High Court of KeralaSingle JudgeDismissed

M.B. Vinodkumar v. Cochin Co-operative Hospitals Society Ltd. and Others

Case / Petition Number:WP(C).16813/22

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • V.G. Arun
Judgment Date
2022-06-14
Court Decision / Holding
The writ petition is dismissed.
Final Disposition
Dismissed

Parties to the Case

Appellants / Petitioners

  • M.B. Vinodkumar

Respondents

  • Cochin Co-Operative Hospitals Society Ltd.
  • Board of Directors of Cochin Co-Operative Hospitals Society Ltd.
  • The Electoral Officer, Cochin Co-Operative Hospitals Society Ltd.
  • The Returning Officer/Assistant Registrar (Planning), Cochin Co-Operative Hospitals Society Ltd.
  • The Assistant Registrar of Co-Operative Societies (G), Office of the Assistant Registrar of Co-operative Societies, Kanayannur Taluk
  • The State Co-operative Election Commission, Thiruvananthapuram

Legal Representation & Advocates

Counsels for Petitioners

  • • Soumiyā C.D
  • • P.P. Jacob

Counsels for Respondents

  • • George Poonthottam (Sr.)
  • • Nisha George
  • • R. Lakshmi Narayan
  • • Amminikutty K
  • • Joby Joseph (Sr.)

Case Synopsis & Summary

This writ petition challenges the election notification issued by the sixth respondent for the managing committee of the Cochin Co-operative Hospitals Society Ltd. The petitioner, a member, objected to the preliminary voters list published on 9 May 2022 and sought a fair list. After objections, the third respondent directed the society to add one ordinary member and remove 49 institutional members from the final voters list. The petitioner filed further complaints with the Co-operative Election Commission. He argued the society had illegally inducted 351 new members, circumventing the bylaws and the Co-operative Societies Act provisions, particularly Clause 11 of the bylaws and Section 25 of the Act, which govern transfers on a member’s death and the nomination process. He submitted that nominees of deceased members were not notified and that shares were transferred or paid to third parties contrary to the rules. The respondents contended that the objections were vague and that the Electoral Officer was not required to act on vague complaints; the 3rd respondent acted on the objections and a revised final voters list was published. The court observed the general principle that writs should not interrupt an election at an intermediate stage, and held there were no extraordinary circumstances to interfere with the election. It declined to quash the notification and dismissed the petition, noting that a remedy under Section 69 via Arbitration remains available after elections. The court also cited Vijaya Kumar v. Joint Registrar to illustrate that objections must be definite to prompt an inquiry.

Provisions of Law Cited

Clause 11 of the bylawsSection 25 of the Co-operative Societies ActSection 66 of the Co-operative Societies ActSection 69 of the Co-operative Societies Act

Legal Doctrines & Maxims

  • Writ courts will not ordinarily entertain petitions at the intermediate stage in an election process (discretionary intervention under Article 226).
  • Discretionary jurisdiction under Article 226 of the Constitution of India.

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioner argued that a fair election depends on a clean, accurate voters list. He challenged the preliminary list (9 May 2022) on grounds of illegal membership transfers and inclusion of institutional members who did not meet eligibility. Clause 11 of the bylaws and Section 25 of the Co-operative Societies Act require transfer of shares on death to nominees or payment to legal heirs, with notice and registration. The petitioner contended that 351 new memberships were granted contrary to bylaws and that nominees of deceased members were not properly notified, effectively bypassing the statutory transfer mechanism. He sought quashing of the election notification (Ext. P1) and a direction to publish a fair voters list in line with the bylaws and statute. He argued that if irregularities persisted, Section 69 provides an arbitration remedy after elections and emphasized the need for interim scrutiny to ensure a free and fair poll. Ultimately, he prayed for a fair voters list reflecting proper eligibility and transfer of shares.

Contentions of Respondents

The respondents contended that the objections were vague and not specific; the 3rd respondent examined the objections and directed corrections, including adding one ordinary member and excluding 49 institutional members, with the final voters list published accordingly. The election schedule was adjusted due to a by-election. Relying on Vijaya Kumar v. Joint Registrar, they argued the Electoral Officer is bound to conduct a detailed enquiry only when objections are definite and specific. They asserted that the transfer of shares and membership was in strict compliance with the bylaws and the Co-operative Societies Act, and that the petitioner lacked locus standi to challenge independent of nominees/ heirs. They further argued that the appropriate remedy, if any, lies under Section 69 of the Act through Arbitration after the election, and that there are no extraordinary circumstances to interfere with the election via a writ.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Vijaya Kumar v. Joint Registrar1996 (1) KLT 285Mentioned OnlyCited to illustrate the principle that the Electoral Officer should conduct inquiries only when objections are definite and specific; the court did not adopt it as a binding ratio but refers to it in context.

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Extracted Judgment Text

Exact text extracted from official judgment records.

_**WP(C).16813/22**_ 1 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR.JUSTICE V.G.ARUN** **TUESDAY, THE 14[TH] DAY OF JUNE 2022 / 24TH JYAISHTA, 1944** **WP(C) NO. 16813 OF 2022** ## **PETITIONER/S:** M.B.VINODKUMAR, AGED 42 YEARS S/O BHASKARAPILAI, MANGALATH HOUSE, EDAYAR, BINANIPURAM, ALWAYE, EMAKULAM - 683 502. BY ADVS. SOUMIYA C.D P.P.JACOB ## **RESPONDENT/S:** |1|COCHIN CO-OPERATIVE HOSPITALS SOCIETY LTD.| |---|---| ||E 288, GANDHI NAGAR, KOCHI, ERNAKULAM- 682 020,| ||REPRESENTED BY ITS SECRETARY.| |2|THE BOARD OF DIRECTORS OF THE COCHIN CO-OPERATIVE| ||HOSPITALS SOCIETY LTD. NO. E 288,| ||GANDHI NAGAR, KOCHI, ERNAKULAM- 682 020/ REPRESENTED| ||BY ITS PRESIDENT.| |3|THE ELECTORAL OFFICER,| ||COCHIN CO-OPERATIVE HOSPITALS SOCIETY LTD. NO. E| ||288, GANDHI NAGAR, KOCHI-682 020/ ASSISTANT| ||REGISTRAR OF CO-OPERATIVE SOCIETIES, ERNAKULAM| |4|THE RETURNING OFFICER/ASSISTANT REGISTRAR (PLANNING)| ||COCHIN CO-OPERATIVE HOSPITALS SOCIETY LTD. NO. E| ||288, GANDHI NAGAR, KOCHI, ERNAKULAM - 682 020.| |5|THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES| ||(G),| ||OFFICE OF THE ASSISTANT REGISTRAR OF CO-OPERATIVE| ||SOCIETIES, KANAYANNUR TALUK, ERNAKULAM - 682 011.| |6|. THE STATE CO-OPERATIVE ELECTION COMMISSION,| ||THIRUVANANTHAPURAM, 3RD FLOOR, CO-BANK TOWERS,| ||PALAYAM, VIKAS BHAVAN.P.O., THIRUVANANTHAPURAM, PIN| _**WP(C).16813/22**_ 2 - 695 033, REPRESENTED BY ITS SECRETARY. BY ADVS. GEORGE POONTHOTTAM (SR.) NISHA GEORGE ## **OTHER PRESENT:** GP AMMINIKUTTY K; GP JOBY JOSEPH (SR) SC FOR SCEC R. LAKSHMI NARAYAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 9.6.2022, THE COURT ON 14.6.2022 DELIVERED THE FOLLOWING: _**WP(C).16813/22**_ 3 ## **V.G.ARUN, J. ----------------------------------------------W.P(C).No.16813 of 2022 ----------------------------------------------Dated this the 14[th] day of June, 2022** ## **JUDGMENT** The petitioner is a member of the 1[st] respondent Co-operative Society. The next election to the Managing Committee of the first respondent Society was notified under Exhibit P1 dated 28.4.2022. Following the election schedule, the preliminary voters’ list was published on 9.5.2022. Thereupon, the petitioner filed Exhibit P7 objection to the voters’ list. Along with the objection, the petitoiner enclosed a list of ordinary members alleged to have been illegally removed and another list of members who are liable to be removed. The third list contained the list of institutions liable to be removed. After considering the objection, 3[rd] respondent issued Exhibit P8 directing the 1[st] respondent to include 4 members and to remove 48 institutional members from the final voters’ list. Not being satisfied with the order, the petitioner raised complaints before the 6[th] respondent Co-operative Election Commission. This writ petition is filed seeking to quash Exhibit P1 election notification. and to direct the 6[th] respondent to consider Exhibit P9 representation and pass necessary orders to publish a fair voters’ list as part of the election _**WP(C).16813/22**_ 4 ## notified under Exhibit P1. 2. Learned Counsel for the petitioner submitted that a proper voters' list is fundamental for a fair election and when objections are raised against the preliminary voters' list, the Electoral Officer is bound to consider the objections meticulously. It is submitted that, in the final voters’ list published in connection with the previous election conducted in March, 2017, there were 2358 members. From that list of valid members, 359 members are excluded from the preliminary voters' listin connection with the present election. It is submitted that the bylaws of the 1[st] respondent Society provides for issuance of only 2000 shares to individuals. As per Clause 11 of the bylaws, every member is entitled to nominate a person or persons to whom his shares or interest shall be transferred in the event of his death, or the value of the shares and any other money due from the Society, shall be paid. The Clause also mandates that in the event of the death of a member, his nomination shall be given effect to by the Board of Directors. According to the petitioner, the nominees of deceased members were not issued with notice or the shares transferred to their name. Instead, third parties were inducted to the memberships that had fallen vacant on the death of existing members. By adopting this illegal procedure, 351 persons were granted membership. The procedure adopted by the 1[st] _**WP(C).16813/22**_ 5 respondent is contrary to the stipulation in Section 25 of the Cooperative Societies Act, which provides for transfer of the share or interest of a deceased member to the person or persons nominated in accordance with the Rules or bylaws. It is submitted that institutional memberships were also granted without following the eligibility criteria. It is contended that the petitioner having demonstrated the illegalities committed with respect to the voters’ list published by the 1[st] respondent Society, the 3[rd] respondent ought to have directed the Society to correct the infirmities and proceeded with the election only thereafter. Reliance is placed on Ext.P3 to contend that, much prior to the election notification, the Assistant Registrar had noticed the irregular procedure adopted by the Society by inducting new members in the vacancy of deceased members. Even then, no worthwhile action was taken in the matter. 4. Learned Senior Counsel appearing for the 1[st] respondent submitted that the objection raised by the petitioner, though without substance, was acted upon by the 3[rd] respondent by directing the Society to include one ordinary member and exclude 49 institutional members from the final voters’ list. The Society acted in accordance with the direction and the final voter's list was published after effecting the addition/deletions. The polling had to be rescheduled in view of the by-election to the Thrikkakkara Assembly _**WP(C).16813/22**_ 6 constituency and the revised schedule has been notified under Ext. R1(b). It is contended that, other than the vague averments in the writ petition and the assertions in court, absolutely no material was produced, or definite objection, is raised by the petitioner before the 3[rd] respondent. The Electoral Officer is not expected to act upon a vague complaint and mere production of the admission and serial numbers of certain members. Reliance is placed on the decision in **Vijaya Kumar v. Joint Registra** _**r**_ [1996 (1) KLT 285], to contend that the Electoral Officer is bound to conduct enquiry regarding eligibility of a voter to be included in the voters’ list only if the objections are definite and specific. 5. Refuting the contention that the shares of deceased members were allotted to third persons in violation of Clause 11 of the bylaws and Section 25 of the Act, learned Senior Counsel submitted that, as per the bylaws, the share of a member _ipso facto_ ceases upon his death. The transfer of shares and grant of membership of deceased members was done in strict compliance of the bylaws and the statutory provision. In many an instance, the deceased member had no nominee and in some cases, the legal heirs or the nominees were not interested in the shares being transferred to their names and instead, had received the value of the shares. It is pertinent to note that no nominee or legal heir of _**WP(C).16813/22**_ 7 any deceased member had complained regarding clandestine or illegal transfer of shares to third parties. As such, the petitioner has no _locus standi_ or cause of action to raise such a complaint. It is argued that Ext.P3 communication issued to a third person does not give rise to any cause of action for the petitioner. Finally it is contended that no ground is made for quashing the election notification and the Electoral Officer having considered the petitioner’s objection, the 6[th] respondent has no further role to play. 6. Learned Government pleader submitted that based on Ext. P3 the Department has ordered an enquiry under Section 66 of the Co-operative Societies Act and appropriate action will be taken on receipt of the report. 7. It is settled law that writ courts will not ordinarily entertain petitions at the intermediate stage in an election process. Of course, this is a rule of discretion and not one of absolute bar in law. Here, the challenge against the election notification is mainly on the ground that 351 persons were granted membership in violation of Clause 11 of the bylaws and Section 25 of the Act. In that context, it is necessary to have a close scrutiny of the Bye-law provision, extracted here under for easy reference; _**WP(C).16813/22**_ 8 _“(II) Nomination of heir_ _1) If a member dies, his membership shall ipso facto_ _cease_ _(a) Every member may nominate a person or persons to whom in the event of his death, his shares or interests in the Society shall be transferred or the value of the shares and any other money due to him from the Society be paid. The member has the right to revoke such nominations making an application in writing to the Society any time. The nomination shall in the event of death of the member, be given effecft to by the Board of Directors provided that:_ _I) the nomination was signed by the deceased in the presence of two witness attesting the same and_ _II) the nomination has been registered in the books of the Society kept for the purpose._ _(b) In the event of there being no person nominated by the deceased member, qualified in accordance with the byelaws for membership, the shares and accruals thereon shall be refunded to the legal heirs or representatives of the deceased, after deducting any money due to the Society in the account of the dece3ased member.”_ From a reading of the provision it is clear that the member has the option of either nominating or not nominating a person/persons and can even revoke the nomination at a later stage. The nominee can either seek transfer of the shares or claim the value of the shares. The petitioner has no case that, in all the instances pointed out in the objection, the deceased member had named his/her nominee _**WP(C).16813/22**_ 9 and such nomination provided only for transfer of shares. The petitioner has no contention that the nominees of all the deceased members had insisted on allotment of the shares and refused to accept the value of the shares. As rightly contended, the objection as to violation of Clause 11 has to be raised by the nominees/legal heirs of deceased members and not by a third party. Yet another crucial aspect is that the 3[rd] respondent had considered the objection and directed modifications to the final voters’ list. If the petitioner’s grievance is subsisting, in spite of the direction issued after consideration of his objection, the remedy is to approach the Arbitration Court under Section 69 of the Co-operative Societies Act after the election is conducted. In any event, no extraordinary circumstance warranting interference with the election, in exercise of the discretionary jurisdiction under Article 226 of the Constitution of India, is made out. For the aforementioned reasons, the writ petition is dismissed. **Sd/-** ## **V.G.ARUN, JUDGE** _vgs_ _**WP(C).16813/22**_ 10 ## **APPENDIX OF WP(C) 16813/2022** PETITIONER EXHIBITS - Exhibit P1 TRUE PHOTOCOPY OF THE ELECTION NOTIFICATION DATED 28.4.22 PUBLISHED BY THE SIXTH RESPONDENT - Exhibit P2 TRUE PHOTOCOPY OF THE RELEVANT PORTION OF THE BYELAW, PAGES 1 TO 5 OF THE FIRST RESPONDENT - Exhibit P3 TRUE PHOTOCOPY OF THE RELEVANT PORTION OF THE PROCEEDING PAGES 1 TO 5 ISSUED BY THE FIFTH RESPONDENT DATED 30.3.2019. - Exhibit P4 TRUE PHOTOCOPY OF THE LIST OF INSTITUTIONAL MEMBERS. - Exhibit P5 TRUE PHOTOCOPY OF THE LIST OF THOSE 359 MEMBERS WHO WERE EXCLUDED FROM THE VOTERS LIST. - Exhibit P6 TRUE PHOTOCOPY OF THE LIST OF PERSONS SUBMITTED BY THE PETITIONER BEFORE THE ELECTORAL OFFICER DATED - Exhibit P7 TRUE PHOTOCOPY OF THE REPRESENTATION SUBMITTED BY THE PETITIONER BEFORE THE THIRD RESPONDENT DATED 13.5.2022. - Exhibit P8 TRUE PHOTOCOPY OF THE PROCEEDING ISSUED BY THE THIRD RESPONDENT. - Exhibit P9 TRUE PHOTOCOPY OF THE REPRESENTATION SUBMITTED BY THE PETITIONER BEFORE THE SIXTH RESPONDENT DATED 17.5.2022. - Exhibit P10 TRUE PHOTOCOPY OF THE REPRESENTATION FILED BY ONE JIJI VICTOR DATED 17.5.2022 - Exhibit P11 TRUE PHOTOCOPY OF THE REPRESENTATION FILED BY ONE M.S.OMANAKUTTAN DATED 14.5.2022. RESPONDENT EXHIBITS Exhibit R1(a) TRUE COPY OF THE PROCEEDINGS BEARING _**WP(C).16813/22**_ 11 NO.V.597/2022 DATED 17/05/2022 ISSUED BY THE ELECTORAL OFFICER. Exhibit R1(b) TRUE COPY OF THE CONSOLIDATED STATEMENT OF THE AUDIT REPORT MAINTAINED BY THE RESPONDENT SOCIETY. Exhibit R1(c) TRUE COPY OF THE AMENDED ELECTION NOTIFICATION BEARING NO.E(2)3166/2022/S.C.E.C. DATED 27/05/2022.