W.P.(C) No.41675/2023

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR.JUSTICE N.NAGARESH** **THURSDAY, THE 21[ST] DAY OF DECEMBER 2023/30TH AGRAHAYANA, 1945** **WP(C) NO. 41675 OF 2023** ## **PETITIONERS:** **1 V.SUDHAKARAN, AGED 69 YEARS, S/O VASU, SUDHAMAYI, KANDALLOOR P.O, KAYAMKULAM, ALAPPUZHA, PIN – 690572.** **2 M.SULEKHA, AGED 65 YEARS, W/O V.SUDHAKARAN, SUDHAMAYI, KANDALLOOR P.O., KAYAMKULAM, ALAPPUZHA, PIN – 690572.** **BY ADVS. SHRI. P.N.MOHANAN SHRI. C.P.SABARI SHRI. AMRUTHA SURESH SHRI. GILROY ROZARIO** ## **RESPONDENTS:** - **1 KARTHIKAPPALLY CO-OPERATIVE AGRICULTURAL & RURAL DEVELOPMENT BANK LTD.NO. A 326, REPRESENTED BY ITS SECRETARY, HARIPPAD P.O, ALAPPUZHA, PIN – 690514.** **2 THE MANAGING COMMITTEE OF KARTHIKAPPALLY CO-OPERATIVE AGRICULTURAL & RURAL DEVELOPMENT BANK LTD.NO. A 326, REPRESENTED BY ITS PRESIDENT, HARIPPAD P.O, ALAPPUZHA, PIN - 690514** W.P.(C) No.41675/2023 : 2 : **3 THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (G), OFFICE OF THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES, PECHI ANKALAMMAN COMPLEX, PAZHAVANGADI JUNCTION, IRUMPUPALAM P.O, ALAPPUZHA, PIN – 688011.** **4 THE REGISTRAR OF CO-OPERATIVE SOCIETIES, DEPARTMENT OF CO-OPERATION, OFFICE OF THE REGISTRAR OF CO-OPERATIVE SOCIETIES, JAWAHAR SAHAKARANA BHAVAN, DPI JUNCTION, THYCAUD P.O., THIRUVANANTHAPURAM, PIN – 695014** **5 ELECTORAL OFFICER TO KARTHIKAPPALLY CO-OPERATIVE AGRICULTURAL & RURAL DEVELOPMENT BANK LTD.NO. A 326, ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES KARTHIKAPPALLY, KARTHIKAPPALLY P.O, ALAPPUZHA, PIN – 690516.** **BY ADVS. SHRI.T.R.HARIKUMAR, SHRI.ARJUN RAGHAVAN(K/1277/2012), SHRI.C.M.NAZAR, SC SMT. SHEEJA C.S., SENIOR GOVERNMENT PLEADER** **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21.12.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** W.P.(C) No.41675/2023 : 3 : ## **N. NAGARESH, J.** ````````````````````````````````````````````````````````````` ## W.P.(C) No.41675 of 2023 ````````````````````````````````````````````````````````````` _Dated this the 21[st] day of December, 2023_ ## **J U D G M E N T** ~ ~ ~ ~ ~ ~ ~ ~ ~ The petitioners, who are members of the 1[st] respondent-Karthikappally Co-operative Agricultural and Rural Development Bank, have filed this writ petition seeking to direct the 1[st] and 2[nd] respondents to include the name of the petitioners in the preliminary voters list and to issue ID Cards to the 2[nd] petitioner. The petitioners also seek to direct the 4[th] respondent-Registrar of Co-operative Societies to consider and pass orders on Ext.P7 before publication of the preliminary voters list. 2. Election to the Karthikappally Co-operative Agricultural and Rural Development Bank has been notified as per Ext.P4 Notification dated 27.11.2023. The preliminary W.P.(C) No.41675/2023 : 4 : voters list is to be published on 11.12.2023. Objections to the preliminary voters list will be received till 18.12.2023. Objections will be considered on 19.12.2023 and final voters list is to be published on 21.12.2023. 3. The petitioners state that the 1[st] petitioner is a former employee of KSFE and the 2[nd] petitioner was an employee of the Bank. Both of them retired on superannuation. The 2[nd] petitioner submitted application for membership in the Bank and it was sanctioned. The 2[nd] petitioner has not been issued with ID Card so far. The Managing Committee of the Bank enhanced share value from ₹50/- to ₹100/-. A time limit was prescribed to remit balance share value. The petitioners did not notice the same. When the petitioners came to know about the enhancement of share value, they remitted the balance share value on 08.10.2021. 4. The 2[nd] petitioner thereafter approached the Bank to get ID Card as provided in the Kerala Co-operative Societies Rules. The ID Card was denied to the 2[nd] W.P.(C) No.41675/2023 : 5 : petitioner stating that the last date for remittance of the enhanced share value was 06.10.2021 and the 2[nd] petitioner remitted the money only on 08.10.2021. In the case of other members who failed to remit the enhanced share value, their share amount was transferred to a suspense account. 5. As the petitioners were denied membership in spite of remittance of balance share value, the petitioners submitted Ext.P6 complaint dated 21.10.2023 to the Minister for Co-operation. The petitioners submitted Ext.P7 representation to the Joint Registrar also. Exts.P6 and P7 have not been positively responded to. 6. The counsel for the petitioners argued that both the petitioners have remitted the enhanced share value on 08.10.2021. As per Section 11 of the Kerala Co-operative Societies Act, enhanced share value can be remitted at any point of time. Membership has to be granted after fulfilling all the conditions provided in Section 60 read with Rule 60 of the Kerala Co-operative Societies Rules. The 1[st] petitioner is interested to contest in the election. Therefore, direction W.P.(C) No.41675/2023 : 6 : should be given to the 1[st] and 2[nd] respondents to include the name of the petitioners in the preliminary voters list and to issue ID Card to the 2[nd] petitioner. 7. Standing Counsel entered appearance on behalf of respondents 1 and 2 and resisted the writ petition. On behalf of respondents 1 and 2, it is submitted that the Managing Committee of the Society passed a resolution on 21.12.2019 resolving to enhance share value from ₹50/- to ₹100/-. The amendment was registered as per Ext.R2(a) Certificate of Registration dated 20.01.2021. The amendment provided that the enhanced share value shall be remitted by the members within a period of six months and that the membership of the persons who failed to remit the balance amount will lose their membership and the share value will be transferred to the suspense account. 8. Respondents 1 and 2 further submitted that a notice was published in Mathrubhumi Daily and Veekshanam Daily on 06.04.2021 intimating the shareholders to remit the enhanced share value before 06.10.2021. The petitioners W.P.(C) No.41675/2023 : 7 : did not remit the balance share value by 06.10.2021. The staff of the Bank mistakenly collected enhanced share value from the petitioners on 08.10.2021. From 23000 members, the Society has cancelled the membership of 15,722 members who failed to remit the enhanced share value. The writ petition filed by the petitioners is therefore without any merit and is liable to be dismissed. 9. I have heard the learned counsel for the petitioners and the learned Standing Counsel representing respondents 1 and 2. I have also heard the learned Senior Government Pleader representing respondents 3 and 4 and the learned Standing Counsel representing the 5[th] respondent. 10. Section 11 of the Kerala Co-operative Societies Act provides that a Society may by an amendment of its Bye-laws, change the form or extent of its liability. When the Society has passed a resolution to change the form or extend of its liability, it shall give thereof in writing to all its members and creditors and any member or creditor shall W.P.(C) No.41675/2023 : 8 : during the period of two months from the date of service of notice upon them, have the option of withdrawing of their shares. In the case of the 1[st] petitioner-Society, the Society has given notice to its members regarding enhancement of share value. 11. Rule 16(3) of the Kerala Co-operative Societies Rules provides that where a person already admitted to membership is seen to have been eligible for membership at the time he was so admitted as a member or if he subsequently becomes ineligible for membership, the Committee of the Society may remove the person from the membership after giving him an opportunity for making his representation if any and the person concerned shall thereupon cease to be a member of the Society. 12. In view of Rule 16 of the Kerala Co-operative Societies Rules, since the petitioners have not been issued with any notice as contemplated under Rule 16(3), the petitioners will continue to be members of the Society. W.P.(C) No.41675/2023 : 9 : 13. However, as the petitioners have not remitted the enhanced share value, they will not be entitled to exercise their right to vote. A Division Bench of this Court has considered the issue in the judgment in _**Keechery Service Co-operative Bank Limited No.668 and another v. Ramesh M.M. and others** [2020 (1) KLJ 80]_ and held that only members who have remitted the entire share capital, necessary for exercising all the rights of a member as on a day 60 days prior to the election, are entitled to get their names included in the list of qualified voters published by the Electoral Officer under Rule 35A(4). 14. Be that as it may, even though the legal position be so, this Court is not called upon to adjudicate on the claims of the petitioners for the reason that the Kerala State Co-operative Election Commission has already published election notification as per Ext.P4 on 27.11.2023. The election process includes publication of preliminary voters list, submission of objections to the preliminary voters list and publication of final voters list. The finalisation of voters list W.P.(C) No.41675/2023 : 10 : being an integral part of the election process, the petitioners will have to challenge any inclusion/exclusion/discrepancy in the voters list in an election petition, resorting to Section 69 of the Kerala Co-operative Societies Act. The petitioners have not advanced any special circumstances warranting interference in the process of election, under Article 226 of the Constitution of India. The writ petition is therefore dismissed. Sd/- **N. NAGARESH, JUDGE** aks/21.12.2023 W.P.(C) No.41675/2023 : 11 : ## **APPENDIX OF WP(C) 41675/2023** ## **PETITIONERS' EXHIBITS:** **Exhibit P1 A TRUE COPY OF THE ID CARD HAVING MEMBER SHIP NO.14230 IN RESPECT OF THE FIRST PETITIONER Exhibit P2 A TRUE COPY OF THE REMITTANCE OF THE ENHANCED SHARE VALUE DATED 08.10.2021 IN RESPECT OF THE FIRST PETITIONER Exhibit P3 A TRUE COPY OF THE REMITTANCE OF THE ENHANCED SHARE VALUE DATED 08.10.2021 IN RESPECT OF THE SECOND PETITIONER Exhibit P4 A TRUE COPY OF THE ELECTION NOTIFICATION DATED 08.12.2023 PUBLISHED IN MATHRUBHUMI DAILY DATED 08.12.2023 Exhibit P5 A TRUE COPY OF THE FD RECEIPT DATED 15.07.2016 IN RESPECT OF THE SECOND PETITIONER Exhibit P6 A TRUE COPY OF THE COMPLAINT DATED 21.10.2023 ADDRESSED TO THE MINISTER FOR CO-OPERATION ALONG WITH THE ENDORSEMENT DATED 26.10.2023 Exhibit P7 A TRUE COPY OF THE REQUEST DATED 25.10.2023 SUBMITTED BY THE SECOND PETITIONER BEFORE THE JOINT REGISTRAR RESPONDENTS' EXHIBITS: Exhibit-R2(a) A TRUE COPY OF THE CERTIFICATE OF REGISTRATION OF AMENDMENT DATED 20/01/2021 Exhibit-R2(b) A TRUE COPY OF THE BYE-LAW AMENDMENT APPROVED BY THE 3RD RESPONDENT Exhibit-R2(c) TRUE COPIES OF THE PAPER PUBLICATIONS DATED 06/04/2021 PUBLISHED IN MATHRUBHUMI DAILY Exhibit-R2(d) TRUE COPIES OF THE PAPER PUBLICATIONS DATED 06/04/2021 PUBLISHED IN VEEKSHANAM DAILY**