w w w . L a w y e r S e r v i c e s . i n



EDAVANNA SERVICE CO-OP. BANK LTD. v/s SHOUKATHALI


Company & Directors' Information:- OP INDIA PRIVATE LIMITED [Active] CIN = U29253DL2015FTC285049

Company & Directors' Information:- N BANK LTD [Strike Off] CIN = U65191WB1924PLC000442

Company & Directors' Information:- CO-OP PVT LTD [Active] CIN = U70109WB1944PTC011810

Company & Directors' Information:- SERVICE CORPORATION LIMITED [Dissolved] CIN = U93090KL1946PLC001075

    O.P. No. 4317 of 1980

    Decided On, 13 February 1981

    At, High Court of Kerala

    By, THE HONOURABLE MR. JUSTICE G. BALAGANGADHARAN NAIR

    Mani J. Meenattoor; M.M. Abdul Aziz; For Petitioner M.V. Joseph; For Respondent



Judgment Text

1. Petitioner is a Co-operative Society with a Board of Directors consisting of seven members - five elected and two nominated. The five members were elected on June 30, 1980. The Unit Inspector and the Inspector of Co-operative Societies ARC & EPS Manjeri who had been nominated directors on July 14, 1980 submitted their resignations on October 23, 1980. The following day, October 24, 1980 respondent 3, who is the Deputy Registrar of Co-operative Societies (General), Malappuram nominated respondents I and 2 as Directors in their places. Ext. P1 is a copy of the relative proceedings. The Society represented by its President seeks to quash Ext. P1. Petitioner challenges the nomination of respondent 1 on the ground that he is an accused along with two others charged with criminal misappropriation of the Society's funds and that the result of nominating him a Director is to make the accused and the complainant the same, which is highly detrimental to the interests of the Society. The petitioner states that it was under the influence of the Minister for Forests who is related to respondent 1 that respondent 3 engineered the resignations of the former two nominated members and replaced them by respondents 1 and 2. Respondent 3 has thus exercised his power not bona fide or in the interests of the Society but under extraneous influence and irrelevant considerations, overlooking the disqualification and unsuitability of respondents 1 and 2. As against respondent 2, it it stated that he is a debtor of the petitioner-Society for over three months and is therefore disqualified to be a Director under R.44(1)(c) of the Co-operative Societies Rules.


2. Respondent 1 has stated in his counter-affidavit that he is a co-operator of long standing and that he has been falsely implicated in the prosecution by his political rivals. He denied that he was related to the Minister for Forests or that he was nominated under the Minister's influence. As for respondent 2, it was denied that he was a defaulter to disqualify him to be nominated a Director.


3. In a counter-affidavit sworn by an Inspector of Co-operative Societies in the office of respondent 3 it is stated that the two original nominated members resigned for administrative reasons and that in their places respondents 1 and 2 were duly nominated. The prosecution mentioned by the petitioner concerns the alleged misappropriation of the sale proceeds of a Ration Shop, and the accused are the Manager of the shop (accused 1), the Secretary of the Society (accused 2) and respondent 1 (accused 3) who was the then President of the Society. The involvement in a prosecution does not disqualify respondent 1 to be nominated a Director under R.44. The counter-affidavit denies that the nominations were made under political pressure. With respect to respondent 2, it is stated that if he was disqualified, the petitioner could have made a complaint under R.44(3) and if he was satisfied respondent 3 would have taken appropriate action. The counter-affidavit proceeded to state that the nominations were made in conformity with the Act, Rules and Bye laws and are not liable to be questioned under Art.226.


4. Although the petitioner has made allegations of mala fides and exercise of extraneous influence in the nomination of respondents 1 and 2, there is hardly any material in their support nor were they pressed at the bearing. I reject these allegations.


5. I cannot however help remarking that in the nature of the allegations against him, respondent 3 should have himself sworn to an affidavit instead of leaving it to a subordinate to repudiate them. If in the event the allegations go unaccepted it is not because of the effective denial of them on oath by respondent 3 but because the petitioner has failed to prove them.



6. I now turn to the disqualifications urged against respondents 1 and 2. The petitioner states - and that is also admitted - that respondent 1 is an accused in a prosecution touching the Society. Petitioner contends that the nomination of respondent 1 as a Director makes the accused the prosecutor also and thus renders him ineligible to be on the Board of Directors. The statements in the Original Petition and counter-affidavits show that it is a State prosecution over which even the Society, leave alone the individual directors, has little control. That apart, neither the Act nor the Rules disqualify a person in the position of respondent 1 for being a Director. While it might have been desirable to keep out such a person from the Board of Management, it is not possible to invalidate his nomination as a Director.


7. The disqualification alleged against respondent 2 is different and calls for a longer consideration. R.44 (1) provides that "No member of the Society shall be eligible for being elected, or appointed as a member of the Committee of the Society under S.28 if he:


x x x


"[c] [1] is in default to the Society or to any other Society in respect of any loan or loans taken by him or loan in which he has stood surety, for such period, as is prescribed in the byelaws of the Society concerned or in any case for a period exceeding three months or is a defaulter to the Society or to any other Society."


The Original Petition states and this has not been contradicted that out of Rs. 2500 borrowed by respondent 2, a sum of Rs. 834/- was to be repaid by him on or before April 4,1980. Respondent 2 was thus in default for a period exceeding three months no provision in the byelaw prescribing a shorter period is relied upon when he was nominated a Director on October 24,1980. The petitioner therefore contends that respondent 2 was ineligible for being "appointed" a member of the Committee. The respondents sought to meet this contention, pointing out that the disqualification operates only against "appointment as a member of the committee" under S 28 and not against nomination under S.31 which is the Section under which respondent 2 was nominated. S.28 deals with the appointment of Committees.



Sub-section (1) empowers the general body of the Society to constitute the Committee to manage the affairs of the Society. Proviso 1 has no relevance in this context. Proviso 2 lays down that "where the byelaws so provide, the Government or the Registrar may nominate all or any of the members of the Committee for such period as may be specified in the byelaws." Sub-sections (2) to (4) have no bearing and need not be quoted.


8. S.31 provides that in the situations therein contemplated - generally stated, where the Government have an interest in the affairs of a Society - the Government or any authority specified by the Government in that behalf shall have the right to nominate not more than three persons or one third of the total number of members of the Committee of the Society, whichever is less, to be members of the Committee. Sub-section (2) makes the nominated member's tenure depend upon the pleasure of the Government or the specified authority and sub-section (3) disables him from taking part in the discussion of any no-confidence motion or voting or any such action.


9. It is plain that there is difference between the nomination of a member under proviso 2 to S.28(1) and under S.31. The former can be made if only the byelaws so provide and for a limited period, again as provided in the bye-laws. The members so nominated are as full-fledged as the members elected under sub-section (1) or appointed under proviso 1 to S.28(1), unlike the members nominated by virtue of the statutory power under S.31(1). The rights of the latter are also curtailed at least in one respect (sub-section 3). The Government has been given the power to make nominations under S.31(1) where it has an interest in the Society and obviously to safeguard that interest. All this might account for the provision in R.44(1) limiting the prescribed disqualifications to members either elected or nominated under S.28. The different modes of nominations under S.28 (1) and S.31(1) have also been noticed in R.44 as is obvious from the proviso to clause (b) of sub-rule (2). The respondents are therefore right in their contention on the terms of the provisions of S.28 and 31 and R.44, on which the question falls to be decided, however much one might desire the same disqualifications uniformly to apply to all members, whether nominated or elected under S.28 and nominated under S.31. The result is respondent 2 did not suffer from the alleged disqualification and his nomination is not liable to invalidation.


10. Counsel for the petitioner quoted K. Suryanarayana v. West Godavari Co-opertive Sugars Ltd., AIR. 1976 Andhra Pradesh 340 (F B.) in support of his contention that the expression "

Please Login To View The Full Judgment!

member" in R.44(1) takes in elected as well as nominated members. The question in that case was whether the expression "Committee" in S.21C of the A. P. (Andhra Area) Co-operative Societies Act, 1964 which provided that a person who holds or has held office as a member of the Committee for two consecutive terms shall not be eligible for being chosen as a member of the Committee for a third term in continuation. The Full Bench held on a consideration of the Section and other related provisions that the expression "Committee" will take in both an elected Committee and nominated Committee, pointing out that the intention of the Legislature in enacting the restriction was to prevent the growth of vested interests in Co-operative Societies by imposing a break in continuity in office for more than two terms. The provisions here are entirely different and the decision has no application and cannot support the petitioner. I dismiss the Original Petition but without costs.
O R







Judgements of Similar Parties

31-07-2020 M/s. The Ramco Cements Ltd., Cement Grinding Unit, Kancheepuram Versus Customs, Excise and Service Tax Appellate Tribunal (South Zonal Bench), Chennai & Another High Court of Judicature at Madras
29-07-2020 Bank of Baroda, Through Its Manager, Maharashtra Versus Balaprasad Bansilal Biyani National Consumer Disputes Redressal Commission NCDRC
29-07-2020 The Karassery Service Co-Operative Bank Ltd., Kozhikode, Represented by Its General Manager Versus State of Kerala, Represented by Secretary, Department of Co-Operative Societies, Government Secretariat, Thiruvananthapuram & Others High Court of Kerala
28-07-2020 Dr. Uma Suresh Versus The Authorised Officer, The National Co-Operative Bank Ltd., Bangalore & Others High Court of Karnataka
27-07-2020 M/s. Sainath Security Force & Man Power Service, Represented by its Proprietor B.S. Mannur Versus The State of Karnataka, Represented by its Under Secretary, Bangaluru & Others High Court of Karnataka Circuit Bench OF Kalaburagi
27-07-2020 Punjab National Bank, Guwahati Versus Madhab Kumar Das & Another & Others High Court of Gauhati
22-07-2020 M/s. Rajesh Export Limited, Represented by its Chairman Rajesh Mehta Versus Reserve Bank of India & Another High Court of Karnataka
21-07-2020 State Bank Of India Mini Secretariat Through Its Branch Manager Hisar Haryana Versus Sukh Dass National Consumer Disputes Redressal Commission NCDRC
20-07-2020 Manohar Bandopanth Belekar Versus Dr. Annasaheb Chougule Vadgaon Urban Cooperative Bank Ltd. & Another National Consumer Disputes Redressal Commission NCDRC
16-07-2020 Cheriyan Mathew, Member, The Kanakkary Service Cooperative Bank Limited & Others Versus The Joint Registrar of Co-Operative Societies (General), Kottayam & Another High Court of Kerala
14-07-2020 M/s. Sanwaliya Tractor Sales & Service, Rajasthan & Others Versus Bhagwati Devi Bhatt & Others National Consumer Disputes Redressal Commission NCDRC
13-07-2020 Prabhat Ranjan Deo Versus Union Public Service Commission & Others High Court of Delhi
08-07-2020 Packiyalakshmi Versus Joint Registrar/Managing Director, The Central Co-operative Bank Limited, Tirunelveli & Another Before the Madurai Bench of Madras High Court
03-07-2020 Axis Bank Ltd., Ahmedabad Versus Securities and Exchange Board of India SEBI Bhavan, Mumbai & Others SEBI Securities amp Exchange Board of India Securities Appellate Tribunal
30-06-2020 Union Bank of India, Through Shri R. Rajendra Prasad, Branch Manager, Raichur Versus M/s. Tirumala Enterprises, Raichur National Consumer Disputes Redressal Commission NCDRC
29-06-2020 Union Bank of India, Punjab Versus Usha Arora & Another National Consumer Disputes Redressal Commission NCDRC
26-06-2020 Kejriwal Mining Pvt. Ltd. & Others Versus Allahabad Bank & Another High Court of Judicature at Calcutta
24-06-2020 M.P. Satheesan, Senior Manager (Retired), Kannur District Co-Operative Bank, Kannur Versus The Kannur District Co-Operative Bank, Represented by General Manager, Kannur & Others High Court of Kerala
22-06-2020 Sushma Kumari Versus The Bank of India, Bandra (E) Mumbai & Others High Court of Judicature at Patna
18-06-2020 State Bank of India, Bombay Thru. Chairman & Others Versus S.B. Singh High Court Of Judicature At Allahabad Lucknow Bench
16-06-2020 Subhash Mehta Versus HDFC Bank Ltd. National Consumer Disputes Redressal Commission NCDRC
15-06-2020 State Bank of India Versus Consumer Affairs & Fair Business Practices, West Bengal & Others National Consumer Disputes Redressal Commission NCDRC
12-06-2020 Awadhesh Kumar Versus Multi State Co-operative Land Development Bank, Patna & Others High Court of Judicature at Patna
11-06-2020 Hanumanthappa Pathrera Lakshmana Versus State by Senior Intelligence Officer, Directorate General of Goods & Service Tax Intelligence, Bengaluru High Court of Karnataka
04-06-2020 The Karnataka Public Service Commission, Represented by its Secretary Versus Dr. S.S. Madhukeshwara & Another High Court of Karnataka
02-06-2020 Indian Overseas Bank Officers' Association, Reg No: 321/MDS, Rep by its Joint General Secretary, R. Muthukumar Versus Union of India, Represented by its Secretary to Government, Ministry of Finance, New Delhi & Others High Court of Judicature at Madras
02-06-2020 Pappu Ram Jat Versus Rajasthan Subordinate & Ministerial Service Selection Board High Court of Rajasthan Jaipur Bench
02-06-2020 Harsh Nitin Gokhale Versus Reserve Bank of India & Others Supreme Court of India
29-05-2020 The South African History Archive Trust Versus The South African Reserve Bank & Another Supreme Court of Appeal of South Africa
22-05-2020 Union of India, Ministry of Corporate Affairs, New Delhi Versus Oriental Bank of Commerce, Gurgaon National Company Law Appellate Tribunal
22-05-2020 M/s Gauri Shankar Indane Service, Patna Versus Indian Oil Corporation Ltd., Patna & Others High Court of Judicature at Patna
22-05-2020 State Bank of India Versus M/s. Metenere Ltd. National Company Law Appellate Tribunal
22-05-2020 Dhiraj Milind Dhurve Versus Union Public Service Commission & Another High Court of Delhi
21-05-2020 Abhay Singh Versus Bharatiya Reserve Bank Note Mudran (P) Limited, Represented by its Managing Director & Others High Court of Karnataka
21-05-2020 Dhira Sahoo Versus AO, HDFC Bank Ltd. & Another High Court of Orissa
20-05-2020 The Bank of New York Mellon, Through its attorney Navneet Singh Versus Indowind Energy Limited, Nungambakkam, Chennai High Court of Judicature at Madras
20-05-2020 The Commissioner of Central Excise, Customs & Service Tax, Ernakulam Versus M/s. Bharat Petroleum Corporation Ltd. Kochi Refinery, Ambalamugal, Represented by The Chief Finance Manager High Court of Kerala
18-05-2020 Mohan Products Pvt. Ltd & Others Versus State Bank of India, Stressed Assets Recovery Branch, Raipur & Another High Court of Chhattisgarh
15-05-2020 M. Ramasamy Versus State Bank of India, Rep. by its Chief General Manager (Appellate Authority), Chennai & Another High Court of Judicature at Madras
13-05-2020 Swapan Kumar Saha Versus Bangiya Gramin Vikash Bank & Others High Court of Judicature at Calcutta
13-05-2020 Rita Mukherjee Versus UCO Bank & Others High Court of Judicature at Calcutta
12-05-2020 Sri Rama Enterprises Versus State Bank of India High Court of Andhra Pradesh
08-05-2020 O.P. Gupta Versus Union of India & Another High Court of Delhi
06-05-2020 Punjab National Bank & Others Versus Atmanand Singh & Others Supreme Court of India
05-05-2020 Bhanumathy Usha & Others Versus The Jammu & Kashmir Bank Ltd., Thiruvananthapuram Branch, Represented by Its, Branch Head Susil Kaloor & Others High Court of Kerala
01-05-2020 Bank of Baroda Erstwhile Dena Bank Versus Suresh Chand Seth & Others High Court of Delhi
27-04-2020 Shaik Janimiya Versus State Bank of India, SAM Branch II, Rep by its Authorized Officer, Kachiguda, Hyderabad High Court of for the State of Telangana
22-04-2020 In the matter of: NBCC (India) Ltd. Versus ICICI Bank Ltd. & Others National Company Law Appellate Tribunal
21-04-2020 State Bank of India, A Government of India Undertaking Rep by its DGM and Branch Head Stressed Asset Management Branch, Hyderabad Versus The Union of India, Ministry of Finance Rep by its Secretary Services Tax Wing, South Block, New Delhi & Others High Court of for the State of Telangana
21-04-2020 M/s. Aruna Web Offset Printers represented by its Managing Partner & Another Versus Andhra Bank, A Govt of Undertaking, Himayat Nagar Branch & Another High Court of for the State of Telangana
17-04-2020 JR Toll Road Private Limited Versus Yes Bank Limited High Court of Delhi
06-04-2020 Anant Raj Limited Versus Yes Bank Limited High Court of Delhi
01-04-2020 Aspen Underwriting Ltd & Others (Appellants) Versus Credit Europe Bank NV United Kingdom Supreme Court
01-04-2020 Barclays Bank plc Versus Various Claimants United Kingdom Supreme Court
23-03-2020 Rajasthan Public Service Commission & Others Versus Megha Sharma & Others High Court of Rajasthan Jaipur Bench
19-03-2020 Branch Manager, Indusind Bank Ltd. Represented By Its Constituted Attorney Sri Souptik Bose Versus Abdul Rajek Khan National Consumer Disputes Redressal Commission NCDRC
19-03-2020 Jagdish Kumar Choudhary & Others Versus Rajasthan Public Service Commission, Ajmer Through Its Secretary & Others High Court of Rajasthan Jodhpur Bench
18-03-2020 Bratirima Kar Versus Branch Manager, Central Bank of India & Another West Bengal State Consumer Disputes Redressal Commission Kolkata
18-03-2020 Prince Versus The Branch Manager, Indian Bank, Thillainagar Branch, Trichy & Another Before the Madurai Bench of Madras High Court
17-03-2020 Bank of Baroda V/S Kotak Mahindra Bank Ltd. Supreme Court of India
17-03-2020 P.B. Biju Versus The Managing Committee of The Vayyattupuzha Service Co-Operative Bank, Ltd No. Q 354, Represented by Its President, Pathanamthitta District & Others High Court of Kerala
17-03-2020 A Marine Industries Munambam, Ernakulam, Represented by Its Proprietor, P.T. Francis & Others Versus UCO Bank, Represented by The Chief Manager, Ernakulam & Another High Court of Kerala
16-03-2020 Sanjeev Kumar Bansal Versus M/s. Kotak Mahindra Bank Ltd., Chennai & Another High Court of Judicature at Madras
12-03-2020 K 114 Gobichettipalayam Public Servants Co-Op. Thrift & Credit Society Limited, Represented by its Secretary S.K. Srinivasan Versus The Income Tax Officer, Ward 2(1), Erode & Another High Court of Judicature at Madras
06-03-2020 RAUS Constructions Pvt. Ltd. Versus Indian Bank High Court of for the State of Telangana
06-03-2020 Krishna Enterprise & Others Versus Axis Bank Limited & Another` High Court of Judicature at Calcutta
05-03-2020 UCO Bank Versus National Textile Corporation Limited & Another Supreme Court of India
05-03-2020 Dr. B. Ganesh Versus The Branch Manager, State Bank of Travancore (now State Bank of India), Wayanad Kerala State Consumer Disputes Redressal Commission Thiruvananthapuram
05-03-2020 Bimalkumar Manubhai Savalia Shareholder and Director of M/s Radheshyam Agro Products Pvt. Ltd, At-Sajiyavadar, Taluka: Amreli District: Amreli Versus Bank of India, Gujarat & Others National Company Law Appellate Tribunal
05-03-2020 Muthu Versus M/s. Indusind Bank Limited, Represented by its Power of Attorney R.S. Bharath, Deputy Manager – Legal & Others High Court of Judicature at Madras
05-03-2020 Muthu Versus M/s. Indusind Bank Limited, Represented by its Power of Attorney R.S. Bharath & Others High Court of Judicature at Madras
05-03-2020 Gunjan Kumar Versus Management of Circle Head Punjab National Bank, Darbhanga & Others High Court of Judicature at Patna
05-03-2020 Chanda Deepak Kochhar Versus ICICI Bank Limited & Another High Court of Judicature at Bombay
04-03-2020 Internet & Mobile Association of India V/S Reserve Bank of India Supreme Court of India
04-03-2020 Managing Director Chhattisgarh State Co-Operative Bank Maryadit V/S Zila Sahkari Kendriya Bank Maryadit & Others Supreme Court of India
03-03-2020 Md. Waheed V/S The Telangana State Public Service Commission In The High Court Of State Of Telangana
03-03-2020 United Bank of India, West Bengal Versus Ranjan Basu & Others National Consumer Disputes Redressal Commission NCDRC
03-03-2020 M.K. Santhosh Kumar & Another Versus The Federal Bank Ltd., Represented by Chief Mnager & Others High Court of Karnataka
03-03-2020 In The Matter of: Punjab National Bank, NOIDA Uttar Pradesh Versus State Bank of India Sam Brnach, New Delhi (Branch Code-04109), New Delhi & Others National Company Law Appellate Tribunal
02-03-2020 The Authorized Officer/Chief Manager, Indian Bank, Asset Recovery, Chennai & Others Versus The Tahsildar, Sriperumbudur & Others High Court of Judicature at Madras
02-03-2020 Union Bank of India Versus Rajat Infrastructure Pvt. Ltd. & Others Supreme Court of India
28-02-2020 P.S. Sivaperumal & Another Versus Authorised Officer, UCO Bank, Chennai & Another High Court of Judicature at Madras
28-02-2020 M/s. Padmavathi Hospitality & Facilities Management Services, Rep. by its Partner & Authorized Representative Pradeep Kanumuri & Another V/S The Tamil Nadu Medical Service Corporation (A Government of Tamil Nadu undertaking) Chennai & Others High Court of Judicature at Madras
28-02-2020 Sharmila Ravi Kumar Versus Chairman & Managing Director Andhra Bank, Sultan Bazar, Hyderabad & Others High Court of for the State of Telangana
28-02-2020 Trans Asian Industries Exposition Pvt. Ltd. & Others Versus Jammu & Kashmir Bank Ltd & Another High Court of Delhi
28-02-2020 Canara Bank Versus P. Selathal & Others Supreme Court of India
28-02-2020 Bank of India V/S M/s. Brindavan Agro Industries Pvt. Ltd Supreme Court of India
26-02-2020 N.A. Eswaramurthi Versus Tamil Nadu Public Service Commission Rep.by its Member Secretary, Chennai & Another High Court of Judicature at Madras
26-02-2020 J. Anbazhagan Versus The Chairman The Tamilnadu Public Service Commission, Chennai & Others High Court of Judicature at Madras
26-02-2020 M/s. Universal Shoe Company, Rep. by its Partner V. Arshad Ahmed, Ambur & Others Versus M/s. Canara Bank, Represented by its Authorised Officer, Ambur Branch, Vellore High Court of Judicature at Madras
26-02-2020 Punjab National Bank Versus M/s Vindhya Cereals Pvt. Ltd. National Company Law Appellate Tribunal
26-02-2020 Anuj Jain Interim Resolution Professional for Jaypee Infratech Limited V/S Axis Bank Limited & Others Supreme Court of India
26-02-2020 State Bank of India Stressed Assets Management Branch- II, Kolkata Versus Maithan Alloys Limited, Kolkatta & Others National Company Law Appellate Tribunal
25-02-2020 Bank of India, Asset Recovery Management Branch, Mumbai Versus Shrenuj & Company Limited, Mumbai National Company Law Appellate Tribunal
25-02-2020 Kerala Public Service Commission, Represented by Its Secretary, Pattom, Thiruvananthapuram V/S P. Priya And Others High Court of Kerala
25-02-2020 Vishal Doshi Versus Bank of India, Mumbai & Others National Company Law Appellate Tribunal
25-02-2020 Punjab and Sind Bank & Others V/S Durgesh Kuwar Supreme Court of India
25-02-2020 M/s. Annapurna Dealer Pvt. Ltd. Versus Authorised Officer, Bank of Baroda High Court of Gujarat At Ahmedabad
25-02-2020 Allahabad Bank Versus State of Gujarat High Court of Gujarat At Ahmedabad
24-02-2020 P.H. Thajudeen Versus Secretary, Pathanamthitta Service Co-op: Bank Ltd., Near Govt. Hospital, Pathanamthitta & Another Kerala State Consumer Disputes Redressal Commission Thiruvananthapuram