High Court of KeralaSingle JudgeDisposal with directions: 1064 allowed (ARC ord...

W.P.(C) Nos. 1064 of 2023 and 28216 of 2023 (Vellanad Service Co-operative Bank Ltd. and M.S. Vimalkumar) v. Joint Registrar of Co-operative Societies and Others

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

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Raja Vijayaraghavan V
Judgment Date
2023-10-17
Court Decision / Holding
The court allowed WP(C)1064/2023, quashing ARC No.15/2022, and disposed WP(C)28216/2023 by directing the 1st respondent to expeditiously consider Ext.P8 and bring the matter to a conclusion within three months, with interim relief to stay appointments until orders on the stay petition. It also noted that the petitioner in WP(C)28216 may pursue interim relief before the Joint Registrar.
Final Disposition
Disposal with directions: 1064 allowed (ARC order quashed); 28216 disposed with directions to expedite Ext.P8 and conclude within three months; stay on appointments until further stay petition orders.

Parties to the Case

Appellants / Petitioners

  • The Managing Committee of Vellanadu Service Co-operative Bank Ltd. No.2379 represented by its President
  • Vellanad Service Co-operative Bank Ltd. No.2379 represented by its Secretary in charge
  • M.S. Vimalkumar

Respondents

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

Legal Representation & Advocates

Counsels for Petitioners

  • • P.N. Mohanan
  • • C.P. Sabari
  • • Amrutha Suresh
  • • Gilroy Rozario
  • • T.I. Unniraja
  • • S.G. Sreekanth
  • • S. Badusha
  • • Sreejith S.
  • • Joel Antony George
  • • Faheem Hassan S

Counsels for Respondents

  • • Faheema Hansans?
  • • Joel Antony George
  • • Suryabinoi, GP
  • • Smt. Suryabinooy, SR.GP

Case Synopsis & Summary

This joint writ petition challenges two streams of relief concerning recruitment for a post in the Vellanad Service Co-operative Bank Ltd. No.2379. W.P.(C) No.1064 of 2023, filed by the Managing Committee (and the Bank on its own behalf), seeks to quash Exts.P11 and P12 orders of the Co-operative Arbitration Court (ARC No.15/2022), arguing that the ongoing litigation before arbitration and the Co-operative Tribunal has disturbed the selection process and that disputes over selection procedures fall outside Section 69 of the Co-operative Societies Act. W.P.(C) No.28216 of 2023, filed by M.S. Vimalkumar, seeks directions to the Joint Registrar of Co-operative Societies to expeditiously consider Ext.P8 under Rule 176 of the Kerala Co-operative Societies Rules, challenging resolutions Nos. 1554–1557 and contending the process is illegal. The Court heard counsel for both sides and examined the law, including the Supreme Court’s Akalakunnam Village Service Co-operative Bank Ltd. v. Binu N and Others (2014) 4 SCC 605, which discusses the maintainability of disputes over selection procedures under Section 69. The judgment disposes the petitions by quashing ARC No.15/2022 (in 1064) and directing expeditious consideration of Ext.P8 with a three-month deadline in 28216, with appointments stayed until further orders on the stay petition.

Provisions of Law Cited

Co-operative Societies Act, Section 69Kerala Co-operative Societies Rules, Rule 176

Legal Doctrines & Maxims

  • Disputes regarding the procedure 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 (Akalakunnam Village Service Co-operative Bank Ltd. v. Binu N and Others, 2014 (4) SCC 605)

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners contend that due to ongoing litigation before the Co-operative Arbitration Court and the Co-operative Tribunal, the bank decided to conduct a written examination for recruitment. They argue that the ARC proceedings, exts. P11 and P12, are not maintainable under Section 69 of the Co-operative Societies Act, citing Akalakunnam Village Service Co-operative Bank Ltd. v. Binu N and Others (2014) to support the proposition that selection-procedure disputes fall outside Section 69 and that the proper course is to have the Joint Registrar consider Ext.P8/Rule 176 complaint and stay appointments pending resolution. They seek quashing of the ARC order and prompt adjudication of the complaint.

Contentions of Respondents

The respondents (including Vimalkumar and other officials) acknowledge the petitions and emphasise that the matter involves complex procedural disputes; they also imply that continuance of the selection process requires careful adjudication. The respondents assent to directions to the Joint Registrar to consider Ext.P8 but advocate for maintaining necessary safeguards, including interim relief hearings, and staying appointments until final orders are issued on the stay petition.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Akalakunnam Village Service Co-operative Bank Ltd. v. Binu N and Others2014 (4) SCC 605Mentioned OnlyCited to illustrate the principle that disputes concerning selection procedures may lie outside Section 69; used to support the argument on maintainability, but not expressly followed or distinguished in the decision.

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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.`|