Full Judgment
-1-
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 29TH DAY OF FEBRUARY, 2024 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION No.6125 OF 2024 (CS-RES) BETWEEN:
1. D. VENKATESH MURTHY SON OF LATE DEVAPPA, AGED ABOUT 62 YEARS,
2. DEVARAJA SUBBARAYAPPA SON OF SUBBARAYAPPA, AGED ABOUT 52 YEARS,
3. H R KRISHNAPPA SON OF REVANNA, AGED ABOUT 62 YEARS,
4. D CHANDRASHEKAR
SON OF DEVAPPA, AGED ABOUT 52 YEARS, PETITIONERS NO.1, 3 AND 4 ARE DIRECTORS, Digitally AND 2ND PETITIONER IS VICE-PRESIDENT OF signed by R MANJUNATHA KAGINELE KANKASHREE SOUHARDA Location: CREDIT CO-OP. SOCIETY LTD, HIGH COURT OF NO.79/4, 22ND CROSS ROAD, KARNATAKA GOVINDARAJANAGAR, BANGALORE - 560 040 …PETITIONERS (BY SRI S.SARAVANA, ADVOCATE) AND:
1. THE STATE OF KARNATAKA REPRESENTED BY SECRETARY, DEPARTMENT OF COOPERATIVE -2- M S BUILDING, BANGALORE - 560 001
2. THE DEPUTY REGISTRAR OF CO-OPERATIVE (NI,441) KARNATAKA RAJYA SOUHARDHA SOMYUKTA SAHAKARI NIYAMITA BENGALURU, NO.17, 18TH CROSS, MARGOSA ROAD, MALLESHWARAM, BANGALORE -560 003
3. KAGINELE KANAKASHREE SOUHARDA CREDIT CO. OP. SOCIETY LTD NO.79/4, 22ND CROSS ROAD, GOVINDARAJANAGAR, BANGALORE -560040 BY ITS ADMINISTRATOR REG. UNDER KARNATAKA CO-OP. SOCIETY ACT 1959
4. SRI PARAMESH KRISHNAPPA S/O LATE KRISHNAPPA, AGED ABOUT 36 YEARS, R/A NO 32/3, 2ND MAIN ROAD, MARENAHALLI, VIJAYANAGAR, BANGALORE 560040
5. KAGINELE KANAKASHREE SOUHARDA CREDIT CO OP. SOCIETY LTD NO.79/4, 22ND CROSS ROAD, GOVINDARAJANAGAR, BANGALORE 560040 BY ITS CHIEF EXECUTIVE OFFICER REG. UNDER KARNATAKA CO-OP SOCIETY ACT 1959. …RESPONDENTS (BY SRI SIDDHARTH BABU RAO, AGA FOR R1 AND R2; SRI MAHESH KIRAN SHETTY FOR SRI A.DEVARAJA, ADVOCATES FOR R4; SRI N.RAMACHANDRA, ADVOCATE FOR R5; R3-UNSERVED) -3- THIS WRIT PETITION IS FILED UNDER ARTICLES 226
AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DECLARE THAT THE PROCEEDINGS BEFORE THE R-2 NI NO. DRD/KR SOUSAMAUM SANI/1484/2023-24 UNDER SECTION 39 OF KARNATAKA SOUHARDA SAHAKARI ACT, 1997 AS PER ANNEXURE-D IS WITHOUT JURISDICTION AND ARBITRARY AND ETC., THIS WRIT PETITION, COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING:
ORDER
Petitioners have sought for issuance of writ to declare that the proceedings before the 2nd respondent -Deputy Registrar of Co-operative Societies initiated under Section 39 of the Karnataka Souharda Sahakari Act, 1997, vide Annexure-D is without jurisdiction and being arbitrary. Petitioners have also sought to quash the proceedings/Order dated 07.02.2024 at Annexure-D1, whereby, the resolution of the Society dated 29.11.2022 (it is submitted that the actual date of the resolution is 29.12.2022 and wrongly written in the order as 29.11.2022) as well as resolution dated 02.02.2023 which has been kept in abeyance by virtue of the impugned Order.
2. Learned counsel for the petitioners submits that in terms
of the resolution dated 29.12.2022 and 02.02.2023, about 560 members have been admitted as members of the Society and said resolution has been challenged in the proceedings in -4- dispute No.1484/2023-24. It is submitted that said challenge is by individual members and in such proceedings instituted, resolution admitting members referred to above, has been stayed.
3. It is further submitted that petitioners have filed an
application under Section 41(3) of the Karnataka Souharda Sahakari Act, 1997, and have sought for a decision to be made on the point of maintainability. It is submitted that challenge to the resolution referred to above at the instance of individual members is not maintainable and other such grounds have been raised in the application.
4. It is submitted that if calendar of events are announced,
right of 560 members who have been admitted to the membership of the Society would in jeopardy and accordingly, present writ petition has been filed. Other contentions have also been raised to the effect that the interim order passed at Annexure-D1 interferes with the day to day conduct of affairs of the Society. -5-
5. It is to be noticed that dispute No.1484/2023-24 is
pending consideration before the Deputy Registrar of Co- operative Societies. The Order at Annexure-D1 is sought to be modified and varied by passing an order on the application under Section 41(3) of the Karnataka Souharda Sahakari Act, 1997 which has been filed on 15.02.2024.
6. Learned AGA submits that said application has already taken up and arguments have been heard. Further, sufficient time would be required to pass orders.
7. The respondent No.2 is directed to dispose of the
application filed under Section 41(3) of the Karnataka Souharda Sahakari Act, 1997, within a period of 20 days from today. Needless to state that as no calendar of events published, publication of calendar of events is to be deferred till passing of appropriate orders and all contentions are kept open.
8. Petition is disposed off without entering into the merits
of the matter, as the matter is pending before the Deputy Registrar of Co-operative Societies and appropriate Orders can be passed on all the contentions of the parties. -6-
9. Respondent No.4 who is the petitioner in the proceedings
pending before the Deputy Registrar of Co-operative Societies in dispute No.1484/2023-24 has also raised various contentions supporting the impugned order passed at Annexure-D1. All contentions of both sides are kept open. Any observation made by this Court is only to the limited purpose of present proceedings and must not be taken as conclusive finding on the merits of the contentions raised. Sd/- JUDGE kcm List No.: 1 Sl No.: 30