IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR WEDNESDAY, THE 3RD JUNE 2009 / 13TH JYAISHTA 1931 WP(C).No. 20551 of 2006(V) -------------------------- PETITIONER(S): --------------- THE KANTHALLUR SERVICE CO-OPERATIVE BANK LTD. NO. 341, KANTHALLUR, IDUKKI DISTRICT, REP. BY ITS SECRETARY. BY ADV. SRI.P.P.JACOB RESPONDENT(S): --------------- 1. STATE OF KERALA, REP. BY SECRETARY TO AGRICULTURE, PLANNING (B) DEPARTMENT, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM. 2. DIRECTOR OF AGRICULTURE, THIRUVANANTHAPURAM. 3. THE DEPUTY TAHSILDAR (REVENUE RECOVERY), TALUK OFFICE, DEVICOLAM. GOVERNMENT PLEADER SRI. M.R. SABU THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 03/06/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: 2 APPENDIX PETITIONER'S EXHIBITS: EXT.P1 PHOTOCOPY OF THE ORDER ISSUED BY THE FIRST RESPONDENT DATED 27.3.1996 EXT.P2 PHOTOCOPY OF THE AGREEMENT DATED 2.4.96 EXECUTED BY THE PETITIONER WITH THE 2ND RESPONDENT. EXT.P3 PHOTOCOPY OF THE COMMUNICATION ISSUED BY THE 2ND RESPONDENT DATED 14.6.96 EXT.P4 PHOTOCOPY OF THE LETTER ISSUED BY THE PETITIONER TO THE 2ND RESPONDENT DATED 24.6.96 EXT.P5 PHOTOCOPY OF THE COMMUNICATION ISSUED BY THE MANAGING DIRECTOR TO THE 2ND RESPONDENT DATED 14.8.96 EXT.P6 PHOTOCOPY OF THE RECEIPT ISSUED BY THE MANAGING DIRECTOR OF THE PREMIER ENGINEERING PRODUCTS KOCHI DATED 30.9.96 EXT.P7 PHOTOCOPY OF THE COMMUNICATION ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER DATED 17.5.99 EXT.P8 PHOTOCOPY OF THE REPLY SUBMITTED BY THE PETITIONER TO THE 2ND RESPONDENT. EXT.P9 PHOTOCOPY OF THE LETTER ISSUED BY THE PRINCIPAL AGRICULTURAL OFFICER TO THE PETITIONER DATED 23.3.2000 EXT.P10 PHOTOCOPY OF THE JUDGMENT IN OP 1838/01 DATED 9.11.2004 EXT.P11 PHOTOCOPY OF THE STATEMENT FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 3.9.2005 EXT.P12 PHOTOCOPY OF THE REVENUE RECOVERY PROCEEDINGS ISSUED BY THE THIRD RESPONDENT DATED 24.2.2006 EXT.P13 PHOTOCOPY OF THE JUDGMENT IN WPC 7165/06 DATED 15.3.2006 EXT.P14 PHOTOCOPY OF THE ORDER ISSUED BY 2ND RESPONDENT DATED 25.5.2006 TO THE PETITIONER. RESPONDENTS' EXHIBITS: NIL. TRUE COPY P.S. TO JUDGE. C.N. RAMACHANDRAN NAIR, J. -------------------------------------------- W.P.C. NO. 20551 OF 2006 -------------------------------------------- Dated this the 3rd day of June, 2009 JUDGMENT Petitioner is challenging recovery proceedings for recovery of funds advanced by the Government for agricultural development. The case of the State is that amounts were not utilised by the petitioner- society for the purpose for which it was earmarked. If the allegation of the State is true, then action is called for against those in control of the society and not against the society. The amount involved is quite a big sum of Rs. 12 lakhs advanced by the Government during 1996-97. Therefore I dispose of the Writ Petition directing the Director of Agriculture, second respondent herein, to refer the matter for investigation by Vigilance Department. If funds are not utilised for the purpose for which it was granted, then persons responsible whether in service of the society or not should be proceeded against and amounts should be recovered from the beneficiaries in whose favour funds are diverted. If there is criminal misappropriation, prosecution will be launched against those concerned. Since the credentials of the society 2 are very poor, I feel no further funds should be allowed to the society by the Government. Second respondent will immediately order enquiry and Vigilance Department will complete the investigation within three months from the date of receipt of file and orders from the second respondent along with copy of this judgment. Petitioner can raise objections against final recovery before the District Collector, and it is for him to consider whether recovery should be continued against the society. (C.N. RAMACHANDRAN NAIR) Judge kk 3