High Court of KeralaDivision BenchWrit Appeal disposed of; impugned judgment modi...

Riji G. Nair (Dr.) v. State of Kerala & Ors.

Case / Petition Number:W.A. No. 1554 of 2017; WP(C) No. 36951 of 2017

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Alexander Thomas
  • Shoba Annamma Eapen
Judgment Date
2022-08-03
Court Decision / Holding
The impugned judgment is modified and substituted to require that, if the competent authority contemplates adverse proceedings under Sec.68 based on a Sec.65 inquiry, copies of Sec.65(1) and Sec.68(1) reports must be supplied to the appellant at the Sec.68(2) stage, with the safeguards from W.A. No. 1500/2021 strictly adhered to. No further directions are deemed necessary beyond ensuring compliance with law; the writ appeal is disposed of, and the WP(C) is disposed of with identical directions.
Final Disposition
Writ Appeal disposed of; impugned judgment modified and substituted; directives issued to ensure due process in Sec.65/68 proceedings; WP(C) disposed with identical directions.

Parties to the Case

Appellants / Petitioners

  • Dr. Rigi G. Nair

Respondents

  • Registrar of Co-operative Societies, Thiruvananthapuram-695001
  • Kerala State Co-operative Consumer Federation Ltd., No. 4328 (CONSUMERFED), represented by its Managing Director, Gandhi Nagar, Kochi-682020
  • The Enquiry Officer, Joint Registrar of Co-operative Societies (SC/ST), Consumer Federation, Office of the Registrar of Co-operative Societies, Thiruvananthapuram
  • State of Kerala, represented by the Secretary to Government, Co-operation (A) Department, Government Secretariat, Thiruvananthapuram-695001

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. D. Somasundaram

Counsels for Respondents

  • • Sri Saigi Jacob Palatty, Sr.G.P.
  • • Sri M. Sasindran, SC

Case Synopsis & Summary

This intra-court appeal (W.A. No. 1554 of 2017) and the connected WP(C) No. 36951 of 2017 challenge actions under the Kerala Co‑operative Societies Act, notably concerning Section 101 and the interplay of Sec.65 inquiry with potential Sec.68 proceedings. The matter traces to a writ petition challenging the validity of orders and procedures in a cooperative dispute, leading the court to refer the matter to a Full Bench. The Full Bench, in its reference decision reported as Riji G.Nair (Dr.) v. State of Kerala & Ors. (2020 (6) KHC 633 (FB)), held that Section 101 can operate retrospectively in public interest, but with a caveat that vested rights cannot be defeated; it also held that the earlier judgments Sankaranarayanan and Benny Peruvanthanam do not lay down correct law on the point. In the present decision, the Division Bench (comprising Alexander Thomas, J. and Shoba Annamma Eapen, J.) directs that if the 1st respondent contemplates adverse action under Sec.68 on the basis of a Sec.65(1) inquiry, copies of the Sec.65(1) and Sec.68(1) reports must be supplied at the Sec.68(2) stage with safeguards (as in W.A. No. 1500/2021). While noting that no Sec.68 proceedings are currently initiated, the court emphasizes adherence to due process. The impugned judgment is modified accordingly and the writ appeal disposed of, with the WP(C) proceeding similarly disposed under the same directions.

Provisions of Law Cited

Section 101 of the Co-operative Societies ActSection 65Section 68Section 65(1)Section 68(1)Section 68(2)

Submissions & Arguments

Contentions of Appellants / Petitioners

The counsel for the applicant contends that the power under Section 101 can operate retrospectively in public interest, subject to not taking away vested rights. He seeks to ensure due procedure before taking any adverse action under Sec.65/68, including furnishing copies of the Sec.65(1) and Sec.68(1) inquiry reports at the Sec.68(2) stage and adherence to safeguards laid down in W.A. No. 1500/2021, while reserving all contentions for raising at appropriate stages.

Contentions of Respondents

The respondents emphasize adherence to statutory procedures under the Act, relying on the Full Bench’s interpretation and other Full Bench judgments. They underscore that any retrospective exemption must respect vested rights and procedural safeguards, and they rely on Kudayathoor Service Co-operative Bank Ltd. (FB) and related jurisprudence to support procedural norms, while highlighting that no Sec.68 proceedings are presently established and that due process must be the governing principle.

Cited Precedents (5)

Case NameCitationTreatmentExplanation
Riji G.Nair (Dr.) v. State of Kerala & Ors.2020 (6) KHC 633 (FB)PositiveFull Bench decision cited as the binding authority answering the reference; it lays down retrospective operation of Sec.101 subject to vesting rights.
Sankaranarayanan (supra)-OverruledFull Bench states that Sankaranarayanan does not lay down the correct law on the issue.
Benny Peruvanthanam (supra)-OverruledFull Bench states that Benny Peruvanthanam does not lay down the correct law on the issue.
Kudayathoor Service Co-operative Bank Ltd. v. Joint Registrar of Co-operative Societies (General)2022 (3) KLT 222 (FB)PositiveCited to support that copy of Sec.65 inquiry report need not be given at completion of Sec.65 inquiry; used to guide subsequent procedure.
W. A. No. 1500/2021-PositiveJudgment relied upon for procedural safeguards at Sec.68(2) stage and related procedure.

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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 ALEXANDER THOMAS** **&** **THE HONOURABLE MRS. JUSTICE SHOBA ANNAMMA EAPEN** **WEDNESDAY, THE 3[RD] DAY OF AUGUST 2022 / 12TH SRAVANA, 1944** **W.A. NO. 1554 OF 2017** **AGAINST THE JUDGMENT DATED 6.3.2017 IN W.P.(C) NO. 39358/2016 OF THE HIGH COURT OF KERALA** ## **APPELLANT/PETITIONER:** **DR.RIGI G.NAIR, "SRI SRI", NELLIMUKKU,THIRUMULLAVAROM P.O, KOLLAM** **BY ADV. SRI.D.SOMASUNDARAM** ## **RESPONDENTS:** - **1 REGISTRAR OF CO-OPERATIVE SOCIETIES, THIRUVANANTHAPURAM-695 001.** - **2 KERALA STATE CO-OPERATIVE CONSUMER FEDERATION LTD. NO. 4328 (CONSUMERFED) REPRESENTED BY ITS MANAGING DIRECTOR, GANDHI NAGAR, KOCHI 682 020.** - **3 THE ENQUIRY OFFICER, JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (SC/ST), CONSUMER FEDERATION, OFFICE OF THE REGISTRAR OF CO-OPERATIVE SOCIETIES, THIRUVANANTHAPURAM.** **SRI. SAIGI JACOB PALATTY, SR.G.P. FOR R1 & R3 SRI.M.SASINDRAN, SC FOR R2** **THIS WRIT APPEAL HAVING BEEN FINALLY HEARD ON 3.08.2022 ALONG WITH W.P.(C).NO.36951/2017, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** # **PRESENT** **THE HONOURABLE MR. JUSTICE ALEXANDER THOMAS** **&** **THE HONOURABLE MRS. JUSTICE SHOBA ANNAMMA EAPEN** # **WEDNESDAY, THE 3[RD] DAY OF AUGUST 2022 / 12TH SRAVANA, 1944 WP(C) NO. 36951 OF 2017** ## **PETITIONER:** **DR.RIJI G.NAIR, AGED 56 YEARS, S/O.P.K.GANGADHARAN NAIR, 'SRI SRI', NELLIMUKKU THIRUMULLAVAROM P.O., KOLLAM.** **BY ADV. SRI.D.SOMASUNDARAM** ## **RESPONDENTS:** - **1 STATE OF KERALA, REPRESENTED BY THE SECRETARY TO GOVERNMENT, CO-OPERATION (A) DEPARTMENT, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM-695001.** - **2 REGISTRAR OF CO-OPERATIVE SOCIETIES, THIRUVANANTHAPURAM-695001.** - **3 KERALA STATE CO-OPERATIVE CONSUMER FEDERATION LTD. NO.4328 (CONSUMER FED), REPRESENTED BY ITS MANAGING DIRECTOR, GANDHI NAGAR, KOCHI-682020.** **SRI. SAIGI JACOB PALATTY, SR.G.P. FOR R1 & R2 SRI.M.SASINDRAN, SC FOR R3** **THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON** **03.08.2022 ALONG WITH W.A.NO.1554/2017, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** ALEXANDER THOMAS & SHOBA ANNAMMA EAPEN, JJ. =============================================== W. A. No. 1554 of 2017 _(arising out of the impugned judgment dated 6.3.2017 in W.P.(C) No. 39358/2016)_ & ## W. P. (C) No. 36951 of 2017 =============================================== Dated this the 3[rd] day of August, 2022 ## J U D G M E N T ## ALEXANDER THOMAS, J. ## W. A. No. 1554 of 2017 The subject matter of the above intra court appeal is the impugned judgment rendered on 6.3.2017 by the learned Single Judge dismissing the instant Writ Petition (Civil) No.39358/2016. The appellant herein is the petitioner in the WP(C) and the respondents herein are the respondents in the WP(C). 2. Heard Sri.D.Somasundaram, learned counsel appearing for the appellant in the W.A., Sri.Saigi Jacob Palatty, learned Senior Government Pleader appearing for R-1 & R-3 in the W.A. and Sri.M.Sasindran, learned Standing Counsel for the Kerala State Co-operative Consumer Federation Ltd. No. 4328 (CONSUMERFED) appearing for R-2 in the W.A. 3. During the pendency of this appeal, the Division W. A. No. 1554/2017 & W. P. (C) No. 36951/2017 ..2.. Bench of this Court had referred these matters to the Full Bench, and the Full Bench has thereafter answered the reference vide order rendered on 3.12.2020. The full text of the reference order of the Full Bench in this case has been reported as _**Riji G.Nair (Dr.) v. State of Kerala & Ors.** [2020 (6) KHC 633 (FB)]_ . The reference has been answered by the Full Bench, as can be seen from the last paragraph thereof (para 37), which reads as follows: _“37. Section 101 of the Act, is intended to subserve public interest and therefore, in public interest, if it is felt by the Government that exemption has to be given to any society from the provisions of the Act retrospectively, the said power is not taken away in any manner. However, each case will have to be considered on its own merits in order to evaluate whether the power of exemption had been exercised in public interest. There might be instances where a vested right had been created in favour of any person on account of the statutory mandate. In such circumstances, the State Government cannot exercise the power of exemption retrospectively, but in respect of procedural matters, there is absolutely no restriction on the part of the Government in granting exemption retrospectively._ _In the light of the above discussion, we answer the reference as under:-_ _(i) That S.101 of the Act can have retrospective operation subject to the limitation that vested rights cannot be taken away by invoking the above provision._ _(ii) To the extent mentioned above, the judgments in_ _**Sankaranarayanan** (supra) and_ _**Benny Peruvanthanam** (supra) do not lay down the correct law._ _Registry shall place the matter for hearing before the appropriate court. ”_ ## 4. Today when the matter has been taken up for consideration, Sri.D.Somasundaram, learned counsel appearing for the appellant, would submit that, it is not known as to whether W. A. No. 1554/2017 & W. P. (C) No. 36951/2017 ..3.. Sec.65 inquiry has been duly completed and that if Sec.68 surcharge proceedings are taken by the competent authority among the respondents, then it goes without saying that, copy of said Sec.65 inquiry report be given to him, and thereafter the stage may have to go to Sec.68(2) stage, etc. and the procedural safeguards thereof have been dealt with by the Division Bench of this Court in a recent judgment in W.A.No.1500/2021. It is thus urged by the counsel for the appellant that, liberty may be accorded to the appellant to raise all contentions available to him and that the competent respondent authority may follow the due procedure, if at all it is contemplated to initiate Sec.68 proceedings, etc. 5. It has been held in another Full Bench decision of this Court in _**Kudayathoor Service Co-operative Bank Ltd. v. Joint Registrar of Co-operative Societies (General)** [2022 (3) KLT 222 (FB)]_ that copy of Sec.65 inquiry report need not be given at the completion of Sec.65 inquiry process or commencement of Sec.68(1) stage. But, the procedure thereafter for initiating proceedings under Sec.68(2), has been dealt with in a recent judgment of this Court in W. A. No. 1500/2021. W. A. No. 1554/2017 & W. P. (C) No. 36951/2017 ..4.. 6. Therefore, it is ordered that if the 1[st] respondent/ competent authority proposes to take any adverse proceedings against the appellant, on the basis of Sec.65(1) inquiry report, by taking recourse to proceedings under Sec.68, etc., then copy of Sec.65(1) inquiry report and Sec.68(1) inquiry report should be given to the appellant at the Sec.68(2) stage and the procedural safeguards, as dealt with in the judgment of the Division Bench of this Court in W. A. No. 1500/2021, should also be strictly adhered to at the Sec.68(2) stage. No other directions and orders are called for. 7. We are told that as of now, no such proceedings under Sec.68 has been initiated against the appellant. So also, we are not fully aware as to whether Sec.65 inquiry proceedings itself has been completed or not. Hence, there is no necessity for us to issue any further orders and directions, except that the respondents shall proceed strictly in accordance with law, and all contentions available to the appellant in law are kept open to be raised by him at the appropriate stage in appropriate proceedings, in the manner known to law. The impugned judgment rendered by the learned Single ..5.. W. A. No. 1554/2017 & W. P. (C) No. 36951/2017 Judge in the above WP(C) will stand modified and substituted as above. With these observations and directions, the above Writ Appeal will stand disposed of. ## W. P. (C) No. 36951 of 2017 After hearing both sides, it is ordered that the directions and orders passed by this Court in the afore judgment in W. A. No. 1554/2017 will also be applicable in the instant case (WP(C).No.36951/2017). With these observations and directions, the above Writ Petition (Civil) will stand disposed of. Sd/- ALEXANDER THOMAS, JUDGE Sd/- SHOBA ANNAMMA EAPEN, JUDGE MMG ## **APPENDIX OF WP(C).NO.36951/2017** ## **PETITIONER'S EXHIBITS:** **EXHIBIT P1 A TRUE COPY OF THE ORDER NO.CS(I)25788/2015 DATED 22/09/2015. EXHIBIT P2 A TRUE COPY OF THE INTERIM REPORT SEEKING EXTENSION OF THE PERIOD OF ENQUIRY. EXHIBIT P3 A TRUE COPY OF THE JUDGMENT DATED 06/03/2017 IN WRIT PETITION (C)NO.39538/2016. EXHIBIT P4 A TRUE COPY OF THE GAZATTE NOTIFICATION DATED 29/07/2017.**