HASSAN Vs. JOINT REGISTRAR OF CO OPERATIVE SOCIETIES

JUDGEMENT

(1.) The question referred for consideration of Full Bench is whether the view expressed by a Division Bench of this Court in George v. Joint Registrar, 1985 KLT 836, on the powers of the Registrar of Co-operative Societies to enrol new members to the society, have been irnpliedly over-ruled by the Supreme Court in K. Shantharaj and another v. M.L. Nagaraja and others, 1997 (5) SC 680.

(2.) We heard learned Counsel appearing on behalf of the petitioners in these original petitions, learned Advocate-General and Counsel for party respondents. We also heard learned Counsel Sri George Poonthottam and Sri Somasundaram who are appearing for petitioners in other original petitioners where similar points are raised. but are not posted before us. We heard learned Counsel, Sri K, Radhakrishnan who is appearing on behalf of the respondents in O.P. 7311/98, which is not posted before us, but where similar contentions are raised by the petitioners.

(3.) The issue to be considered is the scope of the power of an administrator appointed under Section 32 of the Kerala Co- operative Societies Act, 1969, in supersession of a committee of a Society to enrol new members to the Society. Section 32 of the Kerala Co-operative Societies Act, 1969 (hereinafter referred to as 'the Act') reads as follows : Supersession of Committee.(1) If the Registrar is satisfied that the committee of any society persistently makes default or is negligent in the performance of the duties imposed on it by this Act or the rules or bye-laws or commits any act which is prejudicial to the interests of the society or wilfully disobeys or wilfully fails to comply with any lawful order or direction issued under this Act or the rules, the Registrar may, after giving the committee an opportunity to state its objections, if any, by order in writing remove the committee and (a) appoint a new committee consisting of not more than three members of the society in its place; or (b) appoint one or more administrator or administrators who need not be a member or members of the society, to manage the affairs of the society for a period not exceeding one years as may be specified in the order, which period may. at the discretion of the Registrar, be extended from time to time, so however that the aggregate period does not exceed two years. (2) The Registrar shall consult the financing bank and Circle Co-operative Union or State Co-operative Union as the case may be before passing an order under sub-section (1). (3) Notwithstanding anything contained in sub-section (1) or sub-section (2). it shall not be necessary to give an opportunity to the committee to state its objections and the consult the Unions and financing banks, in case where the Registrar is of the opinion that it is not reasonably practicable to do so, subject however to the condition that in such cases the period of supersession shall generally be for six months and in case a new committee, cannot be constituted or enter upon office in accordance with the bye-laws of the society within the period of supersession the period may be extended for a further period not exceeding six months (a) in the case of a co-operative society only after consulting the circle co-operative union concerned; and (fa) in the case of an Apex Society or a Central Society only after consulting the State Co-operative Union. (4) The committee or administrator or administrators so appointed shall, subject to the control of the Registrar and to such instructions as he may from time to time give, have power to exercise all or any of the functions of the committee or of any officer of the society and take all such action as may be required in the interests of the society. (5) The committee or administrator or administrators shall, before the expiry of its or his or their term of office, arrange for the constitution of a new committee in accordance with the bye-laws of the society. (6) Every order made by the Registrar under sub-section (1) shall be communicated to the circle co-operative union."