JANARDHANAN Vs. JOINT REGISTRAR

JUDGEMENT

(1.) THE Cannanore Co-operative Hospital Society Ltd. popularly known as A.K.G. Hospital, (hereinafter referred to as the 'society'), appears to be a prestigious institution in cannanore. It is a Co-operative Society registered under the Kerala Cooperative societies Act, 1969, (the Act for brevity ). THE bye-laws of the society, as they stood registered under S. 7 of the Act, authorised a share capital of rs. Forty lakhs, consisting of five thousand A class members of Rs. 100/- each, fifty B class members of Rs. 1,000/- each, two thousand five hundred C class members of Rs. 1,000/- each, open to the State and Central Governments, and nine hundred and fifty D class members of Rs. 1,000/- each, open to local bodies, co-operative and Charitable Societies. THE petitioner is a member of the society.

(2.) ONE M. V. Raghavan, who was a member of the Communist party of India (Marxist) (but who, it is said, now stands expelled from it), was the Chairman of the Managing Committee of the society. An election was held to the managing committee for the period 1987-92, when the committee headed by m. V. Raghavan was ousted from office, alleged to be due to large scale rigging of the elections. Raghavan has filed a petition before the first respondent joint Registrar, challenging the election under S. 69 of the Act, as A. R. C. No. 13/86-87. That petition is pending. It is the petitioner's case that the raghavan group was ousted from office consequent on Raghavan's expulsion from the Communist Party of India (Marxist) due to political differences, and the subsequent formation by him of a new party, called the Communist Marxist Party.

(3.) PETITIONER has filed this original petition challenging Ext. P4. He points out that the bye-laws of the society can be amended only in accordance with the provisions of S. 12 of the Act read with R. 9 of the Kerala Co-operative Societies Rules (Rules) by resolution passed by a two-third majority of the members present and voting after intimation of the proposed amendment, to the members, in the prescribed manner. The resolution has to be forwarded to the Registrar within one month of the meeting and be registered by him in accordance with the aforesaid provisions. Inter alia the proviso to sub-section (2) of S. 12 provides that before registering any amendment to the bye-laws, the Registrar shall consult, in the case of a society like the one in question, the Circle Co-operative Union, and the financing bank to which the society is indebted. After registration, the registrar should forward to the society a copy of the registered amendment, together with a certificate of registration, signed and sealed by him. It is only then, that the amendment comes into force, from the date on which it is registered, or any other day that may be specified (vide S. 13 ). No such procedure was followed in this case. There is no sanction in the statutory provision for any permissive sanction for amendment of bye-laws as mentioned in ext. P4. Therefore, the entire exercise leading to Ext. P4 is illegal, and not supported by any provision in the Act or the Rules.