The petitioner is aggrieved with the order passed under Section 68 of the Kerala Co-operative Societies Act, 1969 [for brevity “the Act”], evidenced by Exhibit P1. Normally this Court would not have interfered with an order under Section 68 of the Act, since alternate remedies are provided under the Act. However, the above writ petition was admitted on 16.07.2008 and an interim stay was in force from that date. In such circumstance, necessarily this Court has to look into the merits of the matter, despite there being an alternate remedy.
2. A reading of Exhibit P1 would indicate that after an enquiry under Section 66, it was found that certain loss was caused to the Bank by the alleged action of the Managing Committee in not having sold paddy at the proper time. Admittedly a notice was issued under Section 68 in initiation of surcharge proceedings, which was replied to by Exhibit P2. Exhibit P2 indicates that the loss was caused only due to the fact situation existing at that point of time. The Government noticing the reduction in market value of paddy, initiated WP(C).No.21352 of 2008 - 2 -
paddy procurement measure, fixing a fair price for the paddy cultivated. In such circumstance, the paddy cultivated was conserved by the petitioners - the Managing Committee members. Subsequently, advertisements were also made for sale of the same. However, despite that no fair price offer was obtained. In such circumstance, the petitioners were constrained to sell off paddy to a private mill at Kalady. When goods were transported, the same was interdicted by certain elements, objecting to such sale. Hence, the said sale also did not fructify. The fact situation being such, the paddy conserved by the Society could not be sold at the proper time. When sale itself was effected, the market value of the paddy fell and there was loss caused. The fact situation, according to this Court, does not commend continuation of surcharge proceedings against the petitioners herein. Exhibit P1, hence, would be set aside.
In the result, the writ petition is allowed. Exhibit P1 is set aside. Parties are left to suffer their respective costs.
vku.
Sd/-
K.Vinod Chandran, Judge ( true copy )