IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE T.R.RAMACHANDRAN NAIR FRIDAY, THE 22ND FEBRUARY 2008 / 3RD PHALGUNA 1929 OP.No. 22382 of 2002(M) ----------------------- PETITIONERS: -------------------- 1. KERALA PRIMARY CO-OPERATIVE SOCIETIES ASSOCIATION, 1ST FLOOR, STATE CO-OPERATIVE BANK BUILDING, THIRUVANANTHAPURAM, REPRESENTED BY ITS GENERAL SECRETARY, MR. V. KARUNAN MASTER. 2. MADAI CO-OPERATIVE RURAL BANK LTD.NO.F 1233, P.O. PAYANGADI, KANNUR, REPRESENTED BY ITS PRESIDENT BALANMASTER. BY ADV. SRI.P.N.MOHANAN SRI.V.SUMESH RESPONDENTS: ---------------------- 1. GOVERNMENT OF KERALA REPRESENTED BY ITS SECRETARY, CO-OPERATION DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM. 2. REGISTRAR OF CO-OPERATIVE SOCIETIES, OFFICE OF THE REGISTRAR OF CO-OPERATIVE SOCIETIES, THIRUVANANTHAPURAM. BY SPL.GOVT.PLEADER SMT.T.B.REMANI. THIS ORIGINAL PETITION HAVING BEEN FINALLY HEARD ON 22/02/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ORDER ON CMP.NO.38345/2002 IN OP.NO.22382/2002-M. DISMISSED. 22.2.2008. Sd/- T.R.RAMACHANDRAN NAIR, JUDGE. APPENDIX PETITIONERS' EXHIBITS:- P1: COPY OF THE CIRCULAR NO.6/2002 DATED 22.3.2002. RESPONDENTS' EXHIBITS:- NIL. ( true copy ) P.A. TO JUDGE. kvs/- T.R.RAMACHANDRAN NAIR, J. ========================= OP.No.22382 of 2002-M. ========================= Dated this the 22nd day of February, 2008. J U D G M E N T This Original Petition is filed by an Association representing Kerala Primary Co-operative Societies. The grievance raised by the petitioner is in respect of Ext.P1 circular issued by the Registrar of Co-operative Societies whereby the uniform rate of interest on deposits accepted by the co-operative credit institutions has been fixed. The said circular was effective from 16.4.2002. Obviously the said circular has lost its relevance because of efflux of time and revised rates have come into force already. The petitioner opposes Ext.P1 on various grounds. Firstly it is pointed out that the society has its own autonomy in the matter. 2. It is pointed out that Rule 5(2) specifically provides that maximum rates of interest on loans to members can be one of the subject matter of bye-laws. It is therefore contended that once the OP.No.22382 of 2002-M. -: 2 :- bye-law is registered by the Registrar he cannot encroach upon that right of the Managing Committee by issuing a circular which is not having any statutory force. 3. It cannot be disputed that in the statutory scheme Sec.66(1)(a) enables the Registrar to supervise or cause to be supervised by a person authorised by him by general or special order, the working of every society as frequently as he may consider necessary. The effect of the said provision was examined in Aji v. State of Kerala (1995(1) KLT 363). It was held that when Sec.66(1)(a) provides for supervision by the Registrar it has to be read in the totality of the scheme of the Act and the Court has to adopt a harmonious construction of the statute and the importance of the word 'supervision' cannot be under estimated. Thus it is now well settled that the Registrar is having powers of supervision over the co-operative institutions. Therefore, the power under which Ext.P1 was issued can be traced to Sec.66 of the Act. If that be so, there is no illegality or irregularity in issuing Ext.P1. The Registrar has only provided a uniform rate of interest as was done OP.No.22382 of 2002-M. -: 3 :- in earlier years. Therefore, the challenge against Ext.P1 fails. It does not encroach upon the power conferred on the Managing Committee as per the bye-laws. The Managing Committee is expected to act in accordance with the guidelines issued by the Registrar. For all these reasons I see no reason to interfere with Ext.P1. Therefore the Original Petition is dismissed. T.R.RAMACHANDRAN NAIR, JUDGE. kvs/-