BY AD v. C.S.AJITH PRAKASH

SRI. P C SASIDHARAN, SC FOR VATANAPPALLY KARSHAKA CO-OPERATIVE SOCIETY & SRI. IMAM GREGOREOUS KARAT, GP. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22.01.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 16892 OF 2023 3 JUDGMENT The petitioner is a member of the 6th respondent, a society registered under the provisions of the Kerala Cooperative Societies Act and the Rules frames thereunder and governed by its own byelaws. The petitioner contends that the last election to the Managing Committee was held in the year 2019. After assuming office, the Managing Committee lost its majority, and consequently, an Administrator was appointed by the 2nd respondent by Ext.P2 order dated 1.2.2023. The appointment was for a period of 6 months, and its mandate was to conduct a fresh election to the Managing Committee within the said period. It is contended that the 4th respondent took charge as administrator in place of the Managing Committee. It is contended that instead of initiating steps to conduct the election within the time ordered under Ext.P2, the 2nd respondent has proceeded to issue Ext.P4, appointing an Administrative Committee to conduct the affairs of the Society. Even in Ext.P4 order dated 26.9.2023, the Joint Registrar had directed the Administrative Committee to initiate steps to conduct election to the Committee. He contends that though several months have elapsed, no steps have been taken. According to the petitioner, the respondents are deliberately delaying the election to society with the obvious motive to sabotage the democratic process. It is on these WP(C) NO. 16892 OF 2023 4 assertions that this writ petition is filed seeking the following reliefs:- “i. To issue a writ of mandamus or any other appropriate writ order or direction, directing the respondents 2 to 4 to take appropriate step for the conduct of election to the Managing Committee of the 6th respondent Society, by taking appropriate legal steps in terms of the relevant provisions of the Co-operative Societies Act and the Co-operative Societies Rules, within a time frame fixed by this Hon’ble Court. ii) To issue a writ of mandamus or any other appropriate writ order or direction, directing the respondent No. 4 to report and request to the State Co-operative Election Commission regarding the vacancy in the Managing Committee. iii) To direct the 7th respondent to issue an appropriate notification for the conduct of election to the Managing Committee of the 6th respondent Society, before the expiry of the tenure of the present administrator.”

2. A counter affidavit has been filed by the 4th respondent. It is stated therein that, after assuming office, serious irregularities in the affairs of the Society were noticed, and a request was made to the 2nd respondent through the 3rd respondent to conduct a Section 65 inquiry. It is stated that the financial condition of the Society is abysmal and the loan outstanding comes to about Rs.6.99 Crores. Unless the affairs of the society are put in order, the functioning may come to a standstill. The petitioner was a member of the Managing Committee and it was with his active connivance that the siphoning of funds was carried out. Entrustment of the management to the same persons would not be in the best interest WP(C) NO. 16892 OF 2023 5 of the society.

4. Sri. C.S. Ajith Prakash, the learned counsel appearing for the petitioner, would refer to Exts.P2 and P4 orders, and it is submitted that the mandate was to conduct the election expeditiously. It is submitted that the reference to an inquiry under Section 65 is baseless, and by referring to Ext.P3, it is contended that the earlier Section 65 inquiry initiated on

20.10.2016 has not yet been concluded.

5. Sri. P.C. Sasidharan, the learned counsel, would urge that if the election is conducted without putting the society in order and revitalizing its finances, the interest of the Society and its members would suffer.

6. I have considered the submissions advanced and have gone through the records.

7. It appears that an Administrator was appointed under Section 33 on 1.2.2023 when the Managing Committee lost its quorum. The 2nd respondent, while issuing Ext.P2, has specifically directed the Administrator to take steps to hold the election within six months, which was the term of his office. Ext.P4 issued by the 2nd respondent on 26.9.2023 discloses that an Administrative Committee was appointed with the mandate to conduct an election expeditiously. There cannot be any dispute that as far as WP(C) NO. 16892 OF 2023 6 cooperative Societies are concerned, the constitutional imperative, as is revealed from Article 43B, is to promote democratic control. It is the obligation of the State to ensure that Cooperative Societies shall be governed by the elected representatives of its members. It is also settled beyond any dispute that bureaucratic control of a cooperative society is to be resorted only in exceptional situations where democratic control is not possible. Timely election to a cooperative society is not merely a statutory obligation of the authorities concerned but a constitutional obligation. The reason advanced by the learned counsel appearing for the respondent for not initiating steps to conduct the election does not appeal to me. The endeavor of the Administrator, as well as the Administrative Committee, ought to have been to hand over the reins of the society to democratically elected representatives. Respondents 2 and 3 can always monitor the functioning and take corrective measures in terms of the provisions of the statutes.

8. In view of the discussion above, this writ petition is ordered, and the following directions are issued: a) There will be a direction to the 2nd respondent to issue appropriate directions to the additional 8th respondent to adopt a resolution for holding the election to the Management Committee of the Society WP(C) NO. 16892 OF 2023 7 within 60 days from the date of receipt of a copy of this judgment. b) The resolution shall be forwarded to the 7th respondent, which authority shall issue appropriate notification for the conduct of the election expeditiously to fill up the vacancy in the Managing Committee and ensure that the elections are held within a further period of 45 days. Sd/- RAJA VIJAYARAGHAVAN V. JUDGE WP(C) NO. 16892 OF 2023 8 APPENDIX OF WP(C) 16892/2023 PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF THE IDENTITY CARD ISSUED BY THE SOCIETY TO THE PETITIONER BY THE 6TH RESPONDENT Exhibit P2 A TRUE COPY OF THE ORDER NO. JRGTSR- 383/2023-0 DATED 1.2.2023 ExhibitP2(a) A TYPED READABLE COPY OF EXT.P2 RESPONDENT EXHIBITS Exhibit R4(a) PETITIONER EXHIBITS Exhibit P3 Exhibit P4 Exhibit P5 Exhibit P6 Exhibit P7 True copy of the letter dated 20.04.2023 submitted before the Joint Registrar of Co-operative Societies A true copy of the proceedings No.HM 6711/2011 dated 20/10/2016. TRUE COPY OF THE ORDER NO.JRGTSR/383/2023-O DATED 26-09-2023 A TRUE COPY OF THE TRACK CONSIGNMENT NO. DOWNLOADED FROM THE OFFICIAL WEBSITE OF THE POSTAL DEPARTMENT, INDIA POST, SHOWING THE DELIVERY OF ITEM TO THE ADDITIONAL RESPONDENT. A TRUE COPY OF THE LETTER/NOTICE DATED 30-10-2023 ISSUED BY THE 2ND RESPONDENT A TRUE COPY OF THE COVERING LETTER DATED 08-11-2023 ISSUED BY THE SECRETARY OF THE SOCIETY ADDRESSED TO THE 2ND RESPONDENT