION INVITATION NOTICE DATED 19/11/2019 ISSUED BY THE 4TH RESPONDENT - EXHIBIT P4 TRUE COPY OF THE LETTER DATED 22/02/2018 BY THE PRIVATE SECRETARY OF MINISTER FOR COOPERATION - EXHIBIT P5 A TRUE COPY OF THE BIO-DATA OF THE 4TH RESPONDENT SUBMITTED TO DEPARTMENT OF COOPERATION - EXHIBIT P6 A TRUE COPY OF THE LETTER DATED 27/02/2018 ADDRESSED BY THE SECRETARY TO THE DEPARTMENT OF CO-OPERATION - EXHIBIT P7 A TRUE COPY OF THE LETTER DATED 08/03/2018 ADDRESSED BY THE MANAGING DIRECTOR OF THE KSFE - EXHIBIT P8 A TRUE COPY OF GO(RT) NO. 328/2018/CO-OP DATED 25/05/2018 - EXHIBIT P9 A TRUE COPY OF THE RELEVANT PAGES OF FILE NO. CO-OP-A2/123/2018-CO-OP - EXHIBIT P10 A TRUE COPY OF THE LIST OF THE MANAGING DIRECTORS OF THE 1ST RESPONDENT FROM ITS INCEPTION **WP(C) NO. 14176 OF 2020 and 11259/20** **8** RESPONDENT EXHIBITS EXHIBIT R4(A) TRUE COPY OF APPLICATION DATED 3.3.2020 SUBMITTED BY V.M.DHARMAJAN TO PUBLIC INFORMATION OFFICER AND ASSISTANT REGISTRAR OF COOP.SOCIETIES (GENERAL), KARTHIKAPPALLY, HARIPAD PO. EXHIBIT R4(B) TRUE COPY OF REPLY NO.252/2020 DATED 18.3.2020 ISSUED BY PUBLIC INFORMATION OFFICER IN THE OFFICE OF THE ASSISTANT REGISTRAR OF COOP.SOCIETIES (GENERAL), KARTHIKAPPALY. EXHIBIT R4(C) TRUE COPY OF THE MINUTES OF THE MEETING OF THE BOARD OF DIRECTORS OF 1ST RESPONDENT HELD ON 13.7.2018. EXHIBIT R4(D) TRUE COPY OF LETTER NO.CS(1)20065/08 DATED 26.8.1998 ISSUED BY KERALA PUBLIC SERVICE COMMISSION TO 1ST RESPONDENT. EXHIBIT R4(E) TRUE COPY OF GOVERNMENT ORDER NO.G.O. (MS)NO.31/2019/CO-OP DATED 19.8.2019 ISSUED BY 2ND RESPONDENT. EXHIBIT R4(F) TRUE COPY OF GOVERNMENT ORDER NO.G.O. (MS)NO.37/2019/COOP.DATED 4.10.2019 ISSUED BY 2ND RESPONDENT. EXHIBIT R4(G) TRUE COPY OF JUDGMENT DATED 11.10.2018 IN WA NO.449 OF 2018 BEFORE THIS HON'BLE COURT. **WP(C) NO. 14176 OF 2020 and 11259/20** **9** ## **APPENDIX OF WP(C) 14176/2020** PETITIONER EXHIBITS - EXHIBIT P1 A TRUE COPY OF THE CERTIFICATE DATED 03/07/2020 ISSUED BY THE SECRETARY OF THE SOUTH WAYANAD CO-OPERATIVE RUBBER & AGRICULTURAL MARKETING SOCIETY. - EXHIBIT P2 TRUE COPY OF THE RELEVANT PAGES OF THE BYELAWS OF THE 1ST RESPONDENT - EXHIBIT P3 TRUE COPY OF THE RELEVANT PAGES OF THE SUBSIDIARY RULES AND SERVICE REGULATIONS OF THE 1ST RESPONDENT. - EXHIBIT P4 TRUE COPY OF THE LETTER DATED 22/02/2018 BY THE PRIVATE SECRETARY OF MINISTER FOR COOPERATION. - EXHIBIT P5 A TRUE COPY OF THE BIO-DATA OF THE 4TH RESPONDENT SUBMITTED TO DEPARTMENT OF COOPERATION. - EXHIBIT P6 A TRUE COPY OF GO (RT)NO.328/2018/CO-OP DATED 25/05/2018. - EXHIBIT P7 A TRUE COPY OF THE RELEVANT PAGES OF FILE NO.CO-OP-A2/123/2018-CO-OP. - EXHIBIT P8 A TRUE COPY OF THE LIST OF THE MANAGING DIRECTORS OF THE 1ST RESPONDENT FROM ITS INCEPTION. EXHIBIT P9 A TRUE COPY OF THE REPN. SUBMITTED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. **WP(C) NO. 14176 OF 2020 and 11259/20** **10** RESPONDENT EXHIBITS EXHIBIT R4(A) TRUE COPY OF THE MINUTES OF THE MEETING OF THE BOARD OF DIRECTORS OF 1ST RESPONDENT HELD ON 13.7.2018 EXHIBIT R4(B) TRUE COPY OF LETTER NO CS(1)20065/08 DATED 26.8.1998 ISSUED B KERALA PUBLIC SERVICE COMMISSION TO 1ST RESPONDENT EXHIBIT R4(C) TRUE COPY OF THE GOVERNMENT ORDER NO GO(MS)NO 31/2019/CO-OP DATED 19.8.2019 ISSUED BY 2ND RESPONDENT EXHIBIT R4(D) TRUE COPY OF THE GOVERNMENT ORDER NO GO(MS) NO 37/2019 CO-OP DATED 4.10.2019 ISSUED BY 2ND RESPONDENT