W.P.(C) No. 34968 of 2011

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** **PRESENT:** **THE HONOURABLE MR.JUSTICE P.N.RAVINDRAN** **TUESDAY, THE 3RD DAY OF JANUARY 2012/13TH POUSHA 1933** **WPC.No. 34968 of 2011 (U)** ## **PETITIONER(S)** **THE PRESIDENT, ERUVASSY SERVICE CO-OPERATIVE BANK LTD. NO.C 171, CHEMBERI P.O-670 632, KANNUR DISTRICT.** **BY ADV.SRI.M.SASINDRAN** ## **RESPONDENT(S)** **1. THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL), KANNUR-670 001.** **2. STATE OF KERALA- REPRESENTED BY SECRETARY TO GOVERNMENT, DEPARTMENT OF CO-OPERATION, SECRETARIAT, THIRUVANANTHAPURAM-695 001.** **3. THE KERALA CO-OPERATIVE ELECTION COMMISSION, THIRUVANANTHAPURAM-695 001, REPRESENTED BY ITS SECRETARY.** ## **R1 & R2 BY SPL.GOVERNMENT PLEADER SRI.D.SOMASUNDARAM** **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 03-01-2012 , THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** **Kss** ## **WPC.NO.34968/2011 U** ## **APPENDIX** ## **PETITIONER'S EXHIBITS:** - **P1: COPY OF DETAILS OF DEPOSITS, BORROWINGS ETC. AS ON 31/3/2007 AND AS ON 31/03/2011.** - **P2: COPY OF THE NOTICE NO.6160/2011 CRP DTD. 14/11/2011.** - **P3: COPY OF THE LETTER SUBMITTED TO THE ARCHITECT DTD. 8/8/2011 AND THE REPLY DTD. 13/08/2011.** - **P4: COPY OF THE REPLY DTD. 13/08/2011.** - **P5: COPY OF THE GOVERNMENT ORDER DTD. 31/3/2011 INTIMATING SANCTIONING OF THE LOAN FOR THE SOCIETY.** - **P6: COPY OF THE ORDER DTD. 31/3/2011 OF THE REGISTRAR OF CO-OPERATIVE SOCIETIES.** - **P7: COPY OF THE COMMUNICATION DTD. 11/05/2011 ISSUED BY THE JOINT REGISTRAR TO THE PETITIONER SOCIETY.** - **P8: COPY OF THE COMMUNICATION DTD. 5/09/2011 ISSUED BY THE FIRST RESPONDENT TO THE PETITIONER'S SOCIETY.** - **P9: COPY OF THE NOTICE OF GENERAL BODY DTD. 15/03/2011.** - **P10: COPY OF THE RELEVANT EXTRACTS FROM THE BYE LAWS OF THE SOCIETY.** - **P11: COPY OF THE DETAILS REGARDING THE MAINTAINING OF FLUID RESOURCE AS ON 30/11/2011.** - **P12: COPY OF THE DECISION OF THE APPEAL COMMITTEE DTD. 3/12/2011.** - **P13: COPY OF THE ORDER DTD. 4/3/2011 IN WPC.NO.6797 OF 2011.** - **P14: COPY OF THE RESOLUTION DTD. 16/12/2011 OF THE COMMITTEE OF THE SOCIETY.** - **P15: COPY OF THE REQUEST DTD. 17/12/2011 SENT TO THE ELECTION COMMISSION THROUGH THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES.** ## **RESPONDENT'S EXHIBITS:** ## **N I L** **/TRUE COPY/** **P.A.TO JUDGE** **Kss** ## **P.N.RAVINDRAN** , **J.** ## **--------------------------W.P.(C) No. 34968 OF 2011 -------------------------Dated this the 3[rd] day of January, 2012** ## **J U D G M E N T** The petitioner is the President of the Eruvessy Service Cooperative Bank Ltd., a co-operative society registered under the Kerala Co-operative Societies Act, 1969 (hereinafter referred to as 'the' for short). The Managing Committee of which the petitioner is the President assumed office on 24.3.2007 and its term would come to an end on 23.3.2012. In this writ petition the petitioner challenges Ext.P2 show cause notice dated 14.11.2011 issued by the Joint Registrar of Co-operative Societies (General), Kannur under section 32(1) of the Act calling upon the petitioner to show cause why the Managing Committee of which he is the President should not be superseded. By that notice the petitioner was called upon to be present for a hearing on 23.12.2011 and also to file a reply if any within 7 days from the date of receipt of the notice. The petitioner challenges the show cause notice on various grounds including the contention that there is no allegation any where in WPC No.34968/2011 2 Ext.P2 notice that the members of the Managing Committee of the Eruvessy Service Co-operative Bank Ltd. had acted with a culpable mind when they took the decisions referred to in the show cause notice. Reliance is placed on the decision of a learned Single Judge of this Court in **Vallapuzha Service Cooperative Bank Ltd. v. Joint Registrar** (2009 (3) KLT 838) in support of the said contention. The petitioner also contends that the first respondent has acted without jurisdiction and on extraneous considerations and that the issuance of the notice is an empty formality for the reason that the first respondent has acted with a predetermined mind. 2. I heard Sri.M.Sasindran, learned counsel appearing for the petitioner and Sri.D.Somasundaram, learned Special Government Pleader appearing for the respondents. The learned counsel appearing for the petitioner contended relying on the observations of the learned Single Judge in paragraph 12 of the decision in **Vallapuzha Service Co-operative Bank Ltd. v. Joint Registrar** (Supra) that on the allegations set out in Ext.P2 an order of supersession cannot be passed. The learned Special WPC No.34968/2011 3 Government Pleader contended that Ext.P2 is only a show cause notice and therefore at this stage it would be premature for this Court to consider the various contentions raised by the petitioner or the officer who issued the show cause notice and that the petitioner should in the first instance, as they have not questioned the competence of the Joint Registrar of Co-operative Societies to issue Ext.P2 notice, file a reply to the show cause notice. The learned Special Government Pleader contended with reference to section 29 of the Act that on the petitioner's own showing the Annual General Body meeting of the society was not conducted for more than two years and that by itself is an adequate reason to supersede the Managing Committee. 3. I have considered the submissions made at the Bar by the learned counsel on either side. Shorn of details, what the petitioner challenges is a show cause notice issued under section 32(1) of the Act. By that notice the petitioner was called upon to file his reply within 7 days. He was also requested to be present for a hearing on 23.12.2011. It is not in dispute that the petitioner has not so far submitted a reply to the show cause WPC No.34968/2011 4 notice notwithstanding the fact that the Joint Registrar of Cooperative Societies has enlarged the time for submitting the reply. The learned counsel appearing on both sides submitted that the hearing before the Joint Registrar of Co-operative Societies is scheduled to be held tomorrow (04.01.2012). In such circumstances, as the petitioner and the other members of the Managing Committee are yet to file a reply to the show cause notice and the Joint Registrar of Co-operative Societies is yet to take a decision after affording the petitioner an opportunity of being heard, I am of the opinion that it will be premature for this Court to go into the rival contentions and to decide upon the validity of the action initiated by the first respondent. This Court also cannot rule out the possibility that in the event of the petitioner showing cause, the Joint Registrar of Co-operative Societies may decide to drop the proposed action. In such circumstances, I am of the opinion that no interference is called for with Ext.P2 at this stage. However having regard to the fact that the petitioner and the other members of the Managing Committee of the society are yet to file a reply to the show cause WPC No.34968/2011 5 notice, I deem it appropriate to grant them one weeks time from today to file a reply to the show cause notice. The Joint Registrar of Co-operative Societies shall adjourn the proceedings for a period of 10 days from today for that purpose and shall issue notice to the petitioner to be present for a personal hearing within the said period of 10 days. The Joint Registrar of Cooperative Societies shall pass a reasoned order, after adverting to the contentions raised by the petitioner and the other members of the Managing Committee in the reply, if any, submitted by them and also the submissions made by them during the course of the hearing and after orders are passed, communicate copies thereof to the petitioner. The contentions of both sides on the merits are kept open. The writ petition is disposed of as above. ## **P.N.RAVINDRAN, (JUDGE)** vps WPC No.34968/2011 6