SEKHARAN Vs. JOINT REGISTRAR

JUDGEMENT

(1.) These petitions under Art.226 of the Constitution of India raised an interesting question. The question is whether a cooperative society registered under the Kerala Cooperative Societies Act (the Act for brevity) has the power to amend its byelaws to raise its authorised share capital retrospectively and thereby validate the allotment of shares made in excess of the share capital.

(2.) The petitioners are members of the Nittoku Fierce Cooperative Rural Bank Ltd., the respondent No.3 herein. The respondents 1 and 2 are respectively the Registrar of Cooperative Societies and the Administrator of the society, appointed under S.28(1) of the Act.

(3.) The facts giving rise to the question set out in Para.1 above are these: