High Court of KeralaSingle JudgeWrit petition allowed; interim order vacated; f...

Baiju O.K. and Sharafudheen.T.K. v. Joint Registrar of Co-operative Societies (G), Kozhikode and Others, WP(C) No. 1767 of 2024

Case / Petition Number:WP(C) No. 1767 of 2024

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Devan Ramachandran
Judgment Date
2024-04-09
Court Decision / Holding
Writ petition allowed; interim order vacated. However, fresh membership by the Administrative Committee may be offered only after the exercise directed in WP(C) No. 13127/2024 is completed and after hearing the petitioners, with the competent Authority considering precedents for a final order. The court notes that, generally, membership with voting rights should be restricted or avoided, with discussion on D-class vs A-class membership; the final order will reflect the precedents observed.
Final Disposition
Writ petition allowed; interim order vacated; fresh membership to be offered only after completion of WP(C) 13127/2024 and after hearing; competent Authority to consider precedents for final order; discussion on permissible membership classifications (D-class vs A-class).

Parties to the Case

Appellants / Petitioners

  • Baiju O.K.
  • Sharafudheen.T.K.

Respondents

  • The Joint Registrar of Co-operative Societies (G), Kozhikode
  • The Administrative Committee, Mukkom Service Co-operative Bank Ltd No. F 1241, Mukkom P.O., Kozhikode
  • Addl.R3. Mukkom Service Co-operative Bank Ltd No. F 1241, Mukkom P.O., Kozhikode

Legal Representation & Advocates

Counsels for Petitioners

  • • P.P.Jacob
  • • Mariyam Jacob

Counsels for Respondents

  • • M. Sasindran
  • • Jaiby Paul
  • • Anita Glenda Philip

Case Synopsis & Summary

This is a writ petition under the Kerala High Court challenging the acts of the Mukkom Service Co-operative Bank Ltd when its governance was under an Administrative Committee. Petitioners Baiju O.K. and Sharafudheen.T.K. contend that, during pending fresh elections, the bank cannot enroll new members or modify its electoral roll to alter the balance of power. They rely on authorities such as Joint Registrar of Cooperative Societies v. T.A.Kuttappan (2000) (2 KLT 480) to argue that an Administrator or Administrative Committee lacks power to enroll new members, and on Shaji v. Cooperative Elections (2004) (2 KLT 1084) to emphasize safeguards and contingencies in membership decisions, including voting rights restrictions. Respondents counter that new membership may be necessary for the bank’s functioning and that voting rights can be restricted as a safeguard. An interim order had been granted earlier, reflecting the contested nature of the issue. The Court notes the related WP(C) 13127/2024 and other authorities, states that precedents should guide the competent statutory Authority, and ultimately allows the petition while vacating the interim order. It directs that any fresh membership be offered only after completion of the proceedings in WP(C) No. 13127/2024 and after hearing the petitioners, with the Authority considering relevant precedents for a final order. The judgment also discusses membership classifications (D-class vs. A-class) in context of legality.

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners argued that the Administrative Committee governing the bank cannot enroll new members or alter the electoral roll pending fresh elections. They rely on Joint Registrar of Cooperative Societies v. T.A. Kuttappan (2000 (2) KLT 480) to assert that an Administrator/Administrative Committee has no power to enroll new members, and on Shaji v. Cooperative Elections (2004 (2) KLT 1084) to stress that membership decisions must consider contingencies and safeguards, including restricting voting rights. They sought an interim order maintaining the status quo and contending that any membership would undermine the society’s constitution. They also urged that any fresh membership be contingent upon the resolution of related proceedings (notably WP(C) 13127/2024).

Contentions of Respondents

The respondents argued that membership may be necessary for the bank’s functioning and continuity. They proposed restricting voting rights as a safeguard, rather than denying membership, and relied on Shaji v. Cooperative Elections to justify membership with contingencies. They pointed to interim orders already in place restricting voting rights for those admitted as members and urged the competent Authority to decide on membership in light of realities and precedents, including the related cases and notices (e.g., WP(C) 44021/2023).

Cited Precedents (6)

Case NameCitationTreatmentExplanation
Joint Registrar of Cooperative Societies v. T.A. Kuttappan2000 (2) KLT 480PositiveThe judgment cites this case to support the principle that the Administrator/Administrative Committee has no power to enroll new members.
Shaji v. Cooperative Elections2004 (2) KLT 1084Mentioned OnlyCited to suggest considerations for membership with contingencies and safeguards, but not explicitly adopted or rejected in this judgment.
W.A.1310/2021W.A.1310/2021Mentioned OnlyExhibit P2 references this case; cited as context but the ratio is not applied in the decision.
W.A.1778/23W.A.1778/23Mentioned OnlyExhibit P4 references this case; cited for record only.
W.P.(C) 27113/21W.P.(C) 27113/21Mentioned OnlyExhibit P3 references this petition; cited as context but no ratio used.
W.P.(C) 44021/2023W.P.(C) 44021/2023Mentioned OnlyReferenced as a related matter where enrollment was directed to be decided by statutory Authority.

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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 DEVAN RAMACHANDRAN` ``` TUESDAY, THE 9[TH] DAY OF APRIL 2024 / 20TH CHAITHRA, 1946 ``` ## `WP(C) NO. 1767 OF 2024` ## `PETITIONERS:` ``` 1BAIJU .O.K. AGED 46 YEARS S/O KANNAN KEERAN, ODAMKUZHIYIL, KACHERI, MUKKOM, PIN - 673602 2SHARAFUDHEEN.T.K. AGED 36 YEARS S/O KOYA, THARIPPAKKUNNUMMAL HOUSE, NEELESWARAM.P.O., KOZHIKODE, PIN - 673582 BY ADVS. P.P.JACOB MARIYAM JACOB ``` ## `RESPONDENTS:` |`1`|`THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (G)`| |---|---| ||`KOZHIKODE, OFFICE OF THE JOINT REGISTRAR OF CO-OPERATIVE`| ||`SOCIETIES, PUTHIYARA, KOZHIKODE, PIN - 673004`| |`2`|`THE ADMINISTRATIVE COMMITTEE`| ||`MUKKOM, SERVICE CO-OPERATIVE BANK LTD NO.F 1241,`| ||`MUKKOM.P.O, KOZHIKODE -REPRESENTED BY ITS CONVENER, PIN -`| ||`673602`| |`3`|`ADDL.R3. MUKKOM SERVICE CO-OPERATIVE BANK LTD NO. F`| ||`1241,MUKKOM P.O, KOZHIKODE, PIN - 673602, REPRESENTED BY`| ||`ITS SECRETARY (ADDL.R3 IS IMPLEADED AS PER ORDER IN`| ||`I.A.NO.1/2024 DATED 09.04.2024)`| ||`BY ADVS.`| ||`M.SASINDRAN`| ||`JAIBY PAUL`| ||`ANITA GLENDA PHILIP`| ``` THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09.04.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` ``` WP(C) NO. 1767 OF 2024 ``` ``` 2 ``` ## `JUDGMENT` ``` I must record upfront that another writ petition namely WP(C)No.13127/2024 has already ``` ``` been disposed of by this Court, wherein, the ``` ``` request of the Mukkom Service Co-operative Bank ``` ``` Ltd. - the petitioners therein for permission to ``` ``` enroll new members – has been ordered to be ``` ``` decided by the competent statutory Authority. ``` ``` 2.In this case, Sri.P.P. Jacob – learned ``` ``` counsel petitioners, argues that the Bank, which ``` ``` is now under the management of the ``` ``` Administrative Committee, cannot enroll new ``` ``` members, nor can they change its electoral roll ``` ``` in any manner whatsoever, pending fresh elections. ``` ``` 3.I notice that an interim order has been ``` ``` issued by this Court on 19.01.2024 with to ``` ``` WP(C) NO. 1767 OF 2024 ``` ``` 3 ``` ## `following effect:` ``` “Sri P.P Jacob, the learned counsel appearing for the petitioner, submitted that the elected committee of the Mukkam Service Cooperative Bank Ltd. was superseded and a part-time Administrator was appointed. The aforesaid action is under challenge before this Court in W.P. (C) No. 44021/2023. He contends that the Administrator has now been replaced by the Administrative Committee. According to the learned counsel, attempts are being made to enroll new members in order to disturb the constitution and structure with a view to capture the administration of the society. It is contended that the Apex Court in Joint Registrar of Cooperative Societies v. T.A.Kuttappan [2000 (2) KLT 480], after analyzing the provisions of the Act, has made it clear that the AdministratororanAdministrative Committee is only to bring on an even keen, a ship which was in doldrums and they would have no power to enroll new members. 2. Sri M. Sasindran, the learned counsel appearing for the Administrative Committee, points out that new members ``` ``` WP(C) NO. 1767 OF 2024 ``` ``` 4 ``` ``` will have to be inducted to ensure that the functioning of the society is not disrupted and according to the learned counsel, restrictions can be placed by imposing voting rights. The learned counsel would also refer to the judgment rendered by a learned Single Judge of this Court in Shaji v. Cooperative Elections [2004 (2) KLT 1084] and it is submitted thatinappropriatecases,the Administrator will have to confer membershiptakingnoteofthe ``` ``` contingencies. The learned counsel would also rely on an interim order passed by this Court wherein this Court had ordered that such members shall not be eligible for any voting right. Having considered the submissions advanced and taking note of the peculiar facts presented in the instant case, I am of the view that the petitioner has made out a case for the grant of an interim order. There will be an interim order as prayed for, for a period of four weeks. The respondents shall place on record their counter.” ``` ``` 4.However, it is conceded by both sides ``` ``` WP(C) NO. 1767 OF 2024 ``` ``` 5 ``` ``` that the law is now well settled that, even if the Administrative Committee is to issue membership, such shall be without any voting rights; and all of them, therefore, that such a safeguard be incorporated into the present case also. ``` ``` 5.As I have already said above, this Court had already directed the statutory Authority in the aforementioned judgment, to consider all these aspects. Obviously, the said directions will inure to the petitioners herein also, so that all their contentions against the attempt of the Administrative Committee, through grant of memberships, can also be taken note of by the competent Authority. All precedents covering the field are permitted to be placed before the said Authority by the parties, so that he will be guided to an apposite decision in law. ``` ``` WP(C) NO. 1767 OF 2024 ``` ``` 6 ``` ``` Resultantly, I allow this writ petition, vacating the interim order afore; however, clarifying that any fresh membership can be offered by the Administrative Committee only aftertheexercisehasorderedin ``` ``` WP(C)No.13127/2024 is completed and, that too ``` ``` after hearing the petitioners herein also. ``` ``` While the afore exercise is completed, the ``` ``` competent Authority will allow the petitioners to present any precedent that they intend to rely upon and the same will be considered and his opinion on the same reflected in the ``` ``` resultant order. ``` ``` At this time, Sri.P.P.Jacob added that ``` ``` normally only ‘D’ class memberships can be ``` ``` granted and the attempt to grant ‘A’ Class ``` ``` membership is illegal; and that this is why his client has been constrained to approach this ``` ``` WP(C) NO. 1767 OF 2024 ``` ``` 7 ``` ``` Court. ``` ``` In reply, Sri.M.Sasindran – learned counsel appearing for respondent – Society, submitted ``` ``` that ‘D’ Class membership is not offered to persons with respect to regular banking ``` ``` activity, but for other purposes. ``` **==> picture [404 x 13] intentionally omitted <==** ``` disputations, but leave it to be decided by the competent Authority, when the decision as directed afore is taken. ``` ``` Sd/- ``` ``` DEVAN RAMACHANDRAN ``` ``` JUDGE ``` ``` SAS ``` ``` WP(C) NO. 1767 OF 2024 ``` ``` 8 ``` ## `APPENDIX OF WP(C) 1767/2024` |`PETITIONERS’ EXHIBITS`|| |---|---| |`Exhibit P1`|`TRUE PHOTOCOPY OF THE ORDER ISSUED BY THE`| ||`JOINT REGISTRAR DATED 28.12.2020`| |`Exhibit P2`|`TRUE PHOTOCOPY OF COMMON JUDGMENT IN`| ||`W.A.1310/2021 DATED 25.1.22`| |`Exhibit P3`|`TRUE PHOTOCOPY OF THE JUDGMENT IN W.P.(C)`| ||`27113/21 DATED 4.12.21`| |`Exhibit P4`|`TRUE PHOTOCOPY OF THE JUDGMENT IN W.A 1778/23`| ||`DATED 16.10.23`| |`Exhibit P5`|`TRUE PHOTOCOPY OF THE ORDER VIDE G.O.(RT) NO.`| ||`665/23/CO-OP. DATED 5.12.2023 ISSUED BY THE`| ||`GOVERNMENT`| |`Exhibit P6`|`TRUE PHOTOCOPY OF THE REPRESENTATION SUBMITTED`| ||`BY THE PETITIONERS BEFORE THE JOINT REGISTRAR`| ||`OF CO-OPERATIVE SOCIETIES DATED 29.12.23`|