W.P.(C) Nos.17284/2020, 17473/2020, 17552/2020 & 17799/2020 (Kerala High Court)

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR. JUSTICE SATHISH NINAN** ## **THURSDAY, THE 15TH DAY OF OCTOBER 2020 / 23RD ASWINA, 1942** ## **WP(C).No.17284 OF 2020(I)** ## **PETITIONER:** **N. SUBRAMANIAN CHAIRMAN, KURUVATTOOR SERVICE CO-OPERATIVE BANK LTD.NO.D 1973, H.O.KURUVATTOOR, KOZHIKKODE DISTRICT.** **BY ADVS.** **SRI.GEORGE POONTHOTTAM (SR.) SRI.ARUN CHANDRAN SMT.NISHA GEORGE** ## **RESPONDENTS:** **1 THE KERALA STATE CO-OPERATIVE ELECTION COMMISSION 3RD FLOOR, CO-BANK TOWERS, VIKAS BHAVAN P.O., THIRUVANANTHAPURAM-695 033, REPRESENTED BY ITS SECRETARY.** **2 THE ELECTORAL OFFICER (ADDITIONAL REGISTRAR (CREDIT), KERALA STATE CO-OPERATIVE BANK, OFFICE OF THE REGISTRAR OF CO-OPERATIVE SOCIETIES, THIRUVANANTHAPURAM-695 001.** **3 THE RETURNING OFFICER, KERALA STATE CO-OPERATIVE BANK, (JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL), JAWAHAR SAHAKARANA BHAVAN, DPI JUNCTION, THYCAUD POST OFFICE, THIRUVANANTHAPURAM DISTRICT-695 014.** **4 REGISTRAR OF CO-OPERATIVE SOCIETIES, OFFICE OF THE REGISTRAR OF CO-OPERATIVE SOCIETIES, JAWAHAR SAHAKARANA BHAVAN, DPI JUNCTION, THYCAUD POST OFFICE, THIRUVANANTHAPURAM DISTRICT-695 014.** **WP(C).No.17284 OF 2020(I) -2-** **5 THE KERALA STATE CO-OPERATIVE BANK, PB NO.6515, COBANK TOWERS, PALAYAM, THIRUVANANTHAPURAM-695 033, REPRESENTED BY ITS MANAGING DIRECTOR.** **R1 BY ADV. SRI.T.A.SHAJI (SR.) R1-3 BY ADV. SRI.R.LAKSHMI NARAYAN** **R4 BY SRI.K.K.RAVINDRANATH, ADDL.ADVOCATE GENERAL R5 BY ADV. SRI.K.GOPALAKRISHNA KURUP (SR.) R5 BY ADV. SRI.GILBERT GEORGE CORREYA** **THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 14-10-2020, ALONG WITH WP(C).17473/2020(H), WP(C).17552/2020(T), WP(C).17799/2020(Y), THE COURT ON 15-10-2020 DELIVERED THE FOLLOWING:** ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR. JUSTICE SATHISH NINAN** **THURSDAY, THE 15TH DAY OF OCTOBER 2020 / 23RD ASWINA, 1942** ## **WP(C).No.17473 OF 2020(H)** ## **PETITIONER:** **K.KRISHNANKUTTY NAIR AGED 66 YEARS S/O.KESAVA KURUP, PRESIDENT/DELEGATE TO THE KERALA STATE CO-OPERATIVE BANK, PATHARAM SERVICE COOPERATIVE BANKL LTD., PATHARAM P.O., KOLLAM, RESIDING AT PERUMANAVADAKKETHIL, SOORANAD SOUTH, KAKKAKKUNU P.O., KOLLAM.** **BY ADVS. SRI.P.N.MOHANAN SRI.C.P.SABARI SMT.AMRUTHA SURESH** ## **RESPONDENTS:** **1 THE STATE CO-OPERATIVE ELECTION COMMISSION REP BY ELECTION COMMISSIONER, 3RD FLOOR, CO-BANK TOWERS, PALAYAM, VIKAS BHAVAN P.O., THIRUVANANTHAPURAM-695 033.** **2 ELECTORAL OFFICER TO KERALA STATE CO-OPERATIVE BANK AND ADDITIONAL REGISTRAR OF CO-OPERATIVE SOCIETIES, (CREDIT) OFFICE OF THE REGISTRAR OF COOPERATIVE SOCIETIES, JAWAHAR SAHAKARANA BHAVAN, DPI JUNCTION, THYCAUD P.O., THIRUVANANTHAPURAM-695 014.** **3 RETURNING OFFICER TO KERALA STATE CO-OPERATIVE BANK REGISTRAR OF CO-OPERATIVE SOCIETIES, OFFICE OF THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES, THIRUVANANTHAPURAM-695 001.** **4 KERALA STATE CO-OPERATIVE BANK REP BY CHIEF EXECUTIVE OFFICER, CO-BANK TOWERS, THIRUVANANTHAPURAM-695 001.** **WP(C).No.17473 OF 2020(H) -2-** - **5 INTERIM MANAGING COMMITTEE REP BY ITS CONVENOR, KERALA STATE CO-OPERATIVE BANK, CO-BANK TOWERS, THIRUVANANTHAPURAM-695 001.** - **6 THE GOVERNMENT OF KERALA REP BY SECRETARY TO GOVERNMENT, CO-OPERATIVE DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM-695 001.** **7 THE REGISTRAR OF CO-OPERATIVE SOCIEITIES DEPARTMENT OF CO-OPERATION, OFFICE OF THE REGISTRAR OF CO-OPERATIVE SOCIEITIES, JAWAR SAHAKARANA BHAVAN, DPI JUNCTION, THYCAUD P.O., THIRUVANANTHAPURAM-695 014** **R1 BY ADV. SRI.T.A.SHAJI (SR.) R1-3 BY ADV. SRI.R.LAKSHMI NARAYAN** **R4 BY ADV. SRI.K.GOPALAKRISHNA KURUP (SR.) R4 BY ADV. SRI.GILBERT GEORGE CORREYA R6 BY SRI.K.K.RAVINDRANATH, ADDL.ADVOCATE GENERAL R6-7 BY SPL. GOVERNMENT PLEADER SRI.MUHAMMED HASHIM** **THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 14-10-2020, ALONG WITH WP(C).17284/2020(I), WP(C).17552/2020(T), WP(C).17799/2020(Y), THE COURT ON 15-10-2020 DELIVERED THE FOLLOWING:** ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR. JUSTICE SATHISH NINAN** **THURSDAY, THE 15TH DAY OF OCTOBER 2020 / 23RD ASWINA, 1942** ## **WP(C).No.17552 OF 2020(T)** ## **PETITIONER:** **S.RAJENDRA KURUP S/O.SIVARAMA KURUP, AGED 56 YEARS,** **PRESIDENT, PALLIPPAD SERVICE CO-OPERATIVE BANK LTD. NO.1744, KOTTAKKAKAM, MUTTAM P.O., HARIPPAD-690 511, ALAPPUZHA DISTRICT.** **BY ADVS.** **SRI.P.RAVINDRAN (SR.) SRI.SREEDHAR RAVINDRAN SMT.APARNA RAJAN SMT.LAKSHMI RAMADAS** ## **RESPONDENTS:** - **1 THE KERALA STATE CO-OPERATIVE ELECTION COMMISSION 3RD FLOOR, CO-BANK TOWERS, VIKAS BHAVAN P.O., THIRUVANANTHAPURAM-695 033, REPRESENTED BY ITS SECRETARY.** - **2 THE ELECTORAL OFFICER (ADDITIONAL REGISTRAR (CREDIT), KERALA STATE CO-OPERATIVE BANK, OFFICE OF THE REGISTRAR OF CO-OPERATIVE SOCIETIES, THIRUVANANTHAPURAM-695 001.** - **3 THE RETURNING OFFICER, KERALA STATE CO-OPERATIVE BANK, (JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL), JAWAHAR SAHAKARANA BHAVAN, DPI JUNCTION, THYCAUD POST OFFICE, THIRUVANANTHAPURAM DISTRICT-695 014.** - **4 REGISTRAR OF CO-OPERATIVE SOCIETIES, OFFICE OF THE REGISTRAR OF CO-OPERATIVE SOCIETIES, JAWAHAR SAHAKARANA BHAVAN, DPI JUNCTION, THYCAUD POST OFFICE, THIRUVANANTHAPURAM DISTRICT-695 014.** **WP(C).No.17552 OF 2020(T) -2-** **5 THE KERALA STATE CO-OPERATIVE BANK, PB NO.6515, COBANK TOWERS, PALAYAM, THIRUVANANTHAPURAM-695 033, REPRESENTED BY ITS MANAGING DIRECTOR.** **R1 BY ADV. SRI.T.A.SHAJI (SR.) R1-3 BY ADV. SRI.R.LAKSHMI NARAYAN R4 BY SRI.K.K.RAVINDRANATH, ADDL.ADVOCATE GENERAL R5 BY ADV. SRI.K.GOPALAKRISHNA KURUP (SR.) R5 BY ADV. SRI.GILBERT GEORGE CORREYA** **THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 14-10-2020, ALONG WITH WP(C).17284/2020(I), WP(C).17473/2020(H), WP(C).17799/2020(Y), THE COURT ON 15-10-2020 DELIVERED THE FOLLOWING:** ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR. JUSTICE SATHISH NINAN** **THURSDAY, THE 15TH DAY OF OCTOBER 2020 / 23RD ASWINA, 1942** ## **WP(C).No.17799 OF 2020(Y)** ## **PETITIONER:** ## **JAISON THOMAS** **S/O. O.M. THOMAS, AGED 57 YEARS, THE PRESIDENT, ANAPANTHI SERVICE CO-OPERATIVE BANK LTD. NO.F 1516, P.O. ANGADIKADAVU, KANNUR DISTRICT-670706, RESIDING AT NIDHIRI HOUSE, ANAPANTHI P.O., KANNUR.** **BY ADVS. SRI.P.N.MOHANAN SRI.C.P.SABARI SMT.AMRUTHA SURESH** ## **RESPONDENTS:** - **1 THE STATE CO-OPERATIVE ELECTION COMMISSION, REPRESENTED BY ELECTION COMMISSIONER, 3RD FLOOR, CO-BANK TOWERS, PALAYAM, VIKAS BHAVAN P.O., THIRUVANANTHAPURAM-695033.** - **2 ELECTORAL OFFICER TO KERALA STATE CO-OPERATIVE BANK AND ADDITIONAL REGISTRAR OF CO-OPERATIVE SOCIETIES, (CREDIT) OFFICE OF THE REGISTRAR OF CO-OPERATIVE SOCIETIES, JAWAHAR SAHAKARANA BHAVAN, DPI JUNCTION, THYCAUD P.O., THIRUVANANTHAPURAM-695014.** **3 RETURNING OFFICER TO KERALA STATE CO-OPERATIVE BANK JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES, OFFICE OF THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES, THIRUVANANTHAPURAM-695001.** - **4 KERALA STATE CO-OPERATIVE BANK, REPRESENTED BY CHIEF EXECUTIVE OFFICER, CO-BANK TOWERS, THIRUVANANTHAPURAM-695001.** - **5 INTERIM MANAGING COMMITTEE, REPRESENTED BY ITS CONVENER, KERALA STATE COOPERATIVE BANK, CO-BANK TOWERS, THIRUVANANTHAPURAM-695001.** **WP(C).No.17799 OF 2020(Y) -2-** **6 THE GOVERNMENT OF KERALA, REPRESENTED BY SECRETARY TO GOVERNMENT, CO-OPERATIVE DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM-695001.** **7 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 - 695 014.** **R1 BY ADV. SRI.T.A.SHAJI (SR.) R1-3 BY ADV. SRI.R.LAKSHMI NARAYAN** **R4 BY ADV. SRI.K.GOPALAKRISHNA KURUP (SR.)** **R4 BY SRI.GILBERT GEORGE CORREYA, SC, KERALA STATE CO-OPERATIVE BANK LTD.** **R6 BY SRI.K.K.RAVINDRANATH, ADDL.ADVOCATE GENERAL R6-7 BY SPL. GOVERNMENT PLEADER SRI.MUHAMMED HASHIM** **THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 14-10-2020, ALONG WITH WP(C).17284/2020(I), WP(C).17473/2020(H), WP(C).17552/2020(T), THE COURT ON 15-10-2020 DELIVERED THE FOLLOWING:** ## **SATHISH NINAN, J.** ## **= = = = = = = = = = = = = = = = = = W. P. (C) Nos.17284, 17473, 17552 & 17799 of 2020** ## **= = = = = = = = = = = = = = = = = = Dated this the 15[th] day of October, 2020** ## **JUDGMENT** Notification issued by the Kerala State Cooperative Election Commission regarding conduct of election to the Managing Committee of the Kerala State Co-operative Bank, is under challenge in these writ petitions. 2. The Co-operative Banking sector in the State consisted of a three tier system with the Primary Co-operative Banks at the base level, the District Co-operative Banks at the middle level and the State Co-operative Bank at the Apex level. The Government of Kerala proposed to delayer the three tier system to a two tier one by doing away with the middle berth viz. District Co-operative Banks. The process was sought to be achieved by merger of the 14 District Co-operative Banks in the State with the Kerala State Co-operative Bank. W. P. (C) Nos.17284, 17473, 17552 & 17799 of 2020 :- **2** :- 3. Seeking sanction for the above process of merger, the State Government sought permission of the Reserve Bank of India. As per communication dated 03.10.2018, the Reserve Bank of India granted an “in principle approval” for amalgamation but contingent on fulfillment of various conditions mandated by the Reserve Bank of India as well as by NABARD. 4. As per communication dated 30.03.2019, the Government of Kerala addressed the Reserve Bank of India seeking “final approval” of the amalgamation. The Reserve Bank was informed that the conditions imposed by them and NABARD have been complied with. As per Section 14A and Section 74H of the Cooperative Societies Act which were introduced in relation to the intended amalgamation, the general body of the District Co-operative Banks were to pass a resolution with simple majority to transfer the assets and liabilities in whole to the Kerala State Co-operative Bank, and on the basis of such resolution, the Registrar is to order amalgamation W. P. (C) Nos.17284, 17473, 17552 & 17799 of 2020 :- **3** :- of the District Co-operative Banks with the Kerala State Co-operative Bank. Out of the 14 District Cooperative Banks, all except the general body of the Malappuram District Co-operative Bank passed the resolution. Hence amalgamation could not take effect with respect to the Malappuram District Cooperative Bank. As per communication dated 07.10.2019, the Reserve Bank of India in consultation with NABARD, accorded “final approval” to the proposal of the Government to amalgamate 13 District Co-operative Banks into the Kerala State Co-operative Bank. The Reserve Bank of India granted final approval subject to compliance of certain conditions. The State Government maintains that the conditions insisted by the Reserve Bank of India have been duly complied with and a status report submitted to the Reserve Bank of India and NABARD. The scheme for transfer of assets and liabilities of the District Co-operative Banks with the Kerala State Co-operative Bank has been effectuated in terms of Section 14A and Section 74H W. P. (C) Nos.17284, 17473, 17552 & 17799 of 2020 :- **4** :- of the Kerala Co-operative Societies Act by the Registrar of Co-operative Societies as per proceedings dated 29.11.2019, is the stand of the Government. 5. The Government moved ordinance No.27/2020 amending Section 74H, by providing for compulsory merger of Malappuram District Co-operative Bank with the Kerala State Co-operative Bank. The same is pending challenge before this Court in W.P(C) No.6639/20 and connected cases. 6. The merger of 13 District Co-operative Banks having been effected, the interim board of management constituted in terms of Section 74H of the Co-operative Societies Act requested the Kerala State Co-operative Election Commission to conduct election to the Board of Directors of the Kerala State Co-operative Bank. The interim board of management assumed office on 30.11.2019. As per Section 74H(5), the term of the interim board is up to one year from the date of amalgamation or till an elected Board takes charge, whichever is W. P. (C) Nos.17284, 17473, 17552 & 17799 of 2020 :- **5** :- earlier. Since an elected managing committee has not assumed office, the term of the interim Board will expire on 29.11.2020 i.e. on the expiry of one year from the date of amalgamation. It is accordingly that steps are taken for conduct of election before 29.11.2020. The notification for conduct of election is under challenge. 7. Heard learned Senior Counsel Sri.George Poonthottam and learned counsel Sri.P.N.Mohanan on behalf of the petitioners. Sri.K.K.Ravindranath, Additional Advocate General and learned Senior Counsel Sri.Gopalakrishna Kurup were heard on behalf of the contesting respondents, and Senior Counsel Sri.T.A.Shaji and Sri.R.Lakshmi Narayan were heard on behalf of the Election commission. Sri.Gilbert George Correya was heard on behalf of the Kerala State Co-operative Bank. Various grounds of challenge are urged by the petitioners as against the sustainability of the election notification. I proceed to deal with them one by one. W. P. (C) Nos.17284, 17473, 17552 & 17799 of 2020 :- **6** :- 8. One of the main arguments of the petitioners is founded on the third proviso to sub-section (1) of Section 28 of the Co-operative Societies Act. The same reads thus:- _“Provided also that the election to the_ _committees of the societies shall not be conducted_ _on ward basis irrespective of any provisions to the_ _contrary contained in the bye-laws of any society.”_ 9. Though the proviso prohibits conduct of election to the committee on ward basis, the election notification provides for conduct of election “district-wise”, which is, in substance, an election on “ward basis”, contends the petitioners. According to them, the entire state is sought to be divided into various districts and election conducted in each district which is nothing but an election on “ward basis”. Though at the first blush, the argument appears to be attractive, on a deeper probe it comes out that the W. P. (C) Nos.17284, 17473, 17552 & 17799 of 2020 :- **7** :- contention lacks substance. The election notification as well as the bye-laws provide for election of one representative from each district in the State. However, that by itself does not make it an election on “ward basis”. It is pertinent to note that, the electoral college - the voters for electing members from all the districts, are one and the same. In other words, every voter is entitled to cast vote for candidates in all the districts. The electoral college is not confined to each district. The electorate for all the managing committee members is one and the same. The mere fact that one member is to be elected from a district does not by itself, make it an election on “ward basis”. While the 3[rd] proviso to Section 28(1) prohibits conduct of election on ward basis, in so far as the Regional Milk Producers Union are concerned, ward basis election is permitted by incorporating a specific provision in the Act as Section 28(IK). A reference to the said provision would be profitable in understanding the true W. P. (C) Nos.17284, 17473, 17552 & 17799 of 2020 :- **8** :- purport of the term “ward basis”, and hence is extracted hereunder. _“_ _**28 Appointment of committee.** -(IK) Notwithstanding anything contained in this Act or Rules made thereunder or bye-laws, in a Regional Milk Producers Union having jurisdiction over more than one revenue district, the members of the committee representing each revenue district shall be elected by the member societies of that particular revenue district itself from among themselves.”_ As is discernible therefrom, a ward basis election means, candidates representing a district shall be elected by the members of that particular district itself. In a ward-wise election, the electoral college/electorate is divided on ward basis. However in the present case, the electoral college/electorate for electing the representatives from all the districts, is one and the same. Therefore the contention based on the 3[rd] proviso to Section 28(1) is only to be repelled. Incidentally it is to be noticed that, prior to the amalgamation W. P. (C) Nos.17284, 17473, 17552 & 17799 of 2020 :- **9** :- of the District Co-operative Banks with the Kerala State Co-operative Bank, the primary co-operative societies in a district were the members of the District Co-operative Bank which in turn was a member of the State Co-operative Bank. Therefore, every primary co-operative society in a district had a sort of representation in the State Cooperative Bank. While taking away the middle tier, the representation that was given to the primary co-operative societies in each district is sought to be maintained by providing for election of one member to the managing committee from each district. The same stands to logic and reason and is only in the interests of the primary cooperative societies in a district. Be that as it may, as already held, the contention of the petitioners that, the election as is proposed is on ward basis, is without merit and is repelled. 10. Another contention urged by the petitioners is that, the districts to be reserved for women and SC/ST are being chosen by the Registrar, whereas it W. P. (C) Nos.17284, 17473, 17552 & 17799 of 2020 :- **10** :- ought to have been done by the general body of the Society. The petitioners rely on the judgment of this Court in _**Mathai v. State Co-operative Election Commission [2007 (2) KLT 789]**_ to buttress the above contention. Clause 16 of the bye-laws of the Kerala State Cooperative Bank authorises the Registrar to identify the district be fixed for women and SC/ST reservation by the process of lot. The general body of the society are the subscribers to the bye-laws. The general body, under clause 16 of the bye-laws, having authorised the Registrar to make such identification, the contention of the petitioners challenging the authority of the Registrar, is devoid of merit. The authorisation given to the Registrar under the bye-laws of the Kerala State Co-operative Society is the crucial distinction which renders the judgment in _**Mathai v. State Co-operative Election Commission (supra)**_ inapplicable to the facts of the case at hand. The decision of a Division Bench of this Court in _**Udayakaran v. Ahammedkannu [2004 (2) KLT 969]**_ supports the above view. It would be apposite W. P. (C) Nos.17284, 17473, 17552 & 17799 of 2020 :- **11** :- to refer to certain observations in paragraph 12 of the judgment which reads thus, _“..... Therefore, in the absence of necessary provisions in the Act specifying the authority and_ _the criteria to determine the ward/constituency for reservation under S.28A, it is for the General Body of a Society to make necessary provisions in the bye-laws of the society for the reservation contemplated under S.28A. In other words, the General Body should suitably amend the bye-laws either determining the ward/constituencies to be reserved under S.28A or specifying the authority competent to determine and laying down the criteria for such determination. .....”_ 11. It is next contended by the petitioners that, in terms of Section 29(1)(ce), it is for the General Body to declare the date of election; the said provision has been violated. Sri.T.A.Shaji, the learned Senior Counsel appearing for the election commission submits that, Section 29 does not apply to election to the Board of the newly formed Bank. Section 74(H) of the Act falls within W. P. (C) Nos.17284, 17473, 17552 & 17799 of 2020 :- **12** :- Chapter XC which was inserted by Act 1 of 2019 on 14.02.2019. The Chapter is titled “SPECIAL PROVISIONS RELATING TO THE AMALGAMATION THROUGH TRANSFER OF ASSETS AND LIABILITIES OF THE DISTRICT CO-OPERATIVE BANKS TO THE KERALA STATE CO-OPERATIVE BANK”. As is evident therefrom, the provisions in the said Chapter relate to the amalgamation of the District Co-operative Banks to the Kerala State Cooperative Banks. Section 74H(9) reads thus:- _“For the purpose of election to the Board_ _of Directors Section 28, 28A and Section 31 of the_ _Act shall apply”_ The thrust of the argument of the petitioners is with reference to Clause(ce) of Section 29(1) as per which the annual general body meeting of a Society is to be held within six months of the close of the financial year for the purpose of declaration regarding holding of its general body meeting and conduct of elections when due. I find force in the submission of the learned Senior Counsel regarding the inapplicability of Section 29 W. P. (C) Nos.17284, 17473, 17552 & 17799 of 2020 :- **13** :- in the case of election to the first Board of Directors to be constituted consequent on the amalgamation. Much deliberation is not necessary to hold that the said provision does not have any application in the case of the election to the first Board of Directors of the amalgamated Bank since the Section is very specific that, for the purpose of election to the Board of Directors certain provisions will apply and Section 74H(18) provides that, “Notwithstanding anything contained in this Act, the provisions of this chapter shall have overriding effect on all other provisions of the Act”. As the very heading of the chapter says, the provisions in the chapter are special provisions in relation to the amalgamation in question. Under Section 74H(5) a statutory duty is cast on the interim board to conduct the election and complete the amalgamation process. It is in exercise of the same that the election has been notified. Section 29 deals with holding of annual general body meetings and not the holding of W. P. (C) Nos.17284, 17473, 17552 & 17799 of 2020 :- **14** :- election stipulated for under Section 74H. Section 74H, as noticed is a chapter introduced incorporating provisions regarding the formation of the amalgamated Bank and the procedure for constitution of managing committee for the first time. Section 74H(9) makes only certain provisions of the Act applicable for the conduct of election to the Board of Directors. Section 29 is not made applicable for election to the board of directors to be held by the interim board. Therefore, the contention of the petitioners with reference to Section 29 lacks substance. 12. The Kerala Co-operatives Societies (Second Amendment) Rules, 2020 provide for election of 15 members to the Board of Directors of the Kerala State Co-operative Bank, in the manner as prescribed in the bye-laws. The bye-laws provide for election of 15 members, one from each of the 14 districts representing the PACS, and one member representing the Urban Co-operative Banks in the State. However, the election notification is only W. P. (C) Nos.17284, 17473, 17552 & 17799 of 2020 :- **15** :- for election of 14 members, out of which 13 are to be from each district excluding Malappuram, and one representing the Urban Co-operative Banks. The notification varying the number of members to be elected, from that as is provided for in the Rules and the bye-laws is bad in law, contends the petitioners. As noticed first above, the Malappuram District Co-operative Bank voted against the process of amalgamation by merger whereas all the other 13 District Co-operative Banks were in favour. Though a provision was brought in by amendment of the statute by providing for compulsory merger of the Malappuram District Cooperative Bank with the Kerala State Co-operative Bank, the same is under challenge before this Court in W.P.(C) No.6639/2020 and connected cases. This Court has passed an interim order restraining the Reserve Bank of India from passing orders on the merger of the Malappuram District Co-operative Bank on the basis of the said statutory provision. The said interim order is in force. Section 74(H)(5) W. P. (C) Nos.17284, 17473, 17552 & 17799 of 2020 :- **16** :- and (7) mandates the interim board to conduct election to the Board of Directors and the term of the interim board is only one year from the date of amalgamation or till a newly elected board of directors take charge, whichever is earlier. The one year period is to expire on 29.11.2020. In view of the interim order passed by this Court (referred to above) regarding the compulsory merger of the 14[th] Co-operative Bank, election of 14 representatives is an impossibility. It is in the above circumstances that it was resolved to conduct election in the 13 districts where the District Cooperative Banks have amalgamated with the State Cooperative Bank. I am unable to subscribe to the contention that, in such a process there would be violation of the rules and the bye-laws. There is no decision not to conduct any election for the representatives from the 14 districts. As and when the legal impediment and the disability ceases, the representative from the 14[th] district could also be elected. It cannot be said that the election sought W. P. (C) Nos.17284, 17473, 17552 & 17799 of 2020 :- **17** :- to be conducted is against or contrary to the rules and bye-laws. Incidentally it would be relevant to notice that, in terms of Section 28(5), the quorum for a meeting of the committee is stated as, “just above 50%” of the total number of members of that committee. Therefore, I am unable to agree with the contention that the election notification violates the rules and the bye-laws. 13. Yet another contention raised is that, the various conditions laid down by the Reserve Bank of India and NABARD remain yet to be complied with, consequent to which, the amalgamation is not complete; unless the amalgamation is complete there cannot be an election to the Board of Directors. For considering the said contention, the relevant provisions of the Act are Section 74(H)(1) and Section 14(A)(1). For the sake of convenience the same are extracted hereunder:- _“_ _**74H. Amalgamation of District Co-operative**_ _**Banks to the Kerala State Co-operative Bank** ._ _(1) Notwithstanding anything contained in this Act or in any other law for the time being in_ W. P. (C) Nos.17284, 17473, 17552 & 17799 of 2020 :- **18** :- _force, the Registrar shall order the amalgamation of District Co-operative Banks in Kerala with the Kerala State Co-operative Bank on the basis of the resolution passed by the general body as provided under Section 14A of this Act.”_ _“_ _**14A Provisions regarding transfer of assets and liabilities of District Co-operative Banks to the Kerala State Co-operative Bank** -(1) Notwithstanding anything contained in this Act or in any other law for the time being in force, the District Co-operative Banks may by a resolution passed by a simple majority of the members present and voting at the special general body meeting of the members, transfer its assets and liabilities in whole to the Kerala State Cooperative Bank and such transfer shall take effect from the date on which the Registrar approves the resolution.”_ Going by the above provisions, on a resolution being passed by a simple majority of the members of the District Co-operative Banks regarding transfer of its assets and liabilities to the Kerala State Co-operative Bank, the Registrar shall order the merger and amalgamation of the District Co- W. P. (C) Nos.17284, 17473, 17552 & 17799 of 2020 :- **19** :- operative Bank with the Kerala State Co-operative Bank. For the purposes of the Statute, the amalgamation becomes complete on Registrar passing an order as above. Such order of amalgamation has been passed by the Registrar on 29.11.2019. Noticeably the “in-principle” and “final approval” granted by the Reserve Bank of India for amalgamation is burdened with various conditions, some of which are pre-amalgamation conditions and some are post-amalgamation conditions. According to the State Government, the conditions have been complied with and a compliance report(status report) has been submitted to the Reserve Bank. It is for the Reserve Bank to take appropriate steps thereon. The order of amalgamation having been passed by the Registrar on 29.11.2019, as per Section 74H(5) and (7) it is the mandate of the interim board to have election to the Board of Directors conducted within a period of one year therefrom. Resultantly, the afore ground of challenge also fails. W. P. (C) Nos.17284, 17473, 17552 & 17799 of 2020 :- **20** :- 14. The draft voters list published is sought to be challenged on the ground that the same does not contain the name of the delegate of the primary society which is a peremptory requirement under Rule 35A(4) of the Cop-operative Societies Rules. The relevant portion of the Rule is extracted hereunder for the sake of convenience:- “ _...The list shall contain the admission number, name of the member, name of father or husband and the address of such member. Such list shall also contain the name and other particulars of the delegate in cases where the member is a society or Corporation...._ ” Though the rule mandates mentioning of the name and other particulars of the delegate of the primary Co-operative Society, the draft voters list published in the case at hand mentions only the name of the Society and thus is violative of the Rules, is the contention. The respondents on the other hand rely upon the explanation to the aforesaid rule, the relevant portion of which is W. P. (C) Nos.17284, 17473, 17552 & 17799 of 2020 :- **21** :- ## extracted hereunder for the sake of convenience:- “ _...The preliminary voters list and final voters_ _list shall contain the name and address of the Society where the member is a society or corporation or ...._ ” According to the respondents, by virtue of the explanation to the Rule, it has been explained that if the member is a Society, it is sufficient if the name and address of the society is mentioned. On the view that I am taking, I do not think it is necessary to go into the said contention. Going by the election notification in question, which is dated 13.08.2020, the following was the schedule of the election:- |election:-|| |---|---| |19.08.2020|Publication ofpreliminaryvoters list| |19.08.2020 to<br>25.08.2020|Objections to preliminary voters list| |26.08.2020|Scrutiny of objections to the<br>preliminaryvoters list.| |27.08.2020|Publication of final voters list| |07.09.2020|Submission of nomination| |08.09.2020|Scrutinyof nomination| |09.09.2020|Withdrawal of nomination| |25.09.2020|Date of election| W. P. (C) Nos.17284, 17473, 17552 & 17799 of 2020 :- **22** :- In view of the interim order passed by this Court staying the election, which has been in force till now, the schedule of election as fixed has fizzled out. As noticed by the Division Bench of this Court in the judgment dated 09.09.2020 passed against the interim order of stay granted by the learned single Judge, conduct of election in terms of the notification dated 13.08.2020 has become impossible. Necessarily, the election commission has to bring out a fresh notification. It would be sufficient if the right to challenge the voters list to be published pursuant to such notification on the aforesaid ground, if according to the petitioners the said defect subsists, is kept intact. The contention is accordingly, left open. 15. The respondents challenge the locus standi of the petitioners to question the election notification. The petitioners in the respective writ petitions contend that they are the delegates from the respective primary co-operative societies W. P. (C) Nos.17284, 17473, 17552 & 17799 of 2020 :- **23** :- who are entitled to cast their vote in the election and hence can maintain their challenge. If the petitioners are delegates of the primary cooperative societies who are entitled to participate in the election, it cannot be said that they have no locus standi to challenge the election notification on available grounds. Anyhow, the challenge against the conduct of election having been negatived on merits, I do not consider it necessary to decide upon the locus standi of the petitioners. However, I leave open the right of the respondents to urge the ground of challenge in any subsequent round of litigation, if it arises. 16. It is contended by the counsel for the petitioners that, in view of the Covid pandemic it would be impossible to conduct election at the present stage. It is for the administration/ executive to consider the feasibility and the protocol for the conduct of election. They will decide on the same taking into consideration the situation prevalent in the State. I do not think W. P. (C) Nos.17284, 17473, 17552 & 17799 of 2020 :- **24** :- that it is for this Court to give any direction regarding the same. In the result, the challenge against the conduct of election to the Managing Committee of the Kerala State Co-operative Bank is turned down. It will be open for the Kerala State Co-operative Election Commission to issue fresh notification for election and proceed in accordance with law. The writ petitions fail and are accordingly dismissed. Sd/- **SATHISH NINAN JUDGE** kns/- //True Copy// P.S. to Judge ## **APPENDIX OF WP(C) 17284/2020** **PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE IN-PRINCIPLE ORDER GIVEN BY THE RESERVE BANK OF INDIA ON 3RD OCTOBER 2018. EXHIBIT P2 TRUE COPY OF THE COMMUNICATION DCBR.CO.RCBD NO.1015/19.51.007/2019-20 ISSUED BY RESERVE BANK OF INDIA DATED 07.10.2019. EXHIBIT P3 TRUE COPY OF THE NOTICE PUBLISHED IN MATHRUBHUMI DAILY DATED 04.01.2020. EXHIBIT P4 TRUE COPY OF THE NOTICE OF THE GENERAL BODY MEETING DATED 02.01.2020 ISSUED BY THE RESPONDENT BANK. EXHIBIT P5 TRUE COPY OF THE INFORMATION BEARING NO.DR2855/04.03.001/2020-21 DATED 15.07.2020 RECEIVED UNDER THE RIGHT TO INFORMATION ACT. EXHIBIT P6 TRUE COPY OF THE ELECTION NOTIFICATION NO.E(2) 1852/2020/S.C.E.C. DATED 13.08.2020 ISSUED BY THE STATE CO-OPERATIVE ELECTION COMMISSION. EXHIBIT P7 TRUE COPY OF THE RELEVANT PORTION OF THE BYELAW OF THE RESPONDENT BANK AS PROPOSED FOR AMENDMENT. EXHIBIT P8 TRUE COPY OF THE GO(P)NO.67/2020/CO-OP DATED 10.08.2020 ISSUED UNDER SECTION 101 OF THE KCS ACT. EXHIBIT P9 TRUE COPY OF THE RESOLUTION BY THE MANAGING COMMITTEE OF THE KURUVATTOOR SERVICE COOPERATIVE BANK DATED 10.1.2020 RESPONDENT'S/S EXHIBITS: EXHIBIT R4(a) A TRUE COPY OF THE LETTER NO.CO-OP. B1/223/2020/CO-OP. DATED 11.09.2020 ISSUED BY THE ADDITIONAL SECRETARY TO GOVERNMENT. EXHIBIT R5 A A TRUE COPY OF THE LETTER NO. CO-OPERATIVE B1/223/2020/CO-OP.DATED 11.09.2020 BY THE ADDITIONBAL SECRETARY TO GOVERNMENT CONTAINING THE STANDARD OPERATING PROCEDURE (SOP) FOR THE CONDUCT OF ELECTIONS IN THE 5TH RESPONDENT.** APPENDIX/ **WP(C) 17284/2020** -2- |**EXHIBIT R1**|**A**|**THE PHOTOCOPY OF ORDER DATED 12/08/2020 IN**| |---|---|---| |||**COC 314 OF 2020**| |**EXHIBIT R1**|**B**|**THE PHOTOCOPY OF ORDER OF 1ST RESPONDENT**| |||**ALONG WITH ELECTION NOTIFICATION DATED**| |||**24/08/2020.**| |**EXHIBIT R1**|**C**|**THE PHOTOCOPY OF STATEMENT SHOWING DETAILS**| |||**OF ELECTION NOTIFICATIONS IN RESPECT OF**| |||**VARIOUS SOCIEITIES, AND TO POST OF PRESIDENT**| |||**AND VICE PRESIDENT.**| |**EXHIBIT R1**|**D**|**THE PHOTO COPY OF ELECTIONS NOTIFICATION IN**| |||**RESPECT OF THE SOCIETIES ENLISTED AS 1 IN**| |||**ECT.R3.**| |**EXHIBIT R1**|**E**|**THE PHOTO COPY OF ELECTIONS NOTIFICATION IN**| |||**RESPECT OF THE SOCIETIES ENLISTED AS 2 IN**| |||**EXT.R3.**| |**EXHIBIT R1**|**F**|**THE PHOTO COPY OF ELECTIONS NOTIFICATION IN**| |||**RESPECT OF THE SOCIETIES ENLISTED AS 4 IN**| |||**EXT.R3.**| |**EXHIBIT R1**|**G**|**THE PHOTO COPY OF ELECTIONS NOTIFICATION IN**| |||**RESPECT OF THE SOCIETIES ENLISTED AS 5 IN**| |||**EXT.R3.**| |**EXHIBIT R1**|**H**|**THE PHOTO COPY OF LETTER NO.CO.OP-**| |||**B1/223/2020/CO.OP DATED 11/09/2020.**| |**EXHIBIT R1**|**I**|**THE PHOTO COPY OF FINAL VOTERS LIST IN**| |||**RESPECT OF KERALA STATE HANDLOOM WEAVERS'**| |||**CO-OPERATIVE SOCIETY LTD.**| |||**-----**| ## **APPENDIX OF WP(C) 17473/2020** **PETITIONER'S/S EXHIBITS:** |**PETITIONER'S/S**|**EXHIBITS:**| |---|---| |**EXHIBIT P1**|**A TRUE COPY OF THE SRO 468/2020 PUBLISHED IN**| ||**THE GAZETTE DATED 16/7/20.**| |**EXHIBIT P2**|**A TRUE COPY OF THE ELECTION NOTIFICATION**| ||**HAVING NO.E(2) 1852/2020/SCEC DATED 13/08/20**| ||**ISSUED BY THE FIRST RESPONDENT.**| |**EXHIBIT P3**|**A TRUE COPY OF THE NOTIFICATION DATED**| ||**13/08/20 ISSUED BY THE FOURTH RESPONDENT.**| |**EXHIBIT P4**|**A TRUE COPY OF THE SRO NO.639/2029 DATED**| ||**28/09/2019**| |**EXHIBIT P5**|**A TRUE COPY OF THE RELEVANT PORTION OF THE**| ||**VOTERS LIST.**| |**EXHIBIT P6**|**A TRUE COPY OF THE JUDGMENT REPORTED IN**| ||**1994(1) KLT 828.**| |**EXHIBIT P7**|**A TRUE COPY OF THE REPRESENTATION DATED**| ||**20/08/20 SUBMITTED BY THE PETITIONER BEFORE**| ||**THE SECOND RESPONDENT WITH COPY TO THE FIRST**| ||**RESPONDENT.**| |**EXHIBIT P8**|**A TRUE COPY OF THE ELECTION NOTIFICATION**| ||**HAVING**<br>**NO.01/276/2020/E(1)/SCEC**<br>**DATED**| ||**18/3/2020.**| |**RESPONDENT'S/S**|**EXHIBITS:**| |**EXHIBIT R6(a)**|**A TRUE COPY OF THE LETTER NO.CO.OP.**| ||**B1/223/2020/C.OP. DATED 11.09.2020 ISSUED BY**| ||**THE ADDITIONAL SECRETARY TO GOVERNMENT.**| ||**-----**| ## **APPENDIX OF WP(C) 17552/2020** ## **PETITIONER'S/S EXHIBITS:** **EXHIBIT P1 TRUE COPY OF THE IN-PRINCIPLE ORDER GIVEN BY THE RESERVE BANK OF INDIA ON 3RD OCTOBER 2018. EXHIBIT P2 TRUE COPY OF THE COMMUNICATION DCBR.CO.RCBD NO.1015/19.51.007/2019-20 ISSUED BY RESERVE BANK OF INDIA DATED 07.10.2019.** **EXHIBIT P3 TRUE COPY OF THE NOTICE PUBLISHED IN MATHRUBHUMI DAILY DATED 04.01.2020. EXHIBIT P4 TRUE COPY OF THE NOTICE OF THE GENERAL BODY MEETING DATED 02.01.2020 ISSUED BY THE RESPONDENT BANK.** **EXHIBIT P5 TRUE COPY OF TH INFORMATION BEARING NO.DR2855/04.03.001/2020-21 DATED 15.07.2020 RECEIVED UNDER THE RIGHT TO INFORMATION ACT.** **EXHIBIT P6 TRUE COPY OF THE ELECTION NOTIFICATION NOE(2) 1852/2020/SCEC DATED 13.08.2020 ISSUED BY THE STATE CO-OPERATIVE ELECTION COMMISSION. EXHIBIT P7 TRUE COPY OF THE RELEVANT PORTION OF THE BYELAW OF THE RESPONDENT BANK AS PROPOSED FOR AMENDMENT. EXHIBIT P8 TRUE COPY OF THE GO(P) NO.67/2020/CO-OP DATED 10.08.2020 ISSUED UNDER SECTION 101 OF THE KCS ACT.** **RESPONDENT'S/S EXHIBITS:** **EXHIBIT R4 A A TRUE COPY OF THE LETTER NO. COOP.B1/223/2020/CO-OP.DATED 11.09.2020 ISSUED BY THE ADDITIONAL SECRETARY TO GOVERNMENT.** ----- ## **APPENDIX OF WP(C) 17799/2020** ## **PETITIONER'S/S EXHIBITS:** |**PETITIONER'S/S**|**EXHIBITS:**| |---|---| |**EXHIBIT P1**|**A TRUE COPY OF THE SRO 468/2020 PUBLISHED IN**| ||**THE GAZETTE DATED 16/07/2020.**| |**EXHIBIT P2**|**A TRUE COPY OF THE RELEVANT CLAUSE 16 OF THE**| ||**BYE LAWS.**| |**EXHIBIT P3**|**A TRUE COPY OF THE ELECTION NOTIFICATION**| ||**HAVING**<br>**/NO.E(2)1852/2020/SCEC**<br>**DATED**| ||**13/08/2020 ISSUED BY THE FIRST RESPONDENT.**| |**EXHIBIT P4**|**A TRUE COPY OF THE NOTIFICATION DATED**| ||**13/08/2020 ISSUED BY THE FOURTH RESPONDENT.**| |**EXHIBIT P5**|**A TRUE COPY OF THE ELECTION NOTIFICATION**| ||**HAVING**<br>**NO.01/276/2020/E(1)SCEC**<br>**DATED**| ||**18/03/2020 OF THE KUTTAMPERUR SCB.**| |**EXHIBIT P6**|**THE RELEVANT SRO NO. 693/2019 PUBLISHED ON**| ||**28/09/2019 OF THE GOVERNMENT.**| |**EXHIBIT P7**|**A TRUE COPY OF THE RELEVANT RANDOM PAGES OF**| ||**PRELIMINARY VOTERS LIST PUBLISHED BY THE**| ||**SECOND RESPONDENT.**| |**EXHIBIT P8**|**A TRUE COPY OF THE JUDGMENT REPORTED IN**| ||**1994(1)KLT 828.**| |**EXHIBIT P9**|**A TRUE COPY OF THE REPRESENTATION DATED**| ||**22/08/2020 SUBMITTED BY THE PETITIONER**| ||**BEFORE THE SECOND RESPONDENT WITH COPY TO**| ||**THE FIRST RESPONDENT.**| |**EXHIBIT P10**|**A TRUE COPY OF THE SRO 291/2020 DATED**| ||**23/04/2020 OF THE GOVERNMENT.**| |**RESPONDENT'S/S**|**EXHIBITS:**| |**EXHIBIT R6(a)**|**A TRUE COPY OF THE LETTER NO.CO-**| ||**OP.B1/223/2020/CO.OP.**<br>**DATED**<br>**11.09.2020**| ||**ISSUED BY THE ADDITIONAL SECRETARY TO**| ||**GOVERNMENT.**| -----