SECRETARY, PEROORKADA SERVICE CO Vs. SUDHAKARAN. K, THEJUS, C.S. NAGAR, KALLARATHALA, CHEMPAZHANTHY P.O., THIRUVANANTHAPURAM 695587

JUDGEMENT

(1.) These writ petitions are filed by a Co-operative Society challenging an order of the Kerala Co-operative Ombudsman, directing payment of amounts deposited in Fixed Deposit by the 1st respondent in the respective cases. It is stated that the 1st respondent had deposited amounts in the petitioner Society and cash certificate had been issued by the Society, calculating rate of interest on the deposits as was available at the time when the deposit had been made.

(2.) In W.P.(C).No.11240 of 2018 the deposit was on 19.01.1998. The date of maturity was 19.01.2017 and the amount deposited was 50,000/-. Ext.P1 cash certificate was issued promising to repay an amount of Rs. 8,00,000/- to the 1st respondent on maturity. The learned counsel for the petitioner would contend that thereafter, the rates of interest had been reduced by the competent instructions of the Registrar of Cooperative Societies and the petitioner Society was disabled from paying interest as promised in Ext.P1. It is contended that in the above circumstances, the General Body of the Society had decided to limit the amounts to be paid on Fixed Deposits to four times the deposit amount. It is stated that all persons who had deposited amounts with the Society had been put on notice with regard to the decision of the General Body. It is stated that when the date of maturity of Ext.P1 was over, the 1st respondent approached the Society and demanded the amount of Rs. 8,00,000/- as promised in Ext.P1. However, the Society had expressed its willingness to pay Rs. 4,06,500/-, being four times the amount originally deposited with interest on SB rates on the said amount. However, without accepting the said amount, the 1st respondent approached the Kerala Co-operative Ombudsman who as per Ext.P4 directed repayment of the amount as promised in Ext.P1.

(3.) Petitioner challenges the said order on the ground that the issue raised before the Co-operative Ombudsman comes under the definition of a "dispute" in terms of Section 69 (4) of the Kerala Co-operative Societies Act and therefore, the same is not maintainable in terms of Clause 7(2)(e) of the Kerala Cooperative Ombudsman Scheme, 2010. The learned counsel also relies on a decision of the Division Bench of this Court in Kerala State Co-operative Bank Ltd. v. Kerala Co-operative Ombudsman [2018(2) KLT 251 ] in support of the said contention.