U.P. Chakkappan and Others v. Joint Registrar of Co-operative Societies (General) and Others

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR. JUSTICE SATHISH NINAN** ## **MONDAY, THE 4[TH] DAY OF APRIL 2022 / 14TH CHAITHRA, 1944** ## **WP(C) NO. 7551 OF 2022** ## **PETITIONERS:** 1 U.P. CHAKKAPPAN, AGED 74 YEARS ULOTH HOUSE, PERUVA P.O, VAIKOM, KOTTAYAM 686 141 2 CHERIYAN K. JOSE, KISHAKKEPARAMBIL HOUSE, THIRUVAMBADY P.O, KOTTAYAM 686 612. 3 JOSE PUTHENKALA, PUTHENKALAYIL, POOZHIKOL P.O, KOTTAYAM-686 604 4 P.T. GEORGE, THEKKEPAKKARAMBEL, VAKKAD P.O, KOTTAYAM-686 636 5 K.T. CYRIAC, NEYYATHUPARAMBIL, KADUTHURUTHY P.O, KOTTAYAM 686 604. 6 SIMON N.I. NEDUMTHURUTHIPUTHENPURAYIL, KALLARA SOUTH, KOTTAYAM 686 611. 7 N. MANILAL, UDAYA BHAVAN, KATTAMPACK P.O, KOTTAYAM 686 612. 8 GEETHA RAMACHANDRAN, GEETHAMANDIRAM, KARIKKODE P.O, KOTTAYAM 686 610. 9 ANCY SIBI, MANDAPATHIL, MANJOOR P.O, KOTTAYAM 686 603. 10 SHEENA GEORGE, PULIKKAPARAMBIL , MANJOOR P.O, KOTTAYAM 686 603. 11 P.A. JOSEPH, KUNNUTHOTTIYIL, MANJOOR P.O, KOTTAYAM 686 603. BY ADVS. P.N.MOHANAN C.P.SABARI AMRUTHA SURESH GILROY ROZARIO **WP(C) NO. 7551 OF 2022 -2-** ## **RESPONDENTS:** 1 THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL), OFFICE OF THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES, COLLECTORATE POST, KOTTAYAM 686 001. 2 ADMINISTRATOR, KADUTHURUTHY URBAN CO-OPERATIVE BANK LTD. NO. K 399, KADUTHURUTHY P.O, KOTTAYAM-686 604. 3 KADUTHURUTHY URBAN CO-OPERATIVE BANK LTD. NO. K 399, REPRESENTED BY ITS GENERAL MANAGER, KADUTHURUTHY P.O, KOTTAYAM 686 604. 4 CHIEF EXECUTIVE OFFICER, KADUTHURUTHY URBAN CO-OPERATIVE BANK LTD. K. 399, KADUTHURUTHY P.O, KOTTAYAM 686 604. ## *ADDL. 5th RESPONDENT SECRETARY TO GOVERNMENT, DEPARTMENT OF CO-OPERATION, THIRUVANANTHAPURAM - [ADDL. 5TH RESPONDENT IS SUO MOTU IMPLEADED IN THIS WRIT PETITION AS PER ORDERS OF THIS COURT DATED 04.04.2022] * ADDL. RESPONDENTS 6 TO 9 6 ADV.MADHU ABRAHAM AGED 52 YEARS, S/O ABRAHAM, KALAYIL HOUSE, VELLASSERY, KADUTHURUTHY PO, PIN – 686604, KOTTAYAM DISTRICT. 7 C.K.SASI, AGED 50 YEARS, S/O KUTTAPPAN (LATE) PUTHIYAPARAMBIL HOUSE, THIRUVAMPADY PO, PIN – 686612, KADUTHURUTHY, KOTTAYAM DISTRICT. 8 K.R.SAJEEVAN, AGED 54 YEARS, S/O RAGHAVAN (LATE), KOMALASADANAM HOUSE, AVARMA, PERUMPADAVAM PO, KOTTAYAM DISTRICT, PIN-686665. **WP(C) NO. 7551 OF 2022 -3-** 9 THOMAS.M.J AGED 70 YEARS, S/O JOSEPH (LATE) KALAYIL HOUSE, VALACHIRA, KADUTHURUTHY PO, PIN – 686604, KOTTAYAM DISTRICT. * [ADDL. RESPONDENTS 6 TO 9 ARE IMPLEADED AS PER ORDERS OF THIS COURT DATED 04.04.2022 IN IA 2/2022 IN WPC 7551/2022] BY ADVS. P.RAVINDRAN (SR.) P.M.JOSEPH SREEDHAR RAVINDRAN R.S.HARI KUMAR SPL.G.P SRI.P.P.THAJUDHEEN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 04.04.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ## **SATHISH NINAN, J.** **= = = = = = = = = = = = = = = = = = W.P.(C) No.7551 of 2022** **= = = = = = = = = = = = = = = = = = Dated this the 4[th] day of April, 2022** ## **J U D G M E N T** Ext.P7 order of supersession of the Committee of the third respondent Society, under Section 32 of the Kerala Co-operative Societies Act (hereinafter referred to as “the Act”), is under challenge in this writ petition by eleven of its committee members. 2. Heard Sri.P.N.Mohanan, learned counsel for the petitioners, Sri.P.Ravindran, learned Senior Counsel for respondents 2 to 4, Sri.P.P.Thajudheen, learned Special Government Pleader, and Sri.P.M.Joseph, learned counsel for the additional respondents 6 to 9. 3. Though various grounds of challenge are urged against Ext.P7 order of supersession, since it is seen that the order is liable to be interfered with even on one among the grounds, I do not consider it necessary to go into the merits of the others grounds. **W.P.(C) No.7551 of 2022** -: 2 :- 4. Section 32(2) of the Act reads thus:- _“(2) The Registrar shall consult the financing bank and Circle Co-operative Union or State Co-operative Union as the case may be before passing an order under sub-sec.(1).”_ The sub-section mandates consultation by the Registrar with the financing bank and the Co-operative Union, before an order of supersession is passed. 5. Law is settled that, the term “consultation” occurring in Section 32(2) means, “meaningful consultation”. It involves a process of discussion based on the materials, as to whether the drastic step of supersession of the elected managing committee is to be resorted to or not. In the consultation process under Section 32(2), the consultee is to be provided with the objections/explanations, the tentative findings formed by the Registrar with reference to such objections, and also the materials based on which the tentative findings are entered. [See _**Ellakkal Service Co-Operative Bank v. State of Kerala (1997 (2) KLT 85)**_ , _**Sahadevan v. Padmanabhan (2004 (1) KLT**_ **W.P.(C) No.7551 of 2022** -: 3 :- _**192)**_ , _**Johny Kachappally v. Joint Registrar of Co-operative Societies (2022 (1) KLT 183)**_ and _**State of M.P. v. Sanjay Nagayach (2013 (2) KLT 733(SC))**_ ]. 6. Ext.P5 is the objections dated 26.02.2022 submitted to the notice under Section 32(1). The objections/explanations and the tentative findings arrived at by the first respondent upon consideration of the same, have not been made available to the consultees. Therefore, in the light of the law as noticed above, it can only be held that there was no “consultation” as required under Section 32(2) of the Act. On that sole ground Ext.P7 order is liable to be interfered with. 7. Accordingly, the writ petition is allowed. Ext.P7 order of supersession is quashed. However, this shall be without prejudice to the rights to initiate fresh proceedings in accordance with law. 8. Though the sustainability or otherwise of Ext.P2 inspection report is not being gone into at this stage, **W.P.(C) No.7551 of 2022** -: 4 :- considering the findings therein, but making it clear that no opinion has been formed on the merits thereof, it is ordered that no policy decisions shall be taken by the Committee till final orders are passed on the supersession proceedings, if any, initiated within a period of two weeks from today. Ext.P6 is stated to be an appeal pending before the additional 5[th] respondent against Ext.P1 order of inquiry and Ext.P2 the consequential report. The parties shall appear before the additional 5[th] respondent at 3.00 p.m. on 18.04.2022 for hearing on the appeal. The additional 5[th] respondent shall have the appeal heard and disposed of within a period of two weeks therefrom. It is made clear that I have not expressed on the merits or otherwise of the appeal, and all questions including the maintainability are left open. Sd/- **SATHISH NINAN** kns/- //True Copy// P.S. to Judge ## **APPENDIX OF WP(C) 7551/2022** PETITIONER EXHIBITS |Exhibit P1|A TRUE COPY OF THE ORDER DATED 27.01.2021 OF| |---|---| ||THE JOINT REGISTRAR.| |Exhibit P2|A TRUE COPY OF THE REPORT DATED 30.11.2021| ||UNDER SECTION 66 (1) OF THE KCS ACT.| |Exhibit P3|A TRUE COPY OF THE NOTICE DATED 27.01.2022 OF| ||THE JOINT REGISTRAR.| |Exhibit P4|A TRUE COPY OF THE LETTER DATED 09.02.2022 OF| ||THE ADVOCATE OF THE PETITIONERS.| |Exhibit P5|A TRUE COPY OF THE OBJECTIONS DATED| ||26.02.2022 OF THE PETITIONERS ALONG WITH| ||ACKNOWLEDGMENT DATED 26.02.2022 OF THE| ||PETITIONERS ALONG WITH ACKNOWLEDGMENT DATED| ||26.02.2022 ISSUED BY THE DEPUTY REGISTRAR.| |Exhibit P6|A TRUE COPY OF THE APPEAL BEFORE THE| ||GOVERNMENT ALONG WITH THE CHALAN.| |Exhibit P7|A TRUE COPY OF THE ORDER DATED 04.03.2022 OF| ||THE FIRST RESPONDENT.| |Exhibit P8|A TRUE COPY OF THE CIRCULAR NO. 45/2013 DATED| ||12.07.2013 OF THE REGISTRAR OF CO-OP| ||SOCIETIES.| |Exhibit P9|A TRUE COPY OF THE JUDGMENT AS REPORTED IN| ||2004 KLT 192.| |1stRESPONDENT's|EXHIBITS| |Exhibit|Exhibit R1(a)| |Exhibit|Exhibit R1(b)| |Exhibit|Exhibit R1(c)| |Exhibit|Exhibit R1(d)| |Exhibit|Exhibit R1(e)| APPENDIX- **WP(C) 7551/2022** -2- |Exhibit|Exhibit R1(f)| |---|---| |RESPONDENT EXHIBITS|| |Exhibit R5(A)|TRUE COPY OF THE PAGE NO.1 OF THE ANNUAL| ||REPORT FOR THE YEAR 2020-2021 PUBLISHED BY| ||THE 3RD RESPONDENT HELD ON 11/12/2021| |Exhibit R5(B)|TRUE COPY OF THE PAGE NO.2 OF THE ANNUAL| ||REPORT FOR THE YEAR 2020-2021 PUBLISHED BY| ||THE 3RD RESPONDENT HELD ON 11/12/2021| |Exhibit R5(C)|TRUE COPY OF THE PETITION DATED 10/12/2020| ||SUBMITTED BEFORE THE 1ST RESPONDENT BY THE| ||ADDL. 8TH RESPONDENT| |Exhibit R5(D)|TRUE COPY OF THE COMMUNICATION ISSUED TO| ||REGISTRAR OF CO-OPERATIVE SOCIETIES BY| ||DEPARTMENT OF SUPERVISION, RESERVE BANK OF| ||INDIA DATED NIL.| |Exhibit R5(E)|TRUE COPY OF THE PETITION OF ADDL. 8TH| ||RESPONDENT TO DEPUTY GM RBI SUBMITTED ON| ||05/11/2020| |Exhibit R5(F)|TRUE COPY OF THE PETITION OF ADDL. 8TH| ||RESPONDENT TO DEPUTY GM RBI SUBMITTED ON| ||10/12/2020| |Exhibit R5(G)|TRUE COPY OF THE NOTICE NO.| ||JRGKTM/1020/2020/CRB DATED 27/01/2022 ISSUED| ||BY THE 1ST RESPONDENT TO ADDL. 8TH RESPONDENT| |PETITIONER EXHIBITS|| |Exhibit P10|TRUE COPY OF THE AUDIT OF THE YEAR 2019-2020| ||OF THE KADUTHURUTHI URBAN CO-OP BANK| |Exhibit P11|TRUE COPY OF THE AUDIT OF THE YEAR 2020-2021| ||OF THE KADUTHURUTHI URBAN CO-OP BANK| -----