Kerala State Co-operative Marketing Federation Ltd v. Michael Veda Shiromani IAS and others

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR. JUSTICE AMIT RAWAL** **WEDNESDAY, THE 15[TH] DAY OF DECEMBER 2021 / 24TH AGRAHAYANA, 1943** ## **WP(C) NO. 13777 OF 2021** ## **PETITIONER/S:** 1 MICHAEL VETHA SIROMANI IAS AGED 57 YEARS (RETIRED), FORMER MANAGING DIRECTOR, THE KERALA STATE COOPERATIVE MARKETING FEDERATION LTD.NO.F-1107, GANDHI NAGAR, KOCHI, ERNAKULAM-682 020, RESIDING AT HOUSE 147,VNRA, VIVEKANDA NAGAR, PANGODE, THIRUMALA POST, THIRUVANANTHAPURAM-695 006 2 T.K.SIVAPRASAD, MARKETING MANAGER, THE KERALA STATE CO-OPERATIVE MARKETING FEDERATION LTD.NO.F-1107, GANDHI NAGAR, KOCHI, ERNAKULAM-682 020 RESIDING AT PRANAVAM, 5/3179, UKS ROAD, KOZHIKKODE DISTRICT-673 001 3 E.RAMANANDAN REGIONAL MARKETING MANAGER (RTD), THE KERALA STATE COOPERATIVE MARKETING FEDERATION LTD.NO.F-1107, GANDHI NAGAR, KOCHI, ERNAKULAM-682 020, RESIDING AT NANDANAM, 155(11/258) PATHAIKKARA, PERINTHALAMANNA-679 322, MALAPPURAM DISTRICT 4 P.PRABHAKARAN DEPUTY FINANCE MANAGER (RTD), THE KERALA STATE COOPERATIVE MARKETING FEDERATION LTD.NO.F-1107, GANDHI NAGAR, KOCHI, ERNAKULAM-682 020, RESIDING AT "CHANDRAKANTHAM", 37/129, KARUVASSERY P.O., KOZHIKKODE DISTRICT-673 010 5 K.K.MATHEWKUTTY BRANCH MANAGER (RTD), THE KERALA STATE CO-OPERATIVE MARKETING FEDERATION LTD.NO.F-1107, GANDHI NAGAR, KOCHI, ERNAKULAM-682 020, RESIDING AT KIZHAKKEPURATH HOUSE, KUNNAKKAL P.O., MUVATTUPUZHA-682 316, ERNAKULAM DISTRICT BY ADVS. GEORGE POONTHOTTAM (SR.) NISHA GEORGE **WP(C) 13777/2021** **2** ## **RESPONDENT/S:** 1 STATE OF KERALA REPRESENTED BY THE CHIEF SECRETARY, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM-695 001 2 STATE OF KERALA, REPRESENTED BY THE SECRETARY TO GOVERNMENT, DEPARTMENT OF CO-OPERATION, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM-695 001 3 THE KERALA STATE CO-OPERATIVE MARKETING FEDERATION LTD NO.F-1107, GANDHI NAGAR, KOCHI, ERNAKULAM-682 020, REPRESENTED BY ITS MANAGING DIRECTOR 4 THE TRAVANCORE DEVASWOM BOARD, NANTHANCODE, KAWDIAR P.O., THIRUVANANTHAPURAM-695 003, REPRESENTED BY THE SECRETARY 5 THE COMMISSIONER, TRAVANCORE DEVASWOM BOARD, NANTHANCODE, KAWDIAR P.O., THIRUVANANTHAPURAM-695 003 6 S.K.SANIL, (DEPUTY GENERAL MANAGER, THE KERALA STATE FINANCIAL ENTERPRISES), NOW WORKING AS MANAGING DIRECTOR, KERALA STATE CO-OPERATIVE MARKETING FEDERATION LTD NO.F-1107, GANDHI NAGAR, KOCHI, ERNAKULAM DISTRICT-682 020 BY ADVS. C.C.ABRAHAM SHRI.G.BIJU,SC,TRAVANCORE DEVASWOM BOARD ALEX ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15.12.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: **WP(C) 13777/2021** **3** ## **JUDGMENT** Petitioners, 5 in number, have laid challenge to the notice Ext.P17 received in a petition preferred under Section 69 of the Co-operative Societies Act in respect of ARC No.40 of 2020 titled as Kerala State Co-operative Marketing Federation v. Michael Veda Shiromani IAS and others, on various grounds and facts which are enumerated herein below: 2. Market Fed is an apex level co-operative society having 114 members as members. The first petitioner while in Indian Administrative Service was appointed as the Managing Director of the Federation for almost two years and thereafter was recalled to the parent organization viz. Government service. While working as Managing Director, certain tenders were invited for collection and sale of coconut at Pamba and Sabarimala. On the basis of the minutes of the Managing Committee, respondent No.3, Federation participated in the aforementioned bid by depositing the earnest money of Rs.37.62 lakhs. For participation, certain dates were quoted which were ultimately found to be not valid and E.M.D of Rs.1,18,000/- was returned by the 4[th] respondent Board as the **WP(C) 13777/2021** **4** tender notification was cancelled. However the balance amount of the E.M.D was not returned by the Travancore Devaswom Board, 4[th] respondent. The legal steps for recovery of the balance amount ought to have been undertaken by respondent No.3 but instead, adopted a method of filing the ARC, as noticed above, before the Arbitration Court for recovery of the amount on various allegations and before that notice dated 7.6.2019, Ext.P11 was served upon the petitioners. 3. Learned counsel for the petitioners submitted that action of the respondent is not fully justified as the petitioners had discharged the duties as Officers of the Federation and not in personal capacity. When there are disputes as between such entities, the method and manner in which such disputes have to be resolved has been laid down by the Apex Court in _**Oil and Natural Gas Commission & Another v. Collector of Central Excise (1995 Suppl. (4) SCC 541)**_ . The aforementioned view has also been reiterated by Single Bench of this Court in _**Kerala State Electricity Board and Conservator of Forests (1996 (2) KLT 232)**_ . Before filing the petition, there should have been an **WP(C) 13777/2021** **5** attempt to resolve the dispute. 4. On the contrary, learned counsel for the 3[rd] respondent/Kerala State Co-operative Marketing Federation submits that the decision to participate in the tender was wholly improper as the quoted rates were lower than the basic price which could not have been accepted at the opening of the same and thus Federation has been deprived of the utility of the amount on the basis of such irresponsible approach. All the disputed questions cannot be adjudicated in this Court and urged this Court for dismissal of the writ petition. I have heard the learned counsel for the parties and appraised the paper book. It is a matter of record that all the petitioners are now retired and therefore in their personal capacity has filed the writ petition challenging the notice Ext.P17. Petitioners have participated in the tender process initiated by the Devaswom Board for collection and sale of the coconut to different station and apparently, they have discharged the duties in their official capacity and whether the decision was correct or wrong cannot be adjudicated by this Court while exercising the power **WP(C) 13777/2021** **6** under Article 226 of the Constitution of India. Whatever the grounds taken in the writ petition, can be raised at an appropriate time and stage or as per the legal advice. But the proceedings initiated under Section 69 of the Co-operative Societies Act cannot be scuttled at the drop of the hat. I would refrain myself from commenting further on the procedure to be adopted by the petitioner, but in case the petitioners approach the arbitration Court with an application or contest the same by written statement, endeavour would be made by the Arbitration Court for deciding the application in accordance with law, receipt of the reply shall be made within a period of two months and in case of non preference, to be decided within a period of one and half year. Writ petition stands disposed of. ## **sd/-** sab **AMIT RAWAL** **JUDGE** **WP(C) 13777/2021** **7** ## **APPENDIX OF WP(C) 13777/2021** PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE NOTE BEARING NO.4169/2018/M (CO-OP/TYSM/DEV) DATED 22.02.2018 OBTAINED UNDER THE RIGHT TO INFORMATION ACT Exhibit P2 TRUE COPY OF THE GOVERNMENT ORDER BEARING G.O (RT) NO.328/2018/CO-OP DATED 25.05.2018 Exhibit P3 TRUE COPY OF THE LETTER NO.123/A2/18/CO-OP DATED 27.02.2018 ISSUED BY THE GOVERNMENT Exhibit P4 TRUE COPY OF THE LETTER REF.NO.51414 DATED 08.03.2018 ISSUED BY THE MANAGING DIRECTOR OF K.S.F.E. Exhibit P5 TRUE COPY OF THE COMMUNICATION NO.REF.EST/MVS/2015/MD DATED 02.06.2018 ISSUED BY THE MANAGER, MARKETFED Exhibit P6 TRUE COPY OF THE GOVERNMENT ORDER BEARING G.O(MS) NO.37/2019/CO-OP DATED 04.10.2019 Exhibit P6(A) TRUE COPY OF THE GOVERNMENT ORDER BEARING G.O(MS) NO.31/2019/CO-OP DATED 19.08.2019 ALONG WITH ENCLOSED RECRUITMENT RULES OF MARKETFED Exhibit P7 TRUE COPY OF THE RESOLUTION ADOPTED BY THE BUSINESS COMMITTEE OF THE RESPONDENT FEDERATION HELD ON 25.06.2016 Exhibit P8 TRUE COPY OF THE MINUTES OF THE MANAGING COMMITTEE OF THE RESPONDENT FEDERATION HELD ON 16.08.2016 Exhibit P9 TRUE COPY OF THE RELEVANT PAGES OF THE TENDER NOTIFICATION DATED NIL ISSUED BY THE 4TH RESPONDENT DEVASWOM BOARD **WP(C) 13777/2021** **8** - Exhibit P10 TRUE COPY OF THE RESOLUTION ADOPTED BY THE BUSINESS COMMITTEE OF THE 3RD RESPONDENT FEDERATION HELD ON 07.12.2016 - Exhibit P11 TRUE COPY OF THE NOTICE NO.REF.TDB/SABARIMALA SUPPLY/2016-17 DATED 07.06.2019 ISSUED BY THE 6THR ESPONDENT - Exhibit P12 TRUE COPY OF THE REPLY /LETTER DATED 03.07.2019 ISSUED BY THE 1ST PETITIONER TO THE 6TH RESPONDENT - Exhibit P13 TRUE COPY OF THE LETTER NO.TDB/COPRA/2016 DATED 17.11.2016 ISSUED BY THE 3RD RESPONDENT TO THE 5TH RESPONDENT - Exhibit P14 TRUE COPY OF THE LETTER NO.TDB/COPRA/2016 DATED 03.02.2017ISSUED BY THE 3RD RESPONDENT TO THE 5TH RESPONDENT - Exhibit P15 TRUE COPY OF THE LETTER NO.TDB/COPRA/2016 DATED 12.07.2017ISSUED BY THE 3RD RESPONDENT TO THE 5TH RESPONDENT - Exhibit P16 TRUE COPY OF THE TENDER NOTIFICATION RESORTED BY THE 4TH RESPONDENT BOARD DATED NIL - Exhibit P17 TRUE COPY OF THE ARC NO.40 OF 2020 FILED BEFORE THE REGISTRAR OF CO-OPERATIVE SOCIETIES DATED 10.06.2020 WITH NOTICE ISSUED BY THE ARBITRATOR - Exhibit P18 TRUE COPY OF THE COMMUNICATION BEARING NO.M.P.(3) 2829/2020 DATED 03.11.2020 ISSUED BY THE REGISTRAR OF CO-OP SOCIETIES TO THE SECRETARY TO GOVERNMENT