High Court of KeralaSingle JudgeDispositioin: WP(C) Nos.1064/2023 and 28216/202...

W.P.(C) Nos. 1064 of 2023 and 28216 of 2023, High Court of Kerala

Case / Petition Number:WP(C) Nos. 1064/2023 and 28216/2023

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Raja Vijayaraghavan V
Judgment Date
2023-10-17
Court Decision / Holding
WP(C) No.1064 of 2023 is allowed; ARC No.15/2022 stands quashed. WP(C) No.28216 of 2023 is disposed of by directing the 1st respondent to expedite consideration of Ext.P8 and take the matter to its logical conclusion within three months. It will be open to the petitioner to request interim relief before the Joint Registrar. Until orders are passed on the stay petition, no appointments shall be effected.
Final Disposition
Dispositioin: WP(C) Nos.1064/2023 and 28216/2023 disposed. WP1064 allowed with quashing of ARC 15/2022; WP28216 disposed with direction to expeditiously process Ext.P8 and stay on appointments until further orders; three-month deadline set for final disposal; interim relief to be considered before Joint Registrar.

Parties to the Case

Appellants / Petitioners

  • The Managing Committee of Vellanad Service Co-operative Bank Ltd No.2379
  • Vellanad Service Co-operative Bank Ltd No.2379
  • M.S. Vimal Kumar

Respondents

  • M. S. Vimalkumar
  • The Secretary, Co-operative Arbitration Court (Southern)
  • Vellanad Service Co-operative Bank Ltd No.2379
  • The Board of Directors, Vellanad Service Co-operative Bank Ltd No.2379
  • The President, Vellanad Service Co-operative Bank Ltd No.2379
  • Assistant Registrar (General)
  • Joint Registrar of Co-operative Societies (General)

Legal Representation & Advocates

Counsels for Petitioners

  • • P. N. Mohanan
  • • C. P. Sabari
  • • Amruta Suresh
  • • Gilroy Rozario
  • • T. I. Unni Raja
  • • S. G. Sreekanth
  • • S. Badusha
  • • Sreejith S.
  • • Joel Antony George
  • • Faheema Hassan S.

Counsels for Respondents

  • • Smt. Surya Binoy, GP
  • • Joel Antony George

Case Synopsis & Summary

This consolidated writ petition challenges orders of the Co-operative Arbitration Court in ARC No.15/2022 and seeks to regulate the bank’s recruitment process amid ongoing litigation. In WP(C) No.1064 of 2023, the Managing Committee of the Vellanad Service Co-operative Bank Ltd. No.2379 seeks to quash Exts.P11 and P12 issued by the Arbitration Court. In WP(C) No.28216 of 2023, M. S. Vimal Kumar seeks directions to the Joint Registrar to expeditiously consider Ext.P8, a Rule 176 complaint, praying to set aside the bank’s resolutions Nos.1554–1557 and to rescind the related selection process. Senior counsel submitted that the bank’s decision to conduct a written examination occurred against a backdrop of active litigation and that the arbitration case would not be maintainable for selection disputes under Section 69 of the Co-operative Societies Act, citing Akalakunnam. The respondents urged caution, noting that the Joint Registrar could adjudicate the Rule 176 complaint, and that no appointment should be made until resolution. The court allowed WP1064, quashing ARC 15/2022, and disposed of WP28216 by directing expeditious consideration of Ext.P8 with a stay on appointments until orders. A three-month deadline was set, with interim relief hearings to be held before the Joint Registrar if sought.

Provisions of Law Cited

Section 69 of the Co-operative Societies ActRule 176 of the Co-operative Societies Rules

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners contended that continuing arbitration and Tribunal litigation necessitated halting or revisiting the recruitment process. They argued that the Bank’s decision to conduct a written examination occurred despite ongoing disputes and that the arbitration process under Section 69 is not the proper forum for such selection disputes. They urged quashing of Exts.P11-P12 and to direct the Joint Registrar to handle Ext.P8 complaint expeditiously, staying appointments until resolution. They invoked Akalakunnam Village Service Co-operative Bank Ltd. v. Binu N to contend that Section 69 exclusive jurisdiction may not extend to sub-staff selection disputes.

Contentions of Respondents

The respondents urged caution, arguing that the Joint Registrar should adjudicate the Rule 176 complaint and that appointments should not proceed until the complaint is resolved. They submitted that the arbitration and Tribunal proceedings were part of ongoing governance and that staying the recruitment absent a Court ruling would disrupt the bank’s functioning. They suggested directing expedited consideration of Ext.P8 while preserving the integrity of the recruitment process.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Akalakunnam Village Service Co-operative Bank Ltd. v. Binu N and Others2014 (4) SCC 605Mentioned OnlyCited to illustrate that disputes about selection procedures may fall outside Section 69; cited by counsel but the court does not adopt or rely on this ratio as controlling for the present petitions.

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Extracted Judgment Text

Exact text extracted from official judgment records.

## **`IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE RAJA VIJAYARAGHAVAN V TUESDAY, THE 17[TH] DAY OF OCTOBER 2023 / 25TH ASWINA, 1945 WP(C) NO. 1064 OF 2023`** ``` PETITIONERS: ``` ``` 1THEMANAGINGCOMMITTEEOFVELLANADUSERVICECO-OPERATIVE BANKLTD.NO.2379,REPRESENTEDBYITSPRESIDENT AGED55YEARS - VELLANADP.O.,THIRUVANANTHAPURAM,PIN695543. 2VELLANADUSERVICECO-OPERATIVEBANKLTD.NO.2379, REPRESENTEDBYITSSECRETARYINCHARGE AGED53YEARS - VELLANADP.O.,THIRUVANANTHAPURAM,PIN695543. BYADVS. P.N.MOHANAN C.P.SABARI AMRUTHASURESH GILROYROZARIO ``` ## **`RESPONDENTS:`** ``` 1M.S.VIMALKUMAR SREEBHAGAVATHIMANDIRAM,KOOTAYANIMOODU,VELLANADP.O, - THIRUVANANTHAPURAM,PIN695543. 2THESECRETARY,CO-OPERATIVEARBITRATIONCOURT(SOUTHERN), T.CNO.28/995(3),NEARBSNLEXCHANGE,KAITHAMUKKU, - FORTP.O,THIRUVANANTHAPURAM,PIN695024. BYADVS. FAHEEMAHSANS JOELANTONYGEORGE(K/742/2020) SMT.SURYABINOY,GP ``` ``` THISWRITPETITION(CIVIL)HAVINGCOMEUPFORADMISSIONON 17.10.2023,ALONGWITHWP(C).28216/2023,THECOURTONTHESAMEDAY DELIVEREDTHEFOLLOWING: ``` ``` WP(C)NOS.1064&28216OF2023 ``` ``` 2 ``` # **`IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE RAJA VIJAYARAGHAVAN V TUESDAY, THE 17[TH] DAY OF OCTOBER 2023 / 25TH ASWINA, 1945 WP(C) NO. 28216 OF 2023`** ``` PETITIONER: ``` ``` M.S.VIMALKUMAR AGED38YEARS S/OMURALEEDHARANNAIR,SREEBHAGAVATHYMANDIRAM, KOOTAYANIMOODU,VELLANADP.O,THIRUVANANTHAPURAMDISTRICT, - PIN695543. ``` ``` BYADVS. T.I.UNNIRAJA S.G.SREEKANTH S.BADUSHA SREEJITHS. JOELANTONYGEORGE FAHEEMAHSAN.S ``` ## **`RESPONDENTS:`** ``` 1THEJOINTREGISTRAROFCO-OPERATIVESOCIETIES(GENERAL) OFFICEOFTHEJOINTREGISTRAROFCO-OPERATIVESOCIETIES, - VANCHIYOOR,THIRUVANANTHAPURAM,PIN695035. 2VELLANADSERVICECO-OPERATIVEBANKLTD.NO.2379 REPRESENTEDBYSECRETARY,VELLANADP.O., - THIRUVANANTHAPURAM,PIN695543. 3THEBOARDOFDIRECTORS VELLANADSERVICECO-OPERATIVEBANKLTD.NO.2379, - VELLANADP.O.,THIRUVANANTHAPURAM,PIN695543. 4THEPRESIDENT VELLANADSERVICECO-OPERATIVEBANKLTD.NO.2379, - VELLANADP.O.,THIRUVANANTHAPURAM,PIN695543. 5ASSISTANTREGISTRAR(GENERAL) ASSISTANTREGISTRAR'SOFFICE,REVENUETOWER,NEDUMANGAD, - THIRUVANANTHAPURAM,PIN695541. SMT.SURYABINOY,SR.GP THISWRITPETITION(CIVIL)HAVINGCOMEUPFORADMISSIONON 17.10.2023,ALONGWITHWP(C).1064/2023,THECOURTONTHESAMEDAY DELIVEREDTHEFOLLOWING: ``` ``` WP(C)NOS.1064&28216OF2023 ``` ``` 3 ``` ## **JUDGMENT** ## **`[WP(C) Nos.1064/2023, 28216/2023]`** W.P.(C) No.1064 of 2023 is filed by the Managing Committee of the Vellanadu Service Co-operative Bank Ltd. No.2379 seeking to quash Exts.P11 and P12 orders issued by the Co-operative Arbitration Court, Thiruvananthapuram. 2. W.P.(C) No.28216 of 2023 is filed by a certain M.S Vimal Kumar seeking issuance of directions to the Joint Registrar of Co-operative Societies to expeditiously consider Ext.P8 complaint filed by him invoking Rule 176 of the Kerala Co-operative Societies Rules wherein the prayer sought is for rescinding the resolutions vide Nos.1554, 1555, 1556 and 1557 by holding the same is illegal. 3. I have heard Sri.P.N.Mohanan, the learned counsel appearing for the petitioners in W.P.(C) No.1064 of 2023 and Sri.Unniraja T., the learned counsel appearing for the petitioner in W.P.(c) No.28216 of 2023 and the learned Government Pleader. 4. It is submitted by Sri.P.N.Mohanan that pursuant to various litigations pending before the Arbitration Court as well as the Co-operative Tribunal, the Bank decided to conduct a written examination. This was challenged before the Arbitration Court and by Ext.P7 order produced in W.P.(c) No.1064 of 2023, the same was stayed. The matter was taken up ``` WP(C)NOS.1064&28216OF2023 ``` ``` 4 ``` before this Court by filing W.P.(c) No.13990 of 2022 and by an interim order dated 19.4.2022; this Court permitted the Bank to go on with the selection process pursuant to notification dated 11.3.2020 with due intimation to the candidates. However, it is made clear that the appointment to the said post shall be made only after getting orders from the Court. The learned counsel submits that the said matter was disposed of by Ext.P10 judgment dated 22.7.2022 and this Court had directed the Arbitration Court to proceed with the application filed by the Bank and while doing so to take a decision on the maintainability as well. The learned counsel submits that the Apex Court in **Akalakunnam Village Service Co-operative Bank Ltd. v. Binu N and Others** [2014 (4) SCC 605] had occasion to hold that any dispute with regard to the procedure adopted for selection and appointment to the sub-staff category in a Co-operative Society would not fall within the ambit of Disputes to be resolved under Section 69 of the Co-operative Societies Act. According to the learned counsel, in view of the principles laid therein, the arbitration case itself is not maintainable. The learned counsel submits that knowing fully well that the application before the Arbitrator would not be maintainable, the petitioner in W.P.(c) No.28216 of 2023, has preferred a complaint under Rule 176 of the Co-operative Societies Rules, which is pending before the Joint Registrar and he submits that the petitioner therein, has sought to set aside the selection process of vacant posts to be filled in the Bank and also to rescind the resolutions. The learned counsel submits that the proper course in the said circumstances would be to issue ``` WP(C)NOS.1064&28216OF2023 ``` ``` 5 ``` directions to the Joint Registrar to consider the same and take an expeditious decision. 5. The learned counsel appearing for the petitioner in W.P.(c) No.28216 of 2023 submits that though he has no objection in adopting such a course, no appointments pursuant to the notification dated 23.11.2019 be effected. 6. As the petitioner in W.P.(c) No.28216 of 2023 has chosen to approach the Joint Registrar seeking various prayers, which includes the setting aside of the selection process, I am of the view that the request made by the petitioner in W.P.(c) No.28216 of 2023 can be raised before the Joint Registrar. It would be open to the petitioner to file an appropriate application before the Joint Registrar seeking interim relief to stay the selection process under the 1st respondent till the disposal of the complaint as prayed for in the complaint. In view of the submissions advanced by both sides, I am of the view that this writ petition can be disposed by ordering as under:- - a) W.P.(C) No.1064 of 2023 will stand allowed, the proceedings pending before the Co-operative Arbitration Court as ARC No.15 of 2022 will stand quashed. - b) W.P.(C) No.28216 of 2023 will stand disposed of directing the 1st respondent to expedite the consideration of Ext.P8 complaint and ``` WP(C)NOS.1064&28216OF2023 ``` ``` 6 ``` take the matter to its logical conclusion within a period of three months. It will be open to the petitioner to insist on hearing the request for interim relief before the Joint Registrar. - c) Until orders are passed on the stay petition, the respondents shall not effect any appointments. ``` Sd/- ``` **RAJA VIJAYARAGHAVAN V JUDGE** ``` Sru ``` ``` WP(C)NOS.1064&28216OF2023 ``` ``` 7 ``` ## **`APPENDIX OF WP(C) 28216/2023`** ## `PETITIONER’S EXHIBITS` |`Exhibit `|`P1`|`THE TRUE COPY OF THE REPORT DATED 25-09-2021.`| |---|---|---| |`Exhibit `|`P2`|`THE TRUE COPY OF THE PLAINT AS WELL AS STAY`| |||`PETITION ARC 15/2022 DATED 05/04/2022.`| |`Exhibit `|`P3`|`THE TRUE COPY OF THE INTERIM ORDER DATED`| |||`05/04/2022 IN I.A. 1/2022 IN ARC 15/2022.`| |`Exhibit `|`P4`|`THE TRUE COPY OF THE INTERIM ORDER IN WPC`| |||`13990/2022 DATED 19/04/2022.`| |`Exhibit `|`P5`|`THE TRUE COPY OF THE MINUTES DATED 23/05/2022`| |||`OF THE 2ND RESPONDENT'S MANAGING COMMITTEE.`| |`Exhibit `|`P6`|`THE TRUE COPY OF THE JUDGMENT DATED 22/07/2022`| |||`IN WPC 13990/2022.`| |`Exhibit `|`P7`|`THE TRUE COPY OF THE ORDER DATED 08/12/2022 IN`| |||`I.A. 2/2022 IN ARC 15/2022 OF CO-OPERATIVE`| |||`ARBITRATION COURT.`| |`Exhibit `|`P8`|`THE TRUE COPY OF THE COMPLAINT PREFERRED BEFORE`| |||`THE 1ST RESPONDENT DATED 17/08/2023.`| ``` WP(C)NOS.1064&28216OF2023 ``` ``` 8 ``` ## **`APPENDIX OF WP(C) 1064/2023`** |`PETITIONERS EXHIBITS`|| |---|---| |`Exhibit P1`|`A TRUE COPY OF THE NOTIFICATION DATED`| ||`23.11.2019 PUBLISHED IN KERALA KOUMUDI DATED`| ||`24.11.2019.`| |`Exhibit P2`|`A TRUE COPY OF THE ORDER DATED 24.12.2019 IN`| ||`I.A.NO.119/2019 IN ARC.NO.82/2019.`| |`Exhibit P3`|`A TRUE COPY OF THE NOTIFICATION DATED`| ||`11.03.2020 PUBLISHED IN KERALA KOUMUDI DAILY`| ||`DATED 12.03.2020.`| |`Exhibit P4`|`A TRUE COPY OF THE ORDER DATED 24.09.2021 IN`| ||`I.A.NO.1/2021 IN ARC.NO.82/2021.`| |`Exhibit P5`|`A TRUE COPY OF THE ORDER DATED 14.03.2022 IN`| ||`R.P.NO.35/2021 OF THE CO-OPERATIVE TRIBUNAL.`| |`Exhibit P6`|`A TRUE COPY OF THE PLAINT ALONG WITH STAY`| ||`PETITION DATED 05.04.2022 IN ARC.NO.15/2022.`| |`Exhibit P7`|`A TRUE COPY OF THE ORDER DATED 05.04.2022 IN`| ||`I.A.NO.1/2022 IN ARC.NO.15/2022.`| |`Exhibit P8`|`A TRUE COPY OF THE INTERIM ORDER DATED`| ||`19.04.2022 IN W.P.(C).NO.13990/2022.`| |`Exhibit P9`|`A TRUE COPY OF THE MINUTES DATED 23.05.2022 OF`| ||`THE MANAGING COMMITTEE PREPARING THE RANK LIST.`| |`Exhibit P 10`|`A TRUE COPY OF THE JUDGMENT DATED 22.07.2022 IN`| ||`W.P.(C).NO.13990/2022.`| |`Exhibit P11`|`A TRUE COPY OF THE ORDER DATED 08.12.2022 IN`| ||`I.A.2/2022 IN ARC NO.15/2022.`| |`Exhibit P12`|`A TRUE COPY OF THE ORDER DATED 08.12.2022 IN`| ||`I.A.NO.1/2022.`| |`Exhibit P13`|`A TRUE COPY OF THE JUDGMENT IN AKALAKKUNNAM`| ||`VILLAGE SCB'S VS BINU.N REPORTED IN ILR 2014`| ||`(4) KER 605.`|