High Court of KeralaSingle JudgeOrder quashed; Managing Committee to be restore...

Rajeena and others v. Joint Registrar of Co-operative Societies (G) and City Vanitha Co-operative Society Ltd no. D.3012, Eranhipalam

Case / Petition Number:WP(C) No. 8896 of 2022

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Sathish Ninan J.
Judgment Date
2022-04-07
Court Decision / Holding
Ext.P9 order of supersession quashed; Managing Committee to be restored in office forthwith, with liberty to pass fresh orders after ensuring compliance with statutory requirements.
Final Disposition
Order quashed; Managing Committee to be restored in office forthwith; fresh orders may be issued after compliance with statutory requirements.

Parties to the Case

Appellants / Petitioners

  • Rajeena (W/o Prasoon)
  • Sumathi P (W/o Ashraf)
  • Premalatha K.K. (W/o Chandrashan)
  • Beena P.M. (W/o Pratheesh Kumar)
  • Latha K.K. (W/o Sivadasan)
  • Neethu U.P. (W/o Subith)
  • Prabitha (W/o Babu)
  • Sabitha (W/o Harshan)

Respondents

  • The Joint Registrar of Co-Operative Societies (G), Puthiyara, Kozhikode
  • City Vanitha Co-Operative Society Ltd No. D.3012 Eranhipalam P.O., Kozhikode
  • The Administrative Committee City Vanitha Co-Operative Society Ltd No. D.3012, Eranhipalam P.O., Kozhikode

Legal Representation & Advocates

Counsels for Petitioners

  • • B.S. Swathi Kumar
  • • Anitha Ravindran
  • • Harisankar N.
  • • Unni N.S.
  • • Shamila N.S.

Counsels for Respondents

  • • M. Sasindran

Case Synopsis & Summary

This writ petition challenges Ext. P9, an order of supersession issued under Section 32 of the Cooperative Societies Act, in respect of the Managing Committee of City Vanitha Co-operative Society Ltd No. D.3012. The petitioners, eight remaining members of the Committee after four resigned, argue the supersession is mala fide and violative of statutory requirements—specifically lack of notice under Section 32(1) and lack of proper consultation under Section 32(2). The sequence begins with the supersession order dated 31.08.2021, followed by withdrawal of the order during the pendency of W.P.(C) No.22509/2021, with a fresh hearing contemplated. Ext. P3 issued for 03.11.2021; extensive adjournments ensued. Ext. P6, dated 25.01.2022, fixed hearing for 04.02.2022, but in the absence of timely service on all members, the third petitioner complained that notices were not properly served, triggering a finding of violation of Section 104 (service by registered post). The court further held there was no effective consultation with the Circle Co-operative Union and the financing bank, as required under Section 32(2). Consequently, Ext. P9 is quashed, and the Managing Committee is to be restored, with liberty to proceed afresh after complying with the statutory requirements.

Provisions of Law Cited

Section 32(1) of the Cooperative Societies ActSection 32(2) of the Cooperative Societies ActSection 104 of the Cooperative Societies Act

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners contend that the order of supersession is vitiated by mala fides, lack of notice under Section 32(1), and lack of proper consultation under Section 32(2). They highlight that the notice for hearing was not properly served on all committee members and that the proposed consultation with the Circle Co‑operative Union and financing bank was not adequately communicated or documented, violating statutory requirements. They seek quashing of Ext. P9 and restoration of the Managing Committee.

Contentions of Respondents

The respondents argued that the supersession proceedings were initiated in conformity with the applicable statutory framework, and the steps taken were intended to comply with due process. (Note: the Court’s analysis found deficiencies in notice and consultation, leading to the quashing of Ext. P9.)

Cited Precedents (4)

Case NameCitationTreatmentExplanation
Ellakkal Service Co-Operative Bank v. State of Kerala(1997 (2) KLT 85)Mentioned OnlyCited in the context of statutory consultation requirements under Section 32(2), not as direct precedent on the correctness of the supersession order.
Sahadevan v. Padmanabhan(2004 (1) KLT 192)Mentioned OnlyReferenced for principles regarding consultation/notice but not treated as binding overrulement or distinction in the present facts.
Johny Kachappally v. Joint Registrar of Co-operative Societies(2022 (1) KLT 183)Mentioned OnlyCited regarding procedural aspects of cooperative society governance; not explicitly distinguished or followed as a ruling on the exact issue.
State of M.P. v. Sanjay Nagayach(2013 (2) KLT 733(SC))Mentioned OnlyCited as authority in the discussion of statutory consultation, without treatment as precedent overruling or distinguishing.

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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 SATHISH NINAN THURSDAY, THE 7[TH] DAY OF APRIL 2022 / 17TH CHAITHRA, 1944** ## **WP(C) NO. 8896 OF 2022** ## **PETITIONERS:** 1 RAJEENA AGED 38 YEARS W/O PRASOON, KATTILPARAMBATH, VENGERI, KOZHIKODE, PIN-673010. 2 SUMATHI P W/O ASHRAF, RESIDING AT SUASORY, KARUVASSERY, KOZHIKODE PIN673010. 3 PREMALATHA K K. W/O CHANDRAHASAN, KIZHAKKEKURUMBANIYIL, VENGERI, KOZHIKODE, PIN-673010. 4 BEENA P M. W/O PRATHEESH KUMAR, MARAKKATTUVAYAL, VENGERI, KOZHIKODE, PIN-673010. 5 LATHA K K W/O SIVADASAN, KALLUVETTUKUZHIYIL, VENGERI, KOZHIKODE, PIN673010. 6 NEETHU U P W/O SUBITH, THERNATTIL, VENGERI, KOZHIKODE, PIN-673010. 7 PRABITHA W/O BABU, RESIDING AT VAISHNAVAM, KIZHAKKEPALAKKUNI, VENGERI, KOZHIKODE, PIN-673010. 8 SABITHA W/O HARSHAN, RESIDING AT SNEHAM, METHALA VEETTIL, ERANJIKKAL, KOZHIKODE, PIN-673303. BY ADVS. B.S.SWATHI KUMAR ANITHA RAVINDRAN HARISANKAR N UNNI N.S.SHAMILA **WP(C) NO. 8896 OF 2022 -2RESPONDENTS:** 1 THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (G), PUTHIYARA, KOZHIKODE, PIN-673004. 2 CITY VANITHA CO-OPERATIVE SOCIETY LTD NO.D.3012 ERANHIPALAM P O, KOZHIKODE, PIN-673020, REPRESENTED BY ITS SECRETARY. 3 THE ADMINISTRATIVE COMMITTEE CITY VANITHA CO-OPERATIVE SOCIETY LTD NO.D.3012, ERANHIPALAM P O, KOZHIKODE, PIN-673020., REPRESENTED BY ITS CONVENOR. BY ADVS. ADVOCATE GENERAL OFFICE KERALA M.SASINDRAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 07.04.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ## **SATHISH NINAN, J.** **= = = = = = = = = = = = = = = = = = W.P.(C) No.8896 of 2022** **= = = = = = = = = = = = = = = = = = Dated this the 7[th] day of April, 2022** ## **J U D G M E N T** Order of supersession under Section 32 of the Cooperative Societies Act (Ext.P9), is under challenge in this writ petition. 2. The Managing Committee of the second respondent Society consists of 12 members. Four members resigned. The remaining eight members are the writ petitioners. On 31.08.2021, the Committee was superseded. The order of supersession was challenged before this Court in W.P.(C) No.22509/2021. Pending consideration of the same, the authority withdrew the order without prejudice to the right to proceed afresh after affording an opportunity of hearing to the Committee. Ext.P2 is the judgment in the writ petition. In the meanwhile, Ext.P3 notice was issued to the members for a hearing on 03.11.2021. The hearing was adjourned thereafter on various occasions. Thereafter Ext.P6 notice dated 25.01.2022 was issued, W.P.(C) No.8896 of 2022 -: 2 :- fixing the date for hearing as 04.02.2022. To the said notice, the third petitioner herein submitted Ext.P7 objections pointing out that, the notice was received only on the previous day evening and further, such a notice has not been served on the other committee members. She sought for further time for hearing. However, without grant of further time, first respondent passed Ext.P9 order of supersession. 3. Heard Sri.B.S.Swathi Kumar, learned counsel for the petitioners, Sri.M.Sasindran, learned counsel for respondents 2 and 3 and also the learned Senior Government Pleader. 4. Ext.P1 order of supersession is challenged on grounds more than one- (1) mala fides; (2) lack of notice mandated under Section 32(1); and (3) lack of 'consultation' mandated under Section 32(2). 5. Alleging mala fides the petitioners would contend:- the Managing Committee took charge on 20.08.2018, thereafter on 29.07.2019, the Committee was ## W.P.(C) No.8896 of 2022 -: 3 :- kept under suspension. This was followed by an order of supersession on 31.08.2021. Challenging the order of supersession, W.P.(C) No.22509/2021 was filed. When the Writ petition was pending, the order of supersession was withdrawn and a fresh notice for hearing under Section 32 of the Act was issued. When the order of supersession was withdrawn, the Managing Committee was to be reinstated in office. Seeking restoration in office, petitioner filed W.P.(C) No.7321/2022. Pending the writ petition, Ext.P9 order of supersession has been passed. Therefore, the entire attempt is to keep the Managing Committee out of office, it is contended. 6. While it is true that since 29.07.2019, Managing Committee is out of office, I am of the opinion that the facts as projected above by itself would not lead to a conclusion or a finding of mala fides. The said contention is accordingly rejected. 7. Coming to the contention regarding lack of notice under Section 32(1), as noticed supra, in the ## W.P.(C) No.8896 of 2022 -: 4 :- present case, the notice for hearing was originally issued with the date for hearing as 03.11.2021. The date was repeatedly adjourned thereafter. Ext.P6 is the notice that was finally issued fixing the date of hearing as 22.01.2022. The third petitioner appeared and submitted Ext.P7 objection pointing out that such a notice has not been served on the other committee members. The learned Senior Government Pleader, on instructions, submits that Ext.P6 notice was issued to the members by ordinary post. Section 104 of the Cooperative Societies Act mandates service of notice by registered post. There is no material to show that notices were served on the other members. Though it could be said to be a continuation of the proceedings already initiated pursuant to Ext.P3 notice issued on 23.10.2021, in view of the long lapse of time, the first respondent was right in issuing Ext.P6 notice to the members intimating the date of appearance. However, the same should have been sent by registered post in ## W.P.(C) No.8896 of 2022 -: 5 :- compliance with Section 104 of the Act. The petitioners plead absence of notice. In the light of the above, it could only be held that, there is lack of notice mandated under Section 32(1) of the Act. Ext.P9 order of supersession is liable to be interfered with on that ground. 8. That apart, it is seen that there has been no effective consultation with the circle Co-operative Union and the financing Bank as required under Section 32(2) of the Act. There is nothing to indicate that the tentative findings arrived at, and the objections submitted by the third petitioner, were forwarded to the consultees, thus violating the mandate under the statute. Mere intimation to the financing Bank and the Circle Co-operative Union does not amount to consultation as required under Section 32(2). [See _**Ellakkal Service Co-Operative Bank v. State of Kerala (1997 (2) KLT 85)**_ , _**Sahadevan v. Padmanabhan (2004 (1) KLT 192)**_ , _**Johny Kachappally v. Joint Registrar of Co-operative Societies (2022 (1) KLT 183)**_ and _**State of**_ W.P.(C) No.8896 of 2022 -: 6 :- _**M.P. v. Sanjay Nagayach (2013 (2) KLT 733(SC))**_ ]. Ext.P9 order is liable to be interfered with on the said ground also. Accordingly Ext.P9 order of supersession is quashed. This is without prejudice to the rights to pass fresh orders on complying with the statutory requirements. The Managing Committee shall be restored in office forthwith. Sd/- **SATHISH NINAN JUDGE** kns/- //True Copy// P.S. to Judge ## **APPENDIX OF WP(C) 8896/2022** PETITIONER EXHIBITS |Exhibit P1|TRUE COPY OF THE ORDER NO.C.S/1824/2019 DATED| |---|---| ||9/7/2019 OF THE 1ST RESPONDENT.| |Exhibit P2|TRUE COPY OF THE JUDGMENT IN WPC| ||NO.22509/2021 DATED 27.10.2021.| |Exhibit P3|TRUE COPY OF THE NOTICE NO.CS.1824/2019 DATED| ||23.10.2021 ISSUED BY THE 1ST RESPONDENT.| |Exhibit P4|TRUE COPY OF THE COVERING LETTER DATED| ||3.11.2021 TO THE 1ST RESPONDENT FROM THE 7TH| ||PETITIONER.| |Exhibit P5|TRUE COPY OF THE EXPLANATION SUBMITTED BY THE| ||PETITIONERS BEFORE THE 1ST RESPONDENT DATED| ||9.11.2021.| |Exhibit P6|TRUE COPY OF THE NOTICE NO.C.S.1824/2019| ||DATED 25.01.2022 ISSUED BY THE 1ST| ||RESPONDENT.| |Exhibit P7|TRUE COPY OF THE LETTER DATED 4.2.2022 FROM| ||THE 3RD PETITIONER TO THE 1ST RESPONDENT.| |Exhibit P8|TRUE COPY OF THE COVERING ADDRESSED TO THE| ||8TH PETITIONER FROM THE 2ND RESPONDENT.| |Exhibit P9|TRUE COPY OF THE ORDER NO.C.S.1824/2019 DATED| ||28.02.2022 OF THE 1ST RESPONDENT.| |RESPONDENT EXHIBITS|| |Annexure|Annexure R1(a)| -----