High Court of KeralaSingle JudgeWrit petitions disposed of; proceedings directe...

W.P.(C) Nos. 3713/2022, 3714/2022 and 3554/2022 – Laisamma Sasi, N.I. Benny and Prof. K.I. Antony v. Joint Registrar of Co-operative Societies (General) and Others

Case / Petition Number:WP(C) Nos. 3713/2022, 3714/2022 and 3554/2022

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Sathish Ninan
Judgment Date
2022-02-21
Court Decision / Holding
Writ petitions disposed of: Disqualification proceedings notified under Ext.P3 (WP 3713) and Ext.P4 (WP 3714) rescheduled to 03.03.2022; The no-confidence motion meeting rescheduled to 07.03.2022 for WP 3554; No interference with the proceedings; The court directed sequencing to facilitate fair consideration.
Final Disposition
Writ petitions disposed of; proceedings directed to be scheduled as stated; no interference with the proceedings.

Parties to the Case

Appellants / Petitioners

  • Prof. K.I. Antony
  • Laisamma Sasi
  • N.I. Benny

Respondents

  • The Joint Registrar of Co-operative Societies (General), Painavu, IDUKKI
  • The Assistant Registrar of Co-operative Societies (General), Office of the Joint Registrar of Co-operative Societies, Thodupuzha, IDUKKI
  • The Thodupuzha Primary Co-Operative Agricultural & Rural Development Bank Ltd., Thodupuzha, IDUKKI (represented by its Secretary)
  • Prof. K. I. Antony

Legal Representation & Advocates

Counsels for Petitioners

  • • George Poonthottam (Sr.)
  • • P.V. Baby
  • • Nisha George
  • • Arun Chandran
  • • Reginald Valsalan
  • • Hana Karnolia
  • • Madona Cyril

Counsels for Respondents

  • • Government Pleader SMT.K.M.RESMI

Case Synopsis & Summary

This batch of writ petitions concerns parallel proceedings in the Thodupuzha Primary Co-Operative Bank: disqualification of two members of the Managing Committee and a no-confidence motion against the President. The petitions arise from a complaint by the President on 27 December 2021 seeking disqualification of two MC members, while a motion for no-confidence was proposed by eight MC members on 7 January 2022. The challenge to the meeting convened for the no-confidence motion rests on Rule 43(A)(ii) of the Co-operative Societies Rules, argued to require 15 days’ notice. The court notes that the grounds for disqualification are being contested on merits before the Registrar, with Ext.P3 (and Ext.P4) notices in play, and that the rule regarding notice is regarded by some authorities as directory rather than mandatory. Relying on K.T. Mattachan v. Joint Registrar and Ors and V.A. Jose v. Joint Registrar of Co-operative Societies, the court holds that lack of 15 days’ notice can be non-prejudicial. The court also clarifies that a petitioner against whom a no-confidence motion is moved has no right to vote, and discusses the proper sequencing of proceedings. The court directs disqualification proceedings to proceed first (03.03.2022) and the no-confidence motion to follow (07.03.2022), disposing of the petitions without interfering with the underlying proceedings.

Provisions of Law Cited

Rule 43(A)(ii) of the Co-operative Societies RulesRule 44(3) of the Co-operative Societies Rules

Legal Doctrines & Maxims

  • Period under Rule 43(A)(ii) is directory in nature
  • A challenge based on lack of 15 days' notice requires showing prejudice
  • When the petitioner is the person against whom the no-confidence motion is moved, he has no right to vote (prejudice not established)

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners contest the no-confidence motion on grounds of insufficient notice under Rule 43(A)(ii), arguing that the 15-day notice is mandatory and that prejudice must be shown for non-compliance. They also challenge the merits of the disqualification grounds, seeking quashing of or delaying such proceedings and seeking to ensure due process before the Registrar. They rely on the principle that a shortened notice can prejudice the targeted members and that Rule 43(A)(ii) is not merely directory if prejudice is established.

Contentions of Respondents

The respondents defend the proceedings, contending Rule 43(A)(ii) can be directory and not mandatory; they emphasize that the Registrar may proceed with objections and that there is no prejudice to the petitioners if the challenge is suitably advanced. They maintain that disqualification proceedings should be heard and resolved, with a preferred sequencing to ensure orderly consideration of the no-confidence motion.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
K.T.Mattachan v. The Joint Registrar and Ors2006 (2) KLT 45PositiveCited to support that the period prescribed under Rule 43(A)(ii) is directory in nature.
V.A.Jose and Anr. v. The Joint Registrar of Co-operative Societies (General) and Ors.2007 (1) KLT 391 (DB)PositiveCited to reinforce the directive that prejudice must be shown for not receiving 15 days’ notice; also supports the no-right-to-vote principle when the petitioner is the target of the no-confidence motion.

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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 SATHISH NINAN** **MONDAY, THE 21[ST] DAY OF FEBRUARY 2022 / 2ND PHALGUNA, 1943** ## **WP(C) NO. 3554 OF 2022** ## **PETITIONERS:** PROF. K.I. ANTONY AGED 74 YEARS S/O. ITTIAVIRA, RESIDING AT KANAT HOUSE, THODUPUZHA, IDUKKI DISTRICT-685581. BY ADV P.GEORGE VARGHESE ## **RESPONDENTS:** 1 SHIBILI SAHIB VICE PRESIDENT, THE THODUPUZHA PRIMARY CO-OPERATIVE AGRICULTURAL & RURAL DEVELOPMENT BANK LTD. NO.4388, P.B.NO.13, THODUPUZHA P.O., IDUKKI DISTRICT-685581. 2 P.J.AVIRA, DIRECTOR, THE THODUPUZHA PRIMARY CO-OPERATIVE AGRICULTURAL & RURAL DEVELOPMENT BANK LTD. NO.4388, P.B.NO.13, THODUPUZHA P.O., IDUKKI DISTRICT-685581. 3 T.M.SALIM, DIRECTOR, THE THODUPUZHA PRIMARY CO-OPERATIVE AGRICULTURAL & RURAL DEVELOPMENT BANK LTD. NO.4388, P.B.NO.13, THODUPUZHA P.O., IDUKKI DISTRICT-685581. 4 N.I.BENNY, DIRECTOR, THE THODUPUZHA PRIMARY CO-OPERATIVE AGRICULTURAL & RURAL DEVELOPMENT BANK LTD. NO.4388, P.B.NO.13, THODUPUZHA P.O., IDUKKI DISTRICT-685581. 5 LAISAMMA SASI, DIRECTOR, THE THODUPUZHA PRIMARY CO-OPERATIVE AGRICULTURAL & RURAL DEVELOPMENT BANK LTD. NO.4388, P.B.NO.13, THODUPUZHA P.O., IDUKKI DISTRICT-685581. 6 K.M.SALIM, DIRECTOR, THE THODUPUZHA PRIMARY CO-OPERATIVE AGRICULTURAL & RURAL DEVELOPMENT BANK LTD. NO.4388, P.B.NO.13, THODUPUZHA P.O., IDUKKI DISTRICT-685581. **WP(C) NO. 3554 OF 2022 -2-** 7 P.D.PUSHPPAKUMAR, DIRECTOR, THE THODUPUZHA PRIMARY CO-OPERATIVE AGRICULTURAL & RURAL DEVELOPMENT BANK LTD. NO.4388, P.B.NO.13, THODUPUZHA P.O., IDUKKI DISTRICT-685581. 8 MARIYAMMA BENNY, DIRECTOR, THE THODUPUZHA PRIMARY CO-OPERATIVE AGRICULTURAL & RURAL DEVELOPMENT BANK LTD. NO.4388, P.B.NO.13, THODUPUZHA P.O., IDUKKI DISTRICT-685581. 9 T.M.GEORGE, DIRECTOR, THE THODUPUZHA PRIMARY CO-OPERATIVE AGRICULTURAL & RURAL DEVELOPMENT BANK LTD. NO.4388, P.B.NO.13, THODUPUZHA P.O., IDUKKI DISTRICT-685581. 10 REJI JACOB, DIRECTOR, THE THODUPUZHA PRIMARY CO-OPERATIVE AGRICULTURAL & RURAL DEVELOPMENT BANK LTD. NO.4388, P.B.NO.13, THODUPUZHA P.O., IDUKKI DISTRICT-685581. 11 LISSY JOSE, DIRECTOR, THE THODUPUZHA PRIMARY CO-OPERATIVE AGRICULTURAL & RURAL DEVELOPMENT BANK LTD. NO.4388, P.B.NO.13, THODUPUZHA P.O., IDUKKI DISTRICT-685581. 12 THE THODUPUZHA PRIMARY CO-OPERATIVE AGRICULTURAL & RURAL DEVELOPMENT BANK LTD. NO.4388, P.B.NO.13, THODUPUZHA P.O., IDUKKI DISTRICT-685581, REPRESENTED BY ITS SECRETARY. 13 ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES (G), THODUPUZHA, IDUKKI DISTRICT-685581. 14 JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (G), PAINAVU, IDUKKI DISTRICT-685603. BY ADVS. GEORGE POONTHOTTAM (SR.) P.V.BABY NISHA GEORGE BY GOVT. PLEADER SMT.K.M.RESMI THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21.02.2022, ALONG WITH WP(C).3713/2022, 3714/2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR. JUSTICE SATHISH NINAN** ## **MONDAY, THE 21[ST] DAY OF FEBRUARY 2022 / 2ND PHALGUNA, 1943** ## **WP(C) NO. 3713 OF 2022** ## **PETITIONER:** LAISAMMA SASI AGED 51 YEARS MEMBER, BOARD OF DIRECTORS, THODUPUZHA PRIMARY CO-OPERATIVE AGRICULTURAL RURAL DEVELOPMENT BANK LTD. NO.4388, THODUPUZHA, IDUKKI DISTRICT - 685 581, RESIDING AT KUNNUMEL HOUSE, VANNAPPURAM P. O., VANNAPPURAM VILLAGE, THODUPUZHA TALUK, IDUKKI DISTRICT. BY ADVS. GEORGE POONTHOTTAM (SR.) NISHA GEORGE ARUN CHANDRAN REGINALD VALSALAN HANA KARNOLIA MADONA CYRIL ## **RESPONDENTS:** 1 THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL), PAINAVU, IDUKKI - 685603. 2 THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL) OFFICE OF THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES, THODUPUZHA, IDUKKI DISTRICT - 685581. 3 THE THODUPUZHA PRIMARY CO-OPERATIVE AGRICULTURAL RURAL DEVELOPMENT BANK LTD. NO.4388 THODUPUZHA, IDUKKI DISTRICT - 685581, REPRESENTED BY ITS SECRETARY. 4 PROF. K. I. ANTONY RESIDING AT KANATTU HOUSE, RIVER VIEW ROAD, THODUPUZHA VILLAGE, THODUPUZHA TALUK, IDUKKI DISTRICT, PIN - 685581. BY GOVT. PLEADER SMT.K.M.RESMI THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21.02.2022, ALONG WITH WP(C).3554/2022 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR. JUSTICE SATHISH NINAN** ## **MONDAY, THE 21[ST] DAY OF FEBRUARY 2022 / 2ND PHALGUNA, 1943** ## **WP(C) NO. 3714 OF 2022** ## **PETITIONER:** N.I. BENNY AGED 59 YEARS MEMBER, BOARD OF DIRECTORS, THE THODUPUZHA PRIMARY COOPERATIVE AGRICULTURAL & RURAL DEVELOPMENT BANK LTD. NO.4388, THODUPUZHA, IDUKKI DISTRICT, PIN CODE-685581, RESIDING AT NADACKAL HOUSE, VENGALLOR P.O., THODUPUZHA VILLAGE, THODUPUZHA TALUK, IDUKKI DISTRICT. BY ADVS. GEORGE POONTHOTTAM (SR.) ARUN CHANDRAN NISHA GEORGE REGINALD VALSALAN ## **RESPONDENTS:** 1 THE JOINT REGISTRAR OF COOPERATIVE SOCIETIES (GENERAL), PAINAVU, IDUKKI-685603. 2 THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL), OFFICE OF THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES, THODUPUZHA, IDUKKI DISTRICT-685581. 3 THE THODUPUZHA PRIMARY CO-OPERATIVE AGRICULTURAL & RURAL DEVELOPMENT BANK LTD. NO.4388, THODUPUZHA, IDUKKI DISTRICT-685581, REPRESENTED BY ITS SECRETARY. 4 PROF. K.I.ANTONY, RESIDING AT KANATTU HOUSE, RIVER VIEW ROAD, THODUPUZHA VILLAGE, THODUPUZHA TALUK, IDUKKI DISTRICT, PIN CODE685581. BY GOVT. PLEADER SMT.K.M.RESMI THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21.02.2022, ALONG WITH WP(C).3554/2022 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ## **SATHISH NINAN, J.** **= = = = = = = = = = = = = = = = = = W.P.(C) No.3713, 3714 & 3554 of 2022 = = = = = = = = = = = = = = = = = = Dated this the 21[st] day of February, 2022** ## **J U D G M E N T** Proceedings for disqualification of two members of the Managing Committee of the Thodupuzha Primary Cooperative Agricultural Rural Development Bank, and proceedings for consideration of a no-confidence motion against the President of the Managing Committee are going on parallelly. Proceedings for disqualification commenced on the complaint of the President dated 27.12.2021, and the motion for disqualification is proposed by eight of the Managing Committee members on 07.01.2022. 2. The challenge against the meeting convened for consideration of the no-confidence motion is on the ground that, the requirement of fifteen days notice as mandated under Rule 43(A)(ii) of the Co-operative Societies Rules is violated. The notice is dated **W.P.(C) No.3713, 3714 & 3554 of 2022** -: 2 :- 31.01.2022 and the meeting is proposed on 05.02.2022. The challenge against the disqualification proceedings is on the merits, on the sustainability of the grounds alleged for disqualification. 3. Heard the learned senior counsel Sri.George Poonthottam on behalf of the petitioners in WP(C) Nos.3713 and 3714 of 2022, Sri.George Varghese the learned counsel for the petitioner in WP(C) No.3554 of 2022 and Smt.Reshmi K.M, the learned Government Pleader. 4. This Court has in _**K.T.Mattachan v. The Joint Registrar and Ors [2006 (2) KLT 45]**_ and _**V.A.Jose and Anr. v. The Joint Registrar of Co-operative Societies (General) and Ors. [2007 (1) KLT 391 (DB)]**_ categorically held that the period prescribed under Rule 43(A)(ii) is only directory in nature. The person who challenges has to demonstrate the prejudice caused for not having received 15 days notice. In V.A.Jose's case (supra) it was held that, when the petitioner himself is the person against whom the no-confidence motion is ## **W.P.(C) No.3713, 3714 & 3554 of 2022** -: 3 :- moved, the petitioner has no right to vote. The petitioner cannot in any manner be said to be prejudiced. Therefore, the challenge against the proposed no-confidence motion has no substance. 5. As regards the disqualification proceedings, it is open for the petitioners to raise their objections on the sustainability of the allegations before the Registrar in the hearing being afforded to them under Ext.P3 notice in the proceeding under Rule 44(3) of the Rules. There is no necessity to interfere with the said proceedings. 6. Resultantly, there is no warrant to interfere with either of the proceedings. 7. Now the question is, which among the proceedings is to commence first. As noticed first above, the complaint regarding disqualification was prior in point of time to the proposal of no-confidence, though only by ten days. If the no-confidence is considered first and **W.P.(C) No.3713, 3714 & 3554 of 2022** -: 4 :- thereafter disqualification proceedings are allowed, it would cause prejudice to the person against whom the noconfidence motion is moved. On the contrary if the disqualification proceedings is culminated first and no one is disqualified, all of them could take part in the consideration of the motion. Therefore it is proper that the disqualification proceedings be taken ahead first and followed by the consideration of the motion of noconfidence. 8. Since both the proceedings were adjourned by this Court pending the writ petition, it is ordered that the disqualification proceedings notified under Ext.P3 in W.P.(C) No.3713 of 2022, and Ext.P4 in 3714 of 2022, will stand rescheduled to 03.03.2022 at the time and place as mentioned in Exts.P3 and P4 respectively. The meeting for consideration of the no-confidence will stand re-scheduled to 07.03.2022 at the same time and place as notified in Ext.P3 notice in W.P.(C) **W.P.(C) No.3713, 3714 & 3554 of 2022** -: 5 :- No.3554/2022. Writ petitions are disposed of as above. kns/- Sd/- **SATHISH NINAN JUDGE** P.S. to Judge //True Copy// ## **APPENDIX OF WP(C) 3713/2022** PETITIONER EXHIBITS - Exhibit P1 TRUE COPY OF THE INTERIM ORDER IN WP(C) NO.260 OF 2022 DATED 10.01.2022 PASSED BY THIS HON'BLE COURT. - Exhibit P2 TRUE COPY OF THE MOTION DATED 07.01.2022 SUBMITTED BY 8 MEMBERS OF THE BOARD OF DIRECTORS TO THE 1ST RESPONDENT. Exhibit P2(a) TRUE COPY OF THE NOTICE NO.A/55/2022 DATED 31.01.2022 ISSUED BY THE 2ND RESPONDENT. Exhibit P3 TRUE COPY OF THE NOTICE NO.JRGIDK/155/2022CRB DATED 29.01.2022 ISSUED BY THE 1ST RESPONDENT. Exhibit P4 TRUE COPY OF THE CERTIFICATE NO.197/21 DATED 02.02.2022 EVIDENCING THE PAYMENT OF THE LOAN ACCOUNTS. ---- ## **APPENDIX OF WP(C) 3714/2022** PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE INTERIM ORDER IN WP(C) NO.260 OF 2022 DATED 10.1.2022 PASSED BY THIS HON'BLE COURT. - Exhibit P2 TRUE COPY OF THE MOTION DATED 7.1.2022 SUBMITTED BY 8 MEMBERS OF THE BOARD OF DIRECTORS TO THE 1ST RESPONDENT. - Exhibit P3 TRUE COPY OF THE NOTICE NO.A/55/2022 DATED 31.1.2022 ISSUED BY THE 2ND RESPONDENT. - Exhibit P4 TRUE COPY OF THE NOTICE NO.JRGIDK/155/2022CRB DATED 29.1.2022 ISSUED BY THE 1ST RESPONDENT. Exhibit P5 TRUE COPY OF THE DEPOSIT RECEIPT NO.78084 DATED 28.1.2022 ISSUED BY THE KERALA STATE CO-OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK LTD. ----- **APPENDIX OF WP(C) 3554/2022** PETITIONER EXHIBITS Exhibit P1 Exhibit P1 A TRUE PHOTOSTAT COPY OF THE COMMON ORDER IN WP(C) NO.29873/2021 AND 260/2022 DATED 10.1.2022 OF THIS HON'BLE COURT. Exhibit P2 A TRUE PHOTOSTAT COPY OF THE NO CONFIDENCE MOTION DATED 7.1.2022 SUBMITTED BY THE RESPONDENTS 1 TO 8 TO RESPONDENT NO.13. Exhibit P3 A TRUE PHOTOSTAT COPY OF THE NOTICE DATED 31.1.2022 ISSUED BY THE 13TH RESPONDENT TO THE COMMITTEE MEMBERS OF THE BANK. -----