BOARD OF DIRECTORS Vs. STATE OF KERALA

JUDGEMENT

(1.) Grant of sanction by the Joint Registrar, under Rule 54(1) of the Co-operative Societies Rules, for investment of funds for purchase of property, was interfered with by the Government in appeal under Section 83(1)(j) of the Co-operative Societies Act. The said order of the Government is assailed in W.P.(C) No.22296/2017. Consequent to the revocation of the permission, the Government, in the latter part of the order, directed recovery of the loss caused to the Bank by invoking the provisions under Section 68 of the Co-operative Societies Act. Pursuant thereto, proceedings were initiated under Section 65 of the Co-operative Societies Act leading to the consequential steps under Section 68 of the Co-operative Societies Act. The said two proceedings are under challenge in W.P.(C) Nos.19711/2019 and 17879/2019 respectively.

(2.) Heard Sri.George Poonthottam, learned Senior Counsel on behalf of the petitioners, Sri.K.Jaju Babu, learned Senior Counsel on behalf of the 5 th respondent and Sri.K.S.Mohamad Hashim, the learned Special Government Pleader (Co-operation).

(3.) Pursuant to an agreement entered into by the Society with the owner of the property, the Bank purchased 2 Ares 31 Sq.M.(5.70 cents) of property with a building situated thereon, for a total consideration of Rs.2,67,07,000/-. The purchase was effected on obtaining sanction from the Joint Registrar, who had accorded permission as per communication dated 11.09.2015. The sale deed was executed on 30.09.2015.