Kerala High Court
Madhusoodhanan S. Valiyaneelathil ... vs The Chirayinkil Service Co-Operative ... on 10 June, 2014
Author: K.Surendra Mohan
Bench: K.Surendra Mohan
IN THE HIGH COURT OF KERALAAT ERNAKULAM
PRESENT:
THE HONOURABLE MR.JUSTICE K.SURENDRA MOHAN
THURSDAY,THE 31ST DAY OF JULY 2014/9TH SRAVANA, 1936
WP(C).No. 18470 of 2014 (G)
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PETITIONERS :
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1. MADHUSOODHANAN S. VALIYANEELATHIL VEEDU, PUTHUKKARI,
CHIRAYINKEEZHU.P.O., THIRUVANANTHAPURAM.
2. SELVASTER.S.,THOPPIL VEEDU, KADAKOM, CHIRAYINKEEZHU.P.O.
THIRUVANANTHAPURAM.
3. SANUJA.V, CHAKKAMATH VEEDU, CHIRAYINKEEZHU.P.O.
THIRUVANANTHAPURAM.
4. SUNEESH KUMAR, S.S. NIVAS, VALIYAKADA, CHIRAYINKEEZHU.P.O.
THIRUVANANTHAPURAM.
5. SHYJU.V.S.,THAIKKOOTTAM PUTHEN VEEDU, CHIRAYINKEEZHU.P.O.
THIRUVANANTHAPURAM.
6. K.C. MURALEEDHARAN, KUNNEL VEEDU, KUNTHALOOR,
CHIRAYINKEEZHU.P.O., THIRUVANANTHAPURAM.
BY ADVS.SRI.V.G.ARUN
SRI.T.R.HARIKUMAR
RESPONDENT(S):
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1. THE CHIRAYINKIL SERVICE CO-OPERATIVE BANK LTD. NO.1155
CHIRAYINKEEZHU.P.O., THIRUVANANTHAPURAM DISTRICT-695304.
REPRESENTED BY ITS SECRETARY
2. THE RETURNING OFFICER, CHIRAYINKIL SERVICE CO-OPERATIVE BANK LTD.
NO. 1155, CHIRAYINKEEZHU.P.O.,THIRUVANANTHAPURAM DISTRICT-695304.
(UNIT INSPECTOR, CHIRAYINKEEZHU, OFFICE OF THE ASSISTANT REGISTRAR
OF CO-OPERATIVE SOCIETIES(GENERAL), CHIRAYINKEZHU).
3. THE ELECTORAL OFFICER, CHIRAYINKIL SERVICE CO-OPERATIVE BANK LTD.,
NO. 1155, CHIRAYINKEEZHU.P.O.THIRUVANANTHAPURAM DISTRICT-695034.
(ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES(GENERAL)
CHIRAYINKEEZHU).
4. THE STATECO-OPERAIVE ELECTION COMMISSION,
THIRUVANANTHAPURAM-695001.
R1 BYADV.SRI.P.N.MOHANAN
R BY SPL.GOVERNMENT PLEADER SRI.D.SOMASUNDARAM
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
31-07-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C).No. 18470 of 2014 (G)
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APPENDIX
PETITIONER(S)' EXHIBITS
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P1. COPY OF THE ELECTION NOTIFICATION NO. E(1) 1419/2014/SCEC DATED 10-6-2014.
P2. COPY OF THE COVERING LETTER DATED 15-7-2014 ALONG WITH THE CHART
SUBMITTED BY THE SECRETARY OF THE FIRST RESPONDENT.
P3. COPY OF THE COMPLAINT SUBMITTED BY THE 1ST PETITIONER BEFORE THE 2ND
RESPONDENT DATED 15-7-2014.
P4. COPY OF THE COMPLAINT SUBMITTED BY THE 2ND PETITIONER BEFORE THE 2ND
RESPONDENT DATED 15-7-2014.
RESPONDENT(S)' EXHIBITS
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EXT.R1(A) : COPY OF THE AGREEMENT/BOND OF THE 4TH PETITIONER SUNEESH
KUMAR
EXT.R1(B) : COPY OF THE DETAILS OF THE FINAL LIST OF CANDIDATES OF THE FIRST
RESPONDENT BANK
/TRUE COPY/
P.A TO JUDGE
AV
K.SURENDRA MOHAN, J.
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W.P.(C) No.18470 of 2014
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Dated this the 31st day of July, 2014
J U D G M E N T
The petitioners are persons whose nominations have been rejected by the 2nd respondent on the ground that they are all in default to the Bank in repayment of loans availed by them. According to Adv.Sri.V.G.Arun who appears for the petitioners, the expression "default" has been defined in Rule 2(d) of the Rules as the failure on the part of any persons to repay a loan or other amount due to a Society, within the time fixed for repayment. Therefore, a person would be in default only after the term of the loan is over and the amount becomes due and payable to the Bank.
2. A counter affidavit has been filed by the 1st respondent. According to the 1st respondent, the petitioners are all persons who have availed loans from the Bank. According to the counter affidavit, there are different types of loans granted by the Bank. In the case of ordinary loans availed by mortgaging immovable properties, the period of repayment is five years. In the case of ordinary loans issued on security of sureties, the term is three years. The period of a gold loan is ten months and the period of a special gold loans is three months. If any instalment is defaulted, the same will be treated as default. The 1st petitioner has availed a loan of 15,000/- on 25.02.2013, but has not paid any amount into the loan account. The same is a special gold loan. Therefore, he is in default from W.P.(C) No.18470 of 2014 2 25.05.2013. The 2nd petitioner has availed a loan of 3,50,000/- on 19.11.2011. The period of the said loan is five years, but instalments towards the principal amount have not been made and therefore it is stated that he is in default. The 3rd petitioner is in default in respect of different loan transactions that she has had with the Bank. The loans include special gold loans as well as gold loans, apart from ordinary loan. The 4th petitioner is in default in respect of a loan of 1,80,000/-. The bond that he has executed while availing the loan is Ext.R1(a). The 5th petitioner has availed a loan of 50,000/. He is also in default not having paid the instalments due. The 6th petitioner has availed three gold loans. In respect of his loans also, the repayment is in arrears. Therefore it is contended that all the petitioners are in default and are not entitled to contest the election in view of Rule 44(1)(c) of the Kerala Co-operative Societies Rules, 1969 (hereinafter referred to as the 'Rules' for short).
3. The learned Special Government Pleader Sri.D.Somasundaram also supports the above contentions.
4. In view of the submissions made on behalf of the respondents, it is pointed out by the learned counsel for the petitioners that in the case of petitioners 2, 4 and 5, who have availed loans, the terms of which are not yet over, they cannot be treated as defaulters. It is contended that, only some instalments are remaining unpaid and merely for the reason that some of the instalments have not been paid, they cannot be treated as defaulters. It is also W.P.(C) No.18470 of 2014 3 contended that they are not liable to be disqualified from contesting the election.
5. Having heard the learned counsel appearing for the respective parties, I am not satisfied that there are any grounds to interfere with the proceedings that are under challenge in this writ petition. Admittedly, the petitioners are all persons who are liable to pay various amounts to the 1st respondent Bank. The legislative intent, not to permit persons who are in default to the Bank from contesting the election and occupying the helm of affairs of a Bank is unmistakably evident from the provisions of the Act and Rules. The administration of the Bank is safe in the hands of the persons who are not in default to the Bank in any manner. Persons who owe money to the Bank are therefore not to be put in charge of administration of the Bank. Such a course would not be in public interest or the interests of the members. In the case of petitioners 2, 4 and 5 also the instalments due towards the loans availed are remaining defaulted. The mode of payment upon which they had agreed upon have not been complied with. Therefore, they are persons who are in default to the Bank.
For the above reasons, I do not find any grounds to interfere with the impugned proceedings or to grant any of the reliefs sought. This writ petition is, therefore, dismissed.
Sd/-
K.SURENDRA MOHAN, JUDGE.
AV