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



K.N. Shibi, Palakkad & Another v/s Vaniyamkulam Panchayath Vanitha Sahakarana Sangham, Represented by Its Secretary & Others


Company & Directors' Information:- K.N. & COMPANY PVT. LTD. [Strike Off] CIN = U29266WB1994PTC066755

    W.A. No. 1404 of 2018 In WPC. No. 10875 of 2015

    Decided On, 19 July 2018

    At, High Court of Kerala

    By, THE HONOURABLE MR. JUSTICE V. CHITAMBARESH & THE HONOURABLE MR. JUSTICE SATHISH NINAN

    For the Petitioners: P.P. Jacob, Advocate. For the Respondents: R1, C.E. Unnikrishnan, Advocate, R2 & R3, K.R. Deepa, Senior Government Pleader.



Judgment Text

Chitambaresh, J.

1. Is it by sheer coincidence that conflicting judgments were pronounced on the same day (21.03.2016) in Hyrunnisa v. Koothali Service Co-operative Bank Ltd. [2016(3) KLT 255] and Vaniamkulam Panchayath Vanitha Sahakarana Sangham Ltd. v. Kerala Co-operative Tribunal and others [2016(2) KHC 741] ? The learned single Judge has in his inimitable style posed the issue thus in the latter case:

'Can the spouse of an employee be sued by the society under S. 69 of the Kerala Co-operative Societies Act ('the Act') on the premise that he or she has indemnified the other partner, the employee, for what is said to be the misappropriation committed by the said employee?'

2. The first respondent society has filed A.R.C.No.1/2013 on the file of the third respondent Joint Registrar claiming a sum of Rs. 56,66,343/- from the appellants (who are wife and husband) with interest thereon. The third respondent was so moved since it is a monetary dispute as envisaged under Section 69(1)(h) of the Act on account of an alleged defalcation by the first appellant. The allegation is that the first appellant was working as a collection agent on contract basis and had embezzled funds of the society revealed by the audit reports. The second appellant is roped in on the ground that he had executed Ext.P1 indemnity bond undertaking to pay the amounts defalcated to the society within a period of three months. Both the appellants are alleged to be signatories to Ext.P1 indemnity bond where under the property belonging to the second appellant has also been offered as security.

3. The first appellant has seriously challenged the audit reports itself on the basis of which the monetary claim is laid and it is submitted that she intends to pursue it in the hierarchy of the department itself. A preliminary objection was also raised by the second appellant as regards the maintainability of the arbitration case against him on the ground that he was not an employee of the society. The preliminary objection was overruled by Ext.P6 order of the Joint Registrar which was however upset in appeal by Ext.P7 judgment of the Kerala Co-operative Tribunal. The learned single Judge has by the impugned judgment in Vaniamkulam's case (supra) set aside Ext.P7 judgment thereby restoring Ext.P6 order and hence this writ appeal.

4. We heard Mr.P.P.Jacob, Advocate on behalf of the appellants, Mr.C.E.Unnikrishnan, Advocate on behalf of the first respondent society and Mrs.K.R.Deepa, Senior Government Pleader at length.

5. That this is a monetary dispute between the first respondent society and the first appellant who was a collection agent is evident from Ext.P5 plaint in A.R.C.No.1/2013 wherein a sum of Rs. 56,66,343/- is claimed. Any monetary dispute between the society and an agent falls under Section 69(1)(c) of the Act and only the third respondent has the jurisdiction under Section 69(1)(h) of the Act. The alleged defalcation of money 'touches' the business of the society and the monetary claim is undoubtedly a 'dispute' as defined under Section 2(i) of the Act. There is no escape from this conclusion even if the term 'business' is construed in a narrower sense [see D.M.Co-op. Bank v. Dalichand (AIR 1969 SC 1320)]. The shortfall in amounts was allegedly detected during the annual audit of the society and it cannot therefore be said that the monetary claim does not touch the business activity at all.

6. The further question is as to whether the arbitration case would lie against the second appellant merely for the reason that he has allegedly executed Ext.P1 indemnity bond in favour of the society. It may at once be noticed that the second appellant has allegedly shouldered the responsibility to pay the amount if any due by the first appellant to the society as found ultimately. Of course the appellants have a contention that Ext.P1 indemnity bond is vitiated by coercion which is an aspect to be considered in the arbitration case only and not at the threshold. The society cannot be put to the predicament of obtaining an award against the first appellant and later filing a suit against the second appellant for enforcing Ext.P1 indemnity bond. The junction of the second appellant in the arbitration case as a co-obligant or a guarantor with co-extensive liability cannot be faulted as he is a necessary and proper party.

7. It will not be out of place to state that an arbitration case will lie against the surety in respect of a loan even if he is not a member of the society in view of the explicit provision contained in Section 69(1)(g) of the Act. An arbitration case should lie against the indemnifier also applying the same logic when his liability is co-extensive with the agent who is sued under Section 69(1)(c) of the Act. Multitude of litigations arising out of th

Please Login To View The Full Judgment!

e same cause of action has to be deprecated and the very object of Section 69 of the Act is to curtail lengthy procedures. It can at best be said that a singular claim against the indemnifier alone is not possible under Section 69 of the Act and that the society has to approach the civil court for enforcement. We concur with the dictum in Vaniamkulam's case (supra) and overrule the decisions in Hyrunnisa's case (supra) and P.V. John's case [1991 (1) KLT 7] on the above point. The writ appeal is dismissed. No costs.
O R







Judgements of Similar Parties

28-05-2020 K.N. Govindacharya Versus Union of India & Others High Court of Delhi
28-05-2020 Shivaraj URS Versus Union of India, Narcotic Control Bureau, Represented by Learned Special Public Prosecutor, K.N. Mohan High Court of Karnataka
19-05-2020 K.N. Anilkumar Versus Bar Council of India, Represented by Its Secretary, New Delhi & Others High Court of Kerala
10-02-2020 K.N. Balakrishnan Versus The District Collector, Civil Station, Thrissur & Others High Court of Kerala
07-02-2020 K.N. Anilkumar Versus Bar Council of India, Represented by Its Secretary, New Delhi & Others High Court of Kerala
30-01-2020 K.N. Jaganathan Versus S.M. Devaraj & Another High Court of Judicature at Madras
20-01-2020 K.N. Prasad Versus P.R. Gigi & Another High Court of Kerala
15-01-2020 Aneesh K Joy Versus State Bank of Travancore, Kannur Main Branch, Rep. by Its Chief Manager, K.N. Sasi High Court of Kerala
10-01-2020 K.N. Veeraiyan Versus The State of Tamil Nadu rep by the District Collector, Sathuvachari, Vellore District & Another High Court of Judicature at Madras
25-11-2019 K.N. Keshava Panicker Versus Vijayamma Mohanan & Others High Court of Kerala
21-11-2019 Union Of India Versus K.N. Pare & Another Madya Pradesh State Consumer Disputes Redressal Commission Bhopal
15-10-2019 The Kolhapur Municipal Corporation Versus Fairdeal Construction, Through Proprietor, K.N. Jyothindran High Court of Judicature at Bombay
10-10-2019 G.S. Manju Versus K.N. Gopi @ Gopinathan Pillai, Kollam, Represented by Its Power of Attorney holder Haridasan & Others High Court of Kerala
28-08-2019 K.N. Reddy Versus The Commissioner HR& CE Department Nungambakkam & Others High Court of Judicature at Madras
07-08-2019 K.N. Raman Kutty Versus K.N. Usha High Court of Judicature at Madras
17-07-2019 K.N. Noufal & Others Versus Mahatma Gandhi University, Kottayam, Represented by Its Registrar & Others High Court of Kerala
18-06-2019 K.N. Ajayakumar Versus District Collector, Alappuzha & Others High Court of Kerala
18-04-2019 Shudha Developers & Others Versus K.N. Jagadeeshaiah & Others National Consumer Disputes Redressal Commission NCDRC
26-03-2019 Government of Tamil Nadu, Rep. by its Secretary to Government, School Education Department, Secretariat, Chennai & Others Versus K.N. Mohan High Court of Judicature at Madras
04-03-2019 K.N. Pattabiraman & Others Versus Paramakudi Arasaradi Sri Yoga Muneeswarar Temple, Rep by its President of Administrative Committee, K.N. Devadoss & Others Before the Madurai Bench of Madras High Court
28-02-2019 NLC Tamilnadu Power Limited, a Subsidy of Neyveli Lignite Corporation Limited, Represented by its Chief Executive Officer & Another Versus M/s. SICAL Logistics Limited, having its registered office at South India House, Rrepresented by its President & Chief Executive Officer, Captain K.N. Ramesh Before the Madurai Bench of Madras High Court
12-02-2019 KN V/S RG High Court of Delhi
01-02-2019 K.N. Sathiyabama Versus The Secretary to Government, Housing & Urban Development Department, Chennai & Others Before the Madurai Bench of Madras High Court
30-01-2019 K.N. Devaraj & Others Versus The District Collector, Erode & Others High Court of Judicature at Madras
03-12-2018 Vani Girish Versus K.N. Girish High Court of Karnataka
30-11-2018 Hiroshmi Versus K.N. Govindan High Court of Kerala
23-11-2018 K.N. Monian Versus Palayyan Before the Madurai Bench of Madras High Court
31-10-2018 K.N. Ramesh Babu Versus The Additional Director General of Police (Law & Order), Chennai & Another Before the Madurai Bench of Madras High Court
31-10-2018 NLC India Limited, Represented by its Chief General Manager/Contracts, Chetpet & Another Versus M/s. SICAL Logistics Limited, By Authorized Representative Captain K.N. Ramessh Before the Madurai Bench of Madras High Court
31-10-2018 K.N. Ramesh Babu Versus The Additional Director General of Police (Law & Order), Chennai & Another Before the Madurai Bench of Madras High Court
26-10-2018 K.N. Surendra Versus The State of Karnataka by Police Inspector, Bengaluru High Court of Karnataka
09-10-2018 K.N. Gopalakrishna & Others Versus State of Karnataka & Others High Court of Karnataka
31-08-2018 H.N. Dhanalakshmi & Others Versus K.N. Shankar High Court of Karnataka
28-08-2018 K.N. Junjappa Versus Bruhat Bangalore Mahanagara Palike, Rep by its Commissioner & Others High Court of Karnataka
20-08-2018 K.N. Jagadeesan Versus The Director of School Education, D.P.I. Campus, Chennai & Others High Court of Judicature at Madras
06-06-2018 K.N. Byregowda Versus N. Harish High Court of Karnataka
01-06-2018 N.S. Gourikrishna (Minor), Kottayam District, Represented By Her Next Friend Mother Natural Guardian K.N. Beenamol Versus State of Kerala, Represented by Chief Secretary, Secretariat, Thiruvananthapuram & Others High Court of Kerala
12-04-2018 K.N. Sakrappa Versus Bangalore Electricity Supply Company Ltd (Bescom) Cauvery Bhavan, Bangalore, Rep. by its Managing Director & Others High Court of Karnataka
12-04-2018 K.N. Moorthy Versus Indian Bank, Rep. by is Assistant General Manager, Chennai & Others High Court of Judicature at Madras
16-03-2018 K.N. Raju Versus T.V. Manjunath High Court of Karnataka
21-02-2018 K.N. Lakshminarayan Versus K.J. Kamakshi High Court of Judicature at Madras
09-02-2018 K.N. Radhakrishnan Versus State of Kerala, Represented by The Secretary To Government, Civil Supplies & Consumer Affairs, Secretariat High Court of Kerala
05-02-2018 K.N. Radhakrishnan Versus State of Kerala, Represented by The Secretary to Government, Civil Supplies & Consumer Affairs, Secretariat High Court of Kerala
30-01-2018 S.768 K.N. Pudur Primary Agricultural Co-operative Credit Society Ltd., Rep. by its President, K. Morur, Kadaiyampatti Taluk, Salem District Versus G. Balakrishnan & Others High Court of Judicature at Madras
15-12-2017 M/s. Schneider electric IT Business India Pvt. Ltd., Represented by K.N. Prasad, General Manager-Human Resources Versus M/s. American Power Conversion (INDIA) Pvt. Ltd. Employees' Union, Represented by its General Secretary, Rohithashwa & Another High Court of Karnataka
09-11-2017 M/s. Adiga Sweets, Represented by its Proprietor, B.S. Janardhana Adiga Versus M/s. Vasudeva Adigas Fast Food Pvt. Ltd., Represented by its Managing Director, K.N. Vasudeva Adiga High Court of Karnataka
10-10-2017 Islamic Cultural & Educational Trust (Regd.), Represented By Its Chairman K.N. Marzook Versus The Kerala State Wakf Board, Represented by its Secretary, Kochi & Another High Court of Kerala
14-09-2017 K.N. Subramanya Versus State of Karnataka by its Secretary to Government, Urban Development Department, Bengaluru & Others High Court of Karnataka
12-09-2017 P.R. Santha & Another Versus K.N. Jagannathan & Others High Court of Judicature at Madras
21-08-2017 Surendra Mehani & Another Versus K.N. Khan High Court of Madhya Pradesh
01-08-2017 K.N. Aruna Kumari Versus The Commissioner, Backward Classes Welfare Department, Bangalore & Others High Court of Karnataka
21-07-2017 State represented by Deputy Superintendent of Police Versus K.N. Nehru & Others Supreme Court of India
11-07-2017 K.N. Anilkumar Versus The State of Karnataka, Rep. by its Secretary, Department of Co-Operative & Others High Court of Karnataka
07-07-2017 K.N. Narayanan Versus Khadeeja & Another High Court of Kerala
19-06-2017 K.N. Unnikrishnan Versus K.L.M. Chits Syndicate, Muvattupuzha, Rep. by its Power of Attorney Holder, Abdul Latheef & Another High Court of Kerala
28-04-2017 N. Karuppusamy & Others Versus K.N. Devanathan & Another High Court of Judicature at Madras
25-04-2017 Ekram Chaudhary Versus K.N. Verma (Deceased), Through Ram Dulari Devi High Court of Judicature at Allahabad
17-04-2017 Geetha Bhagwan Soapnut And Perfumery Works, Bangalore Versus K.N. Prakash @ K.N. Jayaprakash & Others High Court of Karnataka
10-04-2017 K.N. Suryanarayanan Versus The Assistant Executive Engineer, Kerala Water Authority & Another High Court of Kerala
23-03-2017 K.N. Haridasan Versus The State Bank of Travancore, Represented by its Managing Director, Thiruvananthapuram & Others High Court of Kerala
22-03-2017 Kural Vendhan Natchatra Mary @ K.N. Mary Versus Gunalan & Others High Court of Judicature at Madras
17-02-2017 K.N. Muthumanicakam Versus C. Deivasigamani High Court of Judicature at Madras
02-02-2017 K.N. Sivadas, Kottayam Versus Union of India, represented by the Secretary to Government of India, Ministry of Communications & I.T, Department of Posts, New Delhi & Others Central Administrative Tribunal Ernakulam Bench
01-02-2017 K.N. Palaniappan, Sole Proprietor of M/s. Alenke PL Industries Versus V. Saraswathi @ Sunitha High Court of Judicature at Madras
31-01-2017 K.N. Murugesan Versus The Management of Coimbatore District Co-operative Milk Producers Union Ltd., Coimbatore & Another High Court of Judicature at Madras
27-01-2017 K.N. Kaivalyasamy Versus K.T. Shanmugasundaran High Court of Judicature at Madras
13-01-2017 The State of Karnataka by the Hanumanthanagar, Bengaluru Versus K.N. Puttaraju High Court of Karnataka
15-12-2016 K.N. Santhakumar Versus Union of India represented by The Secretary to the Government of India, Ministry of External Affairs, New Delhi & Others Central Administrative Tribunal Ernakulam Bench
30-11-2016 Salamuthu Versus K.N. Lakshmanan Before the Madurai Bench of Madras High Court
25-11-2016 K.N. Kiran Kumar & Others Versus State By Mandya Rural Police, Rep. by SPP High Court of Karnataka
22-11-2016 Balakrishnan & Another Versus K.N. Venkatachalam High Court of Judicature at Madras
11-11-2016 K.N. Surendran Pillai & Another Versus Southern Railway, Rep. By Divisional Personnel Officer, Palakkad & Others Central Administrative Tribunal Ernakulam Bench
30-09-2016 M/s. Enarc Constructions, Thrissur, Represented by Managing Partner, K. Ramakrishnan, Enarc Constructions Versus K.N. Jayageetha Kerala State Consumer Disputes Redressal Commission Thiruvananthapuram
12-07-2016 K.N. Radhakrishnan Nambiar Versus The Indian Council of Agriculture Research, Krishi Anusandhan Bhavan, New Delhi & Others Central Administrative Tribunal Ernakulam Bench
05-07-2016 K.N. Devadoss Versus Marimuthu, Tahsildar,Madurai South Taluk,Colletorate Campus Before the Madurai Bench of Madras High Court
06-04-2016 M/s. Goodway Plastics, Rep. by its Proprietor K.N. Mony Versus The Managing Director & Chairman, Tamil Nadu Industrial Investment Corporation Ltd. & Another Before the Madurai Bench of Madras High Court
06-04-2016 K.N. Kapoor Versus The Electricity Ombudsman & Another High Court of Judicature at Allahabad
06-04-2016 K.N. Kapoor Versus The Electricity Ombudsman & Another High Court of Judicature at Allahabad
16-03-2016 K.N. Pradeep Versus The Station House Officer & Another High Court of Kerala
14-12-2015 P.N. Sukumaran Versus K.N. Madhavan Nair & Another High Court of Kerala
30-11-2015 K.N. Mohan Raj Versus The Registrar of Co-operative Societies(Housing), Gandhi Nagar, Chennai & Another Before the Madurai Bench of Madras High Court
29-10-2015 K.N. Sobhana Nair Versus Shaji S.G. Nair Accounts Officer High Court of Kerala
21-10-2015 Kidangoor Devaswom represented by Balakrishnan & Others Versus K.N. Krishnan Namboothiri & Others High Court of Kerala
11-09-2015 K.N. Manickavasagam Versus M. Kannan Before the Madurai Bench of Madras High Court
14-08-2015 Dr. Paresh M. Desai & Others Versus K.N. Vijay Kumar Maharashtra State Consumer Disputes Redressal Commission Mumbai
16-07-2015 K.M. Srirama Reddy & Another Versus Byreddy K.N. & Another High Court of Karnataka
03-06-2015 K.N. Thankappan & Others Versus The Tribunal For Local Self Government Institutions, Thiruvananthapuram & Others High Court of Kerala
01-06-2015 V.R. Shanta Versus K.N. Narasimhaiah High Court of Karnataka
08-05-2015 K.N. Ramchandra Naidu Versus Metro Sales Corporation & Another In the High Court of Bombay at Goa
29-04-2015 M/s. Sai Basava Developers Versus K.N. Parvathi @ Parvathi S P & Others High Court of Karnataka
27-04-2015 State, Rep. by The Inspector of Police, Vigilance & Anti Corruption, Thoothukudi Versus K.N. Ramesh Babu Before the Madurai Bench of Madras High Court
12-01-2015 Bangalore Newspapers Employees? Union, rep. by its General Secretary Versus The Management of the Printers (Mysore) Pvt. Ltd., rep. by its Director, K.N. Shantha Kumar & Others High Court of Karnataka
30-12-2014 K.N. Rajappa Versus State Of Karnataka Represented By Its Additional Chief Secretary To Government & Others High Court of Karnataka
09-12-2014 Kavita Krishnamurthy & Another Versus K.N. Krishnamurthy & Another High Court of Judicature at Bombay
30-10-2014 For the Applicant: K.N. Choudhury, M. Mahanta, R. Deka, H.K. Das, M. Talukdar, Advocates. For the Respondents: Kankan Das, Addl. C.G.S.C. Central Administrative Tribunal Guwahati Bench Guwahati
28-10-2014 K.N. Dasan Versus The State of Kerala represented by its Secretary To Government & Others High Court of Kerala
15-10-2014 NSR Gastronomy (Mauritius), LLC (now South Asia Gastronomy Enterprises LLC), EBENE, Mauritius Versus K.N. Vasudeva Adiga & Others High Court of Karnataka
12-08-2014 M/s. Sarju Cold Storage Through its Partner Sh. K.N. Gupta & Others Versus M/s. Ambika Traders & Others National Consumer Disputes Redressal Commission NCDRC
15-07-2014 K.N. Reddy Versus Defense Personnel Co-op., House Building Society Ltd. High Court of Andhra Pradesh
24-06-2014 K.N. Vasudevan Bhattathirippad @ Biswas Versus Mallapally Thirumalida Mahadeva Temple, represented by its President, Unnikrishnan & Others High Court of Kerala


LawyerServices is a Premium Legal Tech solution.


Lawyers, Law Firms, Government Departments and Corporates rely on us for, Workflow Automation, Data Aggregation, Timely Updates, Case Management, Intelligent Research, Latest Legal Data Updates and a LOT more!

If you are a legal professional, CONTACT US, in order to see how our UNIQUE solution can benefit your organization.

Features Intro Close Box