W.A. No. 614 of 2022 (and connected matters) - The Mavelikkara Taluk Co-Operative Bank Ltd. & Others vs. Rajeshwari S Kumar & Others

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR. JUSTICE ALEXANDER THOMAS** **&** **THE HONOURABLE MRS. JUSTICE SHOBA ANNAMMA EAPEN** **THURSDAY, THE 25[TH] DAY OF AUGUST 2022 / 3RD BHADRA, 1944** **W.A. NO. 614 OF 2022** **AGAINST THE JUDGMENT DATED 23.2.2022 IN WP(C).NO.3624/2022 OF THE HIGH** **COURT OF KERALA** ## **APPELLANTS:** **1 THE MAVELIKKARA TALUK CO-OPERATIVE BANK LTD. NO.707 HAVING ITS HEAD OFFICE AT PULIMOOD JUNCTION, MAVELIKKARA P.O., ALAPPUZHA 690 101., REPRESENTED BY ITS SECRETARY., PIN - 690101** - **2 THE MAVELIKKARA TALUK CO-OPERATIVE BANK LTD. NO.707, THAZHAKKARA BRANCH THAZHAKKARA P.O., MAVELIKKARA, ALAPPUZHA - 690 101., REPRESENTED BY ITS SECRETARY, PIN - 690101** - **3 THE SECRETARY THE MAVELIKKARA TALUK CO-OPERATIVE BANK LTD. NO.707, THAZHAKKARA BRANCH, THAZHAKKARA P.O., MAVELIKKARA, ALAPPUZHA, PIN - 690101** **BY ADVS.M/S.B.ASHOK SHENOY, P.S.GIREESH & ARJUN R. NAIK** ## **RESPONDENTS:** - **1 RAJESWARI S KUMAR, AGED 52 YEARS, ASWATHY BHAVANAM, CHERUKOLE P.O., MAVELIKKARA, ALAPPUZHA DISTRICT, PIN - 690104** - **2 THE REGISTRAR OF CO-OPERATIVE SOCIETIES, JAWAHAR SAHAKARANA BHAVAN, DPI JUNCTIONM THYCAUD P.O., THIRUVANANTHAPURAM, PIN - 695014** - **3 THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL), OFFICE OF THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES, ALAPPUZHA, PIN - 688001** - **4 THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL) OFFICE OF THE ASSISTANT REGISTRAR OF CO-OPERATIVE, SOCIETIES, MINI CIVIL STATION 2ND FLOOR, MAVELIKKARA, ALAPPUZHA, PIN - 690101** - **5 THE SPECIAL SALE OFFICER, ARBITRATION AND EXECUTION, ASSISTANT REGISTRAR OFFICE, MAVELIKKARA, ALAPPUZHA, PIN - 690101** - **6 RESHMA KRISHNAN, NOW RESIDING AT VIJAYA SADANAM, CHERIYANAD, KOLLAKADAVU, ALAPPUZHA, PIN - 690509** - **7 VISHNU V.S., RESIDING AT VIJAYA SADANAM, CHERIYANAD, KOLLAKADAVU, ALAPPUZHA, PIN - 690509.** ***ADDL.R8 IMPLEADED.,** - **ADDL.8 STATE OF KERALA, REPRESENTED BY THE SECRETARY TO GOVERNMENT, CO-OPERATION DEPARTMENT, GOVERNMENT SECRETARIAT, G.P.O., THIRUVANANTHAPURAM-695 001.** *** ADDITIONAL R8 IS IMPLEADED AS PER ORDER DATED 14/7/2022 IN I.A.NO.2/2022 IN W.A.NO.614/22.** **BY ADV.SRI. M.V.THAMPAN FOR R1 SRI.P.P.THAJUDHEEN, SPL. G.P. (CO-OPERATION) RESPONDENTS 2, 3, 4, 5 & ADDL.8 ADV.SMT.SWAPNA VIJAYAN, FOR R6 & R7** **THIS WRIT APPEAL HAVING BEEN FINALLY HEARD ON 25.08.2022, ALONG WITH W.A.NOS.943/2021, 958/2021, 1030/2021 & 1037/2021, 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** **THURSDAY, THE 25[TH] DAY OF AUGUST 2022 / 3RD BHADRA, 1944** **WA NO. 943 OF 2021** **AGAINST THE ORDER DATED 7.7.2021 IN R.P.NO.795/2010 AND JUDGMENT DATED** **15.10.2010 IN W.P.(C).NO.4868/2020 OF THE HIGH COURT OF KERALA** **APPELLANT:** **JAYAKUMAR B. KURUP, AGED 54 YEARS, S/O.LATE BHASKARA KURUP, JAYABHAVAN, EREZHA SOUTH, CHETTIKULANGARA P.O., MAVELIKKARA, ALAPPUZHA DISTRICT, PIN-690106.** **BY ADV.SRI. C.S.MANU** ## **RESPONDENTS:** - **1 JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL), PECHI ANKALAMMAN KOVIL COMPLEX, NEAR IRON BRIDGE P.O., ALAPPUZHA, PIN-688001.** - **2 MAVELIKKARA TALUK CO-OPERATIVE BANK LIMITED NO.707, HEAD OFFICER, PULIMOOD JUNCTION, MAVELIKKARA, ALLEPPY DISTRICT, PIN-690101, REPRESENTED BY ITS SECRETARY-INCHARGE.** - **3 SECRETARY-IN-CHARGE, MAVELIKKARA TALUK CO-OPERATIVE BANK LIMITED NO.707,HEAD OFFICE, PULIMOOD JUNCTION, MAVELIKKARA, ALLEPPY DISTRICT, PIN-690101.** - **4 BOARD OF DIRECTORS, MAVELIKKARA TALUK CO-OPERATIVE BANK LIMITED NO.707, MAVELIKKARA, PIN-690101, REPRESENTED BY ITS PRESIDENT.** - **5 REGISTRAR OF CO-OPERATIVE SOCIETIES OFFICE OF THE REGISTRAR OF CO-OPERATIVE SOCIETIES GOVERNMENT OF KERALA, THIRUVANANTHAPURAM.** - **ADDL.6 STATE OF KERALA,** **REPRESENTED BY THE SECRETARY, DEPARTMENT OF CO-OPERATION, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM, PIN-695001.** - **ADDL.7 REGISTRAR OF CO-OPERATIVE SOCITIES GOVERNMENT OF KERALA, THIRUVANANTHAPURAM, PIN-695014.** *** ARE IMPLEADED AS ADDL.R6 & R7 AS PER ORDER DATED 3/8/2022 IN I.A.NO. 1/2022 IN W.A.NO. 943/2021** **SRI.ASOK M.CHERIAN, ADDITIONAL ADVOCATE GENERAL (B/O) ADVS. M/S. B.ASHOK SHENOY, C.S.MANU, P.S.GIREESH & ARJUN R NAIK** **THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 25.08.2022, ALONG WITH W.A.NOS.614/2022, 958/2021, 1030/2021 & 1037/2021, 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** **THURSDAY, THE 25[TH] DAY OF AUGUST 2022 / 3RD BHADRA, 1944** **WA NO. 958 OF 2021** **AGAINST THE ORDER DATED 7.7.2021 IN R.P.NO.876/2020 AND JUDGMENT DATED** **15.10.2010 IN WP(C) NO. 4969/2020 OF THE HIGH COURT OF KERALA APPELLANT/PETITIONER:** **RENJU JAYAKUMAR, AGED 45 YEARS, D/O.M.ARAVINDAKSHAN PILLAI, JAYA BHAVAN, EREZHA SOUTH, CHETTIKULANGARA P.O., MAVELIKKARA, ALAPPUZHA DISTRICT, PIN - 690106.** **BY ADV SRI.C.S.MANU** ## **RESPONDENTS/RESPONDENTS:** - **1 JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL) PECHI ANKALAMMAN KOVIL COMPLEX, NEAR IRON BRIDGE P.O., ALAPPUZHA, PIN- 688 001.** - **2 MAVELIKKARA TALUK CO-OPERATIVE BANK LIMITED NO.707 HEAD OFFICE, PULIMOOD JUNCTION, MAVELIKKARA, ALLEPPY DISTRICT, PIN - 690 101, REPRESENTED BY ITS SECRETARY-INCHARGE.** - **3 SECRETARY-IN-CHARGE MAVELIKKARA TALUK CO-OPERATIVE BANK LIMITED NO.707, HEAD OFFICE, PULIMOOD JUNCTION, MAVELIKKARA, ALLEPPY DISTRICT, PIN - 690 101.** - **4 BOARD OF DIRECTORS MAVELIKKARA TALUK CO-OPERATIVE BANK LIMITED NO.707, REPRESENTED BY ITS PRESIDENT.** - **5 MANAGER, MAVELIKKARA TALUK CO-OPERATIVE BANK LIMITED NO.707 THAZHAKKARA BRANCH, ALLEPPY DISTRICT, PIN - 690 707. *ADDL.R6 IMPLEADED.** - **ADDL.6 STATE OF KERALA, REPRESENTED BY THE SECRETARY,DEPARTMENT OF COOPERATION,GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM,PIN-695001.** - **ADDL.7 REGISTRAR OF CO-OPERATIVE SOCIETIES, GOVERNMENT OF KERALA,THIRUVANANTHAPURAM,PIN-695014.** *** ADDITIONAL R6 AND ADDITIONAL R7 IMPLEADED AS PER ORDER DATED 03/08/2022 IN I.A.NO.1/2022 IN WA 958/2021.** **BY ADVS.** **ASHOK M CHERIAN, ADDL.ADVOCATE GENERAL(B/O) B.ASHOK SHENOY ARJUN R NAIK P.S.GIREESH** **THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 25.08.2022, ALONG WITH W.A.NOS.614/2022, 943/2021, 1030/2021 & 1037/2021, 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** **THURSDAY, THE 25[TH] DAY OF AUGUST 2022 / 3RD BHADRA, 1944** **WA NO. 1030 OF 2021** **AGAINST THE ORDER DATED 7.7.2021 IN R.P0.802/2020 AND JUDGMENT DATED** **15.10.2010 IN WP(C) 5612/2020 OF THE HIGH COURT OF KERALA** **APPELLANT/PETITIONER:** **RAVEENDRAN V.G., AGED 68 YEARS,** **S/O. K.R. GOPALAN, HIMADRI, KOTTARKAVU, MAVELIKKARA ALAPPUZHA DISTRICT PIN - 690 101** **BY ADVS. M/S.A.PARVATHI MENON & GISA SUSAN THOMAS** ## **RESPONDENTS/RESPONDENTS:** - **1 THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES(GENERAL) PECHI ANKALAMMAN KOVIL COMPLEX, NEAR IRON BRIDGE P.O., ALAPPUZHA, PIN - 688 001** - **2 MAVELIKKARA TALUK CO-OPERATIVE BANK LTD NO.707 HEAD OFFICE, PULIMOOD JUNCTION, MAVELIKKARA, ALLEPPY DISTRICT, PIN - 690 101,** **REPRESENTED BY ITS SECRETARY-IN-CHARGE** - **3 SECRETARY-IN-CHARGE. MAVELIKKARA TALUK CO-OPERATIVE BANK LIMITED NO.707 HEAD OFFICE, PULIMOOD JUNCTION, MAVELIKKARA, ALLEPPY DISTRICT, PIN - 690 101** - **4 BOARD OF DIRECTORS MAVELIKKARA TALUK CO-OPERATIVE BANK LIMITED NO.707, MAVELIKKARA P.O, ALAPPUZHA DISTRICT, PIN - 690 101. REPRESENTED BY ITS PRESIDENT.** - **5 MANAGER MAVELIKKARA TALUK CO-OPERATIVE BANK LIMITED NO.707, THAZHAKKARA BRANCH, MAVELIKKARA P.O, ALAPPUZHA DISTRICT, PIN - 690 102.** - **ADDL.6 STATE OF KERALA STATE OF KERALA,REPRESENTED BY THE SECRETARY, DEPARTMENT OF CO-OPERATION,SECRETARIAT,GOVERNMENT OF KERALA,THIRUVANANTHAPURAM -695 001.** *** ADDL.7 REGISTRAR OF CO-OPERATIVE SOCIETIES, JAWAHAR SAHAKARANA BHAVAN,DPI JUNCTION,THYVAUD P.O.,THIRUVANANTHAPURAM-695 014.** **THE ABOVE RESPONDENTS WILL STAND IMPLEADED AS ADDITIONAL RESPONDENTS 6 AND 7 AS PER ORDER DATED 14-7-22 IN I.A.1/22 IN WA 1030/21.** **BY ADVS.** **SRI.ASHOK M.CHERIAN, ADDITIONAL ADVOCATE GENERAL (B/O) B.ASHOK SHENOY** **P.S.GIREESH** **THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 25.08.2022, ALONG WITH W.A.NOS.614/2022, 943/2021, 958/2021 & 1037/2021, 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** **THURSDAY, THE 25[TH] DAY OF AUGUST 2022 / 3RD BHADRA, 1944** **WA NO. 1037 OF 2021** **AGAINST THE ORDER DATED 7.7.2021 IN R.P.NO.808/2020 AND JUDGMENT DATED** **15.10.2010 IN WP(C) NO.6559/2020 OF THE HIGH COURT OF KERALA APPELLANT/PETITIONER:** **VALSALA KUMARI, AGED 56 YEARS,** **W/O.REVEENDRAN V.G., HIMADRI, KOTTARKAVU, MAVELIKKARA P.O., ALAPPUZHA 690 101** **BY ADVS. M/S. A.PARVATHI MENON & GISA SUSAN THOMAS** ## **RESPONDENT/RESPONDENTS:** - **1 JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL) PECHI ANKALAMMAN KOVIL COMPLEX, NEAR IRON BRIDGE P.O., ALAPPUZHA 688 001.** - **2 MAVELIKKARA TALUK CO-OPERATIVE BANK LTD. NO.707 HEAD OFFICE, PULIMOOD JUNCTION, MAVELIKKARA, ALLEPPEY DISTRICT 690 101 REP.BY ITS SECRETARY IN CHARGE.** - **3 SECRETARY IN CHARGE MAVELIKKARA TALUK CO-OPERATIVE BANK LTD. NO.707, HEAD OFFICE, PULIMOOD JUNCTION, MAVELIKKARA, ALLEPPEY DISTRICT 690 101** - **4 BOARD OF DIRECTORS, MAVELIKKARA TALUK CO-OPERATIVE BANK LTD.NO.707, MAVELIKKARA P.O.,ALAPPUZHA-690 101. REPRESENTED BY ITS PRESIDENT.** - **5 MANAGER, MAVELIKKARA TALUK CO-OPERATIVE BANK LTD. NO.707, THAZHAKKARA BRANCH, MAVELIKKARA P.O., ALAPPUZHA 690 102** - **ADDL.6 STATE OF KERALA SOUGHT TO BE IMPLEADED** ## *** ADDL.7 THE REGISTRAR OF CO-OPERATIVE SOCIETIES SOUGHT TO BE IMPLEADED** **BY ADVS.** **SRI.ASHOK M.CHERIAN, ADDITIONAL ADVOCATE GENERAL (B/O) B.ASHOK SHENOY** **P.S.GIREESH** **THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 25.08.2022, ALONG WITH W.A.NOS.614/2022, 943/2021, 958/2021 & 1030/2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** ALEXANDER THOMAS & SHOBA ANNAMMA EAPEN, JJ. ============================================= W. A. No. 614 of 2022 _(arising out of the impugned judgment dated 23.2.2022 in W. P. (C) No. 3624/2022),_ ## W. A. No. 943 of 2021 _(arising out of the impugned order dated 7.7.2021 in R. P. No. 795/2020 and judgment dated 15.10.2010 in W. P. (C) No. 4868/2020),_ ## W. A. No. 958 of 2021 _(arising out of the impugned order dated 7.7.2021 in R. P. No. 876/2020 and judgment dated 15.10.2010 in W. P. (C) No. 4969/2020),_ ## W. A. No. 1030 of 2021 _(arising out of the impugned order dated 7.7.2021 in R. P. No. 802/2020 and judgment dated 15.10.2010 in W. P. (C) No. 5612/2020)_ & ## W. A. No. 1037 of 2021 _(arising out of the impugned order dated 7.7.2021 in R. P. No. 808/2020 and judgment dated 15.10.2010 in W. P. (C) No. 6559/2020)_ ============================================= Dated this the 25[th] day of August, 2022 ## J U D G M E N T ## ALEXANDER THOMAS, J. Since some of the issues in W. A. No. 614/2022, to the extent it is in relation to Fixed Deposits, are broadly interrelated to the other 4 Writ Appeals and as the issues raised in W. A. Nos. 943, 958, 1030 & 1037 of 2021 are broadly similar, to the extent the prayers are for payment of the matured proceeds of the Fixed W.A. Nos. 614/2022, 943/2021, 958/2021, 1030/2021 & 1037/2021 **==> picture [19 x 7] intentionally omitted <==** Deposits, these Writ Appeals are disposed of on the basis of this common judgment. ## W. A. No. 614/2022 2. The subject matter of challenge in the above intra court appeal arises out of the impugned judgment dated 23.2.2022 rendered by the learned Single Judge disposing of the Writ Petition Civil – W. P. (C) No. 3624/2022. 3. Heard Sri.Ashok B.Shenoy, learned counsel appearing for the writ appellants/respondents 4, 5 & 6 in the WP(C), Sri.M.V.Thamban, learned counsel appearing for R-1 in the W.A./writ petitioner, Sri.P.P.Thajudheen, learned Special Government Pleader (Co-operation) appearing for official respondents 2, 3, 4 & 5 in the W.A./respondents 1, 2, 3 & 7 in the WP(C) as well as for the additional 8[th] respondent in the W.A. and Smt.Swapna Vijayan, learned counsel appearing for contesting respondents 6 & 7 in the W.A./respondents 8 & 9 in the WP(C). 4. The broad case in the above writ proceedings is as follows: That, the writ petitioner had defaulted repayment of the loan availed by her from the appellant Co-operative Bank and the W.A. Nos. 614/2022, 943/2021, 958/2021, 1030/2021 & 1037/2021 **==> picture [19 x 9] intentionally omitted <==** guarantors in the above loan transaction are the children of the writ petitioner. Consequent to default, the appellant Bank had initiated Arbitration Reference Case (ARC) proceedings instituted under Sec.69 of the Kerala Co-operative Societies Act, 1969 _('The KCS Act' for short)_ which resulted in an award in the ARC. Thereafter, the appellant Bank had filed Execution Petition for realization of the award debt. Though, One Time Settlement facility was offered to the writ petitioner, she could not avail the said benefit. Steps were therefore taken for sale of the immovable property of the writ petitioner in execution of the award. Thereupon, it was urged before the appellant Bank that R-8 & R-9 in the WP(C) are having Fixed Deposits with the appellant Bank and that R-8 & R-9 in the WP(C) are willing to have the deposit amounts paid or adjusted towards the debt of the writ petitioner. The appellant Bank refused to accept the said plea. It is in the light of these aspects that the Writ Petition was filed, for the direction that the Fixed Deposit amounts of R-8 & R-9 in the appellant Bank may be adjusted as against the loan liability of the writ petitioner and only for the remaining liability, should the writ W.A. Nos. 614/2022, 943/2021, 958/2021, 1030/2021 & 1037/2021 **==> picture [19 x 9] intentionally omitted <==** petitioner be made liable. The learned Single Judge has broadly accepted the said pleas of the writ petitioner as well as R-8 & R-9 in the WP(C) and has ordered that the Fixed Deposit amounts due to R-8 & R-9 in the WP(C) may be adjusted as against the loan liabilities of the writ petitioner, and that the writ petitioner may be proceeded only for the balance liability thereafter. It is this verdict of the learned Single Judge that is under challenge in the above writ petition. 5. From the pleadings and materials on record, it is urged by the appellants, that in view of serious issues of misappropriation and embezzlement of the Fixed Deposit amounts held in the Bank due to the fraud committed by the erstwhile Managing Committee members as well as the employees of the Bank, the Bank has faced great financial crisis. According to the appellants, Anx.A-2 proceedings, which is the proposal submitted by the appellant Bank to the respondent Joint Registrar, would clearly show that, as on that day, the total Fixed Deposit amounts which are to be honoured by the appellant Bank is around Rs.117.15 Crores, and the total loan liabilities owed to the Bank by W.A. Nos. 614/2022, 943/2021, 958/2021, 1030/2021 & 1037/2021 **==> picture [18 x 9] intentionally omitted <==** the borrowers is only around Rs.35.10 Crores. 6. Further that, according to the facts and figures of the police investigating agency as well as the co-operative department, the misappropriated Fixed Deposit amount comes to about Rs.34 Crores. It is urged that, since the transaction in question is essentially a banking transaction, the pleas of the writ petitioner cannot be justiciable in public law proceedings. Further, it is pointed out that, the discretion exercised in the present writ proceedings may not be justified inasmuch as the total Fixed Deposit amount to be honoured by the Bank comes to Rs.117.15 Crores, out of which, the misappropriated Fixed Deposit amount may come in the region of Rs.35 Crores or above, and as the total loan liabilities owed by the borrowers to the Bank is only Rs.35 Crores, the directions in the judgment in the WP(C) in permitting the customers to make adjustments among themselves, in regard to the claim of the writ petitioner for liability in the loan to be adjusted as against the Fixed Deposit amounts of the contesting respondents in the WP(C), will lead to a scenario where similar claims will come up and it will have a serious cascading W.A. Nos. 614/2022, 943/2021, 958/2021, 1030/2021 & 1037/2021 **==> picture [19 x 9] intentionally omitted <==** effect and will lead to financial collapse of the Bank. 7. Further that, this can also promote unethicial practice of adjustment of Fixed Deposit amount with the loan amount, whereby the borrowers may offer higher rate of interest to the Fixed Deposit holders than the rate of interest payable in the Fixed Deposit schemes, and it will amount to permitting the customers to indulge in banking transactions without the junction or participation of the Bank, and it will have serious repercussions to the financial viability of the appellant Bank, which is already facing great financial crisis, etc. 8. Based on our directions, the Crime Branch investigating agency as well as the respondent Joint Registrar have filed separate statements in theses cases through the Special Government Pleader (Co-operation). The statement filed by the investigating agency would disclose serious allegations of misappropriation of huge amount of Fixed Deposits by misusing the software system and various other aspects and the crime is at the investigation stage. The respondent Joint Registrar has taken a definite stand in his statement dated 21.7.2022, more particularly W.A. Nos. 614/2022, 943/2021, 958/2021, 1030/2021 & 1037/2021 **==> picture [18 x 9] intentionally omitted <==** in para 9 on page 3 thereof that, if the customers of the appellant Bank, _i.e._ depositors and debtors of the appellant Bank, without permission or authorisation of that Bank, are permitted to deal outside without the official participation of the Bank and such customers are permitted to arrive at settlement, it will have huge repercussions on the appellant Bank and that cannot be permitted in the exercise of discretionary jurisdiction under Article 226. Further, it is also pointed out in the said statement that, a scheme for revival of the appellant Bank is on going, but the Government is not in a position to stand as guarantee for any such revival scheme approved by the Government, etc. 9. The writ petitioner and the contesting respondents in the WP(C) would reiterate their submissions in the WP(C) and submit that the directions given by the learned Single Judge cannot be said to be illegal or unreasonable. 10. After hearing both sides, it has to be borne in mind that, it is by now well established that the 1[st] appellant Bank will not fulfill the definition of the 'other authorities' within the meaning of Article 12 of the Constitution of India. Further, the W.A. Nos. 614/2022, 943/2021, 958/2021, 1030/2021 & 1037/2021 **==> picture [19 x 9] intentionally omitted <==** action of the 1[st] appellant Bank regarding non adjustment of Fixed Deposits and Savings Bank Accounts held by the contesting respondents in the WP(C) towards the loan dues of the writ petitioner with the 1[st] appellant Bank, cannot be said to be amenable to public law remedy as per Article 226. At any rate, the transactions in question would essentially fall within banking transactions, which ordinarily may not be amenable to public law remedy. The writ petitioner has no case that any statutory provision has been violated on account of the stand of the appellant Bank. Further, as urged by the appellants, it can be seen that, effective alternate statutory remedy is available to contesting respondents 6 & 7 for realization of Fixed Deposits by filing Arbitration Reference Case in terms of Sec.69 of the Kerala Cooperative Societies Act. The Full Bench of this Court in the decision in _**Shanmukha Sundaram Pillai S. v. Meenachil Rubber Marketing & Processing Co-operative Society Ltd. & Ors.** [2022 (3) KHC 121 (FB)]_ has held that the Registrar has no power to pass orders in individual cases to direct the co-operative society to release the matured Fixed Deposit W.A. Nos. 614/2022, 943/2021, 958/2021, 1030/2021 & 1037/2021 **==> picture [19 x 9] intentionally omitted <==** amounts by taking recourse to Sec.66A. 11. Further, if the writ petitioner has any grievance regarding the award passed in the ARC, filed under Sec.69 at the instance of the appellant, it could have been challenged in an appeal or revision before the Co-operative Appellate Tribunal, which is headed by a judicial officer of the rank of District Judge. The afore remedies have not been availed either by the writ petitioner or the contesting respondents in the WP(C) in the manner known to law. 12. The counsel for the writ petitioner would now urge that, the writ petitioner has not been served with the notice in the ARC No.65/2017 and also copy of the award has not been served on her. 13. If that be so, it is for the writ petitioner to avail the steps in that regard, by approaching the adjudicatory authority under Sec.69, to furnish the details of the award in ARC No.65/2017, on the file of the Assistant Registrar of Co-operative Societies, Mavelikkara, and then workout the statutory remedy in accordance with law. W.A. Nos. 614/2022, 943/2021, 958/2021, 1030/2021 & 1037/2021 **==> picture [24 x 7] intentionally omitted <==** 14. Further, it has been noted that the total Fixed Deposit amount to be honoured by the appellant Bank is more than Rs. 117 Crores, which may also include the misappropriated Fixed Deposit amounts to the tune of Rs.34 Crores. Whereas, the loan liabilities owed by the borrowers to the appellant Bank is only about Rs. 35 Crores. Hence, there is great force in the submissions of the counsel for the appellants and the learned Special Government Pleader (Co-operation) that, if such _inter se_ private party adjustments are directed to be acted upon by the appellant Bank, on account of the understanding between borrowers like the writ petitioner and the Fixed Deposit holders like the contesting respondents in the WP(C), then it may seriously affect the financial viability of the appellant Bank in view of the present precarious financial crisis. There is also force in their submissions that such directions may not be permitted in writ proceedings, which are essentially in the realm of discretionary jurisdiction, as the transactions are mainly in the realm of banking transactions. We find force in these submissions. Hence, we are of the considered view that, the impugned directions in the judgment in the WP(C) W.A. Nos. 614/2022, 943/2021, 958/2021, 1030/2021 & 1037/2021 **==> picture [22 x 7] intentionally omitted <==** would deserve interdiction. This is all the more so, in view of the great financial crisis now faced by the Bank by a series of misappropriation and embezzlement of Fixed Deposit amounts said to have been committed by the persons concerned. 15. The counsel for the contesting respondents in the WP(C) would submit that the viability scheme sanctioned by the Government, without standing guarantee, may not be right and proper, and that it is learnt that, in respect of certain other co-operative institutions like the Karuvannur Co-operative Society Ltd., Thrissur District, the Government has taken a very lenient view, etc. 16. This is denied by the learned Special Government Pleader (Co-operation) pointing out that, in respect of the said co-operative institution concerned, they have sufficient immovable properties owned by them without any encumbrances which can meet the huge liabilities faced by them, and hence the said co-operative institution could avail financial assistance from the State Apex Co-operative Bank and other co-operative institutions for their revival/revitalization. We need not get into those issues W.A. Nos. 614/2022, 943/2021, 958/2021, 1030/2021 & 1037/2021 **==> picture [24 x 7] intentionally omitted <==** except to hold that, if any such Fixed Depositors like the respondents in the WP(C) have any such grievance regarding the efficacy of the revival scheme, those are all matters that can be canvassed before the State Government by filing appropriate representation. Hence, those issues need not detain our consideration. 17. The upshot of the above discussion is that, the impugned verdict in the above WP(C) would require to be interdicted. In that view of the matter, it is ordered that the impugned judgment dated 23.2.2022 rendered by the learned Single Judge in WP(C).No.3624/2022 will stand set aside. It is also made clear that, the writ petitioner and the contesting respondents in the WP(C) will be at liberty to avail remedies in the matter in accordance with law. All contentions available to them in that regard are left open to be raised and decided in other appropriate proceedings in the manner known to law. With these observations and directions, the above Writ Appeal will stand disposed of. W.A. Nos. 614/2022, 943/2021, 958/2021, 1030/2021 & 1037/2021 **==> picture [24 x 9] intentionally omitted <==** ## W. A. Nos. 943, 958, 1030 & 1037 of 2021 18. Here, the Writ Petitions filed by the Fixed Deposit holders concerned have been dismissed by the learned Single Judge, which have resulted in these intra court appeals. The issues raised in these Writ Appeals are broadly similar to the pleas set up by the contesting respondents in the WP(C), which have led to the aforementioned W.A.No.614/2022. The appellants in the W.A./ petitioners in the WP(C) are Fixed Deposit holders in the Co-operative Bank, which is the appellant in W.A.No.614/2022. The simple plea in these cases is that the Fixed Deposits held by the appellants/petitioners are matured and the respondent Bank is not honouring the payment of said matured proceeds and that, in view of the financial requirements of the appellants, this Court may issue directions to the respondent Bank to honour the payments of the matured Fixed Deposits. A plea has been taken by the respondent Bank that the abovesaid appellants have availed loans as against the abovesaid Fixed Deposits held by them and that the amounts cannot be paid. 19. The appellants would urge that, no such loans have W.A. Nos. 614/2022, 943/2021, 958/2021, 1030/2021 & 1037/2021 **==> picture [24 x 9] intentionally omitted <==** ever been taken by them and the said plea is only a ruse put up by the respondent Bank to deny payment of the Fixed Deposit proceeds, and that the surcharge proceedings taken by the respondent departmental authorities under Sec.68 would also broadly indicate that, the plea that the Fixed Deposit holders like the appellants have taken loans is not correct and the said loan accounts are fictitious ones. Whereas, the respondent Bank have a case that, no such conclusive fact finding has been made in Sec.68 proceedings and that, loans have been availed by these parties and that such disputed issues between the appellants and the respondent Bank will have to be adjudicated in Sec.69 proceedings. Further, it appears that the appellants in W.A.Nos.1030 & 1037 of 2021 have filed Arbitration Reference Case under Sec.69 of the KCS Act for realization of the matured proceeds of their Fixed Deposits and those matters are pending. It is also to be noted that, the appellants in W.A.Nos.943 & 958 of 2021 had earlier filed such ARC proceedings under Sec.69 of the KCS Act for regularization of their respective amounts, but after filing of the WAs they have withdrawn the said ARC proceedings. W.A. Nos. 614/2022, 943/2021, 958/2021, 1030/2021 & 1037/2021 **==> picture [23 x 9] intentionally omitted <==** 20. We have already held in the judgment in W.A.No.614/2022 that, the transactions in question in relation to the honouring of Fixed Deposits, etc. would essentially fall within banking transactions, and the appellants have no case that any statutory provision has been duly violated so as to warrant interdiction in public law proceedings. Further, in view of the great financial crisis faced by the respondent Bank, as mentioned in the judgment in W.A.No.614/2022, it may not be a right and proper exercise of discretionary jurisdiction under Article 226 to interfere in the matter. Hence, in these cases, the learned Single Judge has dismissed the WP(C)s. 21. The respondent Bank has not filed any Writ Appeal to the extent it is directed as against payment of the Savings Bank account. For the reasons already stated in W.A.No.614/2022, we are of the view that, since the transaction would eminently fall within the realm of banking transaction, more so particularly in view of the great financial crisis faced by the Bank on account of large scale misappropriation and embezzelement of funds, it may not be right and proper to exercise discretion so as to issue a W.A. Nos. 614/2022, 943/2021, 958/2021, 1030/2021 & 1037/2021 **==> picture [24 x 9] intentionally omitted <==** mandamus to pay the matured proceeds of the Fixed Deposits. Moreover, these are disputes between the rival parties as to whether the appellants have also availed loans from the respondent as against their fixed deposits. Such disputes can be adjudicated only in Sec.69 proceedings. 22. Further, the appellants in two appeals have already availed the statutory remedy under Sec.69 and the other two appellants have availed the said remedy, but had later withdrawn the said Sec.69 proceedings. To a specific query as to whether the respondent Bank has any objection in the appellants in W.A. Nos. 943 & 958 of 2021 to file fresh ARCs under Sec.69 in relation to their grievances for payment of the matured Fixed Deposit amounts, the respondent Bank would fairly submit that they do not have any such objections and further that, going by the nature of the claims and the cause of action, there may not be any bar for them to institute fresh proceedings. Hence, liberty is accorded to the appellants in W. A. Nos. 943 & 958 of 2021 to avail their statutory remedies by filing fresh ARCs under Sec.69 in relation to their claims for payment of matured proceeds of their W.A. Nos. 614/2022, 943/2021, 958/2021, 1030/2021 & 1037/2021 **==> picture [23 x 9] intentionally omitted <==** Fixed Deposit amounts. So also, if the Fixed Deposit holders have any complaint regarding the viability of the scheme for revival approved by the State Government, it is for them to approach the State Government with such grievance. 23. The upshot of the above discussion is that, the impugned judgment of the learned Single Judge does not warrant any interdiction at the hands of this appellate court. The pleas of the appellants thus fail and hence, the Writ Appeals will stand dismissed. Sd/- ALEXANDER THOMAS, JUDGE Sd/- SHOBA ANNAMMA EAPEN, JUDGE MMG W.A.Nos.614/2022, 943/2021, 958/2021, 1030/2021 & 1037/2021 ## **APPENDIX OF W.A.NO.614/2022** |**PETITIONERS' ANNEXURES:**|**PETITIONERS' ANNEXURES:**| |---|---| |**ANNEXURE A1**|**TRUE COPY OF LETTER NO.C.R.P.(2)6384/2019**| ||**DATED 27.12.2021 ISSUED BY JOINT REGISTRAR OF**| ||**COOPERATIVE SOCIETIES, ALAPPUZHA TO 1ST**| ||**APPELLANT**| |**ANNEXURE A2**|**TRUE COPY OF THE DRAFT PACKAGE SCHEME**| ||**SUBMITTED BY 1ST APPELLANT TO JOINT REGISTRAR**| ||**OF COOPERATIVE SOCIETIES, ALAPPUZHA, DATED**| ||**NIL**| |**RESPONDENT'S ANNEXURES:**|| |**ANNEXURE R3(A)**|**TRUE COPY OF THE REVIVAL SCHEME SUBMITTED BY**| ||**THE REGISTRAR OF CO-OPERATIVE SOCIETIES**| |**ANNEXURE R3(B)**|**TRUE COPY OF COMMUNICATION NO. CO-OP-**| ||**C1/217/2022/CO-OP DATED, 13.07.2022.**| |**ANNEXURE R3(A)**|**TRUE COPY OF THE REVIVAL SCHEME SUBMITTED BY**| ||**THE REGISTRAR OF CO-OPERATIVE SOCIETIES**| |**ANNEXURE R3(B)**|**TRUE COPY OF COMMUNICATION NO. CO-OP-**| ||**C1/217/2022/CO-OP DATED, 13.07.2022.**| W.A.Nos.614/2022, 943/2021, 958/2021, 1030/2021 & 1037/2021 ## **APPENDIX OF W.A.NO.943/2021** |**PETITIONER'S **|**ANNEXURES:**| |---|---| |**ANNEXURE A1**|**TRUE COPY OF THE SURCHARGE, ORDER NO. C.R.P.**| ||**(2)6713/2018/2 SC PASSED BY 1ST RESPONDENT.**| |**ANNEXURE A2**|**TRUE COPY OF THE ENQUIRY REPROT MADE UNDER**| ||**SECTION 68 OF THE KERALA CO OPERATIVE**| ||**SOCIETIES ACT 1969.**| W.A.Nos.614/2022, 943/2021, 958/2021, 1030/2021 & 1037/2021 ## **APPENDIX OF W.A.NO.1030/2021** |**PETITIONER'S **|**ANNEXURES:**| |---|---| |**ANNEXURE A1**|**COPY OF THE SURCHARGE ORDER NO.CRP (2)**| ||**6713/2016/2 SC DATED 28/02/2020 PASSED BY THE**| ||**1ST RESPONDENT UNDER SECTION 68(2) OF THE**| ||**KERALA CO-OPERATIVE SOCIETIES ACT.**| |**ANNEXURE A2**|**COPY OF THE JUDGMENTS IN W.A. NO.489/2020,**| ||**WA.NO.491/2020AND W.A. NO.499/2020 PASSED BY**| ||**THE HON'BLE HIGH COURT.**| |**ANNEXURE A3**|**COPY OF THE ORDER DATED 05/04/2021 IN SLPS**| ||**NOS.3972-3976/2021 PASSED BY THE HON'BLE**| ||**SUPREME COURT.**| W.A.Nos.614/2022, 943/2021, 958/2021, 1030/2021 & 1037/2021 ## **APPENDIX OF W.A.NO.1037/2021** |**PETITIONER'S **|**ANNEXURES:**| |---|---| |**ANNEXURE A1**|**COPY OF THE SURCHARGE ORDER NO.CRP(2)**| ||**6713/2016/2 SC DATED 28.2.2020 PASSED BY THE**| ||**1ST RESPONDENT UNDER SECTION 68(2) OF THE**| ||**KERALA CO-OPERATIVE SOCIETIES ACT.**| |**ANNEXURE A2**|**COPY OF THE JUDGMENTS IN W.A.NO.489/2020**| ||**W.A.NO.491/2020 AND W.A.NO.499/2020 PASSED BY**| ||**THE HON'BLE HIGH COURT.**| |**ANNEXURE A3**|**COPY OF THE ORDER DATED 5/4/2021 IN SLPS**| ||**NO.3972-3976/2021 PASSED BY THE HON'BLE**| ||**SUPREME COURT.**|