Co-operative Societies Rules | Managing Committee Can't Oust Co-Opted Member At Pleasure; Must Invoke No-Confidence Procedure: Kerala High Court

The Kerala High Court has recently held that co-opted members of a managing committee cannot be removed at the “pleasure” of the elected board. The Court held that the only lawful method of removing any member of a managing committee, elected or co-opted, is the statutory process under Rule 43-A of the Kerala Co-operative Societies Rules.Justice K. Babu delivered a common judgment disposing of two connected writ petitions concerning the removal of a co-opted 'Professional Director' from the Indira Gandhi Co-operative Hospital Society. The case arose when the Board of Directors on 10.10.2024 unanimously withdrew the Respondent 2 from the Board of Directors of the Society. Subsequently, the Joint Registrar of the Co-operative Societies issued a notice to the Committee, seeking an explanation regarding the removal of the respondent and later rescinded the decision of the Board invoking Rule 176 of the Co-operative Societies Rules. The Court examined whether a managing committee can remove a co-opted member by passing a simple resolution, claiming that the member served “at the pleasure” of the committee, or must removal strictly follow the no-confidence procedure prescribed by Rule 43-A. Relying on Om Narain Agarwal v Nagar Palika, Shahjahanpur [(1993) 2 SCC 242],the petitioners argued that the continuation of a co-opted member is only at the pleasure of the managing committee. It was further argued that the managing committee can evaluate the performance of a co-opted member and pass a resolution to terminate such membership, if warranted. The Joint Registrar and the removed member, who are the respondents in one of the petition contended that the removal could only be effected by invoking Rule 43-A of the Rules. Reliance was placed on Bhavnagar University v Palitana Sugar Mill(P) Ltd., [(2003) 2 SCC 111] . While agreeing with the submissions of the Respondent and the Joint Registrar, that the manner in which a member of the managing committee, whether co-opted or elected, could be removed is by invoking Rule 43 A of the Rules, the Government Pleader added that the Act and the Rules together constitute a complete self-contained code. The Court noted that according to Section 28 of the Act, the general body of a society shall constitute a committee, for a period of five years in accordance with the by-laws of the society and the procedure for removal of the President, the Vice President, the Treasurer or any other officer of the committee from its office is laid down in Rule 43A of the Rules. The Court examined the reliance placed by the petitioners in the decision in Om Narain Agarwal and observed that the 'pleasure doctrine' does not apply in the present facts as the Kerala Co-operative Societies Act does not provide a provision which allows the committees to remove co-opted members at will. The Court further observed that Rule 43-A of the Rules prescribed the only manner in which a member of the committee of a society may be removed, hence the petition-society should not have removed respondent No. 2 from the committee without adhering to the mandatory procedures.It further held that the managing committee's act of passing a resolution removing the co-opted member without issuing notice, without including the item in the agenda, and without following Rule 43-A was a statutory violation.The Court has also upheld the rescission order issued by the Registrar, restoring the removed member noting that the Registrar was exercising the power under Rule 176 of the Rules. “The petitioner, the Managing Committee of the Society, was acting against the Act and Rules while passing the resolution to remove respondent No.2 without resorting to Rule 43-A of the Rules. The act of the Registrar while passing Exhibit P14 resolution was within the limits of his statutory power.” Court observed. The Court thus disposed of the petition by allowing the co-opted member to continue in his position as a member of the managing committee and held that the action of removal as illegal. Case Title: Indira Gandhi Co-Operative Hospital and Ors and connected caseCase No: WP(C)24928/ 2025 and WP(C) 46208/ 2024Citation: 2025 LiveLaw (Ker) 819Counsel for Petitioners in WP(C)24928/ 2025: Nisha George, George Poonthottam (Sr.), Anshin K K, C S Sheeja (Sr. GP)Counsel for Respondent in WP(C)24928/ 2025: Kaleeswaram Raj, Thulasi K Raj, Aparna Narayan Menon, Chinnu Maria Antony, Click Here To Read/ Download Judgment

Co-operative Societies Rules | Managing Committee Can't Oust Co-Opted Member At Pleasure; Must Invoke No-Confidence Procedure: Kerala High Court

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Co-operative Societies Rules | Managing Committee Can't Oust Co-Opted Member At Pleasure; Must Invoke No-Confidence Procedure: Kerala High Court

Anamika MJ

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