{"id":66049,"date":"2009-07-20T00:00:00","date_gmt":"2009-07-19T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/the-managing-committee-of-vs-the-joint-registrar-of-on-20-july-2009"},"modified":"2015-11-30T19:28:38","modified_gmt":"2015-11-30T13:58:38","slug":"the-managing-committee-of-vs-the-joint-registrar-of-on-20-july-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/the-managing-committee-of-vs-the-joint-registrar-of-on-20-july-2009","title":{"rendered":"The Managing Committee Of &#8230; vs The Joint Registrar Of &#8230; on 20 July, 2009"},"content":{"rendered":"<div class=\"docsource_main\">Kerala High Court<\/div>\n<div class=\"doc_title\">The Managing Committee Of &#8230; vs The Joint Registrar Of &#8230; on 20 July, 2009<\/div>\n<pre>       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nWP(C).No. 14657 of 2007(T)\n\n\n1. THE MANAGING COMMITTEE OF VALLAPPUZHA\n                      ...  Petitioner\n\n                        Vs\n\n\n\n1. THE JOINT REGISTRAR OF CO-OPERATIVE\n                       ...       Respondent\n\n                For Petitioner  :SRI.GEORGE POONTHOTTAM\n\n                For Respondent  :GOVERNMENT PLEADER\n\nThe Hon'ble MR. Justice S.SIRI JAGAN\n\n Dated :20\/07\/2009\n\n O R D E R\n                            S. Siri Jagan, J.\n              =-=-=-=-=-=-=-=--=-=-=-=-=-=-=-=-=-=\n                     W. P (C) No. 14657 of 2007\n              =-=-=-=-=-=-=-=-=--=-=-=-=-=-=-=-=-=\n                 Dated this, the    20th July, 2009.\n\n                           J U D G M E N T\n<\/pre>\n<p>      The petitioner in this writ petition is the present managing<\/p>\n<p>committee of the Vallappuzha Service Co-operative Bank Ltd., a co-<\/p>\n<p>operative Society registered under the Kerala Co-operative Societies<\/p>\n<p>Act, 1969, (hereinafter referred to as &#8216;the Act&#8217;, for short), represented<\/p>\n<p>by its President Sri. P.K. Koya.        As originally constituted, the<\/p>\n<p>challenge in the writ petition was against Ext. P1 show cause notice<\/p>\n<p>issued under Section 32(1) of the Act, directing the committee to<\/p>\n<p>show cause why the committee should not be superseded under that<\/p>\n<p>Section for the 12 irregularities detailed therein. By interim order<\/p>\n<p>dated   8-5-2007, this Court directed that the implementation of any<\/p>\n<p>order pursuant to Ext. P1 shall be kept in abeyance for three weeks.<\/p>\n<p>Subsequently, after several extensions of the said order, the same was<\/p>\n<p>extended until further orders on 13-11-2007. Thereafter, Ext. P5<\/p>\n<p>order dated 6-12-2007 was passed by the 1st respondent , superseding<\/p>\n<p>the Society and appointing an administrator for the Society. By Ext.<\/p>\n<p>P10 intimation dated 20-12-2007, the administrator appointed by Ext.<\/p>\n<p>P5, informed the Secretary of the Society that he has taken charge on<\/p>\n<p>29-12-2007. The petitioner has subsequently got the writ petition<\/p>\n<p>amended to include a challenge against Ext. P5 order also. By interim<\/p>\n<p>order dated 1-1-2008, this Court      stayed Exts. P5 and       P10 until<\/p>\n<p>further orders.\n<\/p>\n<p>      2. The present committee was elected on 28-1-2006 and they<\/p>\n<p>took charge on 30-1-2006. The committee of the Society consists of<\/p>\n<p>11 members. Out of the 11 members elected on 28-1-2006, 7 were<\/p>\n<p>new members who were not members of any of the previous<\/p>\n<p>committees. On the basis of a complaint received from 4 members of<\/p>\n<p>the Society, the 1st respondent ordered an inspection into the affairs<\/p>\n<p>of the Society under Section 66 of the Act, by Ext. P3 order dated 30-<\/p>\n<p><span class=\"hidden_text\">W.P.C. No. 14657\/2007                -: 2 :-<\/span><\/p>\n<p>9-2006. Pursuant thereto, the Unit Inspector of the Office of the Asst.<\/p>\n<p>Registrar (G), Ottappalam submitted Ext. R1(f) report dated 14-3-<\/p>\n<p>2007, wherein the Unit Inspector reported that his inspection<\/p>\n<p>revealed    the irregularities detailed in the report.          Based on that<\/p>\n<p>report, the 1st respondent-Joint Registrar of Co-operative Societies<\/p>\n<p>(G), Palakkad issued Ext.P1 show cause notice, to which the petitioner<\/p>\n<p>submitted Ext. P2 reply stating that the committee has not committed<\/p>\n<p>any of the irregularities mentioned in Ext. P1 and therefore further<\/p>\n<p>proceedings     pursuant to Ext. P1 may be dropped.                Anticipating<\/p>\n<p>supersession despite the reply and alleging that Ext. P1 itself is<\/p>\n<p>lacking in the essential requirements of Section 32, the petitioner<\/p>\n<p>filed this writ petition and as stated earlier, after Ext. P5 order was<\/p>\n<p>passed confirming Ext. P1, the writ petition was got amended as per<\/p>\n<p>which the petitioner seeks the following reliefs:<\/p>\n<blockquote><p>      &#8220;(i)   Issue a writ in the nature of certiorari calling for the<br \/>\n      records leading to Ext. P1 and to quash the same.\n<\/p><\/blockquote>\n<blockquote><p>      (ii)   Issue a writ declaring that the notice issued as per Ext. P1<br \/>\n      and the allegations contained therein are not grounds for the<br \/>\n      invoking of the power under Section 32 of the KCS Act as against<br \/>\n      the committee now in office and therefore the proceedings are<br \/>\n      vitiated.\n<\/p><\/blockquote>\n<blockquote><p>      (iii)  Issue a writ declaring that Ext. P1 is in violation of the<br \/>\n      essential requirements mandated under Section 32(1) of the<br \/>\n      KCSW Act and therefore the same is bad.\n<\/p><\/blockquote>\n<blockquote><p>      (iv)   Issue a writ of certiorari calling for the records leading to<br \/>\n      Ext. P5 and to quash the same.\n<\/p><\/blockquote>\n<blockquote><p>      (v)    Issue a writ declaring that Ext. P5 order has been issued<br \/>\n      based on irrelevant consideration and taking into account factors<br \/>\n      which are beyond the scope of Section 32 of the KCS Act and<br \/>\n      therefore bad in the eye of law.&#8221;<\/p><\/blockquote>\n<p>      3.   The petitioner challenges the proceedings             evidenced by<\/p>\n<p>Exts.P1 and P5 on the main ground that out of the 12 allegations in<\/p>\n<p>Ext. P1, 10 are in respect of actions of the previous committee, of<\/p>\n<p><span class=\"hidden_text\">W.P.C. No. 14657\/2007             -: 3 :-<\/span><\/p>\n<p>which only 4 are members of the present committee and for the<\/p>\n<p>action of the previous committee, no proceedings for supersession<\/p>\n<p>can be initiated against the present committee. As far as the<\/p>\n<p>allegations against the actions of the present committee are<\/p>\n<p>concerned, the petitioner would contend either that they have not<\/p>\n<p>committed the same or that they are not irregularities and the same<\/p>\n<p>were taken in the best financial interests of the Society. The second<\/p>\n<p>contention is that an action under Section 32 should be invoked only<\/p>\n<p>as a last resort, that too only if the committee commits persistent<\/p>\n<p>defaults or is persistently negligent in the performance of its duties<\/p>\n<p>and that the findings in Ext. P5 do not contain the essential<\/p>\n<p>ingredients for an action under Section 32. It is further contended<\/p>\n<p>that the impugned action is an abuse of prower and mala fide, insofar<\/p>\n<p>as the same has been initiated on account of the change of political<\/p>\n<p>climate in the State, resulting from a new political alliance opposed to<\/p>\n<p>the members of the committee coming into power in the State, on<\/p>\n<p>whose directions the inspector and the 1st respondent have embarked<\/p>\n<p>on a pre-determined action for unseating the committee from power<\/p>\n<p>in the Society on some pretext or other.\n<\/p>\n<p>      4. Two members of the Society have got themselves impleaded<\/p>\n<p>as respondents 2 and 3 to support the impugned action of the 1st<\/p>\n<p>respondent.\n<\/p>\n<p>      5. The 1st respondent has filed counter affidavits to the writ<\/p>\n<p>petition before and after amendment, supporting the impugned<\/p>\n<p>action. According to the 1st respondent, the action has been taken on<\/p>\n<p>finding the committee guilty of very serious irregularities and the<\/p>\n<p>allegations of political interference and mala fides are without any<\/p>\n<p>basis.  It is contended on behalf of all the respondents that the<\/p>\n<p>requirement that the default or negligence should be persistent is<\/p>\n<p>applicable only to sub section (a) of Section 32(1) and in respect of<\/p>\n<p><span class=\"hidden_text\">W.P.C. No. 14657\/2007                -: 4 :-<\/span><\/p>\n<p>the actions referred to in sub sections (b) to (d), one single instance<\/p>\n<p>would suffice. According to them, the findings in Ext. P5 are referable<\/p>\n<p>to sub sections (b) to (d) and the allegations in respect thereof are<\/p>\n<p>proved by adequate materials on record.              The counsel for the 1st<\/p>\n<p>respondent elaborates further that prior to amendment of Section 32<\/p>\n<p>in 2000, sub section (a) alone was there in the statute book, to which<\/p>\n<p>alone the requirement of persistent default or negligence applies and<\/p>\n<p>while adding sub-sections (b) to (d), the legislature consciously did<\/p>\n<p>not add such requirement and therefore for a single instance of the<\/p>\n<p>action of the committee referable to those sub sections, action under<\/p>\n<p>Section 32 is maintainable.\n<\/p>\n<p>      6. I have considered the contentions of both sides.<\/p>\n<p>      7. Since elaborate arguments were advanced on the scope of<\/p>\n<p>Section 32(1) before and after amendment, I shall extract the Section<\/p>\n<p>as obtaining before and after amendment.                   Before amendment,<\/p>\n<p>Section 32(1) read thus:\n<\/p>\n<\/p>\n<blockquote><p>             &#8220;(1) If the Registrar is satisfied that the committee of any<br \/>\n      society persistently makes default or is negligent in the<br \/>\n      performance of the duties imposed on it by this Act or the rules or<br \/>\n      bye-laws or commits any act which is prejudicial to the interest of<br \/>\n      the society or wilfully disobeys or wilfully fails to comply with any<br \/>\n      lawful order or direction issued under this Act or the rules, the<br \/>\n      Registrar may, after giving the committee an opportunity to state<br \/>\n      its objections, if any, by order in writing remove the committee<br \/>\n      and-\n<\/p><\/blockquote>\n<blockquote><p>             (a) appoint a new committee consisting of not more than<br \/>\n      three members of the society in its place; or<\/p>\n<\/blockquote>\n<blockquote><p>             (b) appoint one or more administrator or administrators<br \/>\n      who need not be a member or members of the society,<\/p>\n<p>      to manage the affairs of the society for a period not exceeding one<br \/>\n      year as may be specified in the order, which period may, at the<br \/>\n      discretion of the Registrar, be extended from time to time, so<br \/>\n      however that the aggregate period does not exceed two years.&#8221;\n<\/p><\/blockquote>\n<p>After amendment, the same reads now thus:\n<\/p>\n<p><span class=\"hidden_text\">W.P.C. No. 14657\/2007                -: 5 :-<\/span><\/p>\n<blockquote><p>            &#8220;32. Supersession of Committee:- (1) If the Registrar,<br \/>\n     after an inquiry by himself or through his subordinates or on a<br \/>\n     report of the financing bank, or the Vigilance and Anticorruption<br \/>\n     Bureau of the Government or the Vigilance officer or otherwise is<br \/>\n     satisfied that the committee of any society,&#8211;\n<\/p><\/blockquote>\n<blockquote><p>            (a)   persistently makes default or is negligent in the<br \/>\n     performance of the duties imposed on it by this Act or the rules or<br \/>\n     bye-laws or does anything which is prejudicial to the interests of<br \/>\n     the society; or<\/p>\n<\/blockquote>\n<blockquote><p>            (b) wilfully disobeys or fails to comply with any lawful order<br \/>\n     or direction issued under this Act or the rules; or<\/p>\n<\/blockquote>\n<blockquote><p>            (c) makes any payment contrary to this Act or the rules or<br \/>\n     the bye-laws or causes any loss or damage to the assets of the<br \/>\n     society by breach of trust of wilful negligence; or<\/p>\n<\/blockquote>\n<blockquote><p>            (d) misappropriates or destroys or tampers with the records<br \/>\n     or causes the destruction of records to cover up any misconduct or<br \/>\n     malpractice,<\/p>\n<p>     he may, after giving the committee an opportunity to state its<br \/>\n     objections, if any, by order in writing, remove the committee and<br \/>\n     appoint a new committee consisting of not more than three<br \/>\n     members of the society in its place or, appoint not more than three<br \/>\n     administrators, who need not be members of the society, to manage<br \/>\n     the affairs of the society for a period not exceeding six months, as<br \/>\n     may be specified in the order, which period may, at the discretion<br \/>\n     of the Registrar, be extended from time to time, so however that<br \/>\n     the aggregate period does not exceed one year.\n<\/p><\/blockquote>\n<p>Prior to the amendment in 2000, Section 32(1) contained only the<\/p>\n<p>provisions contained in sub sections (a) and (b) of the present Section,<\/p>\n<p>but rolled into the same sub section. <a href=\"\/doc\/1330336\/\">In Rajagopalan Nair v. State<\/p>\n<p>of Kerala,<\/a> 1995 (2) KLT 184, a learned Judge of this Court held that<\/p>\n<p>the   words &#8216;persistent&#8217;. &#8216;negligent&#8217;, &#8216;wilful&#8217;, and &#8216;lawful&#8217; occurring in<\/p>\n<p>the Section are the key words to guide the normal understanding of<\/p>\n<p>the satisfaction that is required of the Registrar for an action for<\/p>\n<p>superseding the committee.          Another learned Single Judge of this<\/p>\n<p>Court has, in <a href=\"\/doc\/1963714\/\">Krishnan v. Joint Registrar,<\/a> 1997 (1) KLT S.N. 16<\/p>\n<p>(Case No. 20), held that the relevant ingredients for satisfaction of the<\/p>\n<p><span class=\"hidden_text\">W.P.C. No. 14657\/2007            -: 6 :-<\/span><\/p>\n<p>Registrar under Section 32 are persistent negligence in the<\/p>\n<p>performance of the duties imposed by the Act or Rules or bye-laws,<\/p>\n<p>acting against the interests of the Society and wilful disobeying and<\/p>\n<p>wilfully failing to comply with the orders and directions issued under<\/p>\n<p>the Act or Rules. But, those decisions were rendered construing the<\/p>\n<p>Section as it obtained prior to the amendment in 2000.             After<\/p>\n<p>amendment also, a learned Judge of this Court had in Ashok Kumar<\/p>\n<p>v. State of Kerala, 2003(3) KLT 86 (Case No. 114) held that it is not<\/p>\n<p>negligence alone which authorises interference under Section 32 (1),<\/p>\n<p>but the same should be persistent, deliberate and also at times fit to<\/p>\n<p>be characterized as culpable.        Then again that related only to<\/p>\n<p>negligence and not to the other ingredients of Section 32(1).<\/p>\n<p>      8. As far as sub section (b) is concerned, the action is qualified<\/p>\n<p>by the word &#8216;wilfully&#8217;. Therefore, although it can be held that such<\/p>\n<p>action need not be persistent, the same should be wilful, no doubt.<\/p>\n<p>      9. As far as sub sections (c) and (d) are concerned, the same are<\/p>\n<p>also not qualified by the word &#8216;persistent&#8217;. Sub section (c) is qualified<\/p>\n<p>by   the    words    &#8216;by breach    of   trust  or  wilful   negligence&#8217;.<\/p>\n<p>Misappropriation or destruction or tampering with records or causing<\/p>\n<p>destruction of records to cover up any misconduct or malpractice<\/p>\n<p>mentioned in sub section (d), for obvious reasons, are not qualified by<\/p>\n<p>any such words, since such actions are per se culpable and only one<\/p>\n<p>single instance     would be so disastrous to the Society that the<\/p>\n<p>Registrar would certainly be justified in taking action for that single<\/p>\n<p>instance itself. Therefore, I am of opinion that the acts mentioned in<\/p>\n<p>sub sections (c) and (d) being by the very nature of those acts, such<\/p>\n<p>that a single instance would be extremely prejudicial to the interests<\/p>\n<p>of the Society, the Registrar can invoke Section 32 even for a single<\/p>\n<p>instance.\n<\/p>\n<p>      10. The next question that arises for consideration on the facts<\/p>\n<p><span class=\"hidden_text\">W.P.C. No. 14657\/2007                -: 7 :-<\/span><\/p>\n<p>of this case is as to whether for the action of the previous committee,<\/p>\n<p>even if some of the members of the present committee were also<\/p>\n<p>members of the previous committee, Section 32 can be invoked. That<\/p>\n<p>question is no more res integra, since that issue has been settled by<\/p>\n<p>two Division Bench decisions of this Court . <a href=\"\/doc\/407455\/\">In Sivadasan Nair v.<\/p>\n<p>Registrar of Co-operative Societies,<\/a> 19997 (2) KLT 710, a Division<\/p>\n<p>Bench of this Court held in paragraphs 13 and 19 thus:<\/p>\n<blockquote><p>         13. It can be seen from Ext.P2 notice as well as Ext.P4 order<br \/>\n         of the Registrar that none of the conditions mentioned in S.32<br \/>\n         of the Act was relied upon to supersede or remove the present<br \/>\n         Committee in office. What has been done by the Registrar is<br \/>\n         that 11 members out of the present Board of Directors were<br \/>\n         removed by him and then the Registrar removed the<br \/>\n         Committee on the ground that the remaining members cannot<br \/>\n         form sufficient quorum for the Managing Committee. Thus,<br \/>\n         the Registrar had exercised his power under S.32(1) of the Act<br \/>\n         to remove 11 members from the Managing Committee of the<br \/>\n         Bank and thereafter, the entire committee was superseded.<br \/>\n         Therefore, the question is whether the Registrar has got<br \/>\n         power to remove the individual members under S.32 of the<br \/>\n         Act.   The heading of the Section itself is supersession of<br \/>\n         Committee. Further the body of the Section says that the<br \/>\n         Registrar may by order in writing remove the committee and<br \/>\n         appoint a new committee or an arbitrator to manage the<br \/>\n         affairs of the Society. Sub-s.(3) of S.32 of the Act says that<br \/>\n         notwithstanding anything contained in sub-s.(1) or sub-s.(2) it<br \/>\n         shall not be necessary to give an opportunity to the committee<br \/>\n         to state its objections and to consult the Union and financing<br \/>\n         banks, in cases where the Registrar is of the opinion that it is<br \/>\n         not reasonably practicable to do so. Thus, a plain reading of<br \/>\n         S.32 of the Act shows that the power is given to the Registrar<br \/>\n         under S.32 to remove the entire body of Committee as a<br \/>\n         whole.\n<\/p><\/blockquote>\n<blockquote><p>                       xx                 xx                  xx<\/p>\n<\/blockquote>\n<blockquote><p>         19. The second stage of the enquiry did not commence so far.<br \/>\n         The effect of Ext.P4 order is that the present Managing<br \/>\n         Committee is superseded for the faults of the previous<br \/>\n         Managing Committee. The power under S.32 of the Act can<br \/>\n         be invoked only if the existing Managing Committee is guilty.<br \/>\n         It may be that many of the members of the previous Managing<br \/>\n         Committee could have come back having been reelected and<br \/>\n         would be continuing as members of the existing Managing<br \/>\n         Committee.    As already stated, what is to be adjudged is<br \/>\n         whether the existing committee is guilty of the conditions<br \/>\n         mentioned in S.32 of the Act and not whether some individual<\/p>\n<p><span class=\"hidden_text\">W.P.C. No. 14657\/2007                -: 8 :-<\/span><\/p>\n<p>        members of the Committee, were guilty of any act of<br \/>\n        corruption while they were members of the previous<br \/>\n        Committee.\n<\/p><\/blockquote>\n<p>Again, by judgment dated 6-8-2004 in W.A. No. 1363 of 2004 <a href=\"\/doc\/98247\/\">(K.V.<\/p>\n<p>Mohanan v. State of Kerala and others<\/a>), another Division Bench of<\/p>\n<p>this Court has held thus in paragraph 4:\n<\/p>\n<\/p>\n<blockquote><p>               &#8220;4. From a perusal of Ext.P1 notice and Ext.P3 order<br \/>\n        and the averments in the writ petition and the counter affidavit<br \/>\n        it is abundantly clear that the alleged irregularities and<br \/>\n        defaults were committed by the Board of Directors which was<br \/>\n        in office from 27.6.1998 to 17.5.2003. The present Board of<br \/>\n        Directors took charge only on 18.5.2003. Therefore the only<br \/>\n        question to be considered is whether the present Board of<br \/>\n        Directors can be removed under Section 32 of the Kerala Co-<br \/>\n        operative Societies Act for the irregularities and defaults<br \/>\n        alleged to have been committed by the previous Board of<br \/>\n        Directors. Section 32 of the Kerala Co-operative Societies Act<br \/>\n        can be invoked only against a committee which has committed<br \/>\n        the irregularities or defaults. Removal of a committee for the<br \/>\n        defaults and irregularities of a previous committee is not<br \/>\n        contemplated by Section 32. It may be pointed out that under<br \/>\n        Rule 44(1)(k) of the Kerala Co-operative Societies Rules, no<br \/>\n        member of the society shall be eligible for being elected or<br \/>\n        appointed as a member of the committee of the society under<br \/>\n        Section 28 if he was a member of the committee which has<br \/>\n        been superseded and a period of one year has not elapsed<br \/>\n        from the date of supersession. Thus removal of the committee<br \/>\n        under Section 32 casts a stigma and imposes a disqualification<br \/>\n        on the members of the committee and the removal visits such<br \/>\n        members with serious consequences. Therefore we are of the<br \/>\n        view that the committee of a Co-operative Society cannot be<br \/>\n        superseded under Section 32 of the Kerala            Co-operative<br \/>\n        Societies Act for the defaults and irregularities alleged to have<br \/>\n        been committed by a previous committee. In this view of the<br \/>\n        matter Exts.P1 and P3 are liable to be quashed.&#8221;\n<\/p><\/blockquote>\n<p>In view of these decisions, it is settled law that proceedings under<\/p>\n<p>Section 32 can be invoked only for actions of the present committee<\/p>\n<p>as a whole, who is sought to be proceeded against under the Section,<\/p>\n<p>even if some of the members of the previous committee which is guilty<\/p>\n<p>of the action are also members of the present committee and not for<\/p>\n<p>actions of the previous committee.\n<\/p>\n<p><span class=\"hidden_text\">W.P.C. No. 14657\/2007             -: 9 :-<\/span><\/p>\n<p>      11. Perhaps, being aware of the above legal position, the 1st<\/p>\n<p>respondent has, in his counter affidavits, sought to justify his action<\/p>\n<p>only on the basis of the actions alleged against the present committee.<\/p>\n<p>Respondents 2 and 3 also advanced arguments to justify Ext. P5 only<\/p>\n<p>on that basis.\n<\/p>\n<p>      12. Supersession of a democratically elected committee is a<\/p>\n<p>very drastic and extreme step. It is not necessary to cite any judicial<\/p>\n<p>precedents to hold that action under Section 32 cannot therefore be<\/p>\n<p>taken lightly for mundane violations. Only if the findings against the<\/p>\n<p>committee are such that the continuance of the committee would be<\/p>\n<p>extremely prejudicial to the interests of the Society, the exceptional<\/p>\n<p>and rare action under Section 32 shall be taken. Findings on the<\/p>\n<p>culpability of the committee on their improper action should inform<\/p>\n<p>the action of the Registrar while initiating proceedings under Section<\/p>\n<p>32. In other words, the mere finding that the committee has done the<\/p>\n<p>acts alleged alone is not sufficient; the same should be supported by<\/p>\n<p>a further finding that they did the same with a culpable mind, failing<\/p>\n<p>which the action of the Registrar would be improper.<\/p>\n<p>      13. I shall examine the validity of Ext. P5 in the light of the<\/p>\n<p>above legal position.     In Ext. P5, the findings of irregularities<\/p>\n<p>attributable to the present committee out of the 12 charges are only<\/p>\n<p>the following, the others being clearly attributable to the previous<\/p>\n<p>committee:\n<\/p>\n<\/p>\n<blockquote><p>                   (a) A jeep purchased by the Bank on 24-10-2002 for<\/p>\n<p>             Rs. 3,68,850\/- was sold by the present committee        on<\/p>\n<p>             25-07-2006 for Rs. 2,31,676\/-, which       was without a<\/p>\n<p>             performance certificate of a mechanical engineer and<\/p>\n<p>             violating the instructions in Circular No. 55\/03 dated 3-\n<\/p><\/blockquote>\n<blockquote><p>             10-2003 of the Registrar.\n<\/p><\/blockquote>\n<p><span class=\"hidden_text\">W.P.C. No. 14657\/2007             -: 10 :-<\/span><\/p>\n<blockquote><p>                   (b) The vehicle belonging to the Bank was used for<\/p>\n<p>             going to Mannarghat on 20-07-2006 as per trip sheet no.\n<\/p><\/blockquote>\n<blockquote><p>             834, to Thrissur on 13-07-2006 as per trip sheet no. 829<\/p>\n<p>             and to Mannarghat, Perinthalmanna and Malappuram on<\/p>\n<p>             18-07-2006, without specifying the purpose in the log<\/p>\n<p>             book sheet.\n<\/p><\/blockquote>\n<blockquote><p>                   (c)   The minutes book of the committee was<\/p>\n<p>             tampered with by fraudulently adding the words &#8216;also<\/p>\n<p>             decided to give the gold coin of 8 grams given by the<\/p>\n<p>             Company as gift to the lady director Smt. Vilasini teacher&#8217;,<\/p>\n<p>             in resolution no. 43 of the committee meeting held on<\/p>\n<p>             26-10-2002, to the word &#8216;approved&#8217; which alone was there<\/p>\n<p>             in the original minutes.\n<\/p><\/blockquote>\n<blockquote><p>                  (d) Although the place Kuruvattoor is excluded from<\/p>\n<p>            the area of operation of the Society, many persons of that<\/p>\n<p>            locality have been given membership in the Society without<\/p>\n<p>            ascertaining whether they are members of the Kayiliyad<\/p>\n<p>            Service Co-operative Bank and one Alavi, of Kuruvattoor<\/p>\n<p>            member no. 13483, was given a loan of Rs. 16,000\/- on 1-3-\n<\/p><\/blockquote>\n<blockquote><p>            2005. Although as per bye-law no. 55(2)(b) of the bye-laws<\/p>\n<p>            of the Bank, for marriage, maintenance of house         and<\/p>\n<p>            seeking employment abroad, the maximum loan which can<\/p>\n<p>            be sanctioned is    Rs. 1 lakh, 11 loans detailed in Ext. P5<\/p>\n<p>            order were sanctioned in excess of the prescribed limit.\n<\/p><\/blockquote>\n<blockquote><p>                  (e) An amount of Rs. 84,447\/- due from the former<\/p>\n<p>            President of the Society has been transferred to suspense<\/p>\n<p>            account, without recovering the same.\n<\/p><\/blockquote>\n<blockquote><p>                  (f) Two employees of the Bank, namely, the former<\/p>\n<p>           Secretary Sri. P. Mohammed, and the Manager of the<\/p>\n<p>           Marayamangalam        Branch    of  the   Bank,   Sri.   T.P.\n<\/p><\/blockquote>\n<p><span class=\"hidden_text\">W.P.C. No. 14657\/2007               -: 11 :-<\/span><\/p>\n<blockquote><p>           Unnikrishnan were allowed to be kept under suspension<\/p>\n<p>           beyond one year in violation of Rule 198(6) of the Kerala<\/p>\n<p>           Co-operative Societies Rules, 1969.<\/p><\/blockquote>\n<p>      14. Since, out of the above charges, charge (c) narrated above<\/p>\n<p>is the most serious one, a decision regarding the sustainability of<\/p>\n<p>which against the petitioner may even             obviate the necessity to<\/p>\n<p>consider the sustainability of the other charges, I shall consider the<\/p>\n<p>same first.\n<\/p>\n<p>      15. The details of the charge as given in Ext. P1 show cause<\/p>\n<p>notice roughly translated into English are as follows:<\/p>\n<blockquote><p>             &#8220;When the Bank purchased a vehicle, the Company from<br \/>\n             which the vehicle was purchased presented a gift of a gold<br \/>\n             coin weighing 8 grams. Although records have been kept in<br \/>\n             the Bank to the effect that the President of the Bank Sri.<br \/>\n             P.K. Koya had taken it on 29-11-2002, in the resolution of<br \/>\n             the committee meeting held on 26-12-2002, to the word<br \/>\n             &#8216;approved&#8217; originally included in the minutes, it has been<br \/>\n             added by writing later that &#8216;also decided to give the gold<br \/>\n             coin of 8 grams given by the Company as gift, to the lady<br \/>\n             director Smt. Vilasini teacher.&#8217; Adding by writing later in<br \/>\n             the minutes of the resolution of the committee that as per<br \/>\n             resolution dated 16-10-2002, the 8 grams&#8217; gold coin was<br \/>\n             decided to be given to another director, is clear evidence to<br \/>\n             show that the Bank records have been fraudulently<br \/>\n             fabricated. As to what should be done with the said gold<br \/>\n             coin was not part of the agenda for the meeting. Three<br \/>\n             committee members who took part in the          meeting has<br \/>\n             stated that in that meeting no such resolution was taken.<br \/>\n             The receipt of the gold coin was not included in the stock<br \/>\n             register. By tampering with the minutes book of the bank,<br \/>\n             fraudulently record has been created by giving gold coin to<br \/>\n             Vilasini teacher. In the minutes of 26-10-2002, there is<br \/>\n             marked difference in the ink used for adding the same by<br \/>\n             writing later. The inspecting officer has reported that it is<br \/>\n             clear that the same has been added in the minutes between<br \/>\n             30-9-2006 and 28-2-2007. When as per the report of charge<br \/>\n             transfer between the Secretary and the Assistant Secretary<br \/>\n             on 27-1-2003, it is clear that the gold coin is with the<br \/>\n             President, it is dubious as to how the lady director received<br \/>\n             the same on 26-10-2002.       The gold coin received when<br \/>\n             buying the vehicle is the asset of the Bank and that should<\/p>\n<p><span class=\"hidden_text\">W.P.C. No. 14657\/2007                -: 12 :-<\/span><\/p>\n<p>             be brought in the accounts of the Bank. Because of failure<br \/>\n             to do so, giving it to a director and tampering with the<br \/>\n             records for the same, it is found that very serious<br \/>\n             misconduct has been committed.&#8221;<\/p><\/blockquote>\n<p>      16. This is answered by the petitioner in Ext. P2 reply, which<\/p>\n<p>roughly translated into English would read thus:<\/p>\n<p>                   &#8220;The gold coin scandal         by misinterpreting the<br \/>\n             resolutions of the managing committee is another allegation<br \/>\n             designed to draw us to surcharge proceedings . When jeep<br \/>\n             no. KL 9L\/1386 was purchased from the TVS agencies,<br \/>\n             Palakkad, a gold coin of 8 grams was promised as gift. That<br \/>\n             cannot be linked to the price of the jeep. In the managing<br \/>\n             committee meeting held on 26-10-2002, when the price of<br \/>\n             the jeep and other expenses were ratified, the meeting had<br \/>\n             decided to give the present to be received as gift to Vilasini<br \/>\n             teacher. The receipt written by Vilasini teacher in her own<br \/>\n             handwriting for receipt of the gold coin on 23-12-2002 is<br \/>\n             kept in the Bank. It is not stated in the notice that it has<br \/>\n             been checked with Vilasini teacher for ascertaining whether<br \/>\n             the same is true. The allegation that it has been added in<br \/>\n             the minutes     by writing later is a foisted allegation and<br \/>\n             cannot be justified. It is seen that a true copy of the said<br \/>\n             minutes had been given by the Bank as per the request of<br \/>\n             Smt. Vilasini teacher on 19-3-2004.          At the time of<br \/>\n             inspection, the said certified copy had been shown to the<br \/>\n             inspecting    officer   by   the   Secretary-in-charge     Sri.<br \/>\n             Ramanunni and senior clerk of the H.O., Sri. Asharaf Ali,<br \/>\n             which was verified by him and he was satisfied about the<br \/>\n             same.   Formerly and now also, there is no procedure of<br \/>\n             recording by number in the agenda all things carried out by<br \/>\n             the managing committee of the Bank.               The normal<br \/>\n             procedure followed is that things connected          with one<br \/>\n             subject are included in the agenda relating to that subject<br \/>\n             and decisions taken.       No director had recorded any<br \/>\n             objections in respect of the decisions of the resolution taken<br \/>\n             by the Managing Committee with Sri. P.K. Koya as the<br \/>\n             President from 2002. It is submitted that the complaint of 3<br \/>\n             persons, who though members of the Managing Committee<br \/>\n             then, for political reasons fell apart and lost in the election<br \/>\n             held to the Managing Committee on 28-1-2006 contesting<br \/>\n             against the panel headed by Sri. P.K. Koya, has been<br \/>\n             prepared for making a sustainable charge deliberately, by<br \/>\n             the inspecting officer.     The document included in the<br \/>\n             charge transfer list given to the Assistant Secretary Sri. K.<br \/>\n             Ramachandran by Sri. P. Mohammed, the Secretary<br \/>\n             suspended on 27-1-2003, is one fabricated by him. It is<\/p>\n<p><span class=\"hidden_text\">W.P.C. No. 14657\/2007                -: 13 :-<\/span><\/p>\n<p>             dubious that the inspecting        officer has accepted the<br \/>\n             statement of only the former Secretary P. Mohammed who<br \/>\n             has been suspended for charges relating to fabricating<br \/>\n             documents also to show that four members of the Managing<br \/>\n             Committee had not attended four meetings, for disqualifying<br \/>\n             them, during the Managing Committee of the period 1999-<br \/>\n             2004.&#8221;\n<\/p>\n<\/p>\n<p>      17. This is dealt with by the 1st respondent in Ext. P5 order<\/p>\n<p>thus:\n<\/p>\n<blockquote><p>                           (Translation by the Court)<\/p>\n<p>                   &#8220;I am satisfied that as per the abovesaid second<br \/>\n            charge, although in the charge handover memo, it is shown<br \/>\n            that a jeep registered as no. KL9L.1386 has been purchased<br \/>\n            on 24-10-2002 from the establishment              named T.V.<br \/>\n            Sundaram Iyangar Sons for the Vallapuzha Service Co-<br \/>\n            operative Bank, that the bank Secretary had accepted a gold<br \/>\n            coin weighing 8 grams from that establishment as gift, and<br \/>\n            that the said gold coin was taken by Sri. P.K. Koya, the<br \/>\n            President of the Bank on 29-11-2002 by adding to the 43rd<br \/>\n            resolution of the bank of the Managing Committee meeting<br \/>\n            of the Bank held on 26-10-2002 that &#8216;also decided to give the<br \/>\n            gold coin of 8 grams given by the Company as gift to the<br \/>\n            lady director Smt. Vilasini teacher&#8217;, document has been<br \/>\n            fabricated in the minutes book, which is the most important<br \/>\n            record of the Bank.\n<\/p><\/blockquote>\n<blockquote><p>                   The inspecting officer, as per Section 66, has<br \/>\n            submitted a report that difference in ink used for adding<br \/>\n            later by writing later in the minutes book of the Bank dated<br \/>\n            26-10-2002 is clear and that the adding by writing has been<br \/>\n            done between 30-9-2006 and 28-2-2007 by the present<br \/>\n            Managing Committee of the Bank.            For the following<br \/>\n            reasons, it is clear that it has been fraudulently added to the<br \/>\n            Managing Committee Resolution dated 28-10-2002, by<br \/>\n            writing later by the present committee:\n<\/p><\/blockquote>\n<blockquote><p>                   (1) When the gold coin was received in the Bank on<br \/>\n            28-11-2002, it is false and unbelievable that a decision<br \/>\n            regarding that had been taken on 26-12-2002.\n<\/p><\/blockquote>\n<blockquote><p>                   (2) In the agenda for the meeting of the Managing<br \/>\n            Committee on 26-10-2002, there is no agenda relating to the<br \/>\n            gold coin.\n<\/p><\/blockquote>\n<blockquote><p>                   (3) Out of the ten managing committee members,<br \/>\n            who participated in the meeting held on 26-10-2002, three<br \/>\n            members namely, Sri. C. Vijayakumar, Sri. A. Moideenkutty<br \/>\n            and Sri. M. Moidoothy have given a written statement that<\/p>\n<p><span class=\"hidden_text\">W.P.C. No. 14657\/2007                 -: 14 :-<\/span><\/p>\n<p>            in the meeting held on 26-10-2002, no decision relating to<br \/>\n            the gold coin has been taken.\n<\/p><\/blockquote>\n<blockquote><p>                   (4) The Bank President has produced only a true<br \/>\n            copy of the resolution no. 43 dated 26-10-2002 in which the<br \/>\n            decision relating to the gold coin has been taken.       The<br \/>\n            original minutes or the photocopy of the minutes has not<br \/>\n            been produced.\n<\/p><\/blockquote>\n<blockquote><p>                   (5) A receipt has been produced to the effect that the<br \/>\n            gold coin received in the Bank on 28-11-2002 was received<br \/>\n            by Smt. Vilasini teacher only on 23-12-2002. If that be so,<br \/>\n            no clear evidence has been produced to show as to in whose<br \/>\n            possession the gold coin was, during the interim period.\n<\/p><\/blockquote>\n<blockquote><p>                   It is provided in sub section (1)(d) of Section 32 of<br \/>\n            the Kerala Co-operative Societies Act, 1969 (Act 21 of 1969)<br \/>\n            that the managing committee which tampers with the<br \/>\n            records to cover up any misappropriation, irregularities and<br \/>\n            other misconducts, can be superseded.           The present<br \/>\n            managing committee has tampered with the minutes book,<br \/>\n            which is the most important record of the Bank. Therefore,<br \/>\n            this office is fully satisfied that the managing committee is<br \/>\n            liable to be suspended.&#8221;<\/p><\/blockquote>\n<p>      18.   From the above, it is abundantly clear that out of the<\/p>\n<p>above,the only charge for which the present managing committee has<\/p>\n<p>to answer, is the charge regarding tampering with the minutes book.<\/p>\n<p>As far as the allegations regarding the gold coin itself is concerned,<\/p>\n<p>the same has to be answered by the previous committee. As per the<\/p>\n<p>direction of this Court, the original minutes book was produced in<\/p>\n<p>Court.   On perusing the same,              this Court   could not find any<\/p>\n<p>noticeable difference in the ink used for the two parts of the<\/p>\n<p>resolution, first consisting of one word and the other one sentence,<\/p>\n<p>except the initial extra flow of the ink usually noticed at the start<\/p>\n<p>when a fountain pen is used for writing. Both writings are in the same<\/p>\n<p>handwriting using green ink. In fact, throughout in the minutes book<\/p>\n<p>for recording the agenda, blue ink is used and for recording<\/p>\n<p>resolutions green ink is used. Along with Ext. P2 explanation, the<\/p>\n<p>petitioner has produced a photo copy of a certified copy of the very<\/p>\n<p><span class=\"hidden_text\">W.P.C. No. 14657\/2007            -: 15 :-<\/span><\/p>\n<p>same resolution issued during the time when the present committee<\/p>\n<p>was not in charge.      It is seen signed by Sri. K. Abdullakkutty,<\/p>\n<p>President, Sri. K. Ramachandran, Secretary and a Director (name not<\/p>\n<p>decipherable).      The Secretary has also put the date below his<\/p>\n<p>signature as 19-3-04. The same contains both the decisions of the<\/p>\n<p>committee regarding approval of the purchase of the vehicle as well<\/p>\n<p>as the decision to give the gold coin to Smt. Vilasini teacher. The<\/p>\n<p>genuineness of this document is not even disputed by any of the<\/p>\n<p>respondents before me. All what is stated in Ext. P5 by the 1st<\/p>\n<p>respondent is that only a true copy of the resolution is produced and<\/p>\n<p>the original or a photocopy is not produced. When the purpose of<\/p>\n<p>producing the certified copy issued on 19-3-2004 is to show that the<\/p>\n<p>sentence alleged to have been added by the present committee<\/p>\n<p>between 30-3-2006 and 28-2-2007 was present in the minutes book on<\/p>\n<p>19-3-2004, one fails to understand how the same can be discredited<\/p>\n<p>by stating that the original minutes book or a photocopy of the same<\/p>\n<p>has not been produced. Further, nothing prevented the 1st respondent<\/p>\n<p>from summoning the original minutes book, if he wanted to see the<\/p>\n<p>same.    In the above circumstances, I am fully satisfied that the<\/p>\n<p>petitioner has fully succeeded in proving that the charge of tampering<\/p>\n<p>with the minutes book is false and is a fabricated charge.<\/p>\n<p>      19.   In Ext. R1(f), the inspecting officer has stated that the<\/p>\n<p>managing committee headed by Sri. P.K. Koya has added now what<\/p>\n<p>was not there, when he inspected the minutes book earlier. He has<\/p>\n<p>also stated that there is difference in the ink used for writing the two<\/p>\n<p>parts of the resolution. Both these findings are totally unsustainable<\/p>\n<p>in view of my above finding. Therefore, it is clear that the inspecting<\/p>\n<p>officer&#8217;s intentions were not bona fide. Clearly, he had approached<\/p>\n<p>the issue with a prejudiced mind after taking a decision to return a<\/p>\n<p>finding of guilt. To that end, he has made a false statement in his<\/p>\n<p><span class=\"hidden_text\">W.P.C. No. 14657\/2007            -: 16 :-<\/span><\/p>\n<p>report that when he inspected the minutes book the first time, the<\/p>\n<p>second sentence was not there.        Ext. P5 order was passed by the<\/p>\n<p>respondent relying on Ext. R1(f) report.       Ext. R1(f) having been<\/p>\n<p>prepared by a mind prejudiced against the petitioner, without any<\/p>\n<p>reason, no part of his report can be relied upon for the purpose of<\/p>\n<p>finding the petitioner guilty of any irregularity whatsoever, since the<\/p>\n<p>entire report is therefore tainted.      The fact that even after the<\/p>\n<p>certified copy dated 19-3-2004 was brought to the attention of the 1st<\/p>\n<p>respondent by the petitioner in Ext. P2 reply, without disputing the<\/p>\n<p>genuineness of the same, he was prepared to hold the petitioner guilty<\/p>\n<p>on the totally perverse reason that the original or a photocopy of the<\/p>\n<p>minutes book had not been produced, shows that he also approached<\/p>\n<p>the issue with a prejudiced mind, with the pre-determined intention<\/p>\n<p>of holding the petitioner guilty of the charge against them, in which<\/p>\n<p>he sadly failed. For this reason alone, Exts.P1, P5 and P10 are liable<\/p>\n<p>to be quashed. However, I shall consider the sustainability of the<\/p>\n<p>other charges also for the sake of completion.\n<\/p>\n<p>      20. Next, I shall consider charge no. (d) detailed above. It has<\/p>\n<p>three parts. The first is that the present managing committee had<\/p>\n<p>given membership to persons residing outside the area of operation of<\/p>\n<p>the Society. The second is that the managing committee gave loan to<\/p>\n<p>a person outside the area of operation without ascertaining whether<\/p>\n<p>he was a member of another Society. The third is that the committee<\/p>\n<p>sanctioned loan in excess of the ceiling limit.\n<\/p>\n<p>      21. Regarding the fist limb of the charge, some numbers of<\/p>\n<p>members have been given in Ext. P1, but the same are not referred to<\/p>\n<p>in Ext. P5. There is also no reference as to when they were admitted<\/p>\n<p>as members.      It does not show that they were admitted as members<\/p>\n<p>by the present committee. In the absence of details regarding the<\/p>\n<p>same, the 1st respondent could not have concluded that the act was<\/p>\n<p><span class=\"hidden_text\">W.P.C. No. 14657\/2007             -: 17 :-<\/span><\/p>\n<p>that of the present committee. Further, in Ext. P5, I do not find any<\/p>\n<p>reference to the explanation given in Ext. P2.\n<\/p>\n<p>      22. Regarding the second limb of the charge, it is admitted that<\/p>\n<p>the borrower was an existing member of the Society. If that be so,<\/p>\n<p>when he applied for a loan, if loan is given, the fact that later it was<\/p>\n<p>found that he is residing outside the area of operation is hardly<\/p>\n<p>relevant to find the managing committee guilty of any culpable act<\/p>\n<p>relevant for an action under Section 32.\n<\/p>\n<p>      23. The third limb is that the managing committee sanctioned<\/p>\n<p>11 loans in excess of the ceiling limit of Rs. 1 lakh. In Ext. P2 reply, it<\/p>\n<p>is specifically stated by the petitioner that by circular no. 20\/04 of the<\/p>\n<p>Registrar, the ceiling limit has been enhanced and no loan has been<\/p>\n<p>granted in excess of the enhanced ceiling limit.         That circular is<\/p>\n<p>produced as Ext. P7 and true copy of the resolution dated 13-9-04 of<\/p>\n<p>the managing committee recording the said circular is produced as<\/p>\n<p>Ext. P8. From a perusal of the amounts of the 11 loan so detailed in<\/p>\n<p>Ext. P5, there cannot be any doubt that the same is within the limit<\/p>\n<p>prescribed in Ext. P7. The fact that despite the petitioner relying<\/p>\n<p>upon Ext. P7 circular in Ext. P2 to prove that no loan was sanctioned<\/p>\n<p>in excess of the enhanced ceiling limit, the 1st respondent has not<\/p>\n<p>chosen to even refer to the same in Ext. P5 shows that the 1st<\/p>\n<p>respondent approached the issue with a closed mind, with a pre-<\/p>\n<p>determined intention to return a verdict against the petitioner. In<\/p>\n<p>any event, I do not find any wilful negligence or breach of trust on the<\/p>\n<p>part of the petitioner in that regard. For this reason, the findings in<\/p>\n<p>Ext. P5 in this regard is also unsustainable.\n<\/p>\n<p>      24. I shall next consider charge (a) detailed above. The charge<\/p>\n<p>is that the Society sold a vehicle purchased on 24-10-2002 for<\/p>\n<p>Rs. 3,68,850\/- on 25-7-2006 for Rs. 2,31,676\/-, without obtaining a<\/p>\n<p>performance certificate. In Ext. P2, the petitioner has stated that<\/p>\n<p><span class=\"hidden_text\">W.P.C. No. 14657\/2007             -: 18 :-<\/span><\/p>\n<p>before sale, performance certificate of the mechanical engineer and<\/p>\n<p>valuation certificate have been obtained. In Ext. P5 that statement is<\/p>\n<p>not even referred to. Further, in Ext. P2, it is stated that as per the<\/p>\n<p>bye-laws approved by the Registrar, the managing committee is<\/p>\n<p>authorised to sell old vehicles, which is also not referred to in Ext. P5.<\/p>\n<p>In Ext. P5, it is admitted that the vehicle is almost four years old and<\/p>\n<p>had run 86400 kilo meters. The question as to when the vehicle<\/p>\n<p>becomes old enough to be sold, to the best advantage of the Society<\/p>\n<p>is a subjective opinion, which depends on many factors. By that sale,<\/p>\n<p>63% of the original price had been realised, after using the vehicle<\/p>\n<p>for 3 years and 9 months, which vehicle has run 86,400 kms. In Ext.<\/p>\n<p>P2, it is stated that as per the audit finalisation by the department, the<\/p>\n<p>depreciation allowed for the vehicle works out to Rs. 3,31,966\/- and<\/p>\n<p>taking into account the same, the sale for Rs. 2,31,676\/- has resulted<\/p>\n<p>in a profit of Rs. 1,94,792\/- to the Bank, which has also not been<\/p>\n<p>considered in Ext. P5. In such circumstances, that charge also could<\/p>\n<p>not have been finalised against the petitioner. In any event, the same<\/p>\n<p>hardly qualifies for the extreme action of supersession under Section<\/p>\n<p>32.<\/p>\n<p>      25. Then comes charge (b). In that charge, the only allegation<\/p>\n<p>is that the Bank&#8217;s vehicle has been used without recording the<\/p>\n<p>purpose in the log book of the vehicle. There is no allegation that the<\/p>\n<p>use of the vehicle is not for the purpose of the Bank. There is also no<\/p>\n<p>allegation that the vehicle has been used for personal purposes of the<\/p>\n<p>members of the managing committee and that the same is prohibited.<\/p>\n<p>Even though non-recording of the purpose in the log book sheet is an<\/p>\n<p>irregularity, that cannot be regarded as serious enough to warrant an<\/p>\n<p>action for supersession under Section 32.\n<\/p>\n<p>      26. Charge (c) relates to transferring to the suspense account<\/p>\n<p>an amount of Rs. 84,447\/- due from the former President, without<\/p>\n<p><span class=\"hidden_text\">W.P.C. No. 14657\/2007            -: 19 :-<\/span><\/p>\n<p>recovering the same. In Ext. P2, it is stated that proceedings have<\/p>\n<p>been initiated to recover the amount and that the same was done<\/p>\n<p>during 1999-2004 with the connivance of the former Secretary Sri.<\/p>\n<p>P. Mohammed, who has been suspended for this charge also. These<\/p>\n<p>explanations are not seen considered in Ext. P5. In any event, by<\/p>\n<p>transferring the amount to the suspense account, the amount is not<\/p>\n<p>lost to the Bank and still the same can be recovered. Therefore, the<\/p>\n<p>said allegation even if established, also cannot be considered to be<\/p>\n<p>capital enough to warrant proceedings under Section 32.<\/p>\n<p>      27. The last charge is that two employees of the Society have<\/p>\n<p>been kept under suspension beyond one year without prior permission<\/p>\n<p>from the Registrar. In this respect, both Ext. P1 show cause notice<\/p>\n<p>and Ext. P2 reply are vague. In Ext. P1, nothing is mentioned about<\/p>\n<p>non-compliance with 198(6), except that in the matter of suspension<\/p>\n<p>and disciplinary proceedings , appropriate procedural formalities have<\/p>\n<p>not been complied with. From the documents, I find that one of the<\/p>\n<p>suspended employee is charged with the misconduct of fabricating<\/p>\n<p>documents.      The same being a very serious charge, it is in the<\/p>\n<p>interest of the Society not to reinstate him pending finalization of the<\/p>\n<p>disciplinary proceedings. Nothing also prevented the 1st respondent<\/p>\n<p>from directing the petitioner to complete the disciplinary proceedings<\/p>\n<p>expeditiously. Even if the charge is proved to be correct, I do not<\/p>\n<p>think that, that charge is also serious enough to warrant proceedings<\/p>\n<p>under Section 32 against the committee.\n<\/p>\n<p>      28. For all the above reasons, I am satisfied that Ext. P5 and all<\/p>\n<p>proceedings     pursuant thereto are unsustainable. Accordingly, the<\/p>\n<p>same are quashed and the writ petition is allowed.<\/p>\n<p>      29. Before parting with the case, I would like to comment on a<\/p>\n<p>very   serious malady plaguing the co-operative      movement in the<\/p>\n<p>State. Over politicization is the bane of the co-operative movement in<\/p>\n<p><span class=\"hidden_text\">W.P.C. No. 14657\/2007            -: 20 :-<\/span><\/p>\n<p>Kerala. Politics has permeated all aspects of the co-operative sector<\/p>\n<p>so badly     that the movement itself     is slowly dying in the State.<\/p>\n<p>Elections to co-operative societies are also fought on political lines<\/p>\n<p>and political parties resort to all sorts of legal and illegal methods to<\/p>\n<p>win the majority in managing committees of co-operative societies.<\/p>\n<p>Once in power, they admit members owing allegiance to their political<\/p>\n<p>parties in order to ensure a win for themselves in the next election. If<\/p>\n<p>they do not win the majority, as soon as their party comes into power<\/p>\n<p>in the State, they resort to every legal and illegal means to dethrone<\/p>\n<p>the other side and wrest power even physically.           Every time the<\/p>\n<p>political climate in the State changes, there is a spate of litigation<\/p>\n<p>against proceedings    under Section 32 of the Kerala Co-operative<\/p>\n<p>Societies Act in respect of societies under the control of the opposition<\/p>\n<p>parties. They make the officers of the co-operative department who<\/p>\n<p>has control over the co-operative societies as tools in the process of<\/p>\n<p>overthrowing the other side from power. These officers often do<\/p>\n<p>their bidding and pass orders as dictated by their political bosses<\/p>\n<p>without any respect for natural justice and fair play.         Once the<\/p>\n<p>managing committees having control thus having been unseated, they<\/p>\n<p>appoint persons who do their bidding as administrators and starts a<\/p>\n<p>process of wresting control through all sorts of means without respect<\/p>\n<p>for democratic values. The process is reversed when the political<\/p>\n<p>alliance supporting the opposite side comes into power in the State.<\/p>\n<p>In the process, the genuine co-operator is driven out of the scene.<\/p>\n<p>Public money is squandered or misappropriated with impunity. When<\/p>\n<p>the same is detected, the Secretary is the one who is made a scape<\/p>\n<p>goat. Courts and other quasi-judicial institutions are mere onlookers,<\/p>\n<p>since often evidences are manufactured with the help of officers of<\/p>\n<p>the department, who are only too willing to toe the line for their<\/p>\n<p>political masters. In the process, societies die a slow death. Good<\/p>\n<p><span class=\"hidden_text\">W.P.C. No. 14657\/2007           -: 21 :-<\/span><\/p>\n<p>money of the investors are no longer safe in the co-operative Banks.<\/p>\n<p>Therefore,    I am of opinion that it is high time that co-operative<\/p>\n<p>societies are made free from State control and made autonomous<\/p>\n<p>bodies like local bodies. Otherwise, instances like the present one<\/p>\n<p>would ultimately choke and kill the co-operative movement in the<\/p>\n<p>State conclusively and decisively. With the solemn hope that wisdom<\/p>\n<p>would dawn on the politicians at least now, to save the movement in<\/p>\n<p>Kerala, I conclude.\n<\/p>\n<\/p>\n<p>                                        S. Siri Jagan, Judge.\n<\/p>\n<p>Tds\/<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kerala High Court The Managing Committee Of &#8230; vs The Joint Registrar Of &#8230; on 20 July, 2009 IN THE HIGH COURT OF KERALA AT ERNAKULAM WP(C).No. 14657 of 2007(T) 1. THE MANAGING COMMITTEE OF VALLAPPUZHA &#8230; Petitioner Vs 1. THE JOINT REGISTRAR OF CO-OPERATIVE &#8230; Respondent For Petitioner :SRI.GEORGE POONTHOTTAM For Respondent :GOVERNMENT PLEADER [&hellip;]<\/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-66049","post","type-post","status-publish","format-standard","hentry","category-high-court","category-kerala-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Managing Committee Of ... vs The Joint Registrar Of ... on 20 July, 2009 - Free Judgements of Supreme Court &amp; 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-managing-committee-of-vs-the-joint-registrar-of-on-20-july-2009\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Managing Committee Of ... vs The Joint Registrar Of ... on 20 July, 2009 - Free Judgements of Supreme Court &amp; 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