In a significant judgment for the cooperative sector, the Kerala High Court has ruled that depositors of cooperative societies engaged in banking activities can approach consumer forums for redressal of grievances, even when remedies are available under the Kerala Cooperative Societies Act.
The ruling came in a case involving Puthur Service Co-operative Society, Thrissur, which had failed to repay fixed deposits worth Rs 5 lakh to a depositor after maturity. The Consumer Commission had earlier directed the society to refund the amount along with interest, compensation and costs.
Challenging the order, the society contended that the dispute should be adjudicated under the Kerala Cooperative Societies Act. However, the High Court rejected the argument, holding that the Consumer Protection Act provides an additional remedy and does not bar the jurisdiction of consumer forums.
The Court observed that institutions handling public deposits have a duty to honour repayment commitments and should not rely on technical grounds to defeat legitimate claims. Dismissing the appeal, the Court granted the society six months to comply with the repayment order.