High Court of KeralaSingle JudgeW.P.C.No.35087 of 2005 will stand dismissed; W....

Anad Farmer's Service Co-operative Bank Ltd. v. Joint Registrar of Co-operative Societies (General), Thiruvananthapuram; District Co-operative Bank, Thiruvananthapuram; G. Jayakumar @ Anad Jayan

Case / Petition Number:WP(C).No. 30528 of 2005(H)

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Pius C. KuriaKose
Judgment Date
2007-03-13
Court Decision / Holding
W.P.C.No.35087 of 2005: dismissed. W.P.C.No.30528 of 2005: disposed of by directing respondents 1 and 2 to take immediate steps to allow Mr. B. Appukuttan Nair to assume charge as delegate to the District Co-operative Bank, if not already permitted, within two weeks of the judgment.
Final Disposition
W.P.C.No.35087 of 2005 will stand dismissed; W.P.C.No.30528 of 2005 disposed of directing 1st and 2nd respondents to recognise and allow Appukuttan Nair to assume charge as delegate to the District Co-operative Bank within two weeks (if not already done).

Parties to the Case

Appellants / Petitioners

  • Anad Farmer's Service Co-operative Bank Ltd.
  • Sri Anad Jayan

Respondents

  • Joint Registrar of Co-operative Societies (General), Thiruvananthapuram
  • District Co-operative Bank, Thiruvananthapuram (represented by its General Manager)
  • G. Jayakumar @ Anad Jayan
  • Registrar of Cooperative Societies, Thiruvananthapuram
  • Sri Appukuttan Nair

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri V.N. Achuthakurup (Sr.)
  • • Smt. Bindu Sreekumar
  • • Sri K.G. Renganath
  • • Sri D. Somasundaram

Counsels for Respondents

  • • Mr. James Mathew Kadavan (Govt. Pleader)
  • • Mr. T.R. Harikumar (Standing Counsel for the District Co-operative Bank Ltd)
  • • Adv. Sri D. Somasundaram

Case Synopsis & Summary

This is a Kerala High Court writ petition (WP(C) Nos. 30528 of 2005 and 35087 of 2005) concerning governance and delegation within a regional co-operative banking structure. The Anad Farmer's Service Co-operative Bank Ltd. challenges the delegation of its representation to the District Co-operative Bank (Thiruvananthapuram) by an Administrative/Director Board and seeks mandamus to compel immediate steps to recognise Sri B. Appukuttan Nair, a Director of the Petitioner Bank, as its delegate to the District Bank, following the withdrawal of a prior nomination and the assumption of charge by a new committee on 8 January 2004. The Bank contends that the withdrawal of the third respondent’s delegation effectively ends the existing delegation, and requests declarations that the delegation ceased with the new committee’s formation. W.P.35087 of 2005 is filed by Anad Jayan, challenging the withdrawal of his delegation and alleging political manipulation. The court relies on Section 28 of the Co-operative Societies Act, Rules 46(a) and (g) of the Kerala Co-operative Societies Rules, and the Division Bench precedent in K.N. Gangadharan Nair v. George O. Thettayil to assess the validity of delegation and elections. Ultimately, the court dismisses W.P.35087 and disposes W.P.30528 by directing the respondents to facilitate Appukuttan Nair’s assumption of charge within two weeks, if not already done.

Provisions of Law Cited

Rule 46(a) and (g) of the Kerala Co-operative Societies Rules, 1969Section 28 of the Co-operative Societies ActSection 69 of the Kerala Co-operative Societies Act

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners contend that Ext.P2—nomination withdrawal of the third respondent to the District Bank—was not acted upon by the authorities, and that the new committee’s departure from the prior arrangement necessitates immediate steps to recognize Sri B. Appukuttan Nair as the Bank’s delegate to the District Bank. They rely on Rule 46(a) and (g) of the Kerala Co-operative Societies Rules and Section 28 of the Co-operative Societies Act to justify mandamus and seek declarations that the delegation ceased when the Bank’s administrative structure changed in 2004. They challenge the continued delegation of the third respondent, arguing it undermines the Bank’s elected governance and the delegation framework governing inter-bank representation.

Contentions of Respondents

The respondents argue that the delegation to represent the petitioning bank before the District Bank ceases to have effect once the Bank’s committee changes or when a new committee takes charge. They rely on statutory provisions (Rule 46(a)/(g) and Section 28) and the controlling precedent that a member’s disengagement from the Bank’s committee terminates associated delegations. They maintain that Appukuttan Nair’s later delegation should be recognised only if properly resurrected under the Bank’s post-2003 governance, and they rely on K.N. Gangadharan Nair v. George O. Thettayil to justify the cessation of delegation on organizational collapse.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
K.N. Gangadharan Nair v. George O. Thettayil1993(2) K.L.J. 864PositiveCited as the controlling Division Bench precedent regarding the cessation of delegations when the corresponding committee member ceases to be part of the Bank's governing body; the court relies on this authority to hold that the delegation to the District Bank ceases when Anad Jayan ceased to be a committee member.

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Extracted Judgment Text

Exact text extracted from official judgment records.

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE PIUS C.KURIAKOSE TUESDAY, THE 13TH MARCH 2007 / 22ND PHALGUNA 1928 WP(C).No. 30528 of 2005(H) -------------------------- PETITIONER: ------------ ANAD FARMER'S SERVICE CO-OPERATIVE BANK LTD.NO.919, ANAD P.O., NEDUMANGAD REP. BY ITS PRESIDENT M. ABDUL RAZAK. BY ADV. SRI.V.N.ACHUTHA KURUP (SR.) SMT.BINDU SREEKUMAR SRI.K.G.RENGANATH RESPONDENTS: ------------- 1.THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL), THIRUVANANTHAPURAM. 2.THE DISTRICT CO-OPERATIVE BANK, THIRUVANANTHAPURAM, REP. BY ITS GENERAL MANAGER. 3.G. JAYAKUMAR @ ANAD JAYAN, PALOTTUKONATHU PUTHEN VEEDU, ANAD VILLAGE, NEDUMANGAD. R1 BY GOVT. PLEADER MR.JAMES MATHEW KADAVAN R2 BY ADV. SRI.T.R.HARIKUMAR, S.C T.D.CO-OPB R3 BY ADV.SRI.D.SOMASUNDARAM THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 13/03/2007 ALONG WITH WPC NO. 35087 OF 2005, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: APPENDIX(WPC NO.30528 OF 2005) PETITIONER'S EXTS.: EXT.P1: TRUE COPY OF THE RESOLUTION NO.192 DATED 3.9.2005 OF THE PETITIONER'S BANK. EXT.P2: TRUE COPY OF THE RESOLUTION NO.405 DATED 17.1.2004 OF THE PETITIONER'S BANK. EXT.P3: TRUE COPY OF THE LETTER NO.291/05 DATED 17.10.2005 FROM THE PETITIONER TO THE 1ST RESPONDENT. ## **PIUS C. KURIAKOSE,J.** **- - - - - - - - - - - - - - - - - - - - - - - - -** W.P.(C)Nos.30528 & 35087 of 2005 **- - - - - - - - - - - - - - - - - - - - - - - - -** Dated: 13[th] March, 2007 ## **JUDGMENT** W.P.C.No.30528 of 2005 has been filed by the Anad Farmer's Service Co-operative Bank Ltd. arraying the Joint Registrar of Cooperative Societies(General), Trivandrum, the District Co-operative Bank, Thiruvananthapuram and one G.Jayakumar @ Anad Jayan as respondents seeking a writ of mandamus commanding respondents 1 and 2 to take immediate steps for allowing Sri.B.Appukuttan Nair who had been delegated to the 2[nd] respondent-Bank to assume charge after removing the third respondent who had been nominated as the delegate of the petitioner-Bank to the 2[nd] respondent-Bank and also for a declaration that the delegation of the third respondent to represent the petitioner-Bank in the 2[nd] respondent-Bank ceased to exist with effect from 8.1.2004, the date on which the newly elected committee assumed charge. The petitioner-Bank states that the elected committee of the Bank had been removed and an Administrative Committee assumed office for the administration of the Bank in December, 2001. The third respondent was a member of the Administrative Committee. The Administrative Committee nominated the third respondent as the delegate of the Bank to the 2[nd] respondent-Bank. The Administrative Committee was removed when W.P.C.Nos.30528 & 35087/05 - 2 - a new Committee was elected on 28.12.2003. The new Committee assumed charge on 8.1.2004. The new Committee adopted Ext.P2 resolution on 17.1.2004 to withdraw the nomination of the third respondent to the 2[nd] respondent-Bank and to nominate Sri.B.Appukuttan Nair, a member of the Director Board of the petitioner-Bank as delegate of the Bank to the 2[nd] respondent-Bank. Even though copies of Ext.P2 had been forwarded to the 2[nd] respondent and also to the 1[st] respondent, no steps have been taken for withdrawing the nomination of the third respondent and to bring into effect the nomination of Appukuttan Nair as delegate of the Bank to the 2[nd] respondent-Bank in spite of several requests in that regard. Various letters were sent on behalf of the Bank by the President to the 1[st] respondent reminding him about Ext.P2 resolution. But those letters were of no avail. Finally the first respondent was requested to take urgent steps for recognising Mr.Appukuttan Nair as delegate of the Bank to the District Co-operative Bank and allow him to assume charge as such. Ext.P3 is copy of that letter. The grievance of the petitioner is that no steps have been taken on Ext.P3 so far. It is on the above averments that the petitioner refers to Rule 46(a) and (g) of the Kerala Co-operative Societies Rules and have filed the Writ W.P.C.Nos.30528 & 35087/05 - 3 - Petition for the reliefs already indicated. 2. W.P.C.No.35087 of 2005 is filed by Sri.Anad Jayan, the third respondent in W.P.C.No.30528 of 2005 arraying the Registrar of Cooperative Societies, Thiruvananthapuram, the District Co-operative Bank, Thiruvananthapuram, Anad Farmer's Service Co-operative Bank, Thiruvananthapuram and Sri.Appukuttan Nair as respondents. Ext.P1 is copy of the resolution by which the petitioner was delegated to the District Co-operative Bank, Thiruvananthapuram and Ext.P1(a) is the authorisation to the petitioner for contesting election to the Director Board of the District Co-operative Bank, Trivandrum. The petitioner submits that he was sent as delegate of the Anad Farmers Service Co-operative Bank at a time when that Bank was managed by a U.D.F.Board. But in the subsequent election the administration of the Bank has fallen into the hands of the L.D.F.Board. So the L.D.F.Board has withdrawn the petitioner's delegation on 17.1.2004 and deputed the 4[th] respondent as delegate to the 2[nd] respondentBank. Alleging that the untimely withdrawal of delegation of the petitioner is a political game to see that a U.D.F. member looses his Director Board membership in the District Co-operative Bank and an attempt to topple the Board of Directors of the District Co-operative ## W.P.C.Nos.30528 & 35087/05 - 4 - Bank itself, the petitioner has filed this Writ Petition seeking the following reliefs: 1. A writ of mandamus commanding respondents 1 and 3 not to take any action for the petitioner loosing his membership in the Board of Directors of the 2[nd] respondent-Bank before the expiry of the term for which he was elected to the Board. 2. A declaration that by withdrawal of delegation of the petitioner in the general body of the District Co-operative Bank, Thiruvananthapuram his election to the Board of Directors of the Bank is not affected as his election to the Board was as a result of expression of desire of the members of the general body of that Bank. 3. A declaration that election to a Board can be set aside only by a properly constituted election petition as per Section 69 of the Kerala Co-operative Societies Act and that the same cannot be allowed to be achieved indirectly by withdrawal of his delegation as it is ultra vires to the provisions of the Kerala Co-operative Societies Act. 3. I have heard the submissions of Mr.V.N.Achutha Kurup, Senior Counsel for the petitioner in W.P.C.No.30528 of 2005, Mr.D.Somasundaram, counsel for the petitioner in W.P.C.No.35087 of W.P.C.Nos.30528 & 35087/05 - 5 - 2005 and Mr.T.R.Harikumar, Standing Counsel for the Trivandrum District Co-operative Bank Ltd. My attention was drawn by the counsel to Section 28 of the Co-operative Societies Act and Rule 46 (a) and (g) of the Kerala Co-operative Societies Rules. Counsel places reliance on various judicial precedents particularly the judgment of the Division Bench of this court in **K.N.Gangadharan Nair v. George O.Thettayil** (1993(2) K.L.J. 864). 4. Having considered the rival submissions addressed at the bar and having gone through the statutory provisions, namely Rules 46 (a) and (g) of the Kerala Co-operative Societies Rules, 1969 and the Division Bench judgment of this court in **K.N.Gangadharan Nair v. George O.Thettayil** (1993(2) K.L.J. 864), I am of the view that since Anad Jayan ceased to be a member of the Committee of the Anad Farmer's Service Co-operative Bank Ltd., his delegation by that Bank to the Director Board of the Central Society, the Thiruvananthapuram District Co-operative Bank Ltd. also ceases. Under these circumstances, Writ Petition No.35087 of 2005 will stand dismissed and Writ Petition No.30528 of 2005 will stand disposed of directing respondents 1 and 2 therein to take immediate steps for allowing Mr.B.Appukuttan Nair who had already been W.P.C.Nos.30528 & 35087/05 - 6 - delegated by the 2[nd] respondent-Bank to assume charge after removing the third respondent if Mr.Appukuttan Nair has not already been permitted to assume charge of the Director Board of the District Co-operative Bank. The needful will be done by respondents 1 and 2 in W.P.C.No.30528 of 2005 within two weeks of receiving a copy of this judgment. srd **PIUS C.KURIAKOSE, JUDGE**