Ratheesan C. et al. v. Chevayur Service Co-Operative Bank Ltd. and Others

**IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR. JUSTICE SATHISH NINAN FRIDAY, THE 17[TH] DAY OF SEPTEMBER 2021 / 26TH BHADRA, 1943** **WP(C) NO. 6848 OF 2020** ## **PETITIONERS:** 1 RATHEESAN .C. AGED 56 YEARS S/O.APPU, THARAMMAL HOUSE, CHEVAYUR, KOZHIKKODE DISTRICT. 2 SUDHEENDRADAS.K, S/O.DHARMARAJ, IDAVAZHIPPURATH, KUTHIRAVATTAM, KOTTOLI, KOZHIKKODE DISTRICT. 3 ABDUL KAREEM A.K., S/O.IMBICHI KOYA, ANCHUKANDATHIL, PAROPPADI, MERIKKUNNU P.O., KOZHIKKODE DISTRICT. 4 SWAPNA K.P., D/O.VALSAN, MULLAMPARAMBATH, MERIKKUNNU P.O., KOZHIKKODE DISTRICT. 5 SHEEBA K., D/O.SREENIVASAN, PARAPPIL, EAST DEVAGIRI, MEDICAL COLLEGE, KOZHIKKODE DISTRICT. 6 SHYAM SACHITH P.V., S/O.P.V.DAMODHARAN, SNEEHAM, PANDARAPPARAMBA, PUTHIYARA P.O., KOZHIKKODE. 7 SAJITHA K., D/O.RARICHAKKUTTY, KANDIYIL HOUSE, MANGOTTU VAYAL, KOTTOOLI, KOZHIKKODE DISTRICT. 8 ABOOBACKER A.P., S/O.PAKKER HAJI, PANACHINGAL THAZHAM, NELLIKKODE, KOZHIKKODE DISTRICT. BY ADVS. SRI.B.S.SWATHI KUMAR SMT.ANITHA RAVINDRAN SRI.HARISANKAR N UNNI SMT.P.S.BHAGYA SURABHI **WP(C) NO. 6848 OF 2020 -2-** ## **RESPONDENTS:** |1|CHEVAYUR SERVICE CO-OPERATIVE BANK LTD NO.F 1245,| |---|---| ||CHEVARAMBALAM, KOZHIKODE-673017, REPRESENTED BY ITS GENERAL| ||MANAGER.| |2|THE ELECTORAL OFFICER/THE ASSISTANT REGISTRAR OF CO-| ||OPERATIVE SOCIETIES (GENERAL),| ||PUTHIYARA, KOZHIKODE, ELECTION TO THE MANAGING COMMITTEE OF| ||THE CHEVAYUR SERVICE CO-OPERATIVE BANK LTD.NO.F.1245,| ||CHEVARAMBALAM, KOZHIKODE-673017.| |3|THE RETURNING OFFICER/UNIT INSPECTOR,| ||CIVIL STATION, OFFICE OF THE ASSISTANT REGISTRAR OF CO-| ||OPERATIVE SOCIETIES (G), KOZHIKODE, ELECTION TO THE| ||MANAGING COMMITTEE OF ELECTION TO THE MANAGING COMMITTEE OF| ||THE CHEVAYUR SERVICE CO-OPERATIVE BANK LTD.NO.F.1245,| ||CHEVARAMBALAM, KOZHIKODE-673017.| |4|G.C.PRASANTH KUMAR,| ||S/O.GOVINDAN KUTTY NAIR, PRASANTHAM, NELLIKKODE HOUSING| ||COLONY, CHEVAYUR POST, CALICUT-673017.| |5|PUSHPARAJ K.P.,| ||S/O.GOVINDAN K.P., KRISHNA POYIL HOUSE, MEDICAL COLLEGE| ||P.O., KOZHIKKODE-673008.| |6|SADANANTHAN.P.,| ||S/O.PADMANABHAN, KIRAN NIVAS, 33/2400, POOLAN CHALIL,| ||MERIKKUNNU, KOZHIKKODE-673012.| |7|MOHANDAS.P.,| ||S/O.APPUTTY, THOTTATHIL HOUSE, 28/245, NELLIKKODE P.O.,| ||KOZHIKKODE-673016.| |8|ANIL KUMAR.C.,| ||S/O.KELUKKUTTY, CHALIL HOUSE, METHAL NANGOLATH, CHEVAYUR,| ||KOZHIKKODE-673017.| |9|MOHANANDAS.P.,| ||S/O.NARAYANI AMMA, PUTHIYOTTIL, MERIKKUNNU P.O.,| ||KOZHIKKODE-673012.| |10|PREMEELA.M.,| ||D/O.KESAVAN NAIR, CHIRAKKAL, 33/1860, MERIKKUNNU P.O.,| ||KOZHIKKODE-673012.| |11|RAJI.T.,| ||D/O.IMBICHUNNI, THAROL HOUSE, MEDICAL COLLEGE P.O.,| ||KOZHIKKODE-673008.| **WP(C) NO. 6848 OF 2020 -3-** 12 SWARNALATHA, D/O.VELAYUDHAN NAIR, ELAVANA PARAMBA, KOTTOOLI P.O., KOZHIKKODE-673016. 13 P.T.JANARDHANAN, S/O.AYYAPPAN P.T., PULIYANGOTTU THAZHATH, CHEVARAMBALAM P.O., KOZHIKKODE-673017. 14 P.K.SUBHASH CHANDRAN, S/O.CHAPPAN PANICKER, CHANDRAKANTHAM, PINAKKARAMBATH, MEDICAL COLLEGE P.O., KOZHIKKODE-673008. 15 ANJU.K., D/O.RAGHUNATH.K., DEEPAM, KOZHAKKE KOLATHAI PARAMBA, IRINGALLUR DESOM, P.G.O.A COLLEGE, CALICUT-673014. 16 P.RAJESH, S/O.RADHAKRISHNAN, VADAKKEYIL HOUSE, THIRICHILANGADI, CHUNGAM, FEROKE COLLEGE P.O., KOZHIKKODE-673632. 17 THE CO-OPERATIVE ARBITRATION COURT(NORTHERN), KOZHIKODE-673001. 18 SASIDHARAN K., S/O.BALAKRISHNAN NAIR, VIPANCHIKA, MAILAMBADI, KUTHIRAVATTAM P.O., KOZHIKODE DISTRICT-673016. BY ADVS. SRI.GEORGE POONTHOTTAM (SR.) SRI.R.SUDHISH SMT.M.MANJU SMT.NISHA GEORGE BY SMT.SHEEJA C.S., SR. GOVT. PLEADER THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17.09.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ## **SATHISH NINAN, J.** **= = = = = = = = = = = = = = = = = = W. P. (C) No.6848 of 2020** **= = = = = = = = = = = = = = = = = = Dated this the 17[th] day of September, 2021** ## **J U D G M E N T** Petitioners are the members of the first respondent Society. Election held to the managing committee of the Society is under challenge by petitioners herein, before the Arbitration Court in ARCs 61/2019 and ARCs 62/2019. In the ARCss, the petitioners filed interlocutory applications, “to restrain the elected members from taking policy decisions, from admitting new members, appointing new employees, opening new branches and from doing any financial transactions exceeding Rs.20 lakhs”, and, “for a direction for production of CCTV footage, hard disk and hard copy from 10.09.2019 to 17.11.2019 without editing and original share application form of member's Number from 35970 to 36982 and the minutes book taking resolution to sanction the admission of new members from 35970 to 36982, day book, share suspense receipt and share capital receipt from **W. P. (C) No.6848 of 2020** -: 2 :- 10.09.2019 to 17.11.2019”. As per order dated 30.01.2020 (Ext.P6), the applications were dismissed. It is challenging the said order that this writ petition is filed. 2. Heard learned counsel on either sides. 3. A preliminary objection is raised by the respondents that, the orders impugned are revisable under Section 84 of the Co-operative Societies Act and hence the petitioners are to be relegated to the statutory remedy. They also relied on a judgment of this Court in _**Sukumaran Pillai v. Co-operative Tribunal [1990 Vol 2 KLT 710]**_ , to canvass the contention. The writ petition was filed as early as on 05.03.2020. It was entertained by this Court and an interim order was granted. It had been pending consideration of this Court till now. I do not think it appropriate or necessary to relegate the petitioners to the revisional remedy at this distance of time. **W. P. (C) No.6848 of 2020** -: 3 :- 4. On the merits, according to the petitioners, the election to the managing committee of the Society was notified on 05.10.2019 and election was held on 17.11.2019. On the eve of notification of election i.e. on 12.09.2019 and 16.09.2019, a total number of 1013 persons were enrolled as members. They were assigned with membership numbers from 35970 to 36982. In the ARCs, various grounds of challenge are urged, including the alleged bulk enrollment. The petitioners would contend that there has been no consideration of the applications on the merits. On the reliefs sought for against the functioning of the committee, the Arbitration Court held that a prima facie case has not been made out by the petitioners. According to the petitioners, the Arbitration Court, to enter such a finding, has solely stated that, the petitioners had earlier approached this Court prior to the conduct of election but this Court refused to interfere with the **W. P. (C) No.6848 of 2020** **==> picture [34 x 10] intentionally omitted <==** conduct of election, and that when they approached this Court after the conduct of election by challenging the refusal of the Arbitration Court to grant ex parte interim relief, this Court only directed the elected managing committee not to enroll new members without imposing any further restrictions. 5. While it is true that the Arbitration Court has made the above observations and that the same also seems to have weighed with the Court, I do notice that the Arbitration Court has also taken note of the fact that an elected committee has assumed office and that it is not proper to restrain the elected body from administering the society till the election petition is finally disposed of. It was also noticed that fixing a ceiling for monitory transactions is also not the interests of the Society. As regards the applications to call for certain documents, the Arbitration Court dismissed the same with liberty to file fresh **W. P. (C) No.6848 of 2020** -: 5 :- application when the case is posted for steps and production of documents. 6. I am of the opinion that the view expressed by the Arbitration Court that the elected managing committee which has assumed office is not to be interfered with from exercising its functions till the final disposal of the election petition, is correct. I notice that, in the earlier round of litigation, this Court in W.P.(C) No.34694/2019 as per judgment dated 18.12.2019 while directing the Arbitration Court to consider the interlocutory applications in question, restrained enrollment of new members. After the dismissal of the applications by the Arbitration Court, this Court in this writ petition passed an interim order on 06.03.2020 directing the committee not to take any policy decision or to enroll new members. The said interim order is still in force. **W. P. (C) No.6848 of 2020** -: 6 :- 7. Taking note of the entire facts, it is ordered that, new members with voting rights need not be enrolled till disposal of the election petition. No other rights of the managing committee are interfered with. 8. As regards the prayer for calling for certain documents, it was not necessary for the Arbitration Court to have dismissed the applications reserving liberty to move afresh. It would have been proper that the applications were considered on merits and orders passed. 9. Accordingly, the writ petition is allowed. The impugned common order is set aside. The applications will stand allowed as above. The Arbitration Court shall make every endeavour to have the ARCs tried and disposed of as expeditiously as possible and at any rate within a period of three months from the date of receipt of a copy of this judgment. If the respondents make a request **W. P. (C) No.6848 of 2020** -: 7 :- for consideration of the maintainability of the ARCs as a preliminary issue, then the same shall be considered and appropriate orders passed without delay. kns/- Sd/- **SATHISH NINAN JUDGE** P.S. to Judge //True Copy// ## **APPENDIX OF WP(C) 6848/2020** |PETITIONER EXHIBITS|| |---|---| |EXHIBIT P1|TRUE COPY OF THE ARC NO.61/2019 DATED| ||28.11.2019 FILED BEFORE THE 17TH RESPONDENT.| |EXHIBIT P2|TRUE COPY OF THE I.A.NO.201(A).2019 IN ARC| ||NO.61/2019 DATED 28.11.2019.| |EXHIBIT P3|TRUE COPY OF THE I.A.NO.204/2019 IN ARC| ||NO.61/2019 DATED 28.11.2019.| |EXHIBIT P4|TRUE COPY OF THE ORDER OF THE 17TH RESPONDENT| ||DATED 03.12.2019.| |EXHIBIT P5|TRUE COPY OF THE JUDGMENT IN W.P.| ||(C)NO.34694/2019 DATED 18.12.2019.| |EXHIBIT P6|TRUE COPY OF THE ORDER IN I.A.NO.201(A)/2019,| ||I.A.NO.20/2019 IN ARC NO.61/2019 DATED| ||30.01.2020.| -----