High Court of KeralaSingle JudgeDisposed of with directions

P. T. Ajay Mohan v. State of Kerala and Others (W.P.(C). No. 24441 of 2017)

Case / Petition Number:WP(C).No. 24441 of 2017

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • The Hon. Mr. Justice Anil K. Narendran
Judgment Date
2019-02-14
Court Decision / Holding
The writ petition is disposed of with directions. Within two weeks from receipt of a certified copy of the judgment, the petitioner and the members of the Managing Committee against whom there are findings shall submit explanations. Thereafter, the 3rd respondent (Joint Registrar) shall consider those explanations, with notice to the petitioner and the Managing Committee, and take an appropriate decision as to the further course in the matter, taking note of the law laid down by the Apex Court in Sanjay Nagayach’s case. The process should be completed expeditiously, within two months from the date of receipt of a certified copy of the judgment. Correction: the operative portion now reads that the 3rd respondent shall act, instead of the 1st respondent, as clarified by the I.A. correction.
Final Disposition
Disposed of with directions

Parties to the Case

Appellants / Petitioners

  • P. T. Ajay Mohan, President, Andathode Service Co-operative Bank Ltd.

Respondents

  • State of Kerala represented by the Secretary to Government, Department of Cooperation, Government Secretariat, Thiruvananthapuram
  • The Registrar of Co-operative Societies, Thiruvananthapuram
  • The Joint Registrar of Co-operative Societies, Malappuram

Legal Representation & Advocates

Counsels for Petitioners

  • • Adv. George Poonthottam (Sr.)

Counsels for Respondents

  • • Sri Mohammed Hashim, Special Government Pleader

Case Synopsis & Summary

P. T. Ajay Mohan, aged 52, is the President of Andathode Service Co-operative Bank Ltd., a Kerala Co-operative Society registered under the Kerala Co-operative Societies Act, 1969. He approached the High Court under Article 226 challenging Ext.P11, dated 17 June 2017, issued by the 3rd respondent Joint Registrar, ordering an inquiry under Section 65 and, by implication, an inspection under Section 66 of the Act. The petitioner seeks to quash Ext.P11 and to declare that the inquiry and inspection scheme, without an effective remedy to the aggrieved party, is arbitrary and unconstitutional. On admission, the Court granted interim orders restricting finalisation of Ext.P11 proceedings pending further directions. A report dated 9 March 2018 from the Inquiry Officer was placed on record. The respondents contend that the findings in the inquiry report should guide the next steps, with notice and opportunity to the Society and the Managing Committee members who face findings. The Court, however, while noting the ongoing inquiry, observed that the legality of Ext.P11 need not be decided at this stage, and directed that, based on the Sanjay Nagayach principle (State of M.P. v. Sanjay Nagayach, [(2013) 7 SCC 25]), the 3rd respondent decide the future course after hearing the aggrieved parties. The process was to be completed promptly, with explanations due within two weeks and final determination within two months, and a correction was issued to replace references to the 1st respondent with the 3rd respondent in the operative portion.

Provisions of Law Cited

Article 226 of the Constitution of IndiaSection 65 of the Kerala Co-operative Societies Act, 1969Section 66 of the Kerala Co-operative Societies Act, 1969

Legal Doctrines & Maxims

  • Bona fide exercise of power
  • Formation of opinion based on objective criteria
  • Not speak masters' voice / not act with preconceived motive
  • Act within four corners of the Statute

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioner contends that Ext.P11 is not the product of an independent exercise of power and that the inquiry under Section 65 and inspection under Section 66 is undertaken without adequate remedy or fair hearing, rendering the order arbitrary and unconstitutional. It seeks quashing of Ext.P11 and a declaration that the entire inquiry/inspection regime is invalid for violating statutory safeguards. The petitioner emphasizes the need for reasons and due process, contending that the remedy provided by the existing scheme cannot be invoked to defeat the statutory framework. The writ petition thus prays for a judicial review of the order and for reliefs grounded in principles of natural justice and statutory compliance.

Contentions of Respondents

The respondents submit that Ext.P11 was issued under statutory power and that the inquiry report dated 9 March 2018 furnishes a basis for further action by the Joint Registrar, subject to notice and opportunity for the Society and the Managing Committee members against whom findings have been recorded. They contend that the interim order allowed the inquiry to continue and that the court need not decide the legality of Ext.P11 at this stage. They rely on the decision in State of M.P. v. Sanjay Nagayach to urge that the Registrar must act bona fide and within the four corners of the statute, and that the court should direct the appropriate next steps in light of the inquiry findings and the principles enunciated in the cited case."},

Cited Precedents (1)

Case NameCitationTreatmentExplanation
State of M.P. v. Sanjay Nagayach[(2013) 7 SCC 25]PositiveCited to emphasize that supersession must be bona fide and based on objective criteria and within the statute; used to guide the court’s directions on fair procedure and timely resolution.

Diagnostic Tool

Beta

Does this judgment govern your specific facts?

Don't risk relying on a distinguishable precedent. Enter your facts or proposition below. We will test it against P. T. Ajay Mohan v. State of Kerala and Others (W.P.(C). No. 24441 of 2017) and instantly map out authorities that support, challenge, or govern your position.

Extracted Judgment Text

Exact text extracted from official judgment records.

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR. JUSTICE ANIL K.NARENDRAN** ## **THURSDAY ,THE 14TH DAY OF FEBRUARY 2019 / 25TH MAGHA, 1940** ## **WP(C).No. 24441 of 2017** ## **PETITIONER:** **P.T. AJAY MOHAN AGED 52 YEARS** **PRESIDENT, THE ANDATHODE SERVICE CO-OPERATIVE BANK LTD NO F 1249, ERAMANGALAM P.O, MALAPPURAM DISTRICT 679 587** **BY ADV. SRI.GEORGE POONTHOTTAM (SR.)** ## **RESPONDENTS:** - **1 STATE OF KERALA REPRESENTED BY THE SECRETARY TO GOVERNMENT, DEPARTMENT OF CO-OPERATION,GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM 695 001** - **2 THE REGISTRAR OF CO-OPERATIVE SOCIETIES THIRUVANANTHAPRUAM 695 001** - **3 THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES MALAPPURAM 679 001** ## **SRI MOHAMMED HASHIM, SPECIAL GOVERNMENT PLEADER** **THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 14.02.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** ## **W.P.(C)No.24441 of 2017** ## **:-2-:** ## **J U D G M E N T** |The petitioner, who is the President of| |---| |Andathode Service Co-operative Bank, which is a| |Society registered under the provisions of the| |Kerala Co-operative Societies Act, 1969 and the| |rules made thereunder, has filed this writ petition| |under Article 226 of the Constitution of India,| |seeking a writ of certiorari to quash Ext.P11 order| |dated 17.6.2017 issued by the 3<br>rd<br>respondent Joint| |Registrar ordering inquiry under Section 65 of the| |Act. The petitioner has also sought for a| |declaration that Ext.P11 order is not the result of| |an independent exercise of power by the 3<br>rd| |respondent and therefore, bad in law, and that the| |scheme of inquiry under Section 65 and inspection| |under Section 66 of the Act, without providing an| |effective remedy to the party aggrieved, is| |arbitrary, unconstitutional and to be declared| ## **W.P.(C)No.24441 of 2017** ## **:-3-:** accordingly. 2. On 25.7.2017 when this writ petition came up for admission, this Court admitted the matter on file and the learned Government Pleader took notice for the respondents and sought time for filing counter affidavit. This Court has granted an interim order clarifying that finalisation of the proceedings pertaining to Ext.P11 shall only be done after taking further orders from this Court. The said interim order, which was for a period of two weeks, was extended from time to time, which is still in force. 3. A counter affidavit has been filed by the 3rd respondent opposing the reliefs sought for in this writ petition. A reply affidavit has also been filed by the petitioner. 4. Along with a memo filed by the learned Special Government Pleader dated 13.4.2018, a copy ## **W.P.(C)No.24441 of 2017** **:-4-:** of the inquiry report dated 9.3.2018 submitted under Section 65 of the Act is placed on record. 5. Heard the learned counsel for the petitioner and also the learned Special Government Pleader appearing for respondents 1, 2 and 3. 6. Though the petitioner has raised various contentions as to the legality or otherwise of Ext.P11 order dated 17.6.2017, considering the fact that in terms of the interim order granted by this Court, the Inquiry Officer has proceeded with the inquiry and submitted an inquiry report dated 9.3.2018, which is placed on record along with the memo filed by the learned Special Government Pleader, the legality or otherwise of Ext.P11 order need not be considered by this Court, at this point of time. 7. The learned Special Government Pleader would submit that based on the findings in the ## **W.P.(C)No.24441 of 2017** **:-5-:** inquiry report dated 9.3.2018, the 3rd respondent Joint Registrar shall decide the further course to be taken in the matter, with notice to the Society and also the members of the Managing Committee against whom there are findings in that report, and after affording them a reasonable opportunity to submit their explanations. 8. In **State of M.P. v. Sanjay Nagayach [(2013)** **7 SCC 25]** the Apex Court, in the context of Section 53 of the Madhya Pradesh Co-operative Societies Act, 1960 held that, the Registrar/Joint Registrar, while exercising powers of supersession has to form an opinion and that opinion must be based on some objective criteria, which has nexus with the final decision. A statutory authority shall not act with preconceived notion and shall not speak his masters' voice, because the formation of opinion must be his own, not somebody else in power, to ## **W.P.(C)No.24441 of 2017** **:-6-:** achieve some ulterior motive. There may be situations where the Registrar/Joint Registrar are expected to act in the best interest of the society and its members, but in such situations, they have to act bona fide and within the four corners of the Statute. In paragraph 42 of the judgment (SCC @pages 44 & 45), the Apex Court laid down the general directions in the matter of supersession of the elected committee. 9. In **Sanjay Nagayach's case (supra)** , the order of supersession was passed by the Joint Registrar after a period of two and a half years of the issuance of show cause notice and most of the charges levelled against the Board of Directors were related to the period when the previous committee was in office and even the charges based on the audit report dated 25.9.2008 were also rectified by the Board of Directors by addressing ## **W.P.(C)No.24441 of 2017** **:-7-:** the primary societies. Based on the decision of the Apex Court in **Sanjay Nagayach's case** , the Registrar of Co-operative Societies has issued Circular No.45/13 dated 12.07.2013. Having considered the submissions made by the learned counsel on both sides, this writ petition is disposed of with the following directions; Within two weeks from the date of receipt of a certified copy of this judgment, the petitioner and the members of the Managing Committee, against whom there are findings in the inquiry report filed under Section 65 of the Act dated 9.3.2018, shall submit their explanations, if any, to the findings in that inquiry report. Thereafter, the 1st respondent shall consider those explanations, with notice to the petitioner and the members of the Managing Committee and take an appropriate decision as to the further course to be taken ## **W.P.(C)No.24441 of 2017** **:-8-:** in the matter, taking note of the law laid down by the Apex Court in **Sanjay Nagayach's** **case (supra)** . The process in this regard shall be completed, as expeditiously as possible, at any rate within a period of two months from the date of receipt of a certified copy of this judgment. Sd/- **ANIL K.NARENDRAN** **JUDGE** ami/ ## **APPENDIX** **PETITIONER'S EXHIBITS:** **EXHIBIT P1 TRUE COPY OF THE REPORT PUBLISHED IN DESHABHIMANI DAILY DATED 29-05-2017** **EXHIBIT P2 TRUE COPY OF THE REPORT PUBLISHED IN DESHABHIMANI DAILY DATED 30-05-2017 EXHIBIT P3 TRUE COPY OF THE REPORT PUBLISHED IN DESHABHIMANI DAILY DATED 01-06-2017** **EXHIBIT P4 TRUE COPY OF THE REPORT PUBLISHED IN DESHABHIMANI DAILY DATED 02-06-2017** ## **W.P.(C)No.24441 of 2017** ## **:-9-:** **EXHIBIT P5** **TRUE COPY OF THE REPORT PUBLISHED IN DESHABHIMANI DAILY DATED 04-06-2017** **EXHIBIT P6** **TRUE COPY OF THE REPORT PUBLISHED IN DESHABHIMANI DAILY DATED 16-06-2017** **EXHIBIT P7** **TRUE COPY OF THE REPORT PUBLISHED IN DESHABHIMANI DAILY DATED 17-06-2017** **EXHIBIT P8** **TRUE COPY OF THE REPORT PUBLISHED IN MATHRUBHUMI DAILY DATED 17-06-2017** **EXHIBIT P9** **TRUE COPY OF THE REPORT PUBLISHED IN DESHABHIMANI DAILY DATED 18-06-2017** **EXHIBIT P10** **TRUE COPY OF THE REPORT PUBLISHED IN DESHABHIMANI DAILY DATED 19-06-2017** **EXHIBIT P11** **TRUE COPY OF THE ORDER NO C.R.P(2) 4824/2017 DATED 17-06-2017 PASSED BY THE 3RD RESPONDENT** **EXHIBIT P12** **TRUE COPY OF THE COMMUNICATION NO.A 671/2017 DATED 29-05-2017 ISSUED BY THE ASST. REGISTRAR OF CO-OPERATIVE SOCIETIES.** ## **W.P.(C)No.24441 of 2017** ## **:-10-:** The words '1[st] respondent' occurring in the 2[nd] sentence in the operative portion of the Judgment dated 14.02.2019 in WP(C)No.24441/2017 (E) is corrected as '3[rd] respondent' as per order dated 18/06/2019 in I.A.1/2019 in WPC 24441/2019. Joint Registrar