RD138 CECRI EMPLOYEES COOPERATIVE THRIFT AND CREDIT SOCIETY LTD Vs. THE REGISTRAR OF COOPERATIVE SOCIETIES

JUDGEMENT

(1.) The prayer in the writ petition is for a writ of Certiorari to call for the records pertaining to the proceedings made in Na.Ka.No. 822/2013/Ne.va.va. Dated 14.08.2013 issued by the 3rd respondent and quash the same.

(2.) The petitioner is a Cooperative Thrift and Credit Society for the benefit and welfare of Employees working in Central Electro Chemical Research Institute (in short CECRI), Karaikudi. The main purpose of the petitioner is to provide loans to the employees of the CECRI. While so, during the year 2009, many members of the petitioner Society request for midterm loan from the petitioner and in order to fulfill their aspirations, the petitioner had requested the financing bank of the petitioner, namely, the District Central Cooperative Bank, Sivagangai for advancement of loan amount, which, in turn to be given to the members by way of midterm loan. The said request made by the petitioner was not honoured by the Financing Bank. Because of their financial conditions, the said obligation seeking advancement from the Financing Bank was kept pending for more than 9 months. With the result, most of the members had raised a serious issue with the petitioner Society that the petitioner Society itself was functioning only to the welfare of those members, when its members are not able to get loan for their sudden requirement from the petitioner, then the very functioning of the petitioner Society would be at stake. In this regard, instead of getting advancement from financing bank or from Government, the petitioner Society cannot get financial assistance by way of loan from any other sources and if at all the financial advancement has to be obtained from any other source, the necessary permission has to be obtained from the Government/Department and moreover, since the relevant bylaw governing the petitioner Society enables the petitioner Management to get advancement of the loan only from Government or financing Bank, unless there is a suitable amendment made to the bylaws, the said advancement of loan cannot be obtained from any other source other than the financing bank or Government. Therefore, the petitioner Society thought of amending its bylaws and after having passed a resolution unanimously, the Bylaw 18, which relates to borrowing has been amended. As per the amendment, Bylaw 18 states as follows: <FRM>JUDGEMENT_307_LAWS(MAD)1_2017_1.html</FRM>

(3.) Whenever amendment is made in the bylaw, the same has to be approved and registered by the Registrar of Cooperative Societies and such power is being exercised by Joint Registrar or Deputy Registrar concerned and here, in this case, the registration and approval of amendment of bylaws in respect of the petitioner Society has to be done by the third respondent. Therefore, a request was made to the third respondent to accept the amendment and to register the same. In turn, the third respondent, in exercise of his power under Sub Section 5 of Section 11 of the Tamil Nadu Cooperative Societies Act (hereinafter referred to as 'the Act') has approved and registered the amendment and a certificate to that effect has also been issued by him by proceedings in Rc.No.3835/2011/SF dated 13.02.2012.