P V DEVASSY Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) The petitioner is a member of a registered Cooperative Society, the 2nd Respondent herein. By a resolution dated 21-3-1970. this Society decided to transfer all its assets and liabilities in favour of the 3rd Respondent, which is another registered Cooperative Society. The 3rd Respondent also passed a corresponding resolution on 19-4-1970 for a taking over of the assets and liabilities of the 2nd Respondent It is not seriously disputed that these resolutions had the approval of the Deputy Registrar of Cooperative Societies Trichur who is the 1st Respondent. It is evidenced by Ex.R1 a letter dated 24-10-1968 of the 1st Respondent. Sometime after the aforesaid two resolutions were passed, the 3rd Respondent took over all the assets and liabilities of the 2nd Respondent Then the 1st Respondent passed an order Ext. P2 dated 16-12-1970 stated to be under S.14(a) and 15(1) of the Kerala Cooperative Societies Act 1969 (hereinafter referred to as the Act). The operative portion of that order reads:

(2.) The sole contention of the petitioner before me is that the amalgamation transferring all the assets and liabilities of the 2nd Respondent in favour of the 3rd Respondent was effected without Complying with the provisions of Sub-s.(4) and (6) of S.14 of the Act and that the impugned order is, therefore illegal and without jurisdiction.

(3.) S.14 deals amalgamation, transfer of assets and liabilities and division of societies. It is necessary to read the relevant parts of that section and also S.15 in order to appreciate the contention of the parties.