Ranjith T. Bhaskar v. Registrar of Co-operative Societies (General) & Others

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR. JUSTICE SATHISH NINAN** **THURSDAY, THE 5[TH] DAY OF OCTOBER 2023 / 13TH ASWINA, 1945 WP(C) NO. 22002 OF 2023** ## **PETITIONER:** RANJITH T. BHASKAR AGED 47 YEARS S/O K.E. BHASKARAN, THAIKUDIYIL HOUSE, NJARAKKATTKARA, KADAVOOR P.O., KOTHAMANGALAM,, PIN - 686671 BY ADV N.A.SHAFEEK ## **RESPONDENTS:** 1 REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL) JAWAHAR SAHAKARANA BHAVAN, DPI JUNCTION, THYCAUD P.O., THIRUVANANTHAPURAM, PIN - 695014 2 JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL) OFFICE OF JOINT REGISTRAR, KAKKANAD, ERNAKULAM, PIN - 682030 3 ASSISTANT REGISTRAR (GENERAL), OFFICE OF JOINT REGISTRAR FOR CO-OPERATIVE SOCIETIES (GENERAL), KOTHAMANGALAM, PIN - 686671 4 KADAVOOR SERVICE CO-OPERATIVE BANK LTD. NO.1882 KADAVOOR, ERNAKULAM, PIN - 686671, REP. BY ITS SECRETARY. 5 THE POTHANICAD BHAVANA NIRMANA SAHAKARANA SANGAM LTD.NO. E-708, POTHANICAD P.O., ERNAKULAMPIN - 686671, REP. BY ITS SECRETARY. W.P.(C) No.22002 of 2023 -: 2 :- *6 SOJAN THOMAS AGED 47 YEARS, S/O THOMAS, PAYEKKAL (H), KOLAPPURAMKARA, PAIGOTTUR P.O., MUVATTUPUZHA, ERNAKULAM- 686671 ## *** (ADDL R6 IMPLEADED AS PER ORDER DATED 11/07/23 IN IA/1/23 IN WP(C) 22002/23)** BY ADVS. S.SREEDEV P.J.MATHEW EBIN MATHEW AKHILA SHOJI ENOCH DAVID SIMON JOEL RONY JOSE LEO LUKOSE KAROL MATHEWS SEBASTIAN ALENCHERRY DERICK MATHAI SAJI ## **OTHER PRESENT:** GOVT. PLEADER SMT. RESMI THOMAS THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05.10.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ## **SATHISH NINAN, J.** **= = = = = = = = = = = = = = = = = = W.P.(C) No.22002 of 2023** **= = = = = = = = = = = = = = = = = = Dated this the 5[th] day of October, 2023** **==> picture [116 x 10] intentionally omitted <==** Order under Rule 44(3) of the Kerala Co-operative Societies Rules disqualifying the petitioner from the Managing Committee of the 4[th] respondent Society, is under challenge in this writ petition. 2. The petitioner was elected to the Committee on 09.02.2020. He was the surety to a loan availed by one Mr.Sijo Jose who is a member of the Society. The principal borrower defaulted in the repayment of the loan. Finding that in spite of a demand made, the petitioner failed to clear the liability within one month thereof, the second respondent as per the impugned order held that the petitioner stands disqualified in terms of Rule 44(1)(c) of the Rules. W.P.(C) No.22002 of 2023 -: 2 :- 3. I have heard the learned counsel on either side. 4. The disqualification of a member of the Committee as provided under Rule 44(1)(c)(i) reads thus:- _“(c)(i) is in default to the society or to any other society in respect of any loan or loans taken by him or loan in which he had stood surety, for such period, as is prescribed in the byelaws of the society concerned or in any case for a period exceeding three months or is a defaulter to the society or to any other society.”_ As per the proviso to Rule 44(2)(a), such disqualification will accrue only after expiry of one month from the date of receipt of demand notice issued by the Society requiring payment of the amount. The proviso reads thus:- _“Provided further that the disqualification under subclause (i) of clause (c) of sub-rule (1) shall be deemed to be accrued only after expiry of a period of one month from the_ W.P.(C) No.22002 of 2023 -: 3 :- _date of receipt by the member concerned of a notice from the society demanding him to clear off the defaulted amount specified therein and he fails to remit or cause to remit the amount within the said period.”_ Notice requiring the petitioner to pay off the defaulted amount was issued to the petitioner on 13.07.2022, through registered post. As per proviso to 44(2)(a) referred to above, he ought to have cleared the liability within one month from the date of receipt of notice failing which he becomes disqualified. The liability was settled by the borrower only on 23.01.2023 ie. beyond the period stipulated. Therefore, the petitioner has incurred the disqualification. Once disqualification has occurred, subsequent payment will not efface the same or restore his membership; it has been held so by a Full Bench of this Court in _**Jalaja Gopan v. Joint Registrar of Co-operative Societies (General), Kollam and Others 2022 (3) KHC 552.**_ The relevant portion of which reads W.P.(C) No.22002 of 2023 -: 4 :- ## thus :- _“. . . . . Needless to say, if the member fails to remit or cause to remit the said amount before the expiry of the period specified therein, the would forfeit the benefit of the deeming provision and the disqualification would stand revived on the expiry of the period specified in the notice issued in terms of the proviso. If the disqualification revives on the expiry of one months from the date of receipt of the notice, proceedings under R.44(3) can be initiated at any time thereafter, notwithstanding whether he remits the defaulted amount at any time subsequent to the expiry of the period of one month from the date of receipt of the notice specified in the provisos. In other words, the person concerned need not continue to be a defaulter on the date of initiation of proceedings under R.44(3). If it is held that a member of the committee should be a defaulter as on the date of initiation of proceedings under R.44(3), the requirement in the provisos that the defaulted amount shall be remitted within one month from the date of receipt by the member concerned of the notice referred to therein, would be meaningless, for such an interpretation would imply that one need not have to make the payment of the defaulted amount within the time stipulated in the notice provided for in the provisos.”_ W.P.(C) No.22002 of 2023 -: 5 :- 5. In the light of the above, the second respondent was right in holding that the petitioner is disqualified to be a member. Ext.P3 order of the second respondent warrants no interference. Writ petition fails and is dismissed. Sd/- **SATHISH NINAN JUDGE** kns/- //True Copy// P.S. to Judge ## **APPENDIX OF WP(C) 22002/2023** PETITIONER EXHIBITS EXHIBIT-P1 THE TRUE COPY OF THE RECEIPT DATED 23.01.2023 ISSUED BY 5TH RESPONDENT EXHIBIT-P2 A TRUE COPY OF THE REPORT NO.ARGKGM/35/2023UI(1) DATED 30.01.2023 SUBMITTED BY THE 3RD RESPONDENT BEFORE THE 2ND RESPONDENT EXHIBIT-P3 THE TRUE COPY OF THE ORDER NO.CRP(1)146/2023K-DIS DATED 21.06.2023 PASSED BY THE 2ND RESPONDENT EXHIBIT P4 THE TRUE COPY OF THE NOTICE BEARING NO.CRP(1) 146/2023 DATED 25.03.2023 -----