IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE A.M.SHAFFIQUE SATURDAY, THE 3RD DECEMBER 2011 / 12TH AGRAHAYANA 1933 WP(C).No. 9474 of 2010(H) ------------------------- PETITIONERS: --------------- 1. TOMY JOSEPH,S/O.JOSEPH, CHITHARAMANIYIL, CHENGALAM PO,PIN-686 585, KOTTAYAM DISTRICT. 2. MOHANDAS,S/O.NARAYANAN NAIR, PUTHUPPARAMBIL, OOTTACKAL,CHENGALAM PO, PIN-686 585, KOTTAYAM DISTRICT. BY ADV. SRI.GEORGE KARITHANAM VARGHESE RESPONDENTS: --------------- 1. K.V.KURIAN,EXECUTIVE OFFICER(INSPECTION FOR ALL BRANCHES)KOTTAYAM DISTRICT CO-OPERATIVE BANK, HEAD OFFICE, KOTTAYAM. 2. KOTTAYAM DISTRICT CO-OPERATIVE BANK, HEAD OFFICE, KOTTAYAM,REPRESENTED BY ITS GENERAL MANAGER. 3. ELAMGULAM SERVICE CO-OPERATIVE BANK LTD. NO.3576, KOORALI PO, PIN 686 522,REPRESENTED BY ITS ADMINISTRATOR. 4. STATE OF KERALA, REPRESENTED BY THE SECRETARY, DEPARTMENT OF CO-OPERATION, SECRETARIAT, THIRUVANANTHAPURAM. 5. THE REGISTRAR OF CO-OPERATIVE SOCIETIES, THIRUVANANTHAPURAM. 6. THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES(GENERAL),KOTTAYAM. 7. THE SECRETARY OF HOME AFFAIRS, GOVERNMENT OF KERALA, SECRETARIAT, THIRUVANANTHAPURAM. 8. THE DIRECTOR OF VIGILANCE AND ANTICORRUPTION BUREAU, GOVERNMENT OF KERALA, PATTOM, THIRUVANANTHAPURAM. 9. K.J.VIJAYAMMA, SREESYLAM, PONKUNNAM, KOTTAYAM DISTRICT. SR.GOVERNMENT PLEADER SRI.P.I.DAVIS SRI.T.A.SHAJI FOR R2 SRI.GEORGE POONTHOTTAM FOR R1 GOVERNMENT PLEADER SRI.G.P.JITHESH FOR R4 TO R7 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 22/11/2011, THE COURT ON 03/12/2011 DELIVERED THE FOLLOWING: APPENDIX TO W.P.C.No.9474 of 2010 PETITIONER'S EXHIBITS: EXT.P1: TRUE COPY OF THE ORDER OF THE CO-OPERATIVE REGISTRAR DATED 10/9/2002. EXT.P2: TRUE COPY OF THE APPEAL MEMORANDUM IN A.P.NO.32/2001. EXT.P3: TRUE COPY OF THE JUDGMENT DATED 26/11/2001 OF THE CO- OPERATIVE TRIBUNAL. EXT.P4: TRUE COPY OF THE JUDGMENT DATED 13/10/2008 IN W.A.NO.336 OF 2008. EXT.P5: TRUE COPY OF THE REPORT DATED 23/2/2008 SUBMITTED TO THE JOINT REGISTRAR (G), KOTTAYAM BY THE ASSISTANT REGISTRAR OF CO- OPERATIVE SOCIETIES, KANJIRAPPALLY. EXT.P6: TRUE COPY OF THE LETTER NO.C.R.P.(2)774/08 DATED 28/2/2008 TO THE REGISTRAR OF CO-OPERATIVE SOCIETIES BY THE JOINT REGISTRAR (G) OF CO-OPERATIVE SOCIETIES, KOTTAYAM. 1ST RESPONDENT'S EXHIBITS: EXT.R1(a): TRUE COPY OF THE JUDGMENT DATED 13/2/2007 IN W.A.NO.2363/2006 EXT.R1(b): TRUE COPY OF THE COMMUNICATION DATED 22/4/2010 FURNISHED BY THE INFORMATION OFFICER OF THE 3RD RESPONDENT BANK. EXT.R1(c): TRUE COPY OF THE ARC FILED BY THE 3RD RESPONDENT AGAINST 9TH RESPONDENT. // True Copy// PA to Judge A.M.SHAFFIQUE, J * * * * * * * * * * * * * W.P.C.No.9474 of 2010 ---------------------------------------- Dated this the 3rd day of December 2011 J U D G M E N T The petitioners are members of the 3rd respondent Bank and the prayer is to direct the 7th respondent to take action against the delinquent officers as recommended in Exts.P5 and P6 reports and inter alia praying for a direction not to release the terminal benefits of the 1st respondent till a decision is taken by the 7th respondent. 2. Ext.P5 is a report prepared by the Joint Registrar (G), Kanjirappally wherein there is an allegation that Smt.K.J.Vijayamma and others, in collusion with the officers of the Bank, had transferred the amounts deposited by one P.S.Mohan Nair and closed their accounts as a result of which Sri.Mohan Nair filed a case against the Bank and there is an award against the Bank. 3. The allegation against the 1st respondent is that Smt.Vijayamma had another account for which she had mortgaged her property and she closed the said account on 09/10/2007 and that on 10/10/2007 while functioning as Bank W.P.C.No.9474 of 2010 2 Secretary, the 1st respondent released her title deeds. Smt.Vijayamma later on sold this property to one P.J.Abraham. It is stated that on account of the action of the 1st respondent in returning the documents to Smt.Vijayamma, the Bank had suffered loss. Ext.P6 is another report dated 28/2/2008 of the Joint Registrar (G), Kottayam and in the said report also it is stated that by handing over the document back to Smt.Vijayamma, the 1st respondent has acted against the interest of the Bank. 4. It is stated by the petitioners that the said document was released on 10/10/2007 when W.P.C.No.19119 & 20065 of 2007 were pending before this Court and stay was in force. It is contended by the counsel for petitioners that the 1st respondent ought to have taken steps to attach the properties of Smt.Vijayamma before releasing the title deeds. 5. It is, inter alia, contended by respondents 4 and 6 that loss had been caused to the Bank on account of the 1st respondent releasing the title deeds to Smt.Vijayamma. It is stated that an Administrator was appointed in the Bank under Section 22 of the Kerala Co-operative Societies Act and it is in W.P.C.No.9474 of 2010 3 order to protect the interest of the 2nd respondent Bank that the 1st respondent was appointed on deputation basis as the Chief Executive Officer of the 3rd respondent Bank. He was on deputation from 2003 to 2008. According to him also, it was on account of the hasty action by the 1st respondent that the 3rd respondent has suffered huge loss. 6. In the counter affidavit filed by the 1st respondent, it is contended that he was not involved in any misconduct. No loss had been caused to the Bank on account of the 1st respondent releasing the document to Smt.Vijayamma. According to him, once the loan had been discharged, the mortgage property requires to be released. He further contends that Ext.P3 award was passed in 2001 and the mortgage of Smt.Vijayamma was released in the year 2007. Both were entirely different transactions and there were no other dues from Smt.Vijayamma to the Bank at the time of release of the mortgage. According to him, he had given consent to release the mortgage in his capacity as the Secretary of the 3rd respondent Bank on the basis of the office note placed before him. He further submitted that while he was holding charge of the Secretary, the loan availed by W.P.C.No.9474 of 2010 4 the 9th respondent and relatives for Rs.20,00,000/- was closed on 09/10/2007 under an O.T.S. scheme by making 10 monthly deposits and since there were no other charges in respect of the properties they were released. 7. When the above writ petition came up for hearing on 29/03/2010, it was represented that a vigilance enquiry has been ordered to enquire into the discrepancies detected in the matter relating to the release of the title deeds of the debtor against the interests of the society. It was also submitted that four month's time is required to complete the vigilance enquiry. 8. In view of the said submission, I do not think that any further orders are required in the matter. It is for the competent authority to decide as to whether the reports Exts.P5 and P6 are to be accepted or as to whether any action is to be taken pursuant to the vigilance enquiry. 9. By an interim order dated 10/11/2011, this Court had already vacated the earlier interim order dated 26/5/2010 by which there was a direction to withhold the terminal benefits of the 1st respondent. Apart from that in the absence of any specific provision of law or service rule the terminal benefits of a retired W.P.C.No.9474 of 2010 5 employee cannot be withheld. 10. Having taken into consideration the pleadings in the matter and also the arguments of the respective counsels, I do not think that a direction, as prayed for, can be granted in the case. 11. Since a vigilance enquiry is already in progress, it is for the competent authorities to take into consideration any such report and to pass appropriate orders. Until such time, it is not fair to prevent the 1st respondent from obtaining his terminal benefits. 12. Hence this writ petition is disposed of directing the Government or other competent authorities to consider the vigilance report if available and to take appropriate action in the matter untrammeled by any observations made in this judgment. (A.M.SHAFFIQUE, JUDGE) jsr // True Copy// PA to Judge W.P.C.No.9474 of 2010 6 W.P.C.No.9474 of 2010 7 W.P.C.No.9474 of 2010 8