Thuruthippuram Service Co-Operative Bank Ltd vs Joint Registrar Of Co Operative Societies (General)

P.B.Suresh Kumar, J.

This appeal is directed against the judgment dated 06.03.2020 in W.P.(C) No.38050 of 2018. The appellants are the petitioners in the writ petition.

The first petitioner is a Co-operative Society registered under the Kerala Co-operative Societies Act, 1969 (the Act) and the second petitioner is the Managing Committee of the first petitioner Society. In terms of Ext.P1 order, the first respondent, the jurisdictional Joint Registrar exercising the powers of the Registrar under the Act in respect of the Society has ordered an inquiry into the constitution, working and financial condition of the Society under Section 65 of the Act. The petitioners challenged Ext.P1 order in the writ petition on various grounds. The learned Single Judge took the view that the subjective satisfaction arrived at by the Joint Registrar for the purpose of ordering inquiry under Section 65 cannot be challenged in a proceedings under Article 226 of the Constitution and consequently, dismissed the writ petition without prejudice to the right of the petitioners to challenge the action, if any, taken based on the report of inquiry. The petitioners are aggrieved by the said decision of the learned Single Judge and hence, this appeal.

Heard the learned Senior Counsel for the appellants as also the learned Government Pleader.

The learned Senior Counsel for the appellants pointed out that Ext.P1 order is one issued by the Joint Registrar on a complaint lodged by a member of the Society. According to the learned counsel, an inquiry under Section 65 of the Act being a serious one contemplated by the statute to be made either suo motu or on reports or applications specifically made mention of in sub-section (1) of Section 65, it cannot be ordered on a complaint at all. It was argued by the learned counsel that if in a given case, the competent authority wants to order an inquiry suo motu on a complaint having regard to the gravity of the allegations levelled against the Society therein, it is obligatory for him to satisfy before ordering such an inquiry that it is necessary and essential to order an inquiry under the said statutory provision after due application of mind into the records of the Society. It was also argued by the learned counsel that Ext.P1 order does not indicate that the Joint Registrar is satisfied, based on the materials on record, that an inquiry under Section 65 of the Act is necessary and essential in the Society. The learned counsel has relied on the decisions of this Court in Ellakkal Service Co-operative Bank v. State of Kerala, 1997 (2) KLT 85 and Melukkara Service Co-operative Bank Ltd. v. Joint Registrar (General), District Co-operative Society, 2018 (2) KHC 143, in support of his contentions.

Per contra, the learned Senior Government Pleader argued that a reading of Ext.P1 order would indicate beyond doubt that the same satisfies the requirements under Section 65.

In terms of Section 65, an inquiry thereunder can be ordered by the competent authority on his own motion or on reports or applications made mention of in sub-section (1) therein. In other words, an inquiry under the said provision cannot be ordered solely on a complaint. But that does not mean that a complaint cannot be the basis of an inquiry ordered by the competent authority under that provision on his own motion. No doubt, before ordering an inquiry under Section 65 on his own motion, it is obligatory for the competent authority to satisfy that it is necessary and essential to conduct such an inquiry in the Society. In other words, an inquiry under Section 65 cannot be ordered on the dictation of a superior authority or on the recommendation of an inferior authority, for the subjective satisfaction to order an inquiry under Section 65 shall be the subjective satisfaction of the competent authority himself. The question whether Ext.P1 order would satisfy the requirements of Section 65 needs to be considered in the light of the propositions aforesaid.

Ext.P1 order would show that a complaint disclosing serious irregularities and financial frauds has been received by the Joint Registrar and he has called for a report on the said complaint from the concerned Assistant Registrar of Co-operative Societies. Ext.P1 order would also show that the Assistant Registrar of Co-operative Societies thereupon inspected the records of the Society and submitted a report to the Joint Registrar on the various allegations levelled against the Society in the complaint along with supporting records and it is based on the said report of the Assistant Registrar and the supporting records that inquiry has been ordered by the Joint Registrar. The relevant portion of Ext.P1 order reads thus:

"1789-ആ  നമ  തരതപറ  സ വ സ  സഹകരണ ബ ങ  കപതന  പവ തനത  ഗരതരമ യ കമക%ടക  , സ മതക തടപക  എനവ ഉളത യ പര മ ശ  (1) പക ര  അറയചടണ . കന ട  നകര ധന ക ലയളവ  എല  നയമങള  ല ഘചനക ണ  അ ഗമ യ ശ മത.ഷ ന എനയ ളന> എസ .ബ അ%?ണ 5334 വഴ കളപണ  മ റനക ടത . ആഡറ  റകപ  ട  വനടള വ %ല നഡകപ സറ  നന  ബ ങ  പസഡന, നസകടറയ  കH ന  കള വ?ച  എഴത1,91,701/-രപ എഴതനയടത.

മതLനത ഴല ള ക> ശM സ തക അനവദചത  തങച  എന അ ഗതന  ന ക നത മ റനയടത. 21.10.15-നല നപ തകയ ഗ റകപ  ട  (500 എണ ) അ>ചതന 85,000/- രപയ , 10 ഫനളക  കബ  ഡ  പഴയ ഫനളക  കബ  ഡ  തനന അ>ചതന  68,000/-രപയ  നHലവ  ക ണച. ഒര അ ഗതന 1000/- രപയന> ക  ഷക വ യകപ ല  അനവദ% നത ബ ങ  പസഡ  5,50,000/- രപ നയമവരദമ യ ക  ഷക വ യ എടകകയ, ജ വന% രന>  കപരലള  സM ണപണയ  വ യയന>  പലശ  സബസഡ കകപറകയ , വസ വ യയ  അ ഗങള  നന 1500/-രപ ല ഗ ഫ സ  വ ങ 300/-രപ രസ തല നത വ% ലന  ന ക ബ % തക കകപറകയ  നHയ. കകവശ  സക% വന ന %യരപ  തകയ  അധകമ യ തക നയമ വല വLവസയ  വരദമ യ, 20.5.17 മത  19.6.17 വനര നസകടറ കകവശ  വച  സMന  ഇഷപക ര  പണമ>പ >  ന>ത എനവയ ണ  പര തയനല ഉള>%ങ  .

പറവ  അസസ   രജസ   (ജനറ ) പര മ ശ  (2) പക ര  റകപ  ട , അനബനകരഖകള  സമ പചടണ . > റകപ  ട  , കരഖകള  പരകശ ധചത  ഇത  സ ബനച  വശദമ യ ഒര അകനMഷണ  ആവശLമ നണന  ക ണന.

ബ ങ  നലനനരന വ %ല നഡകപ സറ  എന നകകപ പദതയന> വLകഗത രജസ  , സബp  എനവ പരകശ ധനയ  ലഭചടല തതന   ആ ന%ല മ ണ  നകകപങ  ഉണ യരനത  എന  പരകശ ധകവ   സ ധചല നയന  , വ ഷങള യ യ നത ര ഇ>പ ട  ഇല ത വ %ല നകകപ  31.3.13-നല കണ%  പക ര 2,47,710/-രപ ബ % ന പളത  , നകകപ ഈ> കമ  വ യ ന കയ ഇനത  12,98,065/-രപ വകരണ  അഡM  സ  കണ%ല ,കമ പറഞ വ യകള  8,91,551,66/-രപ ബ ങകല%  തരനക വന വകയ  ബ ങ  നന  നക ടക%ണവയന> കണ%ല  ഉ നപടതയടണ . '2012 ഉണ വ ' പദതയ  ഭരണസമതയന> 19.12.13-നല 10-ആ  നമ  ത രമ ന പക ര  > നകകപവ  , > നകകപതന  കമ  ന കയടള വ യകള , അത  കമ  തരനക വനടള തകയ  2013-14 വ ഷനത കണകക  ആഡറ  നHയ അവസരത  ഒഴവ %യടണ . ഇപക ര  നകകപ കണകകള  നന  എടതടള വ യക  എഴത തളയതന  കശഷ  പല ദവസങളല യ 1,91,701/-രപ 2015-16, 2016-17, 2017-18 എന  വ ഷങള തരനക നക ടതടണ . എന  , വ?ചറകള  തക കകപറയവരന> കമ വല സകമ , തരചറയ  വവരങകള  കരഖനപടതയടല തത 26.5.15, 27.5.15, 29.6.15 എന  ത യതകളനല വ?ചറക  പരകശ ധനയ യ ന കയടല തതമ ണ . വ ഷങള യ യ നത ര ഇ>പ ട  ന>% നത ക>കന നകകപങള  നന  നകകപ  തരനക നക ടകകമ   സM കരക%ണ യ നത ര ജ ഗതയ  ബ ങ  സM കരചടല എനളത  വLകമ ണ .

കന ട  നകര ധന ദവസമ യ8.11.16- ആദL  എഴത തയ റ %യ ഡകന മകനഷ  വവരങ  കL  സ  നHയ , അടത കപജ  പസത ത യതയനല മനറ ര ഡകന മകനഷ  വവരങ  എഴത തയ റ %യടളത  , നകര ധത കന ടകള യ 1000/- ,500/- എനവയന> എണത  1064, 115 വ ത  കടത  വനടളത ,  100/-  രപയന> കന ട   1215 എണതന  കറവ  വനടളതമ ണ .ബ ങ , കന ട  നകര ധന ഉതരവകനള മറക>ന  കരഖകള  കതമ  ക ണച  നകര ധത കന ടകള (1000/-, 500/-) ഇ>പ >  ന>തയടകണ  എന  പരകശ ധ%ണനമങ  ബ ങന  അ%?ണ ഗ  കസ ഫ  നവയ  സ ബനച  പകതLക  അകനMഷണ  ന>കതണതമ ണ  എന  ക ണന.

ഭരണസമതയന> 5.6.15-നല 261-ആ  നമ  ത രമ ന പക ര 39, 868 എന  നമരകള  ഉ നപടന 24/5 നസ   സലതന  ഈ> കമ  5,50,000/-രപ ദ  ഘക ല ക  ഷക വ യ 7% പലശയ 120 മ സകതയ  നലവലളള ബ ങ  പസഡ   ആയ.പശ .വ.ല ജവന  അനവദച  ന കയടണ . എന   അകപകയ  വLകമ യ ത യത കരഖനപടതയടല . നയമ വല%  വരദമ യ ദ  ഘക ല ക  ഷക വ യ പസഡ ന  മ തമ യ ന കയരകനത  അധക ര ദ വനകയ ഗമ നണന  ക ണന.

കന ട  നകര ധന ദവസമ യ8.11.16-നല ന  വഴയ  5534-ആ  നമ  അ ഗമ യ ശ മത.ഷ ന എനയ ളന> കപര  ഒര എസ .ബ അ%?ണ  ആര ഭച 10 ലക  രപ നകകപചടണ . എന  , >യ ള  നന  ഒര നകകപ കണ%  ആര ഭകകമ   വ കങണത യ നക.കവ.സ കരഖക  ഒന  വ ങയടല തത യ ക ണന .

ബ ങന  മതLനത ഴല ള ക> ശM സമ യ 2.6.15-3,97,928/-രപ ലഭചടണ . 216-ആ  നമ  അ ഗ  ശ .തങച  4196-ആ  നമര യ എടതരന ഒര ലക  രപയന> വ യയ  മതല  ബ %ന പണ യരന തകയ യ 98,330/-രപയ , പലശയ  13.8.15 ന  തരനക വരവ  വച  മതLനത ഴല ള ക> ശM സ  നHലവ  എഴത വ യ കണ%  അവസ നപചതന  കശഷ  30.3.16- 36,486/-രപ മതLനത ഴല ള ക> ശM സമ യ വ യ % രന  തരനക നക ടതടണ .കരഖക  കതമമ യ തയ റ % പണ പഹരണ  ന>തയടകണ  എന  പരകശ ധ%ണനമങ  പകതLക  അകനMഷണ  ന>കതണതണ  എന  ക ണന.

നയമ വല വLവസക %  വരദമ യ കടത  തക ന %യരപ യ സകചടനണന  , ആയത  അത ത  ക ലനത ഭരണസമതയ  ക രണ സഹത  സമ പച  സ ധകരകനത യ ക ണനല എന  അറയചടണ . 21.10.15-നല ന  വഴയ  പരസLനHലവ  ഇനത  22,000/-, 89,900/-, 9,240/- എന  തകക  ഉണ  എന  , > നHലവക % യ പകതLക ഭരണസമത ത രമ നകമ  , കMകടഷ  ന>പ>ക  സM കരകകകയ  നHയടല എന  ക ണന. 26.11.17-നല ന  വഴയ  വ ണ  പസ  എന സ പനതന 18,100 രപയ , 66,800/-രപയ  ന കയടണ . എന , > നHലവക % യ പകതLക ഭരണസമത ത രമ നകമ  , കMകടഷ  ന>പ>ക  സM കരകകകയ  നHയടല എന  ക ണന.

കമ  സ ഹHരLത  തരതപറ  സ വ സ  സഹകരണ ബ ങ  വശദമ യ അകനMഷണ  ന>ത , പര മ ശ  (2) പക ര  സമ പച റകപ  ട  , അതന  ഉകപ  ബലകമ യ എല  കരഖകള  ഞ   കനരട  കണ   പരകശ ധചതന  അ>സ നതല  , ബ ങന  പവ തനത  ഗരതരമ യ കമക%ടക  ഉനണന  എന%  ഉതമ കബ ദLമളതന ല ,ബ ങന  ഘ>ന, പവ തന , സ മതക സത , പര മ ശ  (2) പക ര  കനണതയ വവരങ  എനവ സ ബനച  വശദമ യ അകനMഷണ  ന>കതണത  അനവ രLമ നണന  ക ണനതന   ത നഴ പറയ  പക ര  ഉതരവ കന."

A reading of the extracted portion of Ext.P1 order would however, show that inquiry has been ordered by the Joint Registrar based on the report of the Assistant Registrar and the various documents made available by the Assistant Registrar along with the report. It is not discernible from Ext.P1 order as to whether the Assistant Registrar has made any recommendation to the Joint Registrar in his report to order an inquiry in the Society under Section 65 of the Act. Be that as it may, it can be seen from the materials on record that the subjective satisfaction for ordering the inquiry has been arrived at by the competent authority himself on the basis of the report of an officer in the Department and the documents made available by the officer along with the report, and not based on the complaint referred to therein. Of course, the order does not indicate that the Joint Registrar has inspected the records of the Society personally. According to us, in order to ensure that it is necessary and essential to conduct an inquiry under Section 65 in a Society, it is not necessary for the Joint Registrar to personally inspect the records of the Society. As indicated, the statutory requirement is only that the Joint Registrar shall satisfy that it is necessary and essential to order an inquiry under Section 65 in the Society and if it is established that the Joint Registrar has rendered the subjective satisfaction as to the essentiality and necessity to order such an inquiry in the Society based on the records made available to him along with the report by a subordinate officer, according to us, this Court would not interfere with the said discretion exercised by the Joint Registrar.

In the said view of the matter, we do not find any merit in the writ appeal and the same is, accordingly, dismissed.