Societies facing liquidation cannot send delegates to another society: Kerala HC

Kerala High Court rules liquidator cannot cast vote on behalf of winding-up societies in elections.

The Kerala High Court has held that primary cooperative societies which are winding up proceedings under section 71 of the Kerala Co-operative Societies Act and are administered by a liquidator appointed under section 72 cannot be permitted to nominate any person to participate and cast a vote in any other society, on its behalf.

The court further observed that section 72 would make it abundantly clear that when a liquidator is appointed, such a liquidator does not become the society itself. Society remains distinct from the liquidator. For that reason, the liquidator cannot by himself or through any nominated person cast a vote on behalf of the society in an election in the managing committee.

Justice N. Nagaresh passed the verdict recently while setting aside the inclusion of delegates from cooperative housing societies in Pathanamthitta, Kanjirappally, Kalpetta, Wadakkanchery, Perinthalmanna, Chavara and Kollam which are under liquidation, in in the voters list for election in the managing committee of the Kerala State Co-operative Housing Federation Limited.

The State Election Commission contended that as the liquidation proceedings of these societies were still not concluded they were entitled to send a delegate for voting in the election to the managing committee of the federation.

The petition challenging the inclusion of the delegates of the societies under winding-up proceedings was filed by Francis Chammany, a delegate of Vypeen Rural Housing Cooperative Society challenging the inclusion of the societies under liquidation in the voters list.