N. KRISHNAN, Vs. THE JOINT REGISTRAR OF CO

JUDGEMENT

(1.) The original Petitions are filed by members of the Trichur Bank Employees Co-operative Society Limited challenging the order of the Joint Registrar of Co-operative Societies dated 6-6-1996 superseding the society under Sec. 32(1) of the Kerala Co-operative Societies Act.

(2.) The case put forward by the petitioners is as follows : The society is formed for the welfare of the employees of the commercial banks. There are about 2300 members in the society. The society is housed in a small rented room and does not have their own premises. In view of the large volume of business carried on by the society, the managing committee of the society on 7-12-1994 resolved to purchase an extent of 41/2 cents of and for the construction of their own building. On the same day, they requested the Joint Registrar for sanction for utilising the necessary funds for the purchase of the land and the construction of the building from the working funds. The general body in their resolution dated 11-3-1995 ratified the decision of the managing committee. On 13-3-1995, the society once again requested the 1st respondent to grant formal sanction. In the meantime, they were permitted to proceed with the purchase and construction of the building orally by the then Joint Registrar. Accordingly they entered into an agreement with the owner of the land on 9-12-1994 and paid an advance of Rs. 3,15,000.00. They subsequently purchased the property by a sale deed dated 13-3-1995 for a sale consideration of Rs. 10,12,500.00 for an extent of 41/2 cents.

(3.) The 3rd respondent who is one of the members of the society filed a petition to the Joint Registrar alleging that the society is contravening the provisions of the Acts and the bye-laws in the purchase of the property. In pursuance thereof, the Secretary of the society was directed to appear before the Joint Registrar for enquiry on 17-4-1995. On 5-8-1995, the Joint Registrar directed the society not to construct the building in the land purchased by the society. The society submitted a detailed reply and representation and based on that, the Joint Registrar granted oral permission to proceed with the construction and accordingly, the construction was commenced on 27-10-1995. However, the Joint Registrar issued a notice dated 14-2-1996 directing the society to stop construction. The society submitted a detailed reply for the same. Later on, the 1st respondent issued a notice dated 29-2-1996 to the society calling upon as to why the resolution of the society for the purchase and construction of the building should not be rescinded and also passing an order restraining the society from implementing the resolution. The society submitted a detailed reply. In pursuance of the Joint Registrar's notice for an enquiry regarding the construction of the building, the society had 14 hearings before the 1st respondent without any final order being passed. Similarly, no final orders were passed for the notice issued under Rule 176.