{"id":161036,"date":"2008-12-05T00:00:00","date_gmt":"2008-12-04T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/the-kanjirappally-co-operative-vs-state-of-kerala-on-5-december-2008"},"modified":"2017-06-19T06:43:28","modified_gmt":"2017-06-19T01:13:28","slug":"the-kanjirappally-co-operative-vs-state-of-kerala-on-5-december-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/the-kanjirappally-co-operative-vs-state-of-kerala-on-5-december-2008","title":{"rendered":"The Kanjirappally Co-Operative … vs State Of Kerala on 5 December, 2008"},"content":{"rendered":"
Kerala High Court<\/div>\n
The Kanjirappally Co-Operative … vs State Of Kerala on 5 December, 2008<\/div>\n
       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nWP(C).No. 32487 of 2008(P)\n\n\n1. THE KANJIRAPPALLY CO-OPERATIVE RUBBER\n                      ...  Petitioner\n\n                        Vs\n\n\n\n1. STATE OF KERALA, REPRESENTED BY THE\n                       ...       Respondent\n\n2. THE REGISTRAR OF CO-OPERATIVE SOCIETIES,\n\n3. THE JOINT REGISTRAR OF CO-OPERATIVE\n\n4. THE NATIONAL CO-OPERATIVE DEVELOPMENT\n\n5. THE INTEGRATED CO-OPERATIVE DEVELOPMENT\n\n6. THE DEPUTY TAHSILDAR (REVENUE RECOVERY),\n\n7. MR.GEORGE THOAMS, VALIPLACKAL,\n\n8. THE KERALA CARDAMOM PROCESSING &\n\n                For Petitioner  :SRI.K.K.CHANDRAN PILLAI\n\n                For Respondent  :SRI.GRASHIOUS KURIAKOSE\n\nThe Hon'ble MR. Justice THOTTATHIL B.RADHAKRISHNAN\n\n Dated :05\/12\/2008\n\n O R D E R\n         THOTTATHIL B. RADHAKRISHNAN, J.\n\n  = = = = = = = = = = = = = = = = = = = = = = = =\n\n     W.P.(C).Nos.32487\/2008-P & 35756\/2008-F\n\n  = = = = = = = = = = = = = = = = = = = = = = = =\n\n     Dated this the 5th day of December, 2008.\n\n                     JUDGMENT\n<\/pre>\n
1.These writ petitions are filed challenging an<\/p>\n
 order  issued  by  the  Joint   Registrar  of  Co-<\/p>\n
 operative Societies setting aside a proceeding<\/p>\n
 for private sale of an item of property of the<\/p>\n
 Kanjirappally   Co-operative    Rubber   Marketing<\/p>\n
 Society    Limited,   hereinafter   called,    the<\/p>\n
 “Society”, the petitioner in WP(C).32487\/2008 in<\/p>\n
 favour   of  the  Kerala  Cardamom  Processing  &<\/p>\n
 Marketing Company Limited, hereinafter called,<\/p>\n
 the “Company”, the 8th respondent in that writ<\/p>\n
 petition.\n<\/p>\n<\/p>\n
2.The Society owes different amounts to NCDC, ICDP,<\/p>\n
 State   Government   and  the   Meenachil   Rubber<\/p>\n
 Marketing and Processing Co-operative Society.<\/p>\n
 For    the    purpose   of    liquidating    those<\/p>\n
WP(C)32487 & 35756\/08     -: 2 :-<\/span><\/p>\n
 outstandings,        the    Society obtained prior<\/p>\n
 permission of the competent statutory authority<\/p>\n
 to conduct private sale of one of the items of<\/p>\n
 its assets. That permission was granted on the<\/p>\n
 basis of a valuation statement of 2004. But, the<\/p>\n
 Society could, ultimately, conclude on a proper<\/p>\n
 purchaser only in 2008. The competition was among<\/p>\n
 two purchasers. One is the Company aforesaid and<\/p>\n
 the other, Mr.George Thomas, the 7th respondent<\/p>\n
 in WP(C).32487\/2008, represented by Joji Joseph,<\/p>\n
 the petitioner in WP(C).35756\/2008. George Thomas<\/p>\n
 offered an amount of Rs.55,55,555\/- as against<\/p>\n
 the offer of Rs.53,77,735\/- by the Company. There<\/p>\n
 is some controversy between the parties as to<\/p>\n
 whether George Thomas had withdrawn half way<\/p>\n
 through, while he would assert that he would not.<\/p>\n
 The proceedings reached the hands of the Joint<\/p>\n
 Registrar in the wake of a controversy between<\/p>\n
 the Company and George Thomas as to who should be<\/p>\n
 the successful bidder. The Joint Registrar was<\/p>\n
 moved by George Thomas.\n<\/p>\n
WP(C)32487 & 35756\/08    -: 3 :-<\/span><\/p>\n
3.The Joint Registrar took stock of the entire<\/p>\n
 scenario and noticed that the Society is indebted<\/p>\n
 for an odd sum and it would not be in the<\/p>\n
 interest of the Society to have the sale on the<\/p>\n
 basis of the 2004 valuation. The proceedings of<\/p>\n
 the Society are accordingly set aside with         a<\/p>\n
 direction to auction de novo. The Society has<\/p>\n
 challenged the order on the allegation that it<\/p>\n
 was    not     heard  before    issuing the  impugned<\/p>\n
 decision. It has also placed on record in WP(C).<\/p>\n
 32487\/2008       that it  is   indebted to  different<\/p>\n
 establishments as noticed above, though Meenachil<\/p>\n
 Society      is    not a  respondent   in  that writ<\/p>\n
 petition.\n<\/p>\n<\/p>\n
4.I have heard the learned counsel appearing for<\/p>\n
 the Society, the Company, George Thomas and the<\/p>\n
 learned Government Pleader quite in extenso.<\/p>\n
5.The impugned order reflects a state of affairs<\/p>\n
 where the Society had availed facilities from<\/p>\n
 NCDC, ICDP etc. with the guarantee of the State<\/p>\n
WP(C)32487 & 35756\/08      -: 4 :-<\/span><\/p>\n
 and      is     functioning      with   share  capital<\/p>\n
 contribution by the State Government. Obviously,<\/p>\n
 therefore, there is an involvement of the State<\/p>\n
 interest in the matter. That apart, the Society<\/p>\n
 is a rubber marketing society and the interest of<\/p>\n
 a large number of its members will also have to<\/p>\n
 be appropriately protected. The Joint Registrar<\/p>\n
 cannot be wholly at fault in having taken a<\/p>\n
 complete stock of the situation, though the en<\/p>\n
 result does not really satisfy the complete needs<\/p>\n
 of the Society. I say this because, the Society<\/p>\n
 may not be interested, as of now, to sell off its<\/p>\n
 immovable property. Its only aspiration is to see<\/p>\n
 that the debts are liquidated. This means that<\/p>\n
 any sale of the immovable property for which<\/p>\n
 sanction was granted should be with the ultimate<\/p>\n
 aid of resulting in the Society retrieving its<\/p>\n
 status       of     being   a    debtor  to  different<\/p>\n
 establishments.        In that    context, it may  be<\/p>\n
 worthwhile to note that a large chunk of amounts<\/p>\n
 which are shown to be due from the Society is by<\/p>\n
 way of interest payable to NCDC, ICDP or the<\/p>\n
WP(C)32487 & 35756\/08      -: 5 :-<\/span><\/p>\n
 Government and may be to the Meenachil Society<\/p>\n
 also.\n<\/p>\n<\/p>\n
6.The impugned decision of the Joint Registrar is<\/p>\n
 one amenable to the statutory remedies before the<\/p>\n
 Government.         There      are    revenue    recovery<\/p>\n
 proceedings also pending at the instance of NCDC<\/p>\n
 or ICDP. In the fitness of things, this is a case<\/p>\n
 where     the     attention      of the   Government  is<\/p>\n
 immediately obtained in a comprehensive manner so<\/p>\n
 that the different creditors, including Meenachil<\/p>\n
 Society or any other creditor, as discernible<\/p>\n
 from the books of accounts of the Society, could<\/p>\n
 be persuaded        to reduce the total outstandings by<\/p>\n
 scaling down the rate of interest. This could be<\/p>\n
 done in the case of ICDP and NCDC also. These are<\/p>\n
 matters which would work out more on the basis of<\/p>\n
 an    appropriate      dispute    negotiation  resolution<\/p>\n
 system     through    the   Governmental    guidance and<\/p>\n
 blessings, particularly because, Government funds<\/p>\n
 are also ultimately involved in the process. It<\/p>\n
 would not be in the interest of any one to wind<\/p>\n
WP(C)32487 & 35756\/08      -: 6 :-<\/span><\/p>\n
 up and ultimately, liquidate a rubber marketing<\/p>\n
 co-operative society in Kerala. It would equally<\/p>\n
 be not in the interest of any one to pass off<\/p>\n
 properties belonging to a co-operative society to<\/p>\n
 private      hands   taking     it out  of  co-operative<\/p>\n
 movement of the State. The         very object sought to<\/p>\n
 be achieved by the legislation in co-operative<\/p>\n
 sector and the co-operative movement will only<\/p>\n
 fail, if that ultimately happens.\n<\/p>\n<\/p>\n
7.In the light of what is stated above, all further<\/p>\n
 proceedings on the basis of the orders impugned<\/p>\n
 will continue to remain stayed for a period of<\/p>\n
 one year to enable the Society to move the<\/p>\n
 Government within a period of four weeks from now<\/p>\n
 by filing appropriate petitions calling for the<\/p>\n
 interference of the Government with the order of<\/p>\n
 the Joint Registrar and also to have all the<\/p>\n
 transactions referred to earlier settled. Let<\/p>\n
 such      a     comprehensive     petition   be    filed<\/p>\n
 notwithstanding      the    petitions  already   pending<\/p>\n
 before     the    State  Government    touching  revenue<\/p>\n
WP(C)32487 & 35756\/08     -: 7 :-<\/span><\/p>\n
 recovery and other matters. The Government will,<\/p>\n
 at the appropriate level, have the entire issues<\/p>\n
 looked into and settled with notice, hearing and<\/p>\n
 views of the NCDC, ICDP, the Meenachil Society<\/p>\n
 and     any     other   creditor,    Mr.Goerge  Thomas<\/p>\n
 represented        by Joji     Joseph and  the  Kerala<\/p>\n
 Cardamom Processing & Marketing Company Limited<\/p>\n
 would also be heard in the matter. If ultimately<\/p>\n
 it becomes necessary that the property needs to<\/p>\n
 be    sold,    it   shall  be    done upon appropriate<\/p>\n
 valuation and in accordance with law and even by<\/p>\n
 confining any auction to be between George Thomas<\/p>\n
 and the Kerala Cardamom Processing & Marketing<\/p>\n
 Company Limited, who are, as of now, in the fray.<\/p>\n
 Once the Government concludes finally, the order<\/p>\n
 of stay granted by this judgment will stand<\/p>\n
 vacated and parties will be regulated by the<\/p>\n
 decision of the Government.\n<\/p>\n
 This judgment is being issued before service of<\/p>\n
 notice is complete on NCDC and ICDP in WP(c).<\/p>\n
 32487\/2008       since no   orders   are being  issued<\/p>\n
WP(C)32487 & 35756\/08      -: 8 :-<\/span><\/p>\n
 against      their   interest    and   if  this judgment<\/p>\n
 reaches its goal, even the establishment would<\/p>\n
 also stand only to reach at amounts due to them.<\/p>\n
 However, if they are, in any manner, aggrieved by<\/p>\n
 the directions contained in this judgment, they<\/p>\n
 are at liberty to seek review of this judgment.<\/p>\n
 All    revenue      recovery    proceedings against the<\/p>\n
 Society will also stand suspended for the period<\/p>\n
 covered above. The Society will obtain a fresh<\/p>\n
 valuation from competent valuers and place it<\/p>\n
 before the Government, in the meanwhile. Whatever<\/p>\n
 amounts have been paid by the Company and George<\/p>\n
 Thomas will be refunded forthwith by the Society<\/p>\n
 and further action will proceed only on the basis<\/p>\n
 of the decision of the Government, however that<\/p>\n
 their efforts will continue to remain firm and<\/p>\n
 enforceable, subject to the final decision of the<\/p>\n
 Government.         The   Government     will   consider<\/p>\n
 convening necessary meetings either through the<\/p>\n
 Joint Registrar or otherwise at the appropriate<\/p>\n
 level of all the creditors of the Society. Let a<\/p>\n
 final decision from the Government follow within<\/p>\n
WP(C)32487 & 35756\/08    -: 9 :-<\/span><\/p>\n
 four months. These writ petitions are ordered<\/p>\n
 accordingly.\n<\/p>\n<\/p>\n
                         THOTTATHIL B. RADHAKRISHNAN,
\n                                   JUDGE.\n<\/p>\n
Sha\/<\/p>\n","protected":false},"excerpt":{"rendered":"
Kerala High Court The Kanjirappally Co-Operative … vs State Of Kerala on 5 December, 2008 IN THE HIGH COURT OF KERALA AT ERNAKULAM WP(C).No. 32487 of 2008(P) 1. THE KANJIRAPPALLY CO-OPERATIVE RUBBER … Petitioner Vs 1. STATE OF KERALA, REPRESENTED BY THE … Respondent 2. THE REGISTRAR OF CO-OPERATIVE SOCIETIES, 3. THE JOINT REGISTRAR OF […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,21],"tags":[],"class_list":["post-161036","post","type-post","status-publish","format-standard","hentry","category-high-court","category-kerala-high-court"],"yoast_head":"\nThe Kanjirappally Co-Operative ... vs State Of Kerala on 5 December, 2008 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/the-kanjirappally-co-operative-vs-state-of-kerala-on-5-december-2008\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Kanjirappally Co-Operative ... vs State Of Kerala on 5 December, 2008 - 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