IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE THOTTATHIL B.RADHAKRISHNAN TUESDAY, THE 3RD JUNE 2008 / 13TH JYAISHTA 1930 WP(C).No. 28490 of 2004(N) ------------------------------------- PETITIONER: ------------------- MANGALODAYAM HANDLOOM WEAVERS CO-OPERATIVE SOCIETY LTD. NO.H.125, MANGALATHUKONAM, KATTACHALKUZHI P.O., VIA BALARAMAPURAM, THIRUVANANTHAPURAM REPRESENTED BY ITS PRESIDENT SRI.P.KUNJUKRISHNAN. BY ADV. SRI.D.SOMASUNDARAM RESPONDENTS: ---------------------- 1. STATE OF KERALA REPRESENTED BY ITS SECRETARY TO GOVERNMENT, INDUSTRIES DEPARTMENT, GOVT.SECRETARIAT, THIRUVANANTHAPURAM. 2. DIRECTOR OF HANDLOOMS AND TEXTILES, THIRUVANANTHAPURAM. 3. GENERAL MANAGER, DISTRICT INDUSTRIES, CENTRE, THIRUVANANTHAPURAM. BY GOVERNMENT PLEADER SRI.P.K.RAVIKRISHNAN THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 03/06/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) NO.28490/2004 APPENDIX PETITIONERS EXHIBITS EXT.P1:- COPY OF THE PROCEEDINGS OF THE DIRECTOR OF HANDLOOMS AND TEXTILES DT. 17.11.2000. EXT.P2:- COPY OF THE CERTIFICATE DT. 6.9.2003 OF THE TRIVANDRUM DISTRICT HANDLOOM DEVELOPMENT SOCIETY. EXT.P2(a):- COPY OF THE CERTIFICATE DT. 17.10.2003 OF THE GENERAL CONVENOR, KERALA HANDLOOM. EXT.P3:- COPY OF THE PROCEEDINGS NO.CS.6/344/2002 DT. 27.11.2002 OF THE 3RD RESPONDENT. EXT.P4:- COPY OF THE COMMUNICATION NO.CS-1/5754/03 DT. 16.10.2003 OF THE 3RD RESPONDENT. EXT.P5:- COPY OF THE COMMUNICATION NO.CS-1-3358/04 DT. 22.6.04 OF THE CONVENOR, HANDLOOM DEVELOPMENT COMMITTEE. EXT.P6:- COPY OF THE JUDGMENT IN OP. NO.23210/98 DT. 13.4.2000 OF THIS HONOURABLE COURT. EXT.P7 SERIES:- COPY OF THE REPRESENTATION TO THE RESPONDENTS BY THE PETITIONER DT. 5.4.2004. /TRUE COPY/ P.S. TO JUDGE tss THOTTATHIL B. RADHAKRISHNAN, J. = = = = = = = = = = = = = = = = = = = = = = = = WP(C).No.28490 of 2004-N = = = = = = = = = = = = = = = = = = = = = = = = Dated this the 3rd day of June, 2008. JUDGMENT Petitioner is a co-operative society working with the aid of the Government and Government share participation to the extent of 20% of the shares. This writ petition is filed challenging the stand of the Government withdrawing the financial aid. It is conceded even in the counter affidavit of the second respondent that statutory enquiries against the petitioner did not unearth any irregularity which called for any action. However, it is stated that certain enquiries conducted by the Financial Inspection Wing which are, admittedly, non-statutory, have pointed out certain irregularities and it was accordingly that the financial assistance was recalled. No particular instance of the financial irregularity is appropriately stated in the counter affidavit. WP(C)28490/2004 -: 2 :- That part, as held by this Court in Ext.P6 judgment dated 13-4-2000 in O.P.23210/1998, the statutory control with the Government and the statutory authorities over the society is only by virtue of the provisions of the Kerala Co- operative Societies Act, 1969 and it is for the Registrar to conclude as to whether an enquiry will be conducted and on such enquiry, if it is found that the working of the society is in order, it is inappropriate and impermissible for the Government to proceed with a non-statutory exercise. While I am in complete agreement with Ext.P6 judgment, it needs also to be noticed that the provisions in the Kerala Co-operative Societies Act can be invoked only in circumstances which call for the exercise of such authority and once such authority is exercised, the parties have to stand by such decision. If enquiry, inspection etc. are conducted by different wings into an establishment, that will only result in the administrative failure of the establishment. WP(C)28490/2004 -: 3 :- For the foregoing reasons, this writ petition is allowed directing that all financial assistance available to the handloom societies as were being extended to the petitioner and as are being extended to similar societies shall be extended to the petitioner and all arrears in that count shall be released within an outer limit of six months from the date of receipt of a copy of this judgment. THOTTATHIL B. RADHAKRISHNAN, JUDGE. Sha/0506