A Division Bench of the Kerala High Court has held the State Human Rights Commission (SHRC) has no jurisdiction to direct a cooperative bank to extend the benefits of one-time settlement scheme to a borrower.
The Bench led by Chief Justice M. Manikumar observed that Section 74 of the Kerala Cooperative Society Act did not empower any authority or commission other than the government or Registrar to write off agricultural or non-agricultural debts of borrowers of any society.
The court made the ruling while setting aside a directive of the SHRC to the Secretary of Thankey Service Co-operative Bank, Cherthala, to give the benefits of one-time settlements to a borrower.
The court pointed out that it was further seen that when there was an award passed by an arbitrator directing payment of interest, against which an appeal remedy was provided under Chapter XIII of the Cooperative Societies Act, the SHRC had indirectly interfered with the order passed by the arbitrator.
In its petition, the bank contended that the Kerala Cooperative Societies Act had laid down clear procedures as to how the monetary disputes had to be adjudicated. The registrar of cooperative societies was vested with the power to adjudicate the monetary disputes, and the arbitration court constituted under Section 69 had to consider matters pertaining to the service of employees and establishment issues.
Therefore, the order of the SHRC was without jurisdiction and liable to be set aside, the court observed.
