THE PALLIKKUNNU SERVICE CO-OPERATIVE BANK LTD. Vs. JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL) AND ORS.

JUDGEMENT

(1.) Ext. P11 order of supersession of the Managing Committee of the petitioner bank is impugned in this amended writ petition. Section 32(2) of the Kerala Co-operative Societies Act, 1969 mandates that the first respondent shall consult the financing bank (the District Co-operative Bank in the instant case) and the Circle Co-operative Union before passing an order of supersession. The issue has been considered in detail by the Division Bench of this Court in Sahadevan v. Padmanabhan, 2004 1 KerLT 192 wherein it is held as follows:-

(2.) The Supreme Court has reiterated this proposition of law in State of Madhya Pradesh v. Sanjay Nagayach, 2013 2 KerLT 741 wherein it is held as follows:-

(3.) The Special Government Pleader on instructions fairly submits that there has not been a consultation in the case on hand as laid down in the decisions aforequoted. The notice preceding supersession has been merely forwarded to the first respondent without waiting for the reply from the Managing Committee or rendering any tentative findings. There has been an infraction of the statutory provisions in passing an order of supersession under Section 32(1) of the Kerala Co-operative Societies Act, 1969. Resultantly Ext. P11 order is quashed and the first respondent is directed to restore the Managing Committee of the petitioner bank in office within a period of two days.