The Managing Committee of Taliparamba Service Co-operative Bank Ltd. v. Joint Registrar of Co-operative Societies (General) and Dharaneedharan (Additional Respondent)
Case Details & Bench
- Court
- High Court of Kerala
- Hon'ble Judges
- N. Nagareesh
- Judgment Date
- 2023-12-21
- Court Decision / Holding
- Writ petition dismissed. The court held that Ext.P1 reflects the Registrar’s personal satisfaction and that the Section 65 enquiry is justified to investigate mismanagement and financial irregularities; the petition is without merit and the Larger Bench reference is not triggered.
- Final Disposition
- Writ petition dismissed
Parties to the Case
Appellants / Petitioners
- The Managing Committee of Taliparamba Service Co-operative Bank Ltd., No.F-1264, represented by its President, Taliparamba, Kannur District, PIN – 670141
Respondents
- The Joint Registrar of Co-operative Societies (General), Office of the Joint Registrar of Co-operative Societies, Civil Lines, 3rd Floor, Kannur, PIN – 670002
- Dharaneedharan, S/o. Narayanan, Residing at Netaji Housing Colony, Thrichambaram, Talipparamba, Kannur District, PIN – 670141 (Additional Respondent Suo Motu Imp impleaded as per order dated 22-03-2023)
Legal Representation & Advocates
Counsels for Petitioners
- • Shri P.N. Mohanan
- • Shri C.P. Sabari
- • Smt. Amrutha Suresh
- • Shri Gilroy Rozario
Counsels for Respondents
- • Shri Suresh Kumar Kodoth
- • Shri Sukarnan (K/001572/2021)
- • Smt. Sheeja C.S.
Case Synopsis & Summary
The Managing Committee of Taliparamba Service Co-operative Bank Ltd. (Petitioner) challenges Ext.P1, an order dated 07.02.2023 initiating a Section 65 enquiry into the bank, and seeks directions to the Joint Registrar to consider Ext.P2 for posts sanction within the time fixed by the court. The petition contends the enquiry covers a long period (2005-2006) and involves 18 years back, while the current Managing Committee was only in office since 28.10.2018; the petition argues that Section 65 can be invoked only for the constitution, working and financial condition of the Society, and only on the basis of complaints from members representing at least one third of the General Body. It asserts Rule 66(1)(c) requires specifying the exact points of enquiry, and that Ext.P1 does not reflect subjective satisfaction nor fall within Section 65’s scope, making it liable to be set aside. The 2nd respondent defends the order, asserting the Joint Registrar relied on earlier inspection reports (11.10.2021 and 22.11.2022) and that Ext.P1 lists 14 specific enquiry points, justifying the enquiry. The court notes the investigation concerns alleged irregularities including loan waivers, misappropriation, rent arrears, and mismanagement with significant losses (approx. ₹15 crore for 2020-2021). It finds Ext.P1 shows personal satisfaction and concludes the enquiry is necessary; reliance on Deputy Registrar’s report is held permissible. The petition is dismissed as lacking merit, and the Larger Bench reference is found unnecessary for this case.
Provisions of Law Cited
Submissions & Arguments
Contentions of Appellants / Petitioners
The petitioners contend Ext.P1, ordering a Section 65 enquiry, is unsustainable as it attempts to probe matters beyond the scope of Section 65 and beyond the three-year limitation in Schedule III; Rule 66(1)(c) requires specifying enquiry points, and there is no reflected subjective satisfaction for a suo motu enquiry. They argue the subject matter of the enquiry (e.g., One Time Settlement in 2005-2006, promotions, appointments, housing loans, waivers, rent arrears, out-of-area memberships, and building shifts) predates the current Managing Committee and falls outside the jurisdiction of the Joint Registrar, with arbitration court jurisdiction for employee disputes. They rely on Raveendran v. State of Kerala to argue employment disputes should be adjudicated by the Arbitration Court. The challenge seeks quashing Ext.P1 and directing Ext.P2 post consideration within time.
Contentions of Respondents
The respondents contend Ext.P1 is based on objective inspection reports (2021 and 2022) and that 14 specific points are enumerated in Ext.P1, justifying a Section 65 enquiry. They argue the Registrar exercised personal satisfaction after reviewing reports indicating prima facie evidence of mismanagement and irregularities. The order is lawful, within the jurisdiction of Section 65, and necessary to address alleged irregularities and strengthen the bank’s condition; the Larger Bench issue is not applicable here as the enquiry is grounded in the Deputy Registrar’s report.
Cited Precedents (1)
| Case Name | Citation | Treatment | Explanation |
|---|---|---|---|
| Raveendran v. State of Kerala | 2007 (3) KLT 558 | Mentioned Only | Cited by petitioner to argue arbitration for certain employment disputes; court did not discuss or follow the principle in its judgment. |
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